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Jun 30, 2024
Casella Q2 2024 Earnings Report
Casella's financial results for Q2 2024 were announced, with revenue and Adjusted EBITDA guidance raised for fiscal year 2024.
Key Takeaways
Casella Waste Systems reported a strong second quarter in 2024, with revenues up 30.2% compared to the same period in 2023. The company has acquired five businesses through August 1, 2024, and updated its fiscal year 2024 guidance to reflect these acquisitions.
Revenues increased by 30.2% to $377.2 million compared to Q2 2023.
Solid waste pricing grew by 5.7%, driven by collection and disposal price increases.
Net income rose by 27.6% to $7.0 million compared to Q2 2023.
Adjusted EBITDA increased by 26.9% to $91.6 million compared to Q2 2023.
Casella
Casella
Casella Revenue by Segment
Revenue by Segment
Collection Revenue
CapyFin.comDisposal Revenue
CapyFin.comLandfill Gas-to-Energy Revenue
CapyFin.comSolid Waste Processing Revenue
CapyFin.comResource Solutions Revenue
CapyFin.com Forward Guidance
Casella raised its revenue and Adjusted EBITDA guidance for fiscal year 2024, while reaffirming guidance for Adjusted Free Cash Flow. Ranges for net income and net cash provided by operating activities were lowered.
Positive Outlook
- Revenues between $1.520 billion and $1.550 billion (raised from a range of $1.480 billion to $1.510 billion)
- Adjusted EBITDA between $360 million and $370 million (raised from a range of $350 million to $360 million)
- Adjusted Free Cash Flow between $140 million and $150 million
- Incorporating acquisitions completed to date
- Assumes a stable economic environment over the remainder of the year
Challenges Ahead
- Net income between $15 million and $25 million (lowered from a range of $35 million and $45 million)
- Net cash provided by operating activities between $245 million and $255 million (lowered from a range of $260 million and $270 million)
- Higher acquisition-related expenditures
- Cost of financing
- Conservative outlook on working capital
Revenue & Expenses
Visualization of income flow from segment revenue to net income