Contradictions in Casella's 2025 Q2 Earnings Call: Volume Trends, Pricing Strategies, and Labor Costs Under Scrutiny

Volume trends in the Mid-Atlantic region, pricing in the Mid-Atlantic region, Mid-Atlantic region performance and synergy realization, labor costs and pricing strategies are the key contradictions discussed in Casella Waste Systems' latest 2025Q2 earnings call.



Strong Financial Performance and Acquisitions:
- Casella Waste Systems reported revenue of $465.3 million for Q2 2025, up 23.4% year-over-year.
- The growth was driven by acquisitions and solid waste pricing, with acquisition-related revenue contributing $67.1 million and organic growth contributing $21 million.

Margin and Volume Trends:
- Adjusted EBITDA margin was 23.5%, with a 19.5% year-over-year increase, mostly due to acquisitions, but offset by integration issues in the Mid-Atlantic region.
- Landfill volumes increased by 9.5% year-over-year, driven by higher internalized and third-party volumes.

Mid-Atlantic Challenges and Synergy Opportunities:
- The Mid-Atlantic region is experiencing delays in truck deliveries and system conversions, impacting operational productivity and delaying synergies.
- Despite challenges, the region holds potential for future pricing opportunities and significant synergies, with expected benefits of $5 million to $10 million over several years.

M&A Pipeline and Geographical Expansion:
- Casella has a robust M&A pipeline with over $500 million in annualized revenue opportunities, including the acquisition of Mountain State Waste, adding $30 million in annualized revenues.
- The company continues to focus on tuck-in acquisitions in the Northeast and Mid-Atlantic regions while exploring opportunities along the Eastern Seaboard.