Cleanaway Waste Management (CWY) H2 2026 earnings summary

Executive summary

• FY26 underlying EBIT reached $470.2 million, up 14.2% year-over-year, driven by Solid Waste Services and Contract Resources, with acquisitions contributing $38 million EBIT; statutory NPAT fell 37.2% to $98.5 million due to significant non-recurring items.

• Net revenue rose 13.1% to $3,736.7 million, with gross revenue up 13.5% to $4,371.3 million, reflecting core business strength and acquisitions.

• Free cash flow increased 63.7% to $213.8 million, reflecting disciplined cash management and improved payment terms.

• Dividend per share increased 14.2% to 6.85 cents, with a payout ratio of 68.8% of underlying NPAT.

• Indirect cost savings of $13 million achieved in FY26, with $25 million+ targeted for FY27; Blueprint 2030 2.0 initiatives advanced, including IT modernization.

Financial highlights

• Underlying EBIT margin improved 10 bps to 12.6%; underlying EBITDA margin at 23.9% (down 10 bps year-over-year).

• Underlying NPAT rose 13.6% to $223.1 million; underlying EPS up 13.6% to 10.0 cents.

• ROCE improved 60 bps to 9.7%; ROIC up 60 bps to 6.6%.

• Leverage ratio at 2.27x; net debt $2,288.7 million (up 31.8%).

• Total capital expenditure, including non-cash leases, was $374.3 million; capex as % of net revenue at a five-year low.

Outlook and guidance

• FY27 underlying EBIT guidance: $500 million–$530 million, driven by organic growth, margin expansion, and recovery in underperforming segments.

• Depreciation and amortization expected at $435 million–$455 million; underlying EBITDA guidance: $935 million–$985 million.

• Cash capex for FY27 expected at ~$360 million; total capex $400 million–$410 million plus $40 million for fleet delivery timing.

• Remediation of landfills projected at ~$180 million over FY27–FY29.

• Focus on margin expansion, free cash flow generation, and continued cost discipline.