Core Insights - 374Water Inc has made significant progress in commercializing its AirSCWO technology for PFAS-related waste destruction, which can reduce contaminants to below new EPA limits or to undetectable levels [1][3] - The global market for waste destruction technology is estimated to be around $450 billion, with key target sectors including municipal wastewater treatment, federal government applications, and industrial markets [4][5] Company Overview - 374Water specializes in innovative waste destruction technology, particularly effective for biosolids, landfill leachate, and organic industrial waste contaminated with PFAS, plastics, and pharmaceuticals [2][4] - The company is actively partnering with treatment, storage, and disposal facilities to implement its technology on-site [5] Government Partnerships - 374Water is collaborating with the Defense Innovation Unit and the federal government on waste destruction strategies, with ongoing demonstrations in Detroit [6][7] - The company is conducting tests on six waste streams containing PFAS, including granular activated carbon and ion exchange resin [7] Future Developments - The company has completed a successful deployment at Peterson Space Force Base and is preparing for a year-long deployment with Orange County Sanitation in California [8] - 374Water is negotiating additional agreements to establish waste destruction service sites across the United States [9]

Even in the rarefied world of luxury real estate, professional hockey player-turned-waste management billionaire Patrick Dovigi stands out for his ability to write big checks and trade multimillion-dollar homes like chess pieces https://t.co/4kUSKaxS3c? ...

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]

Industry Figures - Waste management billionaire Patrick Dovigi is notable in luxury real estate for high-value transactions [1] - Patrick Dovigi trades multimillion-dollar homes like chess pieces [1]

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]

Financial Data and Key Metrics Changes - The company achieved consolidated revenue of $1,675,000,000 for the quarter, which is 9.5% ahead of the prior year pro forma for divestitures [14] - Adjusted EBITDA margin for the second quarter was 30.7%, reflecting a 230 basis point increase over the prior year and 60 basis points ahead of guidance [16] - Adjusted free cash flow was approximately $137,000,000, better than planned due to adjusted EBITDA outperformance [18] Business Line Data and Key Metrics Changes - The company completed three small tuck-in acquisitions during the quarter and anticipates closing three more soon, maintaining a robust M&A pipeline [12] - Volume growth was positive across both U.S. and Canadian geographies, with U.S. volume growth accelerating by over 200 basis points sequentially [15] - The company expects pricing to be between 5.5% and 5.75% for the full year, an increase of 25 basis points from the original guidance [19] Market Data and Key Metrics Changes - Canadian volume growth was reported at 6.3% for the quarter, with EPR-related activities contributing positively [47] - U.S. volume growth turned positive despite a slowdown in industrial and construction-oriented sectors, indicating resilience in the business model [46] - The company noted that exposure to cyclical end markets is low overall, positioning it well for potential recovery in the macroeconomic environment [11] Company Strategy and Development Direction - The company is focused on densifying existing markets where it has underutilized post-collection assets, aiming for the highest returns on invested capital [42] - The strategic growth investments in EPR and the positive underlying trends from market selection are expected to offset demand-side pressures [11] - The company is increasing its adjusted EBITDA target by $50,000,000 or 2.6% for the year, reflecting confidence in its operational resilience [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver industry-leading financial performance despite external headwinds [23] - The operational resiliency demonstrated in the quarter reinforces the belief that the company is uniquely positioned for value creation [23] - Management anticipates a modest working capital investment for the year, with net CapEx expected to be approximately $750,000,000 [21] Other Important Information - The company is experiencing a lower current year contribution from M&A activity but expects a larger rollover amount into 2026, setting up for exceptional growth [13] - The company is reaffirming its adjusted free cash flow expectation of $750,000,000 despite increased CapEx [21] Q&A Session Summary Question: Update on GIP business options - Management is in the final stages of concluding the process with two bidders and expects a favorable result, which will lead to a significant rebase of equity [28][29] Question: Margin improvements and self-help levers - Management highlighted improvements in pricing, labor turnover, and synergy realization as key contributors to margin expansion [31][35] Question: M&A pipeline visibility - The company is on track to achieve its M&A spending target of $700,000,000 to $900,000,000 for the year, with a focus on tuck-in acquisitions [40][41] Question: Volume performance specifics - EPR is contributing positively to volume growth, with Canadian volume growth reported at 6.3% for the quarter [46][55] Question: Impact of bonus depreciation on free cash flow - Bonus depreciation is expected to provide a $25,000,000 tailwind this year, with a potential increase in free cash flow conversion by 100 to 200 basis points [60][63] Question: Fleet conversion status - Approximately 20% to 25% of the fleet is currently CNG, with plans to increase this to 50% to 55% over the next few years [104]

Core Viewpoint - 374Water Inc. has successfully demonstrated the effectiveness of its AirSCWO technology in destroying PFAS in biosolids to non-detectable levels, addressing a growing national issue related to PFAS contamination in wastewater treatment [1][4]. Industry Overview - The disposal of PFAS contaminated biosolids from wastewater treatment plants is becoming a significant national concern due to environmental impacts and limited disposal options [2][3]. - PFAS, known as "forever chemicals," are persistent and hazardous, found in many everyday products, leading to contamination of soil, crops, groundwater, and livestock [3]. Company Developments - 374Water's AirSCWO system has consistently achieved over 99.99% destruction of organic compounds in biosolids, producing effluents with PFAS levels below U.S. EPA drinking water standards [4]. - The company is experiencing increased market demand for innovative solutions to destroy PFAS-contaminated waste streams across municipal, federal, and industrial sectors [5]. - 374Water's technology is positioned as a differentiated solution to address a broad range of PFAS-impacted waste streams, contributing to the global challenge of PFAS contamination [5][6].

Core Insights - Republic Services, Inc. (RSG) reported mixed second-quarter 2025 results with earnings surpassing estimates while revenues fell short [1][9] - The company’s stock has increased by 22.3% year-to-date, outperforming both its industry and the Zacks S&P 500 Composite [2] Financial Performance - RSG's earnings per share (EPS) for Q2 2025 was $1.77, exceeding the Zacks Consensus Estimate by 1.1% and reflecting a 9.9% increase year-over-year [1][9] - Total revenues for the quarter were $4.2 billion, which missed the consensus estimate but showed a 4.6% year-over-year growth [1][9] Segment Revenue Breakdown - Collection segment revenues reached $2.8 billion, a 3.6% increase from the previous year, but fell short of the estimated $2.9 billion [3] - Environmental Solutions revenues were $462 million, down 2.3% year-over-year, missing the projected $492 million [3] - Transfer segment revenues were $221 million, up 6.3% year-over-year, exceeding expectations of $213.5 million [4] - Landfill segment revenues totaled $516 million, increasing 17.3% year-over-year and surpassing the estimate of $462.7 million [4] - Other segment revenues grew to $214 million, a 4.9% increase from the previous year, exceeding the expectation of $212.7 million [4] Operating Results - Adjusted EBITDA for the quarter was $1.4 billion, an 8.2% increase from the previous year, beating the estimate of $1.3 billion [5][9] - The adjusted EBITDA margin improved to 32.1%, up 100 basis points year-over-year, surpassing the estimated margin of 31.4% [5][9] Balance Sheet & Cash Flow - At the end of Q2 2025, RSG had cash and cash equivalents of $122 million, up from $83 million at the end of Q1 2025 [6] - Long-term debt decreased to $12.5 billion from $12.9 billion in the previous quarter [6] - The company generated $1.1 billion in cash from operating activities, with adjusted free cash flow of $693 million and capital expenditures of $423 million [6] 2025 Guidance - RSG has lowered its revenue guidance for 2025 to a range of $16.68 billion to $16.75 billion, down from the previous range of $16.85 billion to $16.95 billion [8][9] - The adjusted EPS guidance is set at $6.82 to $6.90, with the midpoint lower than the Zacks Consensus Estimate of $6.87 [8] - Adjusted EBITDA guidance is projected to be between $5.28 billion and $5.33 billion [8]

Core Insights - Automatic Data Processing, Inc. (ADP) reported strong fourth-quarter fiscal 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][9] - Earnings per share reached $2.26, surpassing estimates by 1.8% and increasing 8.1% year-over-year, while total revenues were $5.1 billion, exceeding estimates by 1.5% and growing 7.5% year-over-year [1][9] Segment Performance - Employer Services generated revenues of $3.5 billion, an 8% increase on a reported basis but missed the estimate of $3.8 billion; pays per control rose 1% year-over-year [3] - PEO Services revenues increased 9% year-over-year to $1.2 billion, falling short of the $1.7 billion estimate; average worksite employees paid by PEO Services grew 3% to 761,000 [3] Financial Metrics - Interest on funds held for clients grew 11% year-over-year to $308 million, missing the estimate of $342.4 million; average client funds balance rose 6% to $38.1 billion, with an average interest yield of 3.2%, up 20 basis points [4] - Adjusted EBIT increased 9% year-over-year to $5.3 billion, with an adjusted EBIT margin rising 50 basis points to 26% [5] Balance Sheet & Cash Flow - At the end of Q4 fiscal 2025, ADP had cash and cash equivalents of $3.3 billion, up from $2.7 billion in the previous quarter; long-term debt increased to $4 billion from $3 billion [6] - The company generated $1.4 billion in cash from operating activities during the quarter [6] Fiscal 2025 Outlook - ADP lowered its revenue growth guidance for fiscal 2025 to 5-6% from the previous 6-7%; adjusted EPS growth guidance was updated to 8-10% from 8-9% [7] - The adjusted effective tax rate is estimated at 23%, and the guidance for adjusted EBIT margin was raised to 50-70 basis points from 40-50 basis points [7][8]