Core Viewpoint - Casella Waste Systems, Inc. is initiating the remarketing of $37.5 million of Solid Waste Disposal Revenue Bonds, with a redemption of $2.5 million expected on September 2, 2025, and the remaining bonds to be remarketed on the same date [1][2]. Group 1: Bond Details - The total principal amount of the Bonds originally issued was $40.0 million, with a final maturity date set for September 1, 2050 [2]. - The interest rate period for the Bonds is expiring on September 1, 2025, leading to a mandatory tender and remarketing at a new interest rate starting September 2, 2025 [2]. - The Bonds are guaranteed by all or substantially all of Casella's subsidiaries, and they are not a general obligation of the Issuer or the State of New York [2]. Group 2: Remarketing Process - The Remarketed Bonds will be offered exclusively to qualified institutional buyers as defined under Rule 144A of the Securities Act [3]. - The timing and interest rate for the remarketing will depend on market conditions, with no assurance that the remarketing or redemption will be completed [3].

Core Viewpoint - Casella Waste Systems, Inc. announces a leadership transition with John W. Casella moving from CEO to Executive Chairman, and Ned Coletta appointed as the new CEO effective January 1, 2026 [1][2][4] Leadership Transition - John W. Casella has been with the company since its founding in 1976 and has played a crucial role in its growth into a leading waste management company in the eastern United States [2][3] - Ned Coletta, who joined the company in December 2004, has held various leadership roles and is well-prepared to lead the company into its next phase of growth [3][4] Company Background - Casella Waste Systems, Inc. is headquartered in Rutland, Vermont, and provides resource management services including solid waste collection, disposal, recycling, and organics services primarily in the eastern United States [5]

Core Insights - Casella Waste Systems reported a significant revenue increase in Q2, but net income fell short of expectations, leading to a decline in share price [1][2] Financial Performance - The company achieved revenue of over $465 million in Q2, representing a more than 23% increase compared to the same quarter in 2024 [4] - GAAP net income decreased to $5.2 million ($0.08 per share) from slightly over $7 million in the previous year [4] - Analysts had anticipated a much higher net income of $0.33 per share, while they underestimated revenue projections at $454 million [5] Growth Factors - Acquisitions contributed to the revenue growth, with six buyouts completed in the first half of the year [5] - Increased landfill volumes were also cited as a catalyst for the top-line growth [5] Guidance Revisions - The company raised its full-year 2025 revenue outlook to between $1.82 billion and $1.84 billion, up from just under $1.78 billion [6] - However, the guidance for GAAP net income was lowered to a range of $8 million to $18 million, down from the previous estimate of $10 million to $25 million [6]

Financial Data and Key Metrics Changes - Revenues in Q2 2025 were $465.3 million, an increase of $88.2 million or 23.4% year over year, with $67.1 million from acquisitions and $21 million from organic growth, representing a 5.6% increase [11][19] - Adjusted EBITDA was $109.5 million, up $17.9 million or 19.5% year over year, with an adjusted EBITDA margin of 23.5%, down approximately 75 basis points year over year [14][19] - Adjusted net income was $23 million or $0.36 per diluted share, up $1.3 million year over year [16] Business Line Data and Key Metrics Changes - Solid waste revenues increased by 27.1% year over year, with pricing up 5% and volume down 0.8% [11] - Resource Solutions revenues were up 10.2% year over year, with recycling and processing revenue up 9.6% and national accounts up 10.6% [13] - Landfill volumes were up 9.5% year over year, with internalized volumes growing over 12% [12][22] Market Data and Key Metrics Changes - Solid waste pricing increased by 5% year over year, indicating a stable economic environment [8][20] - The company experienced a positive volume trend across solid waste and resource solutions, with total company volumes up 30 basis points [20][58] Company Strategy and Development Direction - The company is focused on expanding its footprint through acquisitions, having completed six acquisitions year to date, representing about $90 million in annualized revenues [9][24] - The acquisition of Mountain State Waste is expected to add another $30 million in annualized revenues and expand the company's presence in Pennsylvania and West Virginia [9][39] - The company aims to improve operational efficiencies and synergies in the Mid Atlantic region, which has faced challenges due to system conversions and truck delivery delays [21][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of core pricing and acquisition activity, raising full-year revenue guidance to a midpoint of $1.83 billion [10][19] - The company anticipates that the headwinds faced in the Mid Atlantic region are transitory and expects margin expansion opportunities in the future [15][19] - Management noted that labor costs in the Mid Atlantic are currently higher due to a lack of automation and optimization, presenting an opportunity for future cost reductions [61][62] Other Important Information - The company reported record first-half adjusted free cash flow of over $70 million, which is more than $30 million above the same period last year [8] - The consolidated net leverage ratio was 2.39x, with total liquidity of approximately $900 million, positioning the company well for continued growth [18][25] Q&A Session Summary Question: Can you discuss the challenges in the Mid Atlantic region? - Management acknowledged that the Mid Atlantic region is lagging due to a suboptimal billing system inherited from a previous acquisition, which has delayed automation and synergy realization [30][32] Question: What is the expected synergy EBITDA benefit from the Mid Atlantic assets in 2026? - Management indicated potential benefits of $5 to $10 million over a couple of years as synergies are realized [34][36] Question: Can you elaborate on the Mountain State Waste acquisition? - Management highlighted that the acquisition will expand operations into a growing market in West Virginia and provide opportunities for further growth in the region [39] Question: What is the outlook for Resource Solutions? - Management expects Resource Solutions to continue growing rapidly, particularly in the Mid Atlantic region, where there are significant opportunities [74] Question: How do you see capital expenditures evolving over time? - Management noted that capital expenditures will fluctuate based on landfill development schedules and acquisition activities, which often require significant upfront investments [76]

Financial Data and Key Metrics Changes - Revenues in Q2 2025 were $465.3 million, an increase of $88.2 million or 23.4% year over year, with $67.1 million from acquisitions and $21 million from organic growth, representing a 5.6% increase [11] - Adjusted EBITDA was $109.5 million, up $17.9 million or 19.5% year over year, with an adjusted EBITDA margin of 23.5%, down approximately 75 basis points year over year [14] - Adjusted net income was $23 million or $0.36 per diluted share, up $1.3 million year over year [15] Business Line Data and Key Metrics Changes - Solid waste revenues increased by 27.1% year over year, with pricing up 5% and volume down 0.8% [11] - Resource Solutions revenues were up 10.2% year over year, with recycling and other processing revenue up 9.6% [13] - Landfill volumes were up 9.5% year over year, with internalized volumes growing over 12% [12] Market Data and Key Metrics Changes - Solid waste pricing increased by 5% year over year, indicating healthy pricing trends [8] - The company experienced improved volume trends in the landfill business, reflecting a stable economy in its markets [12] - The average recycled commodity sales price was down 16% year over year, but the net impact on revenue was minimal due to contract structures [13] Company Strategy and Development Direction - The company is focused on expanding its footprint through acquisitions, having completed six acquisitions year to date, representing about $90 million in annualized revenues [9] - The pending acquisition of Mountain State Waste is expected to add another $30 million in annualized revenues and expand the company's presence in Pennsylvania and West Virginia [9] - The company raised its full-year revenue guidance to a midpoint of $1.83 billion, reflecting continued strength in core pricing and acquisition activity [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth strategy and robust M&A pipeline, with a strong balance sheet enabling continued opportunistic acquisitions [18] - The management noted that persistent market headwinds experienced last year are behind them, and they expect to see margin expansion opportunities in the future [14] - The company anticipates that the operational challenges in the Mid Atlantic region will be resolved, leading to improved performance in 2026 [32] Other Important Information - The company achieved record first-half adjusted free cash flow of over $70 million, which is more than $30 million above the same period last year [8] - Capital expenditures were $121.9 million, up $47 million year over year, including significant upfront investments in recent acquisitions [17] - The consolidated net leverage ratio was 2.39x, with $700 million of revolver remaining undrawn, indicating a strong liquidity position [18] Q&A Session Summary Question: Can you discuss the Mid Atlantic performance and the ERP implementation? - Management acknowledged that the Mid Atlantic region is lagging due to issues with the legacy billing system and truck delivery delays, which have impacted pricing visibility and synergy realization [29][32] Question: What is the expected synergy EBITDA benefit from the Mid Atlantic assets in 2026? - Management indicated potential benefits of $5 to $10 million over several years as they automate the fleet and resolve system issues [34] Question: Can you elaborate on the Mountain State acquisition and its market dynamics? - The acquisition will expand the company's footprint into a growing market in West Virginia, with franchise agreements providing a solid customer base [39] Question: Why did the interest expense guidance drop significantly? - Management stated that the guidance was refined as the year progressed, reflecting a more optimistic view [40] Question: What is the outlook for Resource Solutions growth? - Management believes Resource Solutions will continue to grow rapidly, particularly in the Mid Atlantic region, where there are significant opportunities [72] Question: How do you see capital expenditures evolving over time? - Management noted that CapEx will fluctuate based on landfill development schedules and acquisition activity, which often requires significant upfront investments [74]

Core Viewpoint - Casella Waste Systems, Inc. is proceeding with the remarketing of $29.0 million of Solid Waste Disposal Revenue Bonds, with a new interest rate of 5.000% per annum, effective August 1, 2025 [1][2] Group 1: Bond Details - The original aggregate principal amount of the Bonds was $30.0 million, with a final maturity date of August 1, 2035 [1] - Casella plans to redeem $1.0 million of the Bonds on August 1, 2025, using cash on hand [1] - The remarketing of the remaining $29.0 million will occur on August 1, 2025, and the new bonds will be designated as Series 2015R-3 [1] Group 2: Guarantee and Payment Structure - The Bonds and Remarketed Bonds are guaranteed by all or substantially all of Casella's subsidiaries [2] - These Bonds are not a general obligation of the Issuer and are payable solely from amounts received from Casella under the terms of the Indenture [2] Group 3: Regulatory and Offering Information - The Remarketed Bonds are being offered only to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933 [3] - The Remarketed Bonds have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption [3]

分组1 - Casella reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and up from $0.22 per share a year ago, representing an earnings surprise of +16.13% [1] - The company achieved revenues of $465.33 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.30%, compared to $377.16 million in the same quarter last year [2] - Over the last four quarters, Casella has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has added approximately 2.4% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The estimate revisions trend for Casella was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] 分组3 - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $469.59 million, and $1.06 on $1.8 billion in revenues for the current fiscal year [7] - The Waste Removal Services industry, to which Casella belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, which may impact stock performance [8]

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and management's discussion and analysis of Casella Waste Systems, Inc [ITEM 1. FINANCIAL STATEMENTS](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements of Casella Waste Systems, Inc. and its subsidiaries for the periods ended June 30, 2025, and December 31, 2024 (balance sheets), and for the three and six months ended June 30, 2025 and 2024 (statements of operations, comprehensive income, stockholders' equity, and cash flows) It provides a detailed financial snapshot, including assets, liabilities, equity, revenues, expenses, net income, and cash flow activities, along with extensive notes explaining accounting policies, changes, revenue recognition, business combinations, goodwill, debt, commitments, and segment performance [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity at specific dates | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | 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[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) [Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) Casella Waste Systems achieved strong revenue and adjusted EBITDA growth in Q2 2025, driven by acquisition contributions and organic growth, though GAAP net income and operating income decreased due to increased acquisition-related depreciation and amortization expenses Q2 2025 Key Financial Metrics (Year-over-Year) | Metric | Q2 2025 | Q2 2024 | Change Amount | Change Rate | Primary Drivers | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $465.3M | $377.1M | +$88.2M | +23.4% | Acquisitions, sustained collection and disposal price increases, national account growth in Resource Solutions | | Operating Income | $19.3M | $23.0M | -$(3.7)M | -16.3% | Primarily due to increased acquisition-related depreciation and amortization expenses | | Net Income | $5.2M | $7.0M | -$(1.8)M | -25.7% | Driven by factors impacting operating income | | Adjusted Net Income | $23.0M | $21.7M | +$1.3M | +5.9% | | | Adjusted EBITDA | $109.5M | $91.6M | +$17.9M | +19.5% | Acquisition contributions and organic growth | | Solid Waste Pricing | +5.0% | - | - | - | Collection price growth of 4.9%, disposal price growth of 5.8% | [Strategic Initiatives and Acquisitions](index=1&type=section&id=Strategic%20Initiatives%20and%20Acquisitions) The company completed six acquisitions in H1 2025 with over $90 million in annualized revenue and announced the upcoming Mountain State Waste acquisition, expanding its market share in Pennsylvania and West Virginia, which are key to growth and long-term profit expansion despite short-term margin pressure - Six acquisitions completed in H1 2025, with approximately **$90 million** in annualized revenue[3](index=3&type=chunk)[8](index=8&type=chunk) - Upcoming acquisition of Mountain State Waste is expected to add an additional **$30 million** in annualized revenue and expand the company's presence in Pennsylvania and West Virginia[3](index=3&type=chunk)[8](index=8&type=chunk) - Acquisition activities and the pace of realizing Mid-Atlantic synergies are near-term margin headwinds but represent opportunities for future margin expansion[3](index=3&type=chunk) H1 2025 Cash Flow Performance (Year-over-Year) | Metric | H1 2025 | H1 2024 | Change Amount | Primary Drivers | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | $139.6M | $79.8M | +$59.9M | Acquisition contributions, organic growth, lower cash interest payments, reduced working capital outflow | | Adjusted Free Cash Flow | $70.8M | $39.5M | +$31.3M | | [Financial Results - Second Quarter and Year-to-Date 2025](index=4&type=section&id=Financial%20Results%20-%20Second%20Quarter%20and%20Year-to-Date%202025) [Consolidated Statements of Operations (GAAP)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20(GAAP)) The company achieved significant revenue growth in Q2 and YTD 2025, but operating income and net income decreased year-over-year due to a substantial increase in acquisition-related depreciation and amortization expenses Key Consolidated Statements of Operations Data (in millions) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $465.3M | $377.2M | $882.4M | $718.2M | | Operating Income | $19.3M | $23.0M | $22.4M | $29.9M | | Net Income | $5.2M | $7.0M | $0.4M | $2.9M | | Diluted EPS | $0.08 | $0.12 | $0.01 | $0.05 | | Depreciation and Amortization | $77.0M | $55.3M | $148.5M | $109.4M | [Consolidated Statements of Cash Flows (GAAP)](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(GAAP)) In H1 2025, net cash from operating activities significantly increased, but cash outflows from investing activities also rose substantially, primarily due to acquisitions, resulting in a net decrease in cash, cash equivalents, and restricted cash Key Consolidated Statements of Cash Flows Data (H1 2025 vs H1 2024, in millions) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $139.6M | $79.8M | | Net Cash Used in Investing Activities | $(296.4M) | $(73.0M) | | Net Cash Used in Financing Activities | $(8.8M) | $(18.3M) | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | $(165.5M) | $(11.5M) | | Cash, Cash Equivalents, and Restricted Cash, End of Period | $217.8M | $209.4M | | Acquisitions (net of cash acquired) | $(175.0M) | $1.3M | | Purchases of Property and Equipment | $(121.9M) | $(74.9M) | [Non-GAAP Performance Measures](index=7&type=section&id=Non-GAAP%20Performance%20Measures) The company reported non-GAAP performance measures such as Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS to provide a clearer view of core operational performance, with these metrics growing in Q2 and H1 2025, reflecting the positive impact of acquisitions and organic growth Non-GAAP Performance Measures (Q2 2025 vs Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change Amount | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $109.5M | $91.6M | +$17.9M | +19.5% | | Adjusted EBITDA as % of Revenue | 23.5% | 24.3% | -0.8% | | | Adjusted Operating Income | $44.9M | $43.1M | +$1.8M | +4.1% | | Adjusted Net Income | $23.0M | $21.7M | +$1.3M | +5.9% | | Adjusted Diluted EPS | $0.36 | $0.37 | -$(0.01) | -2.7% | Non-GAAP Performance Measures (H1 2025 vs H1 2024, in millions) | Metric | H1 2025 | H1 2024 | Change Amount | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $195.9M | $162.6M | +$33.3M | +20.5% | | Adjusted EBITDA as % of Revenue | 22.2% | 22.6% | -0.4% | | | Adjusted Operating Income | $73.0M | $67.5M | +$5.5M | +8.1% | | Adjusted Net Income | $35.1M | $30.4M | +$4.8M | +15.7% | | Adjusted Diluted EPS | $0.55 | $0.52 | +$0.03 | +5.8% | [Non-GAAP Liquidity Measures](index=9&type=section&id=Non-GAAP%20Liquidity%20Measures) Adjusted Free Cash Flow, a key non-GAAP measure of the company's core operating cash flow, significantly increased in H1 2025, indicating enhanced capacity for strategic acquisitions, growth investments, and debt repayment Adjusted Free Cash Flow (H1 2025 vs H1 2024, in millions) | Metric | H1 2025 | H1 2024 | Change Amount | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Adjusted Free Cash Flow | $70.8M | $39.5M | +$31.3M | +79.3% | - The growth in Adjusted Free Cash Flow is primarily due to increased net cash from operating activities, adjusted for acquisition-related capital expenditures and expenses[9](index=9&type=chunk)[31](index=31&type=chunk) [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) [Updated Guidance Ranges](index=2&type=section&id=Updated%20Guidance%20Ranges) The company raised its FY 2025 revenue and net cash from operating activities guidance, increased the lower end of its Adjusted Free Cash Flow guidance, and reaffirmed its Adjusted EBITDA range, reflecting strong H1 acquisition activity and cash flow performance Updated Fiscal Year 2025 Guidance Ranges | Metric | Original Guidance Range | New Guidance Range | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.775B - $1.805B | $1.820B - $1.840B | Upward Revision | | Net Income | $10M - $25M | $8M - $18M | Upper Limit Lowered | | Net Cash from Operating Activities | $320M - $335M | $325M - $335M | Lower Limit Raised | | Adjusted Free Cash Flow | $165M - $180M | $170M - $180M | Lower Limit Raised | | Adjusted EBITDA | $410M - $425M | $410M - $425M | Reaffirmed | - The guidance ranges include acquisitions completed to date, such as **$90 million** in annualized revenue from H1 2025 acquisitions, but exclude uncompleted acquisitions (e.g., Mountain State Waste)[12](index=12&type=chunk) [Reconciliation of Non-GAAP Outlook Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Outlook%20Measures) The company provided projected reconciliation tables for FY 2025 Adjusted EBITDA to Net Income and Adjusted Free Cash Flow to Net Cash from Operating Activities, ensuring transparency for non-GAAP metrics Projected Fiscal Year 2025 Adjusted EBITDA Reconciliation (in thousands) | Metric | Projected Amount (in thousands) | | :--- | :--- | | Net Income | $8,000 - $18,000 | | Provision for Income Taxes | 4,000 - 9,000 | | Other Income | (2,000) | | Interest Expense, Net | 53,000 | | Acquisition-Related Expenses | 18,000 | | Depreciation and Landfill Amortization | 227,000 | | Amortization of Intangible Assets | 77,000 | | Accretion of Landfill Operating Lease Obligations | 11,000 | | Accretion of Interest on Landfill and Environmental Remediation Liabilities | 14,000 | | **Adjusted EBITDA** | **$410,000 - $425,000** | Projected Fiscal Year 2025 Adjusted Free Cash Flow Reconciliation (in thousands) | Metric | Projected Amount (in thousands) | | :--- | :--- | | Net Cash from Operating Activities | $325,000 - $335,000 | | Capital Expenditures | (240,000) | | Acquisition Capital Expenditures | 60,000 | | Cash Paid for Acquisition Expenses | 18,000 | | McKean Landfill Rail Capital Expenditures | 7,000 | | **Adjusted Free Cash Flow** | **$170,000 - $180,000** | [Company Information](index=2&type=section&id=Company%20Information) [About Casella Waste Systems, Inc.](index=2&type=section&id=About%20Casella%20Waste%20Systems%2C%20Inc.) Casella Waste Systems, Inc. is a regional solid waste, recycling, and resource management services company headquartered in Rutland, Vermont, primarily serving various customers in the Eastern United States - The company is headquartered in Rutland, Vermont, primarily providing solid waste collection and disposal, transfer, recycling, and organics services in the Eastern United States[16](index=16&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) The company will host a conference call on Friday, August 1, 2025, at 10:00 AM ET to discuss these results - The conference call will be held on **Friday, August 1, 2025, at 10:00 AM ET**[14](index=14&type=chunk) - Participants must register to receive dial-in numbers and a unique passcode, or listen via webcast at http://ir.casella.com[14](index=14&type=chunk)[15](index=15&type=chunk) [Investor and Media Contacts](index=3&type=section&id=Investor%20and%20Media%20Contacts) Contact information for Brian J. Butler, Vice President of Investor Relations, and Jeff Weld, Vice President of Communications, is provided - Investor Contact: Brian J. Butler, CFA, at **(802) 772-2264**[23](index=23&type=chunk) - Media Contact: Jeff Weld, at **(802) 772-2234**[23](index=23&type=chunk) [Risk Factors and Forward-Looking Statements](index=2&type=section&id=Risk%20Factors%20and%20Forward-Looking%20Statements) This press release contains forward-looking statements protected by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, covering financial performance, operations, growth strategies, and FY 2025 guidance, though actual results may differ materially due to various risks and uncertainties - Forward-looking statements cover financial performance, financial condition, operations and services, outlook, growth, strategy, the anticipated impact of future or completed acquisitions, and Fiscal Year 2025 guidance[17](index=17&type=chunk) - Key risks and uncertainties include: inability to adequately increase pricing or operating efficiencies to offset rising costs and inflationary pressures; impacts of an economic slowdown; compliance and remediation costs and litigation risks related to PFAS and other emerging contaminants; adverse weather impacts; inability to grow landfill volumes or improve route profitability; failed acquisition integration; and fluctuations in energy or commodity prices[20](index=20&type=chunk) - The company undertakes no obligation to publicly update any forward-looking statements, except as required by law[22](index=22&type=chunk) [Unaudited Financial Statements](index=4&type=section&id=Unaudited%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Provides condensed consolidated statements of operations for Q2 and H1 2025 and 2024, detailing revenue, expenses, operating income, net income, and earnings per share Condensed Consolidated Statements of Operations (Summary, in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 465,334 | 377,163 | 882,435 | 718,170 | | Operating Income | 19,272 | 23,018 | 22,416 | 29,853 | | Net Income | 5,208 | 7,006 | 398 | 2,889 | | Diluted EPS | 0.08 | 0.12 | 0.01 | 0.05 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, showing the composition of the company's assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Summary, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3,256,911 | $3,230,068 | | Total Liabilities | $1,702,728 | $1,612,229 | | Total Stockholders' Equity | $1,554,181 | $1,550,839 | | Cash, Cash Equivalents, and Restricted Cash | $217,772 | $383,303 | | Goodwill | $1,088,709 | $1,002,266 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Provides condensed consolidated statements of cash flows for H1 2025 and 2024, detailing cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Summary, in thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $139,648 | $79,781 | | Net Cash Used in Investing Activities | $(296,393) | $(72,976) | | Net Cash Used in Financing Activities | $(8,786) | $(18,270) | | Cash, Cash Equivalents, and Restricted Cash, End of Period | $217,772 | $209,447 | | Acquisitions, Net of Cash Acquired | $(175,018) | $1,296 | | Purchases of Property and Equipment | $(121,878) | $(74,900) | [Reconciliation of Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [Non-GAAP Performance Measures Reconciliation](index=7&type=section&id=Non-GAAP%20Performance%20Measures%20Reconciliation) The company provided reconciliation tables for Net Income to Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, and Adjusted Diluted EPS, detailing adjustment items and their impact on GAAP metrics - Non-GAAP performance measures, such as Adjusted EBITDA and Adjusted Net Income, aim to provide an understanding of core operational performance by adjusting for items like intangible asset amortization, acquisition-related expenses, and tax impacts[29](index=29&type=chunk)[30](index=30&type=chunk) [Non-GAAP Liquidity Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Liquidity%20Measures%20Reconciliation) The company provided reconciliation tables for Net Cash from Operating Activities to Adjusted Free Cash Flow, detailing the impact of capital expenditures and acquisition-related cash expenses on liquidity metrics - Non-GAAP liquidity measures, such as Adjusted Free Cash Flow, aim to measure cash flow generated from the company's core operations, available for strategic acquisitions, growth investments, and debt repayment[31](index=31&type=chunk) - Adjustment items include capital expenditures, cash paid for acquisition expenses, acquisition capital expenditures, and McKean landfill rail capital expenditures[31](index=31&type=chunk) [Supplemental Data Tables](index=12&type=section&id=Supplemental%20Data%20Tables) [Revenues by Service Type](index=12&type=section&id=Revenues%20by%20Service%20Type) Provides a breakdown of revenues by service type (e.g., collection, disposal, processing, national accounts) for Q2 2025 and 2024, including total, intercompany, and third-party revenues Third-Party Revenues by Service Type (in thousands) | Service Type | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Solid Waste - Collection | $297,905 | $223,959 | | Solid Waste - Disposal | $71,579 | $65,123 | | Solid Waste - Landfill Gas-to-Energy | $1,556 | $1,983 | | Solid Waste - Processing | $2,584 | $2,880 | | Resource Solutions - Processing | $36,466 | $33,275 | | Resource Solutions - National Accounts | $55,244 | $49,943 | | **Total Revenue** | **$465,334** | **$377,163** | [Components of Consolidated Revenue Growth](index=12&type=section&id=Components%20of%20Consolidated%20Revenue%20Growth) Analyzes the components of revenue growth for Q2 2025, including price, volume, surcharges, commodity prices, and acquisition contributions for solid waste and resource solutions businesses Q2 2025 Components of Consolidated Revenue Growth (Year-over-Year, in thousands) | Growth Source | Amount (in thousands) | % of Related Business | % of Total Company | | :--- | :--- | :--- | :--- | | Solid Waste Price | $14,812 | 5.0% | 3.9% | | Solid Waste Volume | $(2,487) | (0.8)% | (0.7)% | | Solid Waste Acquisitions | $66,069 | 22.5% | 17.6% | | Resource Solutions Price | $2,463 | 3.0% | 0.7% | | Resource Solutions Volume | $3,822 | 4.6% | 1.0% | | Resource Solutions Acquisitions | $1,078 | 1.3% | 0.3% | | **Total Company Growth** | **$88,171** | - | **23.4%** | [Components of Capital Expenditures](index=13&type=section&id=Components%20of%20Capital%20Expenditures) Lists the components of capital expenditures for Q2 and H1 2025 and 2024, categorized into growth capital expenditures and replacement capital expenditures Components of Capital Expenditures (in thousands) | Category | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Growth Capital Expenditures** | **$20,098** | **$9,959** | **$47,532** | **$20,876** | | - Acquisition Capital Expenditures | $13,317 | $6,571 | $38,659 | $12,659 | | - McKean Landfill Rail Capital Expenditures | $800 | $1,030 | $800 | $3,225 | | **Replacement Capital Expenditures** | **$46,305** | **$34,690** | **$74,346** | **$54,024** | | - Landfill Development | $5,122 | $13,606 | $7,262 | $17,808 | | - Vehicles, Machinery, Equipment, and Containers | $28,970 | $15,491 | $50,172 | $28,245 | | **Total Capital Expenditures** | **$66,403** | **$44,649** | **$121,878** | **$74,900** | - Growth capital expenditures include development projects, organic business growth, and integration costs for newly acquired businesses, while replacement capital expenditures cover landfill cell construction and equipment replacement[36](index=36&type=chunk)

Core Insights - Casella Waste Systems, Inc. reported strong growth in Q2 2025, with revenues reaching $465.3 million, a 23.4% increase from Q2 2024, driven by acquisitions and price growth in solid waste services [4][8][11] - The company completed six acquisitions in the first half of 2025, contributing over $90 million in annualized revenue, and is pursuing a pending acquisition of Mountain State Waste to expand its market presence [3][4][11] - Adjusted EBITDA for Q2 2025 was $109.5 million, up 19.5% year-over-year, reflecting both acquisition contributions and organic growth [6][8] Financial Performance - Revenues for Q2 2025 were $465.3 million, an increase of $88.2 million from Q2 2024, primarily due to acquisition impacts and price growth in collection and disposal services [4][8] - Operating income decreased to $19.3 million, down 16.3% from the previous year, mainly due to higher depreciation and amortization expenses related to acquisitions [5][8] - Net income for Q2 2025 was $5.2 million, a decline of 25.7% from Q2 2024, while adjusted net income increased by 5.9% to $23.0 million [5][8] Cash Flow and Liquidity - Net cash provided by operating activities for the first half of 2025 was $139.6 million, up $59.9 million from the same period in 2024, driven by acquisitions and organic growth [9][25] - Adjusted Free Cash Flow for the six months ended June 30, 2025, was $70.8 million, an increase of $31.3 million compared to the same period in 2024 [9][31] Fiscal Year 2025 Outlook - The company raised its revenue guidance for fiscal year 2025, estimating revenues between $1.820 billion and $1.840 billion, up from previous estimates [11][17] - Adjusted EBITDA guidance for fiscal year 2025 remains between $410 million and $425 million, reflecting the impact of completed acquisitions [12][39] - The company expects net cash provided by operating activities to be between $325 million and $335 million for fiscal year 2025 [17][39]