Casella Waste Reports Strong Q4 & FY25 Adjusted Results, Guides for Significant FY26 Net Income Rebound
CWST sits 23% above its 52-week low of $82.22.
Summary
Casella Waste Systems reported strong Q4 and fiscal year 2025 revenue and Adjusted EBITDA growth, driven by acquisitions, despite a GAAP net loss in Q4 and a significant decline in full-year GAAP net income. The company provided optimistic fiscal year 2026 guidance, projecting a substantial increase in net income.
Key Events · Earnings and Guidance · CWST
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Q4 2025 Revenue Growth
Revenues increased 9.7% to $469.1 million for the fourth quarter ended December 31, 2025.
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FY 2025 Revenue Growth
Full-year revenues rose 18.0% to $1.837 billion for fiscal year 2025.
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FY 2025 GAAP Net Income Decline
Net income for fiscal year 2025 decreased 41.9% to $7.9 million, with a Q4 net loss of $(2.5) million, primarily due to higher depreciation and amortization from acquisitions.
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Strong Adjusted EBITDA & Free Cash Flow
FY 2025 Adjusted EBITDA grew 17.3% to $422.8 million, and Adjusted Free Cash Flow increased 13.6% to $179.9 million.
Analysis · CWST · Energy & Transportation
Casella Waste Systems delivered robust top-line growth and strong Adjusted EBITDA and Free Cash Flow for both the fourth quarter and full fiscal year 2025, largely fueled by strategic acquisitions and solid pricing. While GAAP net income saw a notable decline for the full year and a loss in Q4, the company attributed this to higher depreciation and amortization expenses associated with its aggressive acquisition strategy. The provided fiscal year 2026 guidance projects a significant rebound in GAAP net income, alongside continued growth in revenues, Adjusted EBITDA, and cash flow, suggesting management expects the benefits of recent acquisitions to translate into improved GAAP profitability. Investors should monitor the company's ability to integrate acquisitions efficiently and realize the projected GAAP net income growth in 2026.
At the time of this filing, CWST was trading at $101.28 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $6.4B. The 52-week trading range was $82.22 to $121.24. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.