Casella Waste Systems, Inc. Announces Second Quarter 2025 Results
RUTLAND, Vt., July 31, 2025 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (NASDAQ:CWST), a regional solid waste, recycling and resource management services company, today reported its financial results for the three and six-month periods ended June 30, 2025.
Key Highlights:
Revenues were $465.3 million for the quarter, up $88.2 million, or up 23.4%, from the same period in 2024.
Solid waste pricing for the quarter was up 5.0% from the same period in 2024, with 4.9% collection price growth and 5.8% disposal price growth.
Net income was $5.2 million for the quarter, down $(1.8) million, or down (25.7)%, as compared to $7.0 million for the same period in 2024.
Adjusted EBITDA, a non-GAAP measure, was $109.5 million for the quarter, up $17.9 million, or up 19.5%, from the same period in 2024.
Net cash provided by operating activities was $139.6 million for the year-to-date period, up $59.9 million from the same period in 2024.
Adjusted Free Cash Flow, a non-GAAP measure, was $70.8 million for the year-to-date period, up $31.3 million from the same period in 2024.
Acquired six businesses year-to-date with approximately $90 million in annualized revenue, with another $30 million to come with the anticipated closing of the recently announced Mountain State Waste transaction.
"We delivered strong growth again in the second quarter across our key financial metrics, as we continue to execute on our operating plans and acquisition strategy, including six acquisitions completed in the first half of this year with over $90 million in annualized revenue," said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. "We are excited about our pending acquisition of Mountain State Waste, which will expand our footprint in Pennsylvania and into the adjacent West Virginia market, and look forward to welcoming their employees and customers to Casella."
"In the base business, we again delivered consistent same store organic growth in revenue, Adjusted EBITDA and Adjusted Free Cash Flow, driven in particular by performance across our legacy Northeast footprint and stronger landfill volumes year-over-year," Casella said. "From a margin perspective, our recent acquisition activity, where we tend to acquire private businesses at initial Adjusted EBITDA margins below our consolidated levels, as well as the pace of synergy realization in the Mid-Atlantic, were a near-term headwind, but represent opportunities for margin expansion going forward."
Q2 2025 Results
Revenues were $465.3 million for the quarter, up $88.2 million, or up 23.4%, from the same period in 2024, with revenue growth mainly driven by: the rollover impact from acquisitions, including deals closed in prior periods; sustained collection and disposal price growth; and strong National Accounts growth in our Resource Solutions segment.
Operating income was $19.3 million for the quarter, down $(3.7) million, or down (16.3)%, from the same period in 2024, primarily impacted by higher depreciation and amortization expense related to acquisition growth.
Net income was $5.2 million for the quarter, down $(1.8) million, or down (25.7)%, from the same period in 2024, largely driven by the factors impacting operating income. Adjusted Net Income was $23.0 million for the quarter, up $1.3 million, or up 5.9% from the same period in 2024.
Adjusted EBITDA was $109.5 million for the quarter, up $17.9 million, or up 19.5%, from the same period in 2024, driven by both acquisition contribution and organic growth.
Please refer to "Non-GAAP Performance Measures" included in "Unaudited Reconciliation of Certain Non-GAAP Measures" below for additional information and reconciliations of Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDA and other non-GAAP performance measures to their most directly comparable GAAP measures.
Net cash provided by operating activities was $139.6 million for the six months ended June 30, 2025, up $59.9 million from $79.8 million for the same period in 2024, driven by both acquisition contribution and organic growth, lower cash interest payments and a lower outflow from changes in working capital compared to the same period in 2024. Adjusted Free Cash Flow for the six months ended June 30 was $70.8 million, up $31.3 million from $39.5 million for the same period in 2024.
Please refer to "Non-GAAP Liquidity Measures" included in "Unaudited Reconciliation of Certain Non-GAAP Measures" below for additional information and reconciliation of Adjusted Free Cash Flow to its most directly comparable GAAP measure.
Fiscal Year 2025 Outlook
"We are increasing revenue guidance, reflecting our acquisition activity in the first half; raising the bottom end of the range for Adjusted Free Cash Flow, reflecting strong cash flow performance in the first half and our increased confidence in the second half; and reaffirming our guidance range for Adjusted EBITDA, as the contribution from additional acquisitions to date have not moved us outside of our original guidance range," Casella said.
The Company updated guidance for the fiscal year ending December 31, 2025 ("fiscal year 2025") by estimating results in the following range:
Revenues between $1.820 billion and $1.840 billion (raised from a range of $1.775 billion to $1.805 billion);
Net income between $8 million and $18 million (revised from a range of $10 million to $25 million);
Net cash provided by operating activities between $325 million and $335 million (revised from a range of $320 million to $335 million); and
Adjusted Free Cash Flow between $170 million and $180 million (revised from a range of $165 million to $180 million).
The Company reaffirmed guidance for fiscal year 2025 by estimating results in the following range:
Adjusted EBITDA between $410 million and $425 million.
The guidance ranges include acquisition activity completed to date, including the $90 million of annualized revenue acquired in the first half of 2025, but do not include the impact of any acquisitions that have not been completed, including the acquisition of Mountain State Waste.
Adjusted EBITDA and Adjusted Free Cash Flow related to fiscal year 2025 are described in the Unaudited Reconciliation of Fiscal Year 2025 Outlook Non-GAAP Measures section of this press release. Net income and Net cash provided by operating activities are provided as the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted Free Cash Flow, respectively, however these forward-looking estimates for fiscal year 2025 do not contemplate any unanticipated impacts.
Conference Call to Discuss Quarter
The Company will host a conference call to discuss these results on Friday, August 1, 2025 at 10:00 a.m. Eastern Time. Individuals interested in participating in the call should register for the call by clicking here to obtain a dial in number and unique passcode. Alternatively, upon registration, the website linked above provides an option for the conference provider to call the registrant's phone line, enabling participation on the call.
The call will also be webcast; to listen, participants should visit the company's website at http://ir.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the Company's website and accessible using the same link.
About Casella Waste Systems, Inc.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides resource management expertise and services to residential, commercial, municipal, institutional and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services in the eastern United States. For further information, investors may visit the Company's website at http://www.casella.com.
Safe Harbor Statement
Certain matters discussed in this press release, including, but not limited to, the statements regarding our intentions, beliefs or current expectations concerning, among other things, our financial performance; financial condition; operations and services; prospects; growth; strategies; anticipated impacts from future or completed acquisitions; and guidance for fiscal year 2025, are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as "believe," "expect," "anticipate," "plan," "may," "would," "intend," "estimate," "will," "guidance" and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which the Company operates and management's beliefs and assumptions. The Company cannot guarantee that it will achieve the financial results, plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of the Company's operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements.
Such risks and uncertainties include or relate to, among other things, the following: the Company may be unable to adequately increase prices or drive operating efficiencies to adequately offset increased costs and inflationary pressures, including increased fuel prices, wages, and tariffs; it is difficult to determine the timing or future impact of a sustained economic slowdown that could negatively affect our operations and financial results; the increasing focus on per - and polyfluoroalkyl substances ("PFAS") and other emerging contaminants, including the recent designation by the U.S. Environmental Protection Agency of two PFAS chemicals as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act, will likely lead to increased compliance and remediation costs and litigation risks; adverse weather conditions may negatively impact the Company's revenues and its operating margin; the Company may be unable to increase volumes at its landfills or improve its route profitability; the Company may be unable to reduce costs or increase pricing or volumes sufficiently to achieve estimated Adjusted EBITDA and other targets; landfill operations and permit status may be affected by factors outside the Company's control; the Company may be required to incur capital expenditures in excess of its estimates; the Company's insurance coverage and self-insurance reserves may be inadequate to cover all of its risk exposures; fluctuations in energy pricing or the commodity pricing of its recyclables may make it more difficult for the Company to predict its results of operations or meet its estimates; disruptions or limited access to domestic and global transportation or the imposition of tariffs could impact the Company's ability to sell recyclables into end markets; the Company may be unable to achieve its acquisition or development targets on favorable pricing or at all, including due to the failure to satisfy all closing conditions and to receive required regulatory approvals that may prevent closing of any announced transaction; the Company may not be able to successfully integrate and recognize the expected financial benefits from acquired businesses; and the Company may incur environmental charges or asset impairments in the future.
There are a number of other important risks and uncertainties that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A. "Risk Factors" in the Company's most recently filed Form 10-K and in other filings that the Company may make with the Securities and Exchange Commission in the future.
The Company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Investors:
Brian J. Butler, CFAVice President of Investor Relations(802) 772-2264
Media:
Jeff WeldVice President of Communications(802) 772-2234http://www.casella.com
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per share data)
Three Months EndedJune 30,
Six Months EndedJune 30,
2025
2024
2025
2024
Revenues
$
465,334
$
377,163
$
882,435
$
718,170
Operating expenses:
Cost of operations
308,070
243,787
588,521
474,578
General and administration
54,523
47,184
111,009
91,517
Depreciation and amortization
77,006
55,338
148,497
109,375
Expense from acquisition activities
6,463
7,836
11,992
12,847
446,062
354,145
860,019
688,317
Operating income
19,272
23,018
22,416
29,853
Other expense (income):
Interest expense, net
13,000
12,697
24,598
25,767
Other income
(615
)
(477
)
(933
)
(828
)
Other expense, net
12,385
12,220
23,665
24,939
Income (loss) before income taxes
6,887
10,798
(1,249
)
4,914
Provision (benefit) for income taxes
1,679
3,792
(1,647
)
2,025
Net income
$
5,208
$
7,006
$
398
$
2,889
Basic weighted average common shares outstanding
63,461
58,109
63,424
58,070
Basic earnings per common share
$
0.08
$
0.12
$
0.01
$
0.05
Diluted weighted average common shares outstanding
63,563
58,199
63,524
58,161
Diluted earnings per common share
$
0.08
$
0.12
$
0.01
$
0.05
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)
June 30,2025
December 31,2024
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and restricted cash
$
217,772
$
383,303
Accounts receivable, net of allowance for credit losses
178,879
165,917
Other current assets
67,874
64,085
Total current assets
464,525
613,305
Property and equipment, net of accumulated depreciation and amortization
1,240,746
1,164,815
Operating lease right-of-use assets
111,103
98,050
Goodwill
1,088,709
1,002,266
Intangible assets, net of accumulated amortization
315,425
313,468
Other non-current assets
36,403
38,164
Total assets
$
3,256,911
$
3,230,068
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of debt
$
22,511
$
42,619
Current operating lease liabilities
11,776
10,291
Accounts payable
116,826
111,087
Current accrued final capping, closure and post-closure costs
2,779
3,224
Contract liabilities
44,176
50,690
Other accrued liabilities
75,348
89,406
Total current liabilities
273,416
307,317
Debt, less current portion
1,120,963
1,090,632
Operating lease liabilities, less current portion
79,158
64,449
Accrued final capping, closure and post-closure costs, less current portion
178,684
169,006
Other long-term liabilities
50,509
47,825
Total stockholders' equity
1,554,181
1,550,839
Total liabilities and stockholders' equity
$
3,256,911
$
3,230,068
CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)
Six Months EndedJune 30,
2025
2024
Cash Flows from Operating Activities:
Net income
$
398
$
2,889
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
148,497
109,375
Interest accretion on landfill and environmental remediation liabilities
7,426
