Revenue Growth
Total revenue of $457.3M in Q1 2026, up 9.6% year-over-year (+$40.2M), driven by acquisitions ($23.9M) and same-store growth ($16.2M, 3.9%). Company raised 2026 revenue guidance to $2.06B–$2.08B (+$90M).
Casella Waste
· CWST
April 30th, 2026
Summary
- Earnings Call Date:
- 2026-04-30
- Change Since:
- +15.13%
- Next Earnings Date:
- 2026-07-23
Earnings Call Sentiment
PositiveThe call conveyed a generally positive operational and financial performance: strong revenue and adjusted EBITDA growth, margin expansion in the base business, effective fuel recovery and cost programs, active M&A adding scale, safety and technology investments, and constructive permitting and rail-transfer progress. Headwinds included transient volume softness (weather-driven), meaningful pressure in recycled commodity pricing (though largely contract-mitigated), initial margin dilution from acquisitions and some near-term uncertainty around RNG monetization and base-business guidance updates. Overall, the company positioned itself as executing well operationally while remaining cautious about some cyclical and integration-related risks.
Company Guidance
Casella raised 2026 guidance to revenue of $2.06–2.08 billion (up ~$90M), adjusted EBITDA of $473–483 million (up ~$18M) and adjusted free cash flow of $200–210 million (up ~$5M), which implies roughly 14% adjusted FCF growth at the midpoint and assumes an adjusted EBITDA margin of ~20%; the revision reflects ~ $120M of new annualized revenue for nine months from recent acquisitions (four closed YTD, including Star Waste ~ $100M). Quarterly context: Q1 adjusted EBITDA was $97.1M (up 12.3% YoY) with a 21.2% adjusted EBITDA margin (base business margin expansion of 65 bps, overall +50 bps). Balance sheet and liquidity assumptions: March 31 debt $1.16B, cash $127M, consolidated net leverage 2.29x (pro forma ~2.75x after April 1 deals) and ~ $500M available liquidity to fund tuck‑ins; guidance also reflects operating cost savings targets ($5M in 2026 and another $10M over the next two years) and $15M of targeted G&A savings over three years (first phase delivering in H2 2026), with typical FCF conversion from EBITDA and incremental net interest impact assumed for deal financing.
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $97.1M, up 12.3% YoY (+$10.7M). Adjusted EBITDA margin expanded to 21.2%, a ~50 basis-point increase year-over-year; base (same-store) business margin expansion of ~65 basis points.
Pricing Strength in Solid Waste
Solid waste pricing up 5.1% overall: collection +5.3% (roll-off +6.5%, front-load commercial +6.0%) and disposal +4.7%; third-party landfill pricing +4.3%. Guidance assumes ~5% solid waste pricing growth in 2026.
Acquisition-Fueled Growth and Active M&A
Four acquisitions completed in 2026 to date representing ~ $150M of annualized revenues, including Star Waste (~$100M). Pro forma leverage for April 1 closings ~2.75x; $500M of available liquidity to pursue further tuck-ins.
Cash Flow and Operating Cash Strength
Net cash provided by operating activities $62.3M, up 24% YoY. Adjusted free cash flow $30.7M, up 5% YoY. Full-year adjusted free cash flow guidance increased to $200M–$210M (+$5M).
Cost Recovery and Operational Controls
Fuel recovery program effectively offset rising diesel costs in the quarter with minimal lag. Company on track to cut $5M of operating costs in 2026 and an additional $10M over the next two years; $15M targeted G&A savings over three years.
Safety and Technology Investments
TRIR (OSHA metric) improved 20% YoY. Company expanded Triage programs and deployed Lytx in-cab AI across fleet. Launched new customer payment portal and plans Casella app rollout in Q2 to improve customer experience and e-commerce.
Asset and Permitting Progress
McKean rail transfer station completed to accept gondolas/intermodal; Hakes permit expected Q3 2026 and Hyland permit expected Q1 2027 (Hyland expansion planned from 460k to 1.0M annual tons and +60 years capacity).
Operator
Good day, and thank you for standing by. Welcome to the Casella Waste Systems, Inc. First Quarter 2026 Conference Call. [Operator Instructions] Please advise that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Jason Mead, Senior Vice President of Finance and Treasurer. Please go ahead.
Jason Mead
Good morning, and thank you for joining us on the call. Today, we'll be discussing our first quarter 2026 results, which were released yesterday afternoon. This morning, I'm joined by Ned Coletta, President and Chief Executive Officer of Casella Waste Systems; and Brad Helgeson, our Chief Financial Officer. After a review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. But first, please note that various remarks we make about the company's future expectations, plans and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent Form 10-K, which is on file with the SEC. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views on any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so ...
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