Casella Waste Systems (CWST) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 9.6% year-over-year to $457.3 million, driven by pricing and acquisitions, with adjusted EBITDA up 12.3% and margin expansion of 50 basis points.

• Net loss widened to $5.5 million, with EPS at $(0.09), due to higher interest and acquisition expenses, while adjusted net income increased to $12.8 million.

• Margin expansion exceeded budget, supported by disciplined pricing, operational execution, and acquisition integration, especially in the Mid-Atlantic.

• Four acquisitions closed in 2026, adding $150 million in annualized revenue, including the $100 million Star Waste deal.

• Safety initiatives and technology investments, such as Lytx AI, improved OSHA TRIR by 20% year-over-year.

Financial highlights

• Adjusted EBITDA reached $97.1 million (21.2% margin), up $10.7 million year-over-year.

• Operating income was $4.9 million, up 54.5% year-over-year.

• Net cash from operating activities was $62.3 million, up 24% year-over-year.

• Adjusted free cash flow was $30.7 million, up 5% year-over-year.

• Capital expenditures were $49.98 million, with $16.24 million in growth capex.

Outlook and guidance

• 2026 revenue guidance raised to $2.06–$2.08 billion, adjusted EBITDA to $473–$483 million, and adjusted free cash flow to $200–$210 million.

• Net income guidance lowered to $4–$10 million.

• Guidance reflects acquisitions closed to date, with $120 million of new annualized revenue for nine months.

• Expecting roughly 14% adjusted free cash flow growth at midpoint of guidance.

• Sufficient liquidity and cash flow projected to fund operations and investments for at least 12 months.