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Jun 30
Casella Q2 2025 Earnings Report
Casella Waste Systems, Inc. announced its second quarter 2025 results, reporting strong revenue growth driven by acquisitions and sustained pricing, despite a decrease in net income.
Key Takeaways
Casella Waste Systems, Inc. delivered a robust second quarter in 2025, with revenues climbing to $465.3 million, a 23.4% increase year-over-year, primarily fueled by strategic acquisitions and consistent price growth across its solid waste operations. While Adjusted EBITDA saw a healthy 19.5% increase to $109.5 million, net income decreased by 25.7% to $5.2 million, mainly due to higher depreciation and amortization expenses from acquisition growth. The company also updated its fiscal year 2025 guidance, raising revenue and the lower end of Adjusted Free Cash Flow estimates.
Revenues for Q2 2025 reached $465.3 million, marking a significant 23.4% increase from the same period in 2024, largely due to the impact of recent acquisitions.
Solid waste pricing demonstrated strong growth, with a 5.0% increase overall, including 4.9% in collection price growth and 5.8% in disposal price growth.
Net income for the quarter was $5.2 million, a decrease of 25.7% compared to the prior year, primarily impacted by increased depreciation and amortization expenses from acquisition activities.
Adjusted EBITDA, a key non-GAAP measure, rose by 19.5% to $109.5 million, reflecting both acquisition contributions and organic growth in the core business.
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 Waste Systems, Inc. has updated its fiscal year 2025 guidance, increasing revenue estimates and raising the lower end of the Adjusted Free Cash Flow range, while reaffirming Adjusted EBITDA guidance.
Positive Outlook
- Revenue guidance for fiscal year 2025 has been raised to a range of $1.820 billion to $1.840 billion, up from $1.775 billion to $1.805 billion.
- The lower end of the Adjusted Free Cash Flow guidance range has been increased to $170 million, reflecting strong cash flow performance in the first half of the year.
- Adjusted EBITDA guidance has been reaffirmed between $410 million and $425 million, indicating continued confidence in core operational performance.
- The guidance includes the impact of approximately $90 million in annualized revenue from acquisitions completed in the first half of 2025.
- The company anticipates further expansion with the pending acquisition of Mountain State Waste, which is expected to add another $30 million in annualized revenue.
Challenges Ahead
- Net income guidance for fiscal year 2025 has been revised downwards to a range of $8 million to $18 million, from an earlier range of $10 million to $25 million.
- The guidance ranges do not include the impact of any acquisitions that have not yet been completed, such as the Mountain State Waste acquisition, which could introduce variability.
- Forward-looking estimates for net income and net cash provided by operating activities do not account for any unanticipated impacts, suggesting potential for deviation.
- The company acknowledges that recent acquisition activity, where initial Adjusted EBITDA margins are below consolidated levels, has been a near-term headwind to margins.
- The pace of synergy realization in the Mid-Atlantic region has also been identified as a near-term headwind to margins.