RUTLAND, Vt., Jan. 27, 2026 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (Nasdaq: CWST), a regional solid waste, recycling, and resource management services company, will release its financial results for the three months ended December 31, 2025 after the market closes on Thursday, February 19, 2026. The company will host a conference call to discuss these results on Friday, February 20, 2026, at 10:00 a.m. Eastern Time. Individuals interested in participating in the call should register by clicking here ...

Industry Overview - The waste management industry operates as an oligopoly, characterized by limited competition and significant pricing power due to the scarcity of landfill permits and the essential nature of waste disposal services [1] - The industry demonstrates resilience through economic cycles, including recessions and inflation, making it an attractive sector for investors [1] Company Summaries 1. Waste Management (NYSE:WM) - Waste Management is the largest player in the industry with a market cap of $92.4 billion and trailing revenue of $24.8 billion, owning over 250 landfills across North America [11] - The company reported a 5.2% growth in landfill volumes and achieved record operating EBITDA margins of 38.4% in Q3 2025 [11][12] - Waste Management expects free cash flow to approach $3.8 billion in 2026, with a return on equity of 29.3% and a consistent dividend of $3.30 annually [12][13] 2. Republic Services (NYSE:RSG) - Republic Services is the second-largest company with $16.5 billion in trailing revenue and a market cap of $67.9 billion, boasting operating margins of 19.9% [9] - The company is investing in sustainability, with seven renewable natural gas projects expected to generate $70 million in incremental revenue [10] - Republic's stock trades at 32x earnings, with a target price of $244.21, reflecting steady growth potential [10] 3. Waste Connections (NYSE:WCN) - Waste Connections focuses on secondary and tertiary cities, achieving $9.4 billion in revenue and 19.3% operating margins [6] - The company trades at 71x trailing earnings, with a forward multiple of 22x, indicating market expectations for recovery [7] - Waste Connections has consistently increased dividends, with a recent quarterly payout growth of 11% [7] 4. Casella Waste Systems (NASDAQ:CWST) - Casella Waste Systems, a regional specialist in the Northeast US, generated $1.8 billion in revenue with a year-over-year growth of 17.9% [4] - The company trades at 441x trailing earnings, indicating high valuation despite operational growth [5] - Casella's quarterly earnings increased by 60% year-over-year, showcasing its potential for margin expansion [5] 5. GFL Environmental Holdings (NYSE:GFL) - GFL Environmental is a Canadian company that has aggressively acquired smaller haulers, achieving $8.2 billion in revenue with 9% year-over-year growth [2] - The company has a high valuation, trading at 261x trailing earnings, with operating margins of 10.5% [3] - GFL's institutional ownership at 99.7% reflects confidence in its consolidation strategy, although it faces execution challenges [3]

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Ned Coletta Ned Coletta, Chief Executive Officer RUTLAND, Vt., Jan. 05, 2026 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today announced the successful completion of its CEO succession plan. Edmond R. “Ned” Coletta has officially assumed the role of Chief Executive Officer and joined the Company’s Board of Directors, effective January 1, 2026. This milestone marks a historic moment for Casella, as Coletta bec ...

Company Overview - Casella Waste is a Vermont-based waste management company founded in 1975, growing from a one-truck operation to a $6.37 billion enterprise over fifty years, specializing in resource renewal and sustainability through recycling services [2] - The company operates in nine states, providing services such as trash collection, organics disposal, compressed natural gas collection, landfill operations, and specialized waste management [1] Financial Performance - In Q3, Casella reported revenue of $485.4 million, reflecting an 18% year-over-year increase and exceeding forecasts by $9 million [7] - The non-GAAP EPS for Q3 was 42 cents, up 2 cents from the previous year and beating expectations by 10 cents [7] Analyst Insights - Raymond James analyst Patrick Brown views the post-Q2 stock pullback of Casella as overdone, expecting a rebound as the company completes its systems integration and realizes synergies from recent acquisitions [8] - Brown has assigned a Strong Buy rating to Casella with a price target of $120, indicating a potential upside of 22.5% [8] Market Context - The current bull market, which began in fall 2022, has seen the S&P 500 advance approximately 16.5% in 2025, with the tech-heavy Nasdaq rising about 20.5% [5] - The macroeconomic environment is characterized by resilient growth, fiscal tailwinds, and robust corporate earnings, suggesting continued support for the bull market [4] Competitive Landscape - Casella's versatility allows it to serve a wide range of industries, including agriculture, retail, construction, and municipalities, highlighting its adaptability in waste management [6]

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Core Viewpoint - Casella Waste Systems (CWST) has been under observation, with shares declining approximately 9% since the last analysis in December 2024, which maintained a 'hold' rating on the stock [1] Company Analysis - The company is recognized for its high-quality stock and strong business fundamentals, particularly in capital allocation and return on capital [1] Investment Philosophy - The investment approach emphasizes acquiring stocks from businesses that demonstrate disciplined capital allocation, exceptional returns on capital, and the ability to compound invested capital over extended periods [1]

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Financial Highlights - The company's revenue in 2025E is projected to be $1.8 billion[9] - The company projects year-over-year revenue growth of $278 million, a 17.8% increase at the midpoint[56] - Adjusted EBITDA for 2025 is guided to be between $415 million and $425 million, representing a $59 million increase, or 16.5% at the midpoint[56] - Adjusted Free Cash Flow is expected to be between $170 million and $180 million, an increase of $16.7 million, or 10.5% at the midpoint[56] - Net cash provided by operating activities is projected to be between $325 million and $335 million, up $48.6 million, or 17.3% at the midpoint[56] Business Operations - Collection services account for 64.7% of the company's revenue[6] - Disposal services contribute 14.6% to the company's revenue[6] - National Accounts represent 12.1% of the company's revenue[6] - Resource Solutions Processing accounts for 7.5% of the company's revenue[6] - Energy & Processing contributes 1.0% to the company's revenue[6] Strategic Initiatives - The company has completed 66 acquisitions since 2019, deploying approximately $2 billion of capital to acquire approximately $850 million of annual revenue[27]

Revenue Growth - Total revenues for the three months ended September 30, 2025, were $485.4 million, a 17.9% increase from $411.6 million in the same period of 2024[120] - Solid waste revenues increased by $67.0 million, or 20.6%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by acquisitions and price increases[121] - Collection revenues for the three months ended September 30, 2025, were $314.0 million, representing 64.7% of total revenues, up from $252.6 million, or 61.4%, in the same period of 2024[120] - The company completed eight acquisitions in the nine months ended September 30, 2025, contributing $175.9 million, or 19.9%, to solid waste revenues[121] - The Western segment saw a revenue increase of $93.7 million (23.2%) to $497.6 million for the nine months ended September 30, 2025, compared to $403.9 million in 2024[141] - Solid waste revenues in the Eastern region grew by $8.5 million (7.2%) for the three months and $20.3 million (6.1%) for the nine months ended September 30, 2025, primarily driven by acquisitions and higher collection pricing[143] - Solid waste revenues in the Western region increased by $32.2 million (22.5%) for the three months and $93.7 million (23.2%) for the nine months ended September 30, 2025, due to acquisitions and higher collection pricing[147] - Solid waste revenues in the Mid-Atlantic region increased by $26.4 million (40.7%) for the three months and $101.6 million (67.7%) for the nine months ended September 30, 2025, driven by acquisitions and higher collection pricing[150] - Resource Solutions revenues increased by $6.7 million (7.8%) for the three months and $22.4 million (9.1%) for the nine months ended September 30, 2025, primarily due to higher tipping fees and National Accounts business growth[153] Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $315.3 million, accounting for 65.0% of total revenues, compared to $267.1 million, or 64.9%, in the same period of 2024[124] - General and administrative expenses increased to $57.3 million, or 11.8% of total revenues, for the three months ended September 30, 2025, from $47.0 million, or 11.4%, in the same period of 2024[124] - Depreciation and amortization expenses rose to $78.8 million, or 16.2% of total revenues, for the three months ended September 30, 2025, compared to $59.2 million, or 14.4%, in the same period of 2024[124] - Direct costs for the three months ended September 30, 2025, were $315.3 million, representing 65.0% of total revenues, an increase of $48.2 million (18.0%) from $267.1 million in 2024[126] - Direct labor costs increased to $76.9 million (15.8% of revenues) in Q3 2025, up $13.8 million (21.9%) from $63.1 million (15.3%) in Q3 2024[126] - General and administration expenses rose to $57.3 million (11.8% of revenues) in Q3 2025, an increase of $10.3 million (21.9%) from $47.0 million (11.4%) in Q3 2024[129] - Depreciation and amortization expense for the three months ended September 30, 2025, was $78.8 million, up $19.6 million (24.9%) from $59.2 million in the same period of 2024[132] - Inflationary cost increases have materially affected operating margins, but the company has implemented flexible pricing structures to recover certain costs[177] Income and Taxation - Operating income for the three months ended September 30, 2025, was $29.4 million, up $5.0 million or 20.5% from $24.4 million in 2024[142] - The provision for income taxes for the nine months ended September 30, 2025, was $4.3 million, a decrease of $2.4 million from $6.7 million in the same period of 2024[136] - The effective tax rate for the nine months ended September 30, 2025, was 29.1%, lower than the 43.5% effective rate for the same period in 2024[136] - Federal net operating losses carried forward to 2025 total $83.2 million, which can offset up to 80% of taxable income earned in a tax year[138] - The company projects to carry no pre-2018 net operating losses into 2025 due to changes in tax laws[138] Cash Flow and Financing - As of September 30, 2025, the company had $673.4 million available under its $700.0 million revolving credit facility and $192.7 million in cash and cash equivalents[161] - Net cash provided by operating activities increased by $61.6 million to $233.2 million for the nine months ended September 30, 2025, compared to $171.6 million for the same period in 2024[165] - The company acquired eight businesses in the nine months ended September 30, 2025, with cash consideration of $217.5 million, compared to five businesses acquired for $261.2 million in the same period of 2024[166] - Capital expenditures increased by $61.4 million in the nine months ended September 30, 2025, primarily due to acquisition activity and investments in fleet and facilities[167] - Net cash used in financing activities was $(19.1) million for the nine months ended September 30, 2025, a decrease of $530.2 million compared to the same period in 2024[168] - The company expects existing cash and cash equivalents, along with available cash flows, to be sufficient to fund operating activities and cash commitments for at least the next 12 months[161] - As of September 30, 2025, the company has an outstanding long-term debt of $800.0 million in term loan A and $700.0 million in revolving credit facility[171] - The maximum consolidated net leverage ratio is 2.34, well below the covenant requirement of 4.00, and the minimum interest coverage ratio is 7.54, exceeding the requirement of 3.00[172] - The company has $273.5 million in tax-exempt bonds, $86.9 million in finance leases, and $1.1 million in notes payable as of September 30, 2025[176] Operational Efficiency and Challenges - The company is focused on integrating acquired businesses to achieve expected benefits and enhance operational efficiency[114] - The company has implemented operating efficiency programs to improve productivity and reduce service costs[177] - The company’s operations are susceptible to regional economic conditions, including labor availability and severe weather, which can impact waste volumes and operational efficiency[179] - Seasonality affects the company’s revenues, with higher revenues typically seen in late spring, summer, and early fall months[180] - The company is subject to seasonal fluctuations, with lower revenues typically in late fall, winter, and early spring months[180] - Severe weather can adversely affect operations, potentially increasing costs and delaying waste collection and disposal[181] - Management's estimates and judgments in financial statements are based on historical experience and may differ from actual results[182]