Casella Waste Systems Stock Earnings Reports

Key points for investors: Casella reported a strong start to 2026 with Q1 revenue of $457.3M (+9.6% YoY) and adjusted EBITDA of $97.1M (+12.3% YoY), driving ~50 bps of margin expansion. Organic same-store revenue growth was 3.9% (price +5.1% in solid waste; volume down ~2.5% due in part to winter weather), while acquisitions contributed materially (~$23.9M in Q1 and ~ $150M of annualized revenue closed YTD, including the $100M Star Waste deal). C&D volumes were notably strong (+13% YoY to landfills). The company raised 2026 guidance (revenue $2.06–2.08B; adjusted EBITDA $473–483M; adjusted FCF $200–210M) reflecting recently closed acquisitions and expects roughly 14% adjusted free cash flow growth at the midpoint. Pro forma net leverage after April closings is ~2.75x, with ~$500M of available liquidity to pursue further tuck-in M&A. Operational highlights: fuel recovery programs fully offset fuel cost increases in Q1, TRIR improved ~20% YoY, completed McKean rail transfer station, and continued permitting progress at Hakes (permit expected Q3 2026) and Hyland (permit expected Q1 2027) that should meaningfully expand permitted tons and long-term capacity. Resource Solutions saw commodity revenue per ton down ~22% YoY but contract structures and floating fees limited the net revenue impact to ~ $1M; recycling/national accounts strength partially offset commodity weakness. Cost programs: on track for $5M operating cost cuts in 2026 (Mid-Atlantic) and $15M targeted G&A savings across three years, with longer-term efficiency gains targeted via automation and AI tools. Risks/notes: near-term volume sensitivity to weather and construction activity, integration and near-term margin dilution from acquisitions (Star Waste ~20% starting EBITDA margin expectation), and timing/uncertainty around landfill gas (RNG) projects—several projects are in shakedown and expected to generate several million dollars of EBITDA in 2026.