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- **Record Financials**: Q3 revenue and EBITDA hit new highs at $485 million and $120 million, up 17.9% and 16.4% YoY, respectively.
- **Acquisition Momentum**: 8 acquisitions year-to-date added $105 million in revenue, with Mountain State Waste ($30 million annualized) set to close in early 2026.
- **Margin Improvement**: Core business expanded margins by 70 basis points YoY, with 2026 targeting 25-50 basis points of improvement via automation and cost savings.
- **Mid-Atlantic Turnaround**: $5 million annualized savings expected in 2026, driven by truck automation and route optimization.
- **Strong Cash Flow**: Adjusted free cash flow of $119 million year-to-date, up 21% YoY, supporting M&A and growth initiatives.
- **Sustainability Focus**: Landfill expansions and internalization efforts position the company to capitalize on Northeast capacity closures.


**【CEO Summary Section】**
Casella Waste Systems reported record third-quarter 2025 results, with revenue of $485 million and adjusted EBITDA of $120 million, up 17.9% and 16.4% year-over-year, respectively. Key drivers included strong solid waste pricing (4.6% increase), higher landfill volumes (11.7% growth), and contributions from 8 acquisitions completed year-to-date. Adjusted free cash flow reached $119 million year-to-date, up 21% year-over-year. The company raised its 2025 revenue and adjusted EBITDA guidance midpoints to $1.835 billion and $420 million, respectively, reflecting confidence in its growth strategy.
- Management highlighted the Mountain State Waste acquisition, expected to close in early 2026 and add $30 million in annualized revenue.
- The transition to Ned Coletta as CEO was emphasized, with John Casella stepping into the Executive Chairman role.

**【CFO Financial Commentary】**
- **Revenue Growth**: $485.4 million, up 17.9% YoY, driven by $53.4 million from acquisitions and 4.9% organic growth. Solid waste pricing increased 4.6%, while landfill volumes rose 11.7% due to internalization and third-party activity.
- **Adjusted EBITDA**: $119.9 million, up 16.4% YoY, with 70 basis points of margin expansion in the core business. Acquisitions diluted margins by 100 basis points, but the company expects margin improvement in 2026 through cost savings and automation.
- **Free Cash Flow**: $119.5 million year-to-date, on track to meet full-year guidance. Capital expenditures increased 61% YoY to $187.8 million, primarily for acquisitions and landfill expansions.
- **Leverage**: Net debt of $1.16 billion with a consolidated leverage ratio of 2.34x, supporting continued M&A activity.

**【President's Operational Update】**
- **Mid-Atlantic Integration**: Progressing well, with 43 new trucks delivered and 37 more expected by early 2026. Automation initiatives aim to save $5 million annually in 2026, with multiyear opportunities for further margin expansion.
- **Landfill Expansions**: Permitting underway for Hyland (1 million tons/year capacity) and Hakes landfills, critical for addressing Northeast capacity closures.
- **Acquisition Pipeline**: $500 million in annualized revenue potential, including $20 million from 4 tuck-in deals under LOI. The Mountain State Waste acquisition will add $30 million in 2026.
- **Operational Efficiency**: Route optimization reduced 10 route days and driver headcount, while internalized landfill volumes grew 20% YoY.

**【Q&A Highlights】**
- **Margin Expansion**: CFO Brad Helgeson expects 25-50 basis points of margin improvement in 2026, driven by pricing, Mid-Atlantic synergies, and automation. Acquisitions will contribute $60 million in rollover revenue.
- **Mid-Atlantic Savings**: $5 million annualized savings in 2026, with potential for larger multiyear gains as systems consolidate.
- **AI and Automation**: Investment in AI tools for routing and back-office processes to enhance efficiency, with a focus on foundational system upgrades.
- **Landfill Pricing**: Third-party landfill pricing up 3% YoY, but rail capacity additions may limit further price increases in the short term.
- **Tariffs and Supply Chain**: No material impact from tariffs; truck deliveries have stabilized, easing supply chain disruptions.


Casella Waste Systems, Inc. (CWST) Q3 2025 Earnings Call Transcript

- **Record Growth**: Q2 revenue up 23.4% YoY to $465.3 million, driven by acquisitions and 5% solid waste price hikes.
- **Mid-Atlantic Challenges**: System conversions and truck delays caused 75 bps margin headwind, but 55 new trucks (40 automated) expected by year-end to address inefficiencies.
- **Acquisition Surge**: Completed 6 deals year-to-date, adding $40 million in revenue. Pending Mountain State Waste acquisition to expand into West Virginia and Pennsylvania.
- **Cash Flow Strength**: First-half free cash flow $70.8 million, up 59.9% YoY, supporting $121.9 million in capex for growth initiatives.
- **Leverage Management**: 2.39x net leverage ratio enables continued M&A despite $1.16 billion debt balance.

**【CEO Summary Section】**
- **50th Anniversary Milestone**: Celebrated 50 years of growth, evolving from a single-truck operation to a leading waste management company across the Northeast and Mid-Atlantic.
- **Q2 2025 Performance**: Delivered strong results with record first-half adjusted free cash flow of $70 million, up $30 million year-over-year. Solid waste pricing rose 5% YoY, and landfill volumes increased 9.5% YoY.
- **Mid-Atlantic Challenges**: Experiencing delays in system conversions and truck deliveries, impacting margin improvement. However, 55 new trucks (40 automated) expected by end-2025 to address inefficiencies.
- **Acquisition Activity**: Completed 6 acquisitions year-to-date, adding $40 million in annualized revenue. Pending Mountain State Waste deal to expand into Pennsylvania and West Virginia, adding $30 million in revenue.
- **Guidance Update**: Raised full-year revenue guidance to a midpoint of $1.83 billion, reaffirmed adjusted EBITDA and free cash flow targets, reflecting confidence in organic growth and M&A pipeline.

**【CFO Financial Commentary】**
- **Revenue**: Q2 revenue $465.3 million, up 23.4% YoY ($88.2 million), driven by $67.1 million from acquisitions and 5.6% organic growth. Solid waste revenue rose 27.1% YoY (5% price, 0.8% volume decline).
- **EBITDA**: Adjusted EBITDA $109.5 million, up 19.5% YoY, with 100+ basis points margin expansion in legacy operations offset by Mid-Atlantic headwinds.
- **Costs**: COGS $308.1 million (+22.3% YoY), G&A $54.5 million (+14.5% YoY), D&A $67.8 million (+47.6% YoY) due to acquisitions.
- **Cash Flow**: First-half free cash flow $70.8 million, up 59.9% YoY. Capital expenditures $121.9 million, including $40 million for acquisitions.
- **Leverage**: Net debt $1.16 billion, leverage ratio 2.39x, supporting continued M&A activity.

**【Q&A Key Highlights】**
- **Mid-Atlantic Synergies**: Expected $5-10 million EBITDA benefit over 2-3 years from automation and system upgrades. Truck delays pushed timeline, but 55 new trucks (40 automated) expected by end-2025.
- **Mountain State Waste**: Acquisition to expand into West Virginia and Pennsylvania, leveraging franchise agreements for stable, profitable growth.
- **Volume Trends**: Solid waste volumes stabilized in Q2, with landfill internalization up 13% YoY. Roll-off volumes lagged due to economic uncertainty but showed improvement in June.
- **CapEx Outlook**: 12-13% of revenue driven by landfill development and fleet upgrades. Acquisition-related upfront costs will remain elevated.
- **Tax Impact**: Reinstated bonus depreciation will defer federal tax burden, benefiting long-term cash flow.


Casella Waste Systems, Inc. (CWST) Q2 2025 Earnings Call Transcript

- **Record Q1 Performance**: 22.3% revenue growth, $29.1M free cash flow, and 20.7% EBITDA margin.
- **Landfill Strength**: +3.9% tons, 4.8% price/ton, with 30% excess capacity in NY.
- **Automation Growth**: 40 new automated trucks planned for 2025 to drive margin expansion.
- **M&A Momentum**: $500M pipeline and $10M incremental to prior guidance.
- **Resilience to Macro**: 5% pricing guidance maintained, minimal tariff exposure.

**【CEO Opening Remarks】**
- Q1 2025 revenue, adjusted EBITDA, and free cash flow all up over 20% YoY, setting a strong start to the year.
- Operational highlights include 7%+ organic landfill growth, 5.8% collection pricing, and $22M new business wins.
- Emphasized resilience to macroeconomic uncertainty through focus on automation, internalization, and M&A pipeline.

**【CFO Financial Details】**
- Revenues: $417.1M (+22.3% YoY), with $57.3M from acquisitions and 5.4% organic growth.
- Adjusted EBITDA: $86.4M (+21.7% YoY), margin 20.7% (down 10bps YoY due to stock comp adjustments).
- Free cash flow: $29.1M (Q1 record), capital expenditures $55.5M (including $25M for acquisitions).
- Debt: $1.15B, net leverage 2.45x, with $900M liquidity for future M&A.

**【Key Operational Updates】**
- Landfill: +3.9% tons YoY, 3.3% price growth, 4.8% avg price/ton.
- Collection: +5.8% pricing, -1.7% volume (impacted by winter weather).
- Resource Solutions: +9.5% revenue, National Accounts +10.9% YoY.
- Automation: 40 new automated trucks planned for 2025 (vs 17 in 2024).
- Willimantic recycling facility: On track for $4M EBITDA contribution in 2025.

**【Q&A Highlights】**
- Landfill internalization: 30% excess capacity in NY, 1.5M tons/year at McKean.
- Pricing outlook: 5% YoY guidance maintained, 70% of price increases already implemented.
- M&A pipeline: $500M+ in active deals, $10M incremental to prior guidance.
- Economic risk: Minimal tariff exposure, 10-year landfill strategy for long-term security.
- IT integration: Moving to new Soft-Pak version to unlock long-term value.


Casella Waste Systems (CWST)-2 May 25-2025 Q1 Earnings call transcript

- **Acquisition powerhouse**: 11 deals in 18 months ($500M+ annualized), driving 15%+ revenue growth. 
- **Cash machine**: $158M free cash flow in 2024, targeting 10%+ annual growth. 
- **Internalization pay-off**: 120,000+ tons/year shifted to internal landfills, reducing costs and preserving margins. 
- **Technology edge**: $20M+ annual IT spend cutting 50+ basis points from G&A as % of revenue. 
- **Tax efficiency**: $5M federal tax in 2025, with 10+ years of step-up depreciation shielding future payments.

**【CEO Summary Section】**
- **Acquisition-driven growth**: Completed 8 acquisitions in 2024 with $200M+ annualized revenues, and 3 Q1 2025 acquisitions ($40M annualized). 
- **Revenue & EBITDA expansion**: 20%+ growth in revenue, adjusted EBITDA, and free cash flow for 3 consecutive years. 
- **Internalization focus**: Shifted 120,000+ tons/year to internal landfills in 2024, with further expansion planned in 2025. 
- **Collection business strength**: Over 60% of revenue from collection, with 100+ bps margin expansion in core operations. 
- **Landfill resilience**: Despite C&D volume declines, maintained pricing (5.1% YoY) and airspace preservation. 

**【CFO Financial Commentary】**
- **Q4 2024 Results**: 
  - Revenue: $427.5M (+18.9% YoY), driven by $50M from acquisitions. 
  - Adjusted EBITDA: $95M (+15.6% YoY), margin 22.2%. 
  - Adjusted Free Cash Flow: $158.3M (+23% YoY). 
- **2025 Guidance**: 
  - Revenue: $1.775B-$1.805B (+15% YoY). 
  - Adjusted EBITDA: $410M-$425M (+16% YoY). 
  - Free Cash Flow: $165M-$180M. 
- **Key Drivers**: 5% price growth, 4% organic volume, and $4M+ contribution from upgraded Willimantic facility. 
- **Leverage & Liquidity**: Net leverage 2.54x, $900M+ available financing capacity. 

**【Q&A Highlights】**
- **M&A Pipeline**: Over 100 opportunities ($700M+ annualized), focused on Mid-Atlantic densification and recycling adjacencies. 
- **Technology Investment**: $20M+ annual IT spend for automation, routing, and customer portals. 
- **Tax Strategy**: $5M+ federal cash tax in 2025, with NOLs shielding federal liability until 2026+. 
- **Brookhaven Impact**: C&D volumes shifting to Casella landfills, with 7,500+ tons/month at McKean rail facility. 
- **Ontario Landfill Closure**: 4-year wind-down plan, with tons redirected to Seneca and Highland facilities.

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