On February 19, 2026, Casella Waste Systems, Inc. (NASDAQ: CWST), a leader in solid waste, recycling, and resource management services, announced its financial results for the fourth quarter and the fiscal year ending December 31, 2025. The company displayed notable revenue growth, despite a dip in net income, and provided a robust outlook for 2026.

1. Key Financial Highlights

Revenue Growth

For the fourth quarter of fiscal year 2025, Casella reported revenues of $469.1 million, an increase of $41.6 million, or 9.7%, compared to the same quarter in 2024. This growth was driven by successful acquisitions, sustained price increases in collection and disposal services, and strong performance in their Resource Solutions segment.

Annual revenues for fiscal year 2025 reached $1.837 billion, marking an 18.0% increase from fiscal year 2024, which translates into an additional $279.6 million in revenue.

Pricing and Collections

Solid waste pricing also saw a healthy uptick in 2025, with a 4.9% increase year-over-year, fueled by 5.0% growth in collection prices and 4.9% in disposal prices. This trend reflects the company's ability to enhance pricing strategies amid rising operational costs.

Adjusted Earnings Metrics

Adjusted Net Income for the fiscal year 2025 was $80.6 million, representing a 2.3% increase from fiscal year 2024.

Adjusted EBITDA stood at $422.8 million, up 17.3% from the previous year, illustrating the company's operational efficiency despite challenges in net income.

Net Income and Loss

While revenue figures were strong, net income experienced a decline. The company reported a net loss of $2.5 million for the fourth quarter, a decrease from a profit of $4.9 million in the same period last year. For the entire fiscal year, net income was recorded at $7.9 million, down 41.9% from $13.5 million in fiscal year 2024.

The drop in net income can be attributed to increased operating costs and higher depreciation and amortization expenses related to acquisitions.

2. Operational Performance

Cash Flow and Capital Management

Casella's net cash provided by operating activities for fiscal year 2025 was $329.8 million, reflecting a 17.2% increase from fiscal year 2024. Additionally, Adjusted Free Cash Flow was reported at $179.9 million, up 13.6% year-over-year.

The company successfully acquired nine businesses in fiscal year 2025, contributing approximately $115 million in annualized revenue, and announced the closing of the Mountain State Waste acquisition on January 1, 2026, which adds another $30 million in annualized revenue.

Strategic Direction

Edmond (“Ned”) R. Coletta, President and CEO of Casella Waste Systems, expressed confidence in the company’s strategic direction. "We delivered strong fourth quarter results in line with expectations... Our execution of long-term strategy continues to strengthen our foundation for future growth," he stated.

He emphasized the company's culture of safety, innovation, and accountability, which he believes will drive future successes.

3. Fiscal Year 2026 Guidance

Looking ahead, Casella Waste Systems has set ambitious targets for fiscal year 2026, projecting:

Revenues between $1.970 billion and $1.990 billion

Net income between $16 million and $22 million

Adjusted EBITDA between $455 million and $465 million

Net cash provided by operating activities between $370 million and $380 million

Adjusted Free Cash Flow between $195 million and $205 million

These projections do not account for any uncompleted acquisitions, indicating further potential for growth.

4. Conclusion

Casella Waste Systems, Inc. has demonstrated resilience and growth in a challenging market environment. With a strong finish to fiscal year 2025 and an optimistic outlook for 2026, the company is well-positioned to capitalize on future opportunities in the waste management and recycling sectors. The upcoming conference call on February 20, 2026, will provide further insights into the company's strategies and operational updates as it navigates its growth trajectory.

Original press release