Cleanaway Waste Management (CWY) H2 2024 earnings summary

Executive summary

• Achieved double-digit EBIT growth and improved ROIC in FY 2024, driven by operational execution, strategic project delivery, and the Blueprint 2030 strategy.

• Restoration in Queensland and transformation in Health Services contributed significantly, with labor productivity gains from reduced vacancies and turnover.

• Operational excellence initiatives are scaled, with strategic infrastructure projects like VIC CDS and Western Sydney MRF progressing as planned.

• On track to achieve mid-term ambition of over AUD 450 million EBIT in FY 2026, with internal stretch target of AUD 500 million.

• FY 2025 EBIT guidance is AUD 395–425 million, targeting another year of double-digit earnings growth.

Financial highlights

• Net revenue rose 7.7% to AUD 3.2 billion year-over-year, with growth across all segments.

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

• Net profit after tax grew 14.8% to AUD 170.6 million, EPS up 15.2% to AUD 0.076, and ROIC improved 60 bps to 5.5%.

• Net operating cash flow rose 12.5% to AUD 542.1 million, with a strong 97.6% cash conversion ratio.

• Final fully franked dividend of AUD 0.0255 per share, full year dividend AUD 0.05 per share, payout ratio 65.9%.

Outlook and guidance

• FY 2025 EBIT expected between AUD 395–425 million; D&A between AUD 380–400 million; net interest expense around AUD 130 million; CapEx forecast at AUD 400 million (AUD 250 million maintenance, AUD 150 million growth).

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

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