Casella Waste Systems, Inc. Announces First Quarter 2025 Results

RUTLAND, Vt., May 01, 2025 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company, today reported its financial results for the three-month period ended March 31, 2025.

Key Highlights:

• Revenues were $417.1 million for the quarter, up $76.1 million, or up 22.3%, from the same period in 2024.
• Solid waste pricing was up 5.6% from the same period in 2024, driven by 5.8% collection price growth and 5.5% disposal price growth.
• Net loss was $(4.8) million for the quarter, down $(0.7) million, as compared to $(4.1) million for the same period in 2024.
• Adjusted EBITDA, a non-GAAP measure, was $86.4 million for the quarter, up $15.4 million, or up 21.7%, from the same period in 2024.
• Net cash provided by operating activities was $50.1 million for the quarter, up $42.4 million from the same period in 2024.
• Adjusted Free Cash Flow, a non-GAAP measure, was $29.1 million for the quarter, up $31.5 million from the same period in 2024.
• Year-to-date, we have completed four acquisitions with approximately $50 million in annualized revenue.

"We had a strong first quarter to start the year, with both revenue and Adjusted EBITDA up over 20% year-over-year, as we continue to execute successfully on our operating and growth strategies,” said John W. Casella, Chairman and CEO of Casella Waste Systems, Inc. "Notwithstanding heightened uncertainty in the overall economy, our business is performing well, and our guidance for the year remains unchanged.”

"Our pricing programs are on track with our plan, with solid waste price growth of 5.6%, collection pricing up 5.8% and disposal pricing up 5.5% in the quarter,” Casella said. "Collection volume remained a slight headwind at (1.7%) in the quarter, with relative weakness in the roll-off line of business, as well as lighter transfer station volumes. However, landfill tons were up 3.9% in the quarter, as the market headwinds have subsided, and we have increased internalization and revamped sales efforts. Our National Accounts business remains a nice driver of top-line growth as well, with 10.9% organic growth, including 7.4% volume growth.”

"Acquisitions remain a key strategic priority, and year-to-date we have acquired four businesses with approximately $50 million in annualized revenue, including a recent tuck-in in the western New York market,” Casella said. We continue to work a robust deal pipeline, including both geographic overlays and strategic adjacencies, that we hope will drive further value creation in the future.”

Q1 2025 Results

Revenues were $417.1 million for the quarter, up $76.1 million, or up 22.3%, from the same period in 2024, with revenue growth mainly driven by: the rollover impact from acquisitions, including deals closed in prior periods; sustained collection and disposal price growth; and strong National Accounts growth in our Resource Solutions segment.

Operating income was $3.1 million for the quarter, down $(3.7) million, or down (54.0)%, from the same period in 2024, primarily impacted by higher depreciation and amortization expense related to acquisition growth.

Net loss was $(4.8) million for the quarter, or $(0.08) per diluted common share, as compared to $(4.1) million and $(0.07) per diluted common share, from the same period in 2024, driven by the factors impacting operating income, partially offset by lower interest expense. Adjusted Net Income was $12.2 million for the quarter, or $0.19 Adjusted Diluted Earnings Per Common Share, both non-GAAP measures, as compared to Adjusted Net Income of $8.7 million, and $0.15 Adjusted Diluted Earnings Per Common Share for the same period in 2024.

Adjusted EBITDA was $86.4 million for the quarter, up $15.4 million, or up 21.7%, from the same period in 2024, driven by both acquisition contribution and organic growth.

Please refer to "Non-GAAP Performance Measures" included in "Unaudited Reconciliation of Certain Non-GAAP Measures" below for additional information and reconciliations of Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDA and other non-GAAP performance measures to their most directly comparable GAAP measures.

Net cash provided by operating activities was $50.1 million for the quarter, up $42.4 million from $7.7 million for the same period in 2024, driven by higher Adjusted EBITDA, lower cash interest payments and a lower outflow from changes in working capital compared to last year. Adjusted Free Cash Flow was $29.1 million for the quarter, as compared to $(2.4) million for the same period in 2024.

Please refer to "Non-GAAP Liquidity Measures" included in "Unaudited Reconciliation of Certain Non-GAAP Measures" below for additional information and reconciliation of Adjusted Free Cash Flow to its most directly comparable GAAP measure.

Fiscal Year 2025 Outlook

"The business is operating slightly ahead of our plan thus far in 2025,” Casella said. "While we have started the year well, it is still early, and given heightened economic and policy uncertainty, we believe that a cautious approach to our outlook is prudent.”

The Company reaffirmed guidance for the fiscal year ending December 31, 2025 ("fiscal year 2025") by estimating results in the following ranges:

• Revenues between $1.775 billion and $1.805 billion;
• Net income between $10 million and $25 million;
• Adjusted EBITDA between $410 million and $425 million;
• Net cash provided by operating activities between $320 million and $335 million; and
• Adjusted Free Cash Flow between $165 million and $180 million.

The guidance ranges include acquisition activity announced to date, including the $40 million of annualized revenue acquired in the first quarter and previously announced in February, but do not include the impact of any acquisitions that have not been completed. Adjusted EBITDA and Adjusted Free Cash Flow related to fiscal year 2025 are described in the Unaudited Reconciliation of Fiscal Year 2025 Outlook Non-GAAP Measures section of this press release. Net income and Net cash provided by operating activities are provided as the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted Free Cash Flow, respectively, however these forward-looking estimates for fiscal year 2025 do not contemplate any unanticipated impacts.

Conference Call to Discuss Quarter

The Company will host a conference call to discuss these results on Friday, May 02, 2025 at 10:00 a.m. Eastern Time. Individuals interested in participating in the call should register for the call by clicking here to obtain a dial in number and unique passcode. Alternatively, upon registration, the website linked above provides an option for the conference provider to call the registrant's phone line, enabling participation on the call.

The call will also be webcast; to listen, participants should visit the company's website at http://ir.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the Company's website and accessible using the same link.

About Casella Waste Systems, Inc.

Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides resource management expertise and services to residential, commercial, municipal, institutional and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services in the eastern United States. For further information, investors may visit the Company's website at http://www.casella.com.

Safe Harbor Statement

Certain matters discussed in this press release, including, but not limited to, the statements regarding our intentions, beliefs or current expectations concerning, among other things, our financial performance; financial condition; operations and services; prospects; growth; strategies; anticipated impacts from future or completed acquisitions; and guidance for fiscal year 2025, are "forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as "believe,” "expect,” "anticipate,” "plan,” "may,” "would,” "intend,” "estimate,” "will," "guidance” and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which the Company operates and management's beliefs and assumptions. The Company cannot guarantee that it actually will achieve the financial results, plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of the Company's operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements.

Such risks and uncertainties include or relate to, among other things, the following: the Company may be unable to adequately increase prices or drive operating efficiencies to adequately offset increased costs and inflationary pressures, including increased fuel prices, wages, and tariffs; it is difficult to determine the timing or future impact of a sustained economic slowdown that could negatively affect our operations and financial results; the increasing focus on per - and polyfluoroalkyl substances ("PFAS”) and other emerging contaminants, including the recent designation by the U.S. Environmental Protection Agency of two PFAS chemicals as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act, will likely lead to increased compliance and remediation costs and litigation risks; adverse weather conditions may negatively impact the Company's revenues and its operating margin; the Company may be unable to increase volumes at its landfills or improve its route profitability; the Company may be unable to reduce costs or increase pricing or volumes sufficiently to achieve estimated Adjusted EBITDA and other targets; landfill operations and permit status may be affected by factors outside the Company's control; the Company may be required to incur capital expenditures in excess of its estimates; the Company's insurance coverage and self-insurance reserves may be inadequate to cover all of its risk exposures; fluctuations in energy pricing or the commodity pricing of its recyclables may make it more difficult for the Company to predict its results of operations or meet its estimates; disruptions or limited access to domestic and global transportation or the imposition of tariffs could impact the Company's ability to sell recyclables into end markets; the Company may be unable to achieve its acquisition or development targets on favorable pricing or at all, including due to the failure to satisfy all closing conditions and to receive required regulatory approvals that may prevent closing of any announced transaction; the Company may not be able to successfully integrate and recognize the expected financial benefits from acquired businesses; and the Company may incur environmental charges or asset impairments in the future.

There are a number of other important risks and uncertainties that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A. "Risk Factors” in the Company's most recently filed Form 10-K and in other filings that the Company may make with the Securities and Exchange Commission in the future.

The Company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Investors:

Brian J. Butler, CFA

Vice President of Investor Relations

(802) 772-2264

Media:

Jeff Weld

Vice President of Communications

(802) 772-2234

http://www.casella.com