CWST · Casella Waste Systems, Inc.

Casella Waste Systems delivered strong top-line and Adjusted EBITDA growth in Q1 2026, with revenue rising 9.6% year-over-year to $457.3 million and Adjusted EBITDA increasing 12.3% to $97.1 million — outpacing revenue growth and driving 50 basis points of Adjusted EBITDA margin expansion. This performance was underpinned by solid organic drivers: solid waste pricing increased 5.1% overall (5.3% collection, 4.7% disposal), landfill pricing rose 4.3%, and the company’s floating fuel recovery fees fully offset rapid fuel cost inflation across legacy operations. Acquisitions contributed meaningfully, with four deals closed in early 2026 adding ~$150 million in annualized revenue, including Star Waste Systems, which overlays Casella’s New England footprint and enhances density. Despite operational strength, GAAP net loss widened to $(5.5) million from $(4.8) million, reflecting higher interest expense, depreciation/amortization, and acquisition-related costs. Management responded by raising full-year 2026 guidance for revenue ($2.060–$2.080B), Adjusted EBITDA ($473–$483M), and Adjusted Free Cash Flow ($200–$210M), while lowering net income guidance to $4–$10 million — signaling confidence in underlying business execution and acquisition integration, but caution on near-term GAAP profitability headwinds. The reaffirmed operating cash flow guidance ($370–$380M) further underscores liquidity resilience. Forward-looking statements in the release highlight continued focus on automation, routing optimization, safety, and technology investments — all aimed at sustaining margin discipline amid inflationary pressures and regulatory uncertainty, including emerging PFAS-related risks.