Casella Waste Systems, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the quarter ended June 30, 2026, was $543.7 million, an increase of $78.4 million (16.9%) compared to $465.3 million in the same period in 2025.
• Operating income was $20.0 million for the quarter, up $0.7 million (3.6%) from $19.3 million in the prior year period.
• Net income was $3.8 million for the quarter, a decrease of $1.4 million (27.6%) from $5.2 million in the same period in 2025.
• Adjusted Net Income was $25.3 million for the quarter, up $1.1 million (4.6%) from $24.2 million in the prior year period.
• Adjusted EBITDA was $123.2 million for the quarter, up $13.7 million (12.5%) from $109.5 million in the prior year period.
• Net cash provided by operating activities was $161.0 million for the six months ended June 30, 2026, up $21.4 million (15.3%) from $139.6 million in the same period in 2025.
• Adjusted Free Cash Flow was $78.1 million for the six months ended June 30, 2026, up $7.3 million (10.3%) from $70.8 million in the same period in 2025.
• Interest expense, net, was $17.4 million for the quarter, compared to $13.0 million in the prior year period.
• Depreciation and amortization expense was $88.5 million for the quarter, compared to $77.0 million in the prior year period.

Guidance and Future Outlook

• Fiscal year 2026 revenue guidance was raised to a range of $2.090 billion to $2.110 billion, up from the previous range of $2.060 billion to $2.080 billion.
• Fiscal year 2026 net income guidance was lowered to a range of $0 to $6 million, down from the previous range of $4 million to $10 million.
• Fiscal year 2026 Adjusted EBITDA guidance remains reaffirmed at $473 million to $483 million.
• Fiscal year 2026 Net cash provided by operating activities guidance remains reaffirmed at $370 million to $380 million.
• Fiscal year 2026 Adjusted Free Cash Flow guidance remains reaffirmed at $200 million to $210 million.
• Management cited increased revenue guidance reflecting acquisition activity and expectations of higher floating fuel recovery fees to offset elevated fuel costs.
• Guidance ranges exclude the impact of any acquisitions that have not been completed.

Business Segments and Product Lines

• Solid waste pricing increased 5.5% year-over-year, driven by 5.8% collection price growth and 4.7% disposal price growth.
• Municipal solid waste and construction & demolition pricing grew 4.5% at landfills.
• Landfill volumes increased year-over-year, driven by both third-party sales and internalization efforts.
• Resource Solutions operating segment experienced strong National Accounts growth.
• The Company acquired five businesses in 2026 with approximately $165 million in aggregate annualized revenues.
• Systems integration work in the Mid-Atlantic region has been completed, with route optimization initiatives initiated.
• Organic residuals composting facility operations in Maine ceased due to a change in state law prohibiting land application of biosolids-based recycled products, resulting in closure charges.

Market and Competitive Landscape

• Fuel prices increased rapidly in 2026 and remained elevated through the second quarter.
• Floating fuel recovery fees were utilized to offset higher fuel costs.
• The acquisition pipeline remains strong with five deals closed in 2026.
• The Company operates primarily in the eastern United States providing solid waste collection, disposal, transfer, recycling, and organics services.

Risks and Challenges

• Elevated fuel prices and inflationary pressures, including wages and tariffs, may impact costs.
• Potential economic slowdown could negatively affect operations and financial results.
• Increased compliance and remediation costs and litigation risks related to PFAS and other emerging contaminants.
• Adverse weather conditions may negatively impact revenues and operating margins.
• Inability to increase landfill volumes or improve route profitability.
• Landfill operations and permit status may be affected by factors outside the Company's control.
• Potential for capital expenditures to exceed estimates.
• Inadequate insurance coverage or self-insurance reserves.
• Fluctuations in energy pricing or recyclable commodity pricing.
• Disruptions in transportation or imposition of tariffs impacting the ability to sell recyclables.
• Risks associated with acquisition integration and failure to achieve expected financial benefits.

Management Commentary and Tone

• Ned Coletta, President and CEO, stated the company delivered "another quarter of solid financial and operating performance" with teams executing at a high level.
• Management cited a disciplined operating approach, strong pricing execution, healthy landfill volumes, and continued acquisition activity as drivers of positive results.
• Coletta expressed confidence in the strategy and execution for the remainder of the year, citing momentum built in the first half of the year.
• Management noted that the business is performing in line with plan despite the guidance adjustments.

Other Key Points

• The Company closed five acquisitions in 2026 totaling approximately $165 million in annualized revenues.
• The Mid-Atlantic region has completed systems integration work.
• An organics facility closure charge was incurred in Maine due to regulatory changes.
• A conference call to discuss results was scheduled for August 7, 2026, at 10:00 a.m. Eastern Time.
• The Company operates as a regional solid waste, recycling, and resource management services company headquartered in Rutland, Vermont.