Casella Waste Systems (NASDAQ:CWST) executives said the company exited 2025 with “strong momentum,” pointing to sustained organic growth, margin improvement in the base business, and continued acquisition activity, while also outlining a 2026 outlook built on pricing, operational “self-help,” and integration progress in the Mid-Atlantic region.
2025 results: double-digit growth and margin expansion in the base business
In his first earnings call as CEO, Ned Coletta said the company’s fourth-quarter performance reflected “sustained organic growth, meaningful operating improvement, and continued strategic momentum across the business.” For the full year 2025, Casella reported that revenues increased 18%, Adjusted EBITDA increased 17%, and Adjusted Free Cash Flow increased 14%, marking the fifth consecutive year of double-digit growth across those three metrics.
Fourth quarter: revenue up 9.7% and adjusted EBITDA margin improved
Chief Financial Officer Brad Helgeson said fourth-quarter revenues were $469.1 million, up 9.7% year-over-year. He attributed $23.1 million of the increase to acquisitions (including rollover) and $18.5 million to same-store growth, which he said was 4.3%.
Adjusted EBITDA for the quarter was $107 million, up 12.7% year-over-year, and adjusted EBITDA margin was 22.8%, an improvement of about 60 basis points. Helgeson said acquisitions diluted margins by roughly 40 basis points in the quarter because acquired businesses typically start at lower margins, while the base business (excluding acquisitions completed in the last 12 months) expanded margins by about 100 basis points on a same-store basis.
Helgeson also highlighted cost trends, noting cost of operations rose year-over-year primarily due to acquisitions, while on a same-store basis costs of operations declined 60 basis points as a percentage of revenue. General and administrative expense was up in dollars, but down 30 basis points as a percentage of revenue, which Helgeson said reflected higher IT spending and favorable incentive compensation accrual adjustments.
Adjusted net income in the quarter was $18.9 million, or $0.30 per diluted share, down $0.05 per share year-over-year. For the full year, net cash provided by operating activities was $329.8 million, up 17%, and Adjusted Free Cash Flow was $179.9 million, up 14%.
Business mix: pricing strength, landfill internalization, and recycling risk management
Within solid waste, Helgeson said revenue rose 9.9% year-over-year in the fourth quarter, with price up 4.4% and volume down 1.1%. Collection pricing was up 4.6% in the quarter, led by 5.3% pricing in front-load commercial, while overall collection volume was down 0.3%. Roll-off volume was a weaker spot, down 5.2%.
Disposal pricing increased 4.1%, and Helgeson said third-party disposal volumes declined 4.5% year-over-year, though he cautioned that the headline decline was “misleading” because it only reflects third-party volumes. Management emphasized the health of the landfill business, with Helgeson saying same-store landfill price was up 2.5% and total tons were up 1.7%, including nearly 10% growth in internalized volumes. Coletta and Helgeson explained during Q&A that internalization and “remixing” contributed to the reported third-party volume statistic, but management viewed the shift as creating a more stable long-term profile.
In Resource Solutions, management said fourth-quarter revenue increased 9.1% year-over-year. Recycling and other processing revenue declined 1.4% due to lower commodity prices, while national accounts grew 15.6%. Helgeson said recycled commodity revenue per ton fell 27% year-over-year, but contract structures adjust fees in down markets, keeping the net impact of lower commodity prices to “less than $1 million.” Coletta added that the company’s fee structures and risk management programs offset about 80% of commodity downside risk.
On national accounts, management said growth has been driven by multiple channels, with particular emphasis on industrial services. Helgeson said the industrial portion grew about 17% for the year, describing it as more value-added and higher margin, while acknowledging that national accounts as a whole has a lower EBITDA margin profile because it functions partly as a brokerage business.
Operational priorities: Mid-Atlantic integration, permitting, and facility changes
Management spent considerable time discussing integration work in the Mid-Atlantic. Coletta said Casella has “substantially completed” customer migration from acquired billing systems into Casella’s integrated Lead-to-Cash system, with remaining work expected to be completed by the end of the first quarter or early in the second quarter of 2026. With systems consolidated, management expects to accelerate route consolidation, automation, and pricing optimization.
Coletta said improved vehicle deliveries in the second half of 2025 included 40 automated trucks delayed earlier in the year. He said the company expects those vehicles, along with labor efficiencies and route optimization, to generate more than $5 million of savings in 2026. In Q&A, management clarified that the $5 million encompasses both automation-related labor productivity and initial route consolidation opportunities once systems are unified, while noting that additional benefits could extend beyond 2026 as redundant systems costs roll off and further optimization takes place.
Casella also discussed several landfill-related initiatives and milestones:
- Hayes and Highland landfill expansions in New York: Coletta said permitting progress continues, with the Hayes permit expected “in the next couple of quarters” and the Highland permit expected “within the year.” The Highland effort aims to more than double annual permitted tons from 460,000 to 1,000,000, adding “close to 60 years of capacity” at the current run rate, while Hayes is pursuing a 10+ year expansion.
- McKean Landfill rail upgrade: Coletta said the project remains on track for completion in the second quarter of 2026, enabling offloading of municipal solid waste, contaminated soils, and C&D materials from gondolas at the landfill.
- Ontario County landfill closure and future routing: Executives discussed the expected closure of the Ontario County landfill at the end of 2028. Coletta said the company is mapping out tonnage moves, with a portion expected to shift to Highland as capacity expands, and said the company aims to avoid a “major step down” in EBITDA from 2028 into 2029. Helgeson added that Ontario is “a very, very expensive site to run” and that reblending volumes could improve cash flow and earnings quality.
- North Country landfill and New Hampshire permitting: Management said it is ramping down volume at North Country ahead of an anticipated closure at the end of 2027, which Helgeson said represents about a 20-basis-point headwind to EBITDA margin in 2026. Coletta also discussed efforts related to New Hampshire’s regulatory environment, including continued legal work tied to Granite State Landfill in Dalton and legislative efforts associated with amended House Bill 707 aimed at “local control” and potential future expansion options.
Helgeson also addressed the closure of the Hawk Ridge Organics facility in Maine following a ban on land application of organics, stating the company accrued closure costs and anticipates approximately $3 million of additional closure-related costs in 2026 that will not impact adjusted EBITDA. He said materials will be redirected primarily to Casella landfills.
2026 guidance: revenue near $2.0B and adjusted EBITDA up roughly 9% at the midpoint
Casella issued 2026 guidance calling for revenue of $1.97 billion to $1.99 billion, Adjusted EBITDA of $455 million to $465 million, and Adjusted Free Cash Flow of $195 million to $205 million. Helgeson said the guidance includes acquisitions completed to date, including Mountain State Waste, assumes a stable economic environment, and does not include additional acquisitions, even though management described an acquisition pipeline of more than $500 million in annualized revenues.
On the revenue bridge, Helgeson said guidance assumes roughly $60 million from acquisitions (about 3% growth) and approximately 4.5% organic growth at the midpoint. In solid waste, the company is planning pricing of approximately 5% and expects volumes to be roughly flat, with churn particularly as newly acquired businesses are integrated.
Helgeson said the adjusted EBITDA guidance implies roughly flat margins to 40 basis points of margin improvement in 2026, driven by pricing, integration and synergies in the Mid-Atlantic, collection operating improvements, and higher overall landfill volumes. Offsetting factors include the Hawk Ridge closure and lower volumes at North Country as it ramps down. Capital expenditures are expected to be about $260 million, including roughly $65 million of upfront spending tied to recent acquisitions and remaining investment to complete rail access at McKean.
On capital allocation capacity, Coletta said the balance sheet remains a “strategic advantage,” noting leverage of about 2.3x and more than $700 million of liquidity. Helgeson added that the $700 million revolver was undrawn at year-end.
Looking further out, management highlighted a focus on safety and employee engagement, increased investment in systems and processes, and a longer-term goal to reduce G&A as a percentage of revenue. Helgeson said Casella’s G&A runs “a little over 12%” compared with “closer to 10%” for larger peers, with an initial objective over the next three to five years to move below 11% and continue improving, while 2026 is positioned as a “pivotal year” for implementing systems and reducing manual back-office intensity.
About Casella Waste Systems (NASDAQ:CWST)
Casella Waste Systems, Inc is a regional resource management company headquartered in Rutland, Vermont. Established in 1975, the company has grown from a single-truck operation into a multi-state provider of integrated waste management solutions. Casella offers a comprehensive range of services, including residential, commercial and industrial waste collection, transfer station operations, landfill disposal, recycling processing and organics management.
Through a network of solid waste transfer stations, recycling facilities and landfills, Casella serves communities primarily across the northeastern United States and parts of the mid-Atlantic region.
