Cleanaway Waste Management (CWY) H2 2024 earnings summary

Executive summary

• FY 2024 delivered double-digit EBIT growth of 18.9%, improved ROIC, and exceeded guidance, driven by operational execution, Blueprint 2030 strategy, and strategic project delivery.

• Restoration in Queensland Solids, Health Services transformation, and operational excellence initiatives contributed significantly to performance.

• Strategic infrastructure projects, including VIC CDS and Western Sydney MRF, are progressing as planned, with a mid-term ambition of over $450 million EBIT in FY 2026.

• EPS increased 15.2% to 7.6 cents, and final fully franked dividend rose to 2.55 cps, with a full year dividend of 5.0 cps.

• Net cash from operating activities rose to $542.1 million, with a cash conversion ratio of 97.6%.

Financial highlights

• Net revenue increased 7.7% year-over-year to $3,194.5 million, with growth across all segments.

• Underlying EBIT grew 18.9% to $359.2 million, with EBIT margin up 100 bps to 11.2%.

• Net profit after tax rose 14.8% to $170.6 million; statutory NPAT was $158.2 million.

• Underlying EBITDA up 9.1% to $728.7 million; ROIC improved 60 bps to 5.5%.

• Net operating cash flow increased 12.5% to $542.1 million; final dividend 2.55 cps, full year 5.0 cps.

Outlook and guidance

• FY 2025 underlying EBIT expected between $395–$425 million; D&A $380–$400 million; net interest expense around $130 million.

• FY 2025 capital expenditure forecast at ~$400 million ($250 million maintenance, $150 million growth).

• On track for midterm ambition of over $450 million EBIT in FY 2026, with internal stretch target of $500 million.

• Assumes no material changes to market conditions or unforeseen events.