Casella Waste Systems — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenues for the quarter ended September 30, 2026, were $559.2 million, an increase of $73.9 million (15.2%) from $485.4 million in the same period in 2025.
• Operating income was $15.6 million, a decrease of $13.7 million from $29.4 million in the prior year period.
• Net loss was $(7.0) million for the quarter, compared to net income of $10.0 million in the prior year period.
• Adjusted Net Income was $22.3 million, a decrease of $5.1 million (18.7%) from $27.4 million in the prior year period.
• Adjusted EBITDA was $133.5 million, an increase of $13.6 million (11.4%) from $119.9 million in the prior year period.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $241.8 million, an increase of $8.6 million (3.7%) from $233.2 million in the prior year period.
• Adjusted Free Cash Flow for the nine months ended September 30, 2026, was $111.1 million, a decrease of $8.4 million (7.0%) from $119.5 million in the prior year period.
• Total assets were $3.58 billion as of September 30, 2026, compared to $3.30 billion as of December 31, 2025.
• Total debt (current and non-current) was $1.38 billion as of September 30, 2026, compared to $1.15 billion as of December 31, 2025.

Guidance and Future Outlook:

• Fiscal year 2026 revenue guidance was raised to a range of $2.100 billion to $2.110 billion (previously $2.090 billion to $2.110 billion).
• Fiscal year 2026 Adjusted EBITDA guidance was narrowed to a range of $475 million to $481 million (previously $473 million to $483 million).
• Fiscal year 2026 Net loss guidance was lowered to a range of $(10) million to $(4) million (previously net income of $0 million to $6 million).
• Fiscal year 2026 Net cash provided by operating activities guidance was reaffirmed at $370 million to $380 million.
• Fiscal year 2026 Adjusted Free Cash Flow guidance was reaffirmed at $200 million to $210 million.
• Management expects a minimum of 300 basis points of Adjusted EBITDA margin expansion over the next three years.
• Guidance ranges exclude the impact of any acquisitions not yet completed.

Business Segments and Product Lines:

• Solid waste pricing increased 5.5% year-over-year, driven by 5.9% collection price growth and 4.8% disposal price growth.
• Landfill volumes grew 12.8% in the third quarter.
• Resource Solutions operating segment reported strong National Accounts growth.
• Six businesses were acquired in the first nine months of 2026, contributing over $170 million in aggregate annualized revenues.
• Implementation of credit card convenience fees occurred throughout the quarter.
• An initial step of organizational transformation was completed in late September.
• A landfill development impairment charge of $13.6 million was recorded related to the termination of the Granite State landfill development project.
• An organics facility closure charge of $0.7 million was recorded for the quarter related to ceasing operations at a facility in Maine.

Market and Competitive Landscape:

• Floating fuel fees continued to insulate the business from elevated and volatile fuel prices where fully implemented.
• The Mid-Atlantic region experienced results slightly behind plan in the quarter but showed a definitive positive inflection point entering the fourth quarter.
• October Mid-Atlantic Adjusted EBITDA margins were up approximately 150 basis points from August and over 300 basis points year-over-year.
• Management remains highly confident in operating plans for the year, supported by strong fourth-quarter performance visibility.

Risks and Challenges:

• Inflationary pressures, including increased fuel prices, wages, and tariffs, may impact the ability to offset costs.
• Economic slowdowns could negatively affect operations and financial results.
• Emerging contaminants, specifically PFAS, may lead to increased compliance, remediation costs, and litigation risks.
• Adverse weather conditions may negatively impact revenues and operating margins.
• Landfill operations and permit status may be affected by factors outside the Company's control.
• The Company may be unable to increase volumes at landfills or improve route profitability.
• Acquisitions may fail to close due to regulatory approvals or integration challenges.
• Future environmental charges or asset impairments may be incurred.

Management Commentary and Tone:

• Ned Coletta, President and CEO, stated the company delivered "solid top-line revenue and Adjusted EBITDA growth" with strong performance across most of the business.
• Management noted that solid waste pricing was "robust" and that floating fuel fees effectively insulated the business.
• Coletta expressed confidence in operating plans for the year and the expectation of sustained regional performance gains in the Mid-Atlantic through 2027.
• Management highlighted progress on multi-year G&A cost reduction and margin expansion objectives.

Other Key Points:

• The company will host a conference call on November 10, 2026, at 10:00 a.m. Eastern Time to discuss results.
• A $13.6 million impairment charge was recorded for the termination of the Granite State landfill project due to legal proceedings, legislative changes, and an unsupportive political environment.
• An organics facility closure charge was incurred due to a change in state law prohibiting land application of biosolids-based recycled products in Maine.
• Investment tax credit monetization contributed to the quarter's results.
• Capital expenditures for the nine months ended September 30, 2026, totaled $200.5 million, including $38.2 million in acquisition capital expenditures and $5.7 million in McKean Landfill rail capital expenditures.
• Lehigh Valley, PA MRF construction costs of $4.6 million were incurred in the first nine months of 2026.