Casella Waste Systems Inc
NASDAQ:CWST
Casella Waste Systems Inc
Casella Waste Systems Inc., founded in 1975 by brothers John and Douglas Casella, began its journey in the quaint setting of Rutland, Vermont. Their modest roots in local waste collection have evolved into a sophisticated operation spanning the northeastern United States. The company thrives by engaging in a comprehensive range of waste management services, including collection, transfer, disposal, and recycling. Their operations fundamentally revolve around maximizing efficiency within each segment of the waste lifecycle, a model that is not only lucrative but also increasingly essential in a world more conscious of sustainability and environmental responsibility.
The company's financial engine is powered by its vertically integrated network of waste management sites, transfer stations, recycling centers, and landfills. Casella Waste Systems is adept at capturing value at every link of the chain—from the moment a waste truck pulls away from a curb, to the sorting of recyclables, and finally to the disposal in landfills or conversion into renewable energy. This integration allows Casella to control costs, optimize logistics, and offer competitive pricing, all while maintaining robust service standards. Additionally, by investing in the burgeoning sector of resource renewal—turning waste streams into valuable commodities—Casella taps into new revenue streams, showcasing how traditional waste management practices can evolve into sustainable business opportunities.
Casella Waste Systems Inc., founded in 1975 by brothers John and Douglas Casella, began its journey in the quaint setting of Rutland, Vermont. Their modest roots in local waste collection have evolved into a sophisticated operation spanning the northeastern United States. The company thrives by engaging in a comprehensive range of waste management services, including collection, transfer, disposal, and recycling. Their operations fundamentally revolve around maximizing efficiency within each segment of the waste lifecycle, a model that is not only lucrative but also increasingly essential in a world more conscious of sustainability and environmental responsibility.
The company's financial engine is powered by its vertically integrated network of waste management sites, transfer stations, recycling centers, and landfills. Casella Waste Systems is adept at capturing value at every link of the chain—from the moment a waste truck pulls away from a curb, to the sorting of recyclables, and finally to the disposal in landfills or conversion into renewable energy. This integration allows Casella to control costs, optimize logistics, and offer competitive pricing, all while maintaining robust service standards. Additionally, by investing in the burgeoning sector of resource renewal—turning waste streams into valuable commodities—Casella taps into new revenue streams, showcasing how traditional waste management practices can evolve into sustainable business opportunities.
Record Results: Casella delivered all-time high quarterly revenue of $485 million and adjusted EBITDA of $120 million, both up strongly year-over-year and ahead of expectations.
Guidance Raised: Management increased the lower end of 2025 revenue and adjusted EBITDA guidance, now setting midpoints at $1.835 billion and $420 million, reflecting confidence in full-year performance.
Margin Expansion: Core business margins expanded by 70 basis points year-over-year, while recent acquisitions temporarily diluted overall margins by 100 basis points as expected.
Strong Free Cash Flow: Adjusted free cash flow reached a record $119.5 million year-to-date, up 21% year-over-year, keeping the company on track for its full-year cash flow guidance.
Active M&A Pipeline: Eight acquisitions closed year-to-date (adding $105 million in annualized revenue); Mountain State Waste is expected to close in early 2026 with four more deals in late-stage LOI.
Mid-Atlantic Progress: Integration and system upgrades in the Mid-Atlantic are on track, with at least $5 million in cost savings targeted for 2026 and further efficiencies expected.
2026 Outlook: Management forecasts 7–8% total revenue growth, 25–50 basis points margin improvement, and adjusted EBITDA growth of 9–10% for 2026.
Leadership Transition: John Casella will transition to Executive Chairman at year-end, with Ned Coletta becoming CEO starting 2026.
