Cleanaway Waste Management (CWY) H2 2025 earnings summary

Executive summary

• Achieved strong financial performance in FY25, with underlying EBIT up 14.6% to $411.8M, three consecutive years of double-digit EBIT growth, and EPS up 15.8%.

• Total dividends increased 20% to 6.0 cents per share, payout ratio 68.2%, and ROIC improved by 50 basis points to 6.0%.

• Strategic acquisitions (Citywide Waste and Contract Resources) expected to add ~$30M EBIT in FY26, supporting Blueprint 2030 growth platform.

• Maintained defensive earnings and recurring revenue, leveraging operational excellence and sustainability initiatives.

• Branch-led Operating Model implemented in over 90% of branches, supporting sustained margin expansion.

Financial highlights

• Net revenue rose 3.4% to $3,302.7M, driven by volume and price growth in solid waste services.

• Underlying EBIT increased 14.6% to $411.8M, with EBIT margin expanding by 130 basis points to 12.5%.

• Underlying NPAT grew 16.1% to $198M; statutory NPAT up 0.2% to $156.9M.

• Free cash flow was $270.2M, but excluding catch-up tax, it increased 26.1% to $363.2M.

• Total capital expenditure reduced by 14.3% to $382M, reflecting disciplined capital management.

Outlook and guidance

• FY26 underlying EBIT expected between $470M and $500M, including ~$30M from acquisitions.

• On track to deliver more than $450M underlying EBIT by FY26, excluding acquisitions.

• FY26 capex guidance at ~$415M, with focus on fleet replacement and growth assets.

• Net finance costs projected at ~$150M in FY26 due to higher debt balances.

• Free cash flow normalization expected by FY27 as tax impacts subside.