Cleanaway Waste Management (CWY) H2 2025 earnings summary

Executive summary

• Achieved strong financial performance in FY 2025, with underlying EBIT up 14.6% to $411.8 million and three consecutive years of double-digit EBIT growth.

• EPS grew 15.8%, total dividends increased 20% to 6.0 cps, and ROIC improved by 50 basis points to 6.0%.

• Maintained defensive earnings and recurring revenue, leveraging the Blueprint 2030 growth platform and progressing strategies for future market leadership.

• Strategic acquisitions (Citywide Waste and Contract Resources) expected to add ~$30 million EBIT in FY 2026.

• Continued focus on health, safety, environment, and sustainability, with notable reductions in environmental incidents and emissions.

Financial highlights

• Net revenue rose 3.4% to $3.3 billion, driven by volume and price growth in solid waste services.

• Underlying EBIT margin expanded by 130 basis points to 12.5%.

• Underlying net profit after tax grew 16.1% to $198 million.

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

• Payout ratio increased to 68.2% of underlying NPAT, with fully franked final dividend of $3.20 per share.

Outlook and guidance

• FY 2026 underlying EBIT expected between $470 million and $500 million, including $30 million from acquisitions.

• CapEx for FY 2026 projected at $415 million, with focus on fleet replacement and growth assets.

• Net finance costs projected at $150 million in FY 2026 due to higher debt balances.

• Free cash flow normalization expected by FY 2027 as tax impacts subside.

• On track to deliver more than $450 million in underlying EBIT by FY 2026 and improved ROIC.