Group 1: ClearBridge Investments Overview - ClearBridge Investments released its "ClearBridge Mid Cap Strategy" Q4 2025 investor letter, reporting underperformance compared to the Russell Midcap Index, which returned 0.16% during the period [1] - The underperformance was attributed to narrow market leadership and sentiment-driven trading, with weaknesses in information technology and real estate holdings impacting returns, while gains in select consumer discretionary stocks provided partial support [1] - The firm noted that elevated dispersion and uneven earnings reactions continued to shape mid-cap equity performance during the quarter [1] Group 2: Future Outlook - The portfolio management team expressed cautious optimism, indicating that improving clarity around policy, interest rates, and business investment could create a more favorable backdrop for active stock selection [1] - The widening valuation gaps and strengthening fundamentals across many mid-cap companies were highlighted as positive indicators for future performance [1] Group 3: Casella Waste Systems Inc. Insights - ClearBridge Investments initiated positions in Casella Waste Systems Inc. (NASDAQ:CWST), a residential waste services provider, following a transitory selloff related to minor acquisition integration issues [3] - The company has a high proportion of recurring revenue, which supports durable long-term growth, and limited exposure to near-term AI disruption [3] - Casella Waste Systems Inc. has a market capitalization of approximately $6.501 billion, with shares trading between $82.2 to $121.24 over the last 52 weeks [2] Group 4: Hedge Fund Interest - Casella Waste Systems Inc. was held by 26 hedge fund portfolios at the end of the third quarter, an increase from 24 in the previous quarter [4] - Despite the interest, the company is not among the 30 most popular stocks among hedge funds, with a belief that some AI stocks may offer greater promise for higher returns in a shorter time frame [4]

Performance Overview - Laughing Water Capital ("LWC") achieved a return of approximately 6.8% in Q4, resulting in a full-year return of about 3.9% after fees and expenses, compared to the SP500TR and R2000 which returned approximately 2.7% and 2.2% respectively in the same quarter [3] - Since inception, LWC's cumulative return is approximately 400%, outperforming the SP500TR's ~332% and the R2000's ~175% [4] Investment Philosophy - The company emphasizes investing in off-the-beaten-path businesses led by capable management, particularly during periods of uncertainty, believing this approach can yield outsized returns over time [6][8] - Despite the current market enthusiasm for sectors like artificial intelligence and technology, the company remains focused on fundamental business performance rather than market trends [7][8] Market Dynamics - Recent market trends have favored larger, growth-oriented companies, with a significant outperformance of large-cap stocks over small-cap stocks [10][15] - The SP500 has outperformed the equal-weight SP500 by 34% over the past three years, indicating a strong preference for larger companies [15] Specific Investments - Lifecore Biomedical is highlighted as a key investment, with expectations of significant growth due to its competitive advantages and increasing capacity utilization [13][14] - Liquidia Corp has seen early sales success with its drug Yutrephia, which has outperformed expectations, despite ongoing patent litigation with United Therapeutics [30][31] - NextNav Inc is positioned as a potential leader in providing a terrestrial backup to GPS, with bipartisan support for its proposal to repurpose spectrum for 5G use [36][39] Future Outlook - The company anticipates continued improvement in the fundamental performance of its investments, suggesting that over time, market recognition of these fundamentals will lead to better stock performance [62] - Management remains optimistic about the potential for significant upside in investments like Lifecore and Liquidia, while also acknowledging the challenges posed by market sentiment and timing [29][33]

Core Insights - Waste Management, Inc. (WM) is the largest integrated waste services and environmental solutions company in North America with a market cap of $88 billion, providing comprehensive waste and recycling services across the U.S. and Canada [1] Financial Performance - WM is expected to report an adjusted EPS of $1.97 for fiscal Q4 2025, reflecting a 15.9% increase from $1.70 in the same quarter last year [2] - For fiscal 2025, analysts forecast an adjusted EPS of $7.52, which is a 4% increase from $7.23 in fiscal 2024, with projections of a further 10.2% rise to $8.29 in fiscal 2026 [3] Stock Performance - WM stock has increased by 6.2% over the past 52 weeks, underperforming compared to the S&P 500 Index's 17.1% return and the Industrial Select Sector SPDR Fund's 20.2% gain during the same period [4] Dividend and Share Repurchase - The company announced a 14.5% dividend increase for 2026, marking 23 consecutive years of annual dividend growth, with a new quarterly dividend of $0.945 per share, yielding approximately 1.7% [5] - WM has authorized a $3 billion share repurchase program and plans to return about 90% of free cash flow to shareholders over the next year, indicating strong cash flow generation and management confidence [5] Analyst Ratings - The consensus view on WM stock is cautiously optimistic, with a "Moderate Buy" rating from analysts; 18 out of 28 analysts recommend a "Strong Buy," one suggests a "Moderate Buy," and nine provide a "Hold" rating [6] - The average analyst price target for Waste Management is $248.54, suggesting a potential upside of 15.1% from current levels [6]

Core Insights - Republic Services' growth is driven by North American urbanization, zero-waste initiatives, and industrial expansion [1][3][10] - The company is enhancing its sustainability leadership through investments in polymer recycling, renewable natural gas, and fleet electrification [1][4][5] - Ongoing dividends and share buybacks are consistently enhancing shareholder value and reinforcing investor confidence [1][6] Financial Performance - The company's fourth-quarter 2025 earnings are projected to increase by 2.5% year over year [2] - Earnings are expected to rise by 6.5% in 2025 and 6% in 2026, with revenues anticipated to grow by 4% in both years [2] Market Drivers - Revenue growth is supported by rapid urbanization in North America, leading to increased waste generation [3][10] - Favorable market forces include the rising adoption of zero-waste initiatives and industrial growth across the U.S. and Canada [3][10] Sustainability Initiatives - Progress in Polymer Centers and Blue Polymers joint ventures promotes bottle-to-bottle plastics circularity, meeting the demand for recycled materials [4] - The company is advancing renewable natural gas and six other energy projects with partners [4] Fleet Electrification - The fleet electrification strategy aims to replace gasoline or diesel vehicles with electric vehicles, significantly reducing environmental impact [5] - The company expects to have over 150 electric vehicles by the end of 2025, with 32 facilities equipped with commercial-scale EV charging infrastructure [5] Shareholder Returns - Republic Services has consistently rewarded shareholders through dividends and share repurchases, with dividends of $592.9 million, $650 million, and $687 million in 2022, 2023, and 2024, respectively [6] - Share repurchases amounted to $203.5 million, $261.8 million, and $482 million in the same years [6]

Core Viewpoint - WM has announced a capital allocation program that includes a significant increase in its dividend rate and a new share repurchase authorization [1] Group 1: Dividend Increase - The Board of Directors has approved a planned 14.5% increase in the dividend rate for 2026 [1] - The planned quarterly dividend rate will be $0.945 per share in 2026, up from $0.825 per share in 2025 [1] - This marks the twenty-third consecutive year of dividend increases for the company [1] Group 2: Share Repurchase Authorization - WM has authorized a new $3 billion share repurchase program, which supersedes the previous $1.5 billion repurchase authorization announced in 2023 [1]

Core Insights - Bob Boucher, CEO of Waste Harmonics Keter, has left the company to lead Novvia Group, a packaging company based in Missouri [1] - Scott Gilbertson, chair of Waste Harmonics Keter's board and partner at TPG, is currently serving as interim CEO while the company searches for a permanent replacement [1][2] Company Background - Waste Harmonics Keter is backed by TPG Growth, which acquired Keter Environmental in 2021 and merged it with Waste Harmonics in 2023 [2] - The merged entity is expected to serve approximately 750 customers across nearly 70,000 locations, combining Keter's retail services with Waste Harmonics' industrial waste capabilities [3] Organizational Changes - The company has been methodical in its merger approach, announcing layoffs earlier this year in its New York office as part of the restructuring process [4] - The new headquarters for Waste Harmonics Keter is located in Stamford, Connecticut, where Keter was previously based [4] Leadership History - Bob Boucher has a notable history in leading companies under private equity management, having served as president and CEO of Win Waste Innovations and previously as CEO of Wheelabrator Technologies [5][6] - Boucher's experience includes leadership roles at various companies in the waste management industry, such as Transpacific, WM, Republic Services, and Synagro [6]

Company Overview - Waste Connections (WCN) is one of the largest integrated waste services companies in North America, operating in the US and Canada [1] - The company has experienced significant growth in recent years, largely due to numerous acquisitions, including a record number of deals [1] Analyst Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The analyst has researched over 1000 companies and has transitioned from writing a blog to a value investing-focused YouTube channel [1] - The analyst expresses a preference for covering metals and mining stocks but is also comfortable with other industries such as consumer discretionary/staples, REITs, and utilities [1]

Core Insights - Waste Management, Inc. (NYSE:WM) is recognized as one of the 15 Best Long Term Stocks to Buy according to Reddit [1] - Wells Fargo initiated coverage on Waste Management with an Overweight rating and a price target of $238, projecting approximately 20% growth in unit profitability and about 40% improvement in free cash conversion over the next two years [2] - In Q3, Waste Management reported $6.4 billion in revenue, a 15% increase year-over-year, although operating income decreased by 12% to $989 million due to noncash expenses [3] Business Strategy - The company is advancing its landfill gas-to-energy strategy, which captures methane from landfills and converts it into renewable natural gas, providing a carbon-neutral alternative to fossil fuels [4] - Acquisitions are a key growth driver, with Waste Management spending $7.2 billion to acquire Stericycle, enhancing its position in the healthcare waste sector and enabling operational efficiencies [5] - Waste Management's core operations encompass the entire waste management process, including collection, transportation, recycling, landfilling, and treatment [6]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need to disable them for proper access [1]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $63.3 million, a 13% decrease year-over-year but a sequential increase of 6.4% compared to the second quarter [18] - Gross profit dollars totaled $11.5 million, a decline of 2% year-over-year but a sequential increase of 3.9% [20] - Gross margin was 18.1%, which was 200 basis points better than the prior year but a sequential decline of 40 basis points [20] - SG&A expenses were $9.2 million, a 10% reduction year-over-year [22] - Cash generated from operations was approximately $5.7 million, a sequential improvement of roughly 46% [23] Business Line Data and Key Metrics Changes - The decline in revenue was driven by the divested mall-related business and lower revenue from industrial clients due to challenging market conditions [18] - New clients added over $24 million in incremental revenue year-over-year, contributing to the sequential revenue growth [19] - The onboarding of new clients is progressing as planned, with gross margins from these clients showing consecutive gains [19] Market Data and Key Metrics Changes - Volumes from industrial customers remain subdued, and the pace of adding new clients has been slower than anticipated [9] - The company is focusing on diversifying its customer base by expanding into non-industrial end markets such as retail and hospitality [12] Company Strategy and Development Direction - The company is pursuing operational excellence initiatives aimed at standardizing processes and improving efficiencies [8][25] - A focus on share of wallet opportunities is being emphasized, with efforts to enhance collaboration between relationship managers and sales teams [9][10] - The company aims to broaden its customer base and expand service offerings to existing clients [12] Management's Comments on Operating Environment and Future Outlook - The macro environment remains challenging, but management believes that industrial markets are stabilizing [31] - The company expects to continue experiencing margin pressure but anticipates offsetting this through operational improvements and growing share of wallet with existing clients [17] - Management is confident in the company's ability to execute its value proposition and implement organic initiatives as macroeconomic conditions normalize [25] Other Important Information - The company has improved its vendor relationships, leading to the lowest service disruption rates in its history [15] - A subscription-like model for data access is being envisioned as a potential new revenue stream [16] Q&A Session Summary Question: How are the industrial end markets performing? - Management indicated that while the macroeconomic environment is uncertain, industrial markets are stabilizing, though seasonality will affect Q4 [31] Question: Has the strategy for expanding wallet share changed? - Management confirmed that a more disciplined approach has been implemented, focusing on collaboration between relationship managers and sales teams to enhance wallet share [33][34] Question: What are the expectations for operational improvements in Q4 and 2026? - Management emphasized continuous improvement and the implementation of KPIs to enhance operational performance, expecting positive impacts on financial results [37][45] Question: Can you provide an update on the vendor management platform? - Management reported that the vendor management platform is progressing well, contributing to improved relationships and reduced service disruptions [55] Question: What are the goals for debt reduction moving forward? - Management stated that aggressive debt reduction is a priority, with plans to pay down more expensive debt as cash generation improves [81]