Casella Waste Systems Tops Revenue and Earnings Estimates in Q2 FY2026

CWST beat on both lines in the second quarter and raised its full-year revenue outlook, though the guidance detail underneath was more mixed than the headline suggested. Revenue rose 16.9% year over year to $543.7 million, an increase of $78.4 million. Adjusted earnings of $0.40 per share came in well ahead of the roughly $0.29 consensus.

Pricing did the heavy lifting. Solid waste pricing rose 5.5%, split between 5.8% in collection and 4.7% in disposal, which is the durable part of the waste model and the reason the sector holds up through soft volume periods. Adjusted EBITDA of $123.2 million grew 12.5% and carried a 22.7% margin, roughly in line with the $122.9 million street figure. Acquisitions contributed as well, with five businesses closed year to date representing about $165 million in annualized revenue.

The company raised full-year 2026 revenue guidance to a range of $2.090 billion to $2.110 billion, up from $2.060 billion to $2.080 billion. Less discussed: net income guidance was cut to $0 to $6 million from $4 million to $10 million, because higher depreciation and interest expense from the acquisition debt flow through the bottom line even as revenue climbs.

That split is the thing to watch. Casella is buying growth on the top line and paying for it below the operating line, which works while pricing stays above 5% and integration proceeds cleanly. If pricing decelerates toward the 3% to 4% range typical of a slower inflation environment, the interest and depreciation load becomes materially harder to absorb.

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