Casella Waste Systems, Inc. Announces First Quarter 2025 Results

Rhea-AI Summary

Casella Waste Systems (NASDAQ: CWST) reported strong Q1 2025 financial results with revenues up 22.3% to $417.1 million. The company saw solid waste pricing increase of 5.6%, driven by collection price growth of 5.8% and disposal price growth of 5.5%. Despite revenue growth, CWST reported a net loss of $(4.8) million. Adjusted EBITDA grew 21.7% to $86.4 million, while operating cash flow improved significantly to $50.1 million. Year-to-date, CWST completed four acquisitions with approximately $50 million in annualized revenue. The company maintained its fiscal year 2025 guidance, projecting revenues between $1.775-1.805 billion and Adjusted EBITDA between $410-425 million. Collection volume showed a slight decline of 1.7%, but landfill tons increased by 3.9%, and National Accounts business grew 10.9% organically.

Positive

• Revenue increased 22.3% year-over-year to $417.1 million
• Adjusted EBITDA grew 21.7% to $86.4 million
• Strong pricing growth with solid waste pricing up 5.6%
• Operating cash flow improved significantly to $50.1 million, up $42.4 million
• Completed four acquisitions adding $50 million in annualized revenue
• Landfill tons increased 3.9%
• National Accounts business showed 10.9% organic growth

Negative

• Net loss increased to $(4.8) million from $(4.1) million year-over-year
• Operating income declined 54% to $3.1 million
• Collection volume decreased 1.7% with weakness in roll-off business
• Higher depreciation and amortization expenses due to acquisition growth

Insights

Financial Analyst

Casella shows strong 22.3% revenue growth but widening net loss due to acquisition-related depreciation costs; cash flow dramatically improved year-over-year.

Casella Waste Systems' Q1 2025 results present a complex financial picture. The company achieved impressive revenue growth of 22.3% year-over-year, reaching $417.1 million, primarily driven by acquisitions and strong pricing. However, this top-line growth was accompanied by a widening net loss of $(4.8) million compared to $(4.1) million in Q1 2024.

The divergence between revenue growth and bottom-line performance stems directly from acquisition-related costs. Operating income declined 54.0% to $3.1 million, with management explicitly attributing this to higher depreciation and amortization expenses from recent acquisitions. This pattern illustrates the short-term financial impact of Casella's aggressive growth-by-acquisition strategy.

Looking beyond GAAP metrics, the company's adjusted figures paint a more positive picture. Adjusted EBITDA grew 21.7% to $86.4 million, while Adjusted Net Income reached $12.2 million ($0.19 per share), up from $8.7 million ($0.15 per share) a year ago.

The most striking improvement appears in cash flow metrics. Net cash from operations surged to $50.1 million (from $7.7 million), and Adjusted Free Cash Flow swung dramatically to $29.1 million from negative $(2.4) million in Q1 2024. This cash flow enhancement provides significant financial flexibility to continue funding acquisitions without excessive debt reliance.

Management's decision to maintain full-year guidance despite outperforming in Q1 suggests a conservative outlook given their explicit mention of "heightened economic and policy uncertainty." The guidance projects full-year revenues between $1.775-$1.805 billion and net income between $10-$25 million.

Waste Management Industry Expert

Strong pricing power offset by volume challenges; acquisition strategy continues driving growth while landfill volumes recover despite economic concerns.

Casella's Q1 results demonstrate exceptional pricing power in the current market environment, with solid waste pricing up 5.6% across their operations. This pricing strength spans both collection services (5.8%) and disposal operations (5.5%), significantly outpacing inflation and indicating the company has secured its market position despite economic pressures.

Volume trends reveal important operational dynamics. The 1.7% decline in collection volume points to softness in commercial and construction activity, particularly in the roll-off line of business. This weakness aligns with broader industry patterns where non-residential sectors typically show early sensitivity to economic uncertainty.

However, the 3.9% increase in landfill tons represents a meaningful turnaround from previous quarters. Management's strategic emphasis on internalization (directing collected waste to company-owned disposal facilities) and revamped sales efforts appear to be gaining traction. Landfill operations remain critical profit centers in waste management, making this volume recovery particularly significant for margin potential.

The National Accounts business emerged as a standout performer with 10.9% organic growth, including 7.4% volume growth. This suggests Casella is successfully capturing market share among larger commercial clients seeking centralized waste management solutions across multiple locations.

Acquisitions remain the cornerstone of Casella's growth strategy. The four completed acquisitions year-to-date representing approximately $50 million in annualized revenue continue their disciplined expansion approach. The specific mention of a recent "tuck-in" acquisition in western New York demonstrates their focus on operational density in existing markets, which typically delivers cost synergies and improved route efficiency.

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

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data)
	Three Months Ended March 31,
	2025				2024
Revenues	$	417,101			$	341,008
Operating expenses:
Cost of operations		280,452				230,792
General and administration		56,486				44,334
Depreciation and amortization		71,491				54,037
Expense from acquisition activities		5,529				5,010
		413,958				334,173
Operating income		3,143				6,835
Other expense (income):
Interest expense, net		11,598				13,070
Other income		(320	)			(352	)
Other expense, net		11,278				12,718
Loss before income taxes		(8,135	)			(5,883	)
Benefit for income taxes		(3,325	)			(1,766	)
Net loss	$	(4,810	)		$	(4,117	)
Basic and diluted weighted average common shares outstanding		63,387				58,030
Basic and diluted loss per share	$	(0.08	)		$	(0.07	)

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
	March 31, 2025				December 31, 2024
	(Unaudited)
ASSETS
CURRENT ASSETS:
Cash, cash equivalents and restricted cash	$	267,709			$	383,303
Accounts receivable, net of allowance for credit losses		165,569				165,917
Other current assets		58,421				64,085
Total current assets		491,699				613,305
Property and equipment, net of accumulated depreciation and amortization		1,201,597				1,164,815
Operating lease right-of-use assets		104,361				98,050
Goodwill		1,049,535				1,002,266
Intangible assets, net of accumulated amortization		319,532				313,468
Other non-current assets		39,146				38,164
Total assets	$	3,205,870			$	3,230,068
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of debt	$	20,967			$	42,619
Current operating lease liabilities		11,041				10,291
Accounts payable		102,944				111,087
Current accrued final capping, closure and post-closure costs		3,320				3,224
Contract liabilities		49,724				50,690
Other accrued liabilities		63,392				89,406
Total current liabilities		251,388				307,317
Debt, less current portion		1,115,411				1,090,632
Operating lease liabilities, less current portion		72,325				64,449
Accrued final capping, closure and post-closure costs, less current portion		173,507				169,006
Other long-term liabilities		46,350				47,825
Total stockholders' equity		1,546,889				1,550,839
Total liabilities and stockholders' equity	$	3,205,870			$	3,230,068

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
	Three Months Ended March 31,
	2025				2024
Cash Flows from Operating Activities:
Net loss	$	(4,810	)		$	(4,117	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		71,491				54,037
Interest accretion on landfill and environmental remediation liabilities		3,711				2,937
Amortization of debt issuance costs		754				741
Stock-based compensation		4,911				2,135
Operating lease right-of-use assets expense		4,729				4,070
Other items and charges, net		243				320
Deferred income taxes		(3,328	)			(2,425	)
Changes in assets and liabilities, net of effects of acquisitions and divestitures		(27,578	)			(50,019	)
Net cash provided by operating activities		50,123				7,679
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired		(103,560	)			(294	)
Additions to property and equipment		(55,475	)			(30,251	)
Proceeds from sale of property and equipment		216				488
Net cash used in investing activities		(158,819	)			(30,057	)
Cash Flows from Financing Activities:
Proceeds from debt borrowings		25,000				875
Principal payments on debt		(28,984	)			(9,952	)
Payments of debt issuance costs		(724	)			—
Net cash used in financing activities		(4,708	)			(9,077	)
Net decrease in cash, cash equivalents, restricted cash and non-current restricted cash		(113,404	)			(31,455	)
Cash, cash equivalents and restricted cash, beginning of period		383,303				220,912
Cash, cash equivalents, restricted cash and non-current restricted cash, end of period	$	269,899			$	189,457
Supplemental Disclosure of Cash Flow Information:
Cash interest payments	$	13,085			$	15,500
Cash income tax payments	$	752			$	1,681
Right-of-use assets obtained in exchange for finance lease obligations	$	6,989			$	9,139
Right-of-use assets obtained in exchange for operating lease obligations	$	11,390			$	1,613

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED RECONCILIATION OF CERTAIN NON-GAAP MEASURES (In thousands)

Non-GAAP Performance Measures

In addition to disclosing financial results prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company also presents non-GAAP performance measures such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Net Income and Adjusted Diluted Earnings Per Common Share that provide an understanding of operational performance because it considers them important supplemental measures of the Company's performance that are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company's results. The Company also believes that identifying the impact of certain items as adjustments provides more transparency and comparability across periods. Management uses these non-GAAP performance measures to further understand its “core operating performance” and believes its “core operating performance” is helpful in understanding its ongoing performance in the ordinary course of operations. The Company believes that providing such non-GAAP performance measures to investors, in addition to corresponding income statement measures, affords investors the benefit of viewing the Company’s performance using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and its results of operations has performed. The tables below set forth such performance measures on an adjusted basis to exclude such items:

	Three Months Ended March 31,
	2025				2024
Net loss	$	(4,810	)		$	(4,117	)
Benefit for income taxes		(3,325	)			(1,766	)
Other income		(320	)			(352	)
Interest expense, net		11,598				13,070
Depreciation and landfill amortization		52,025				41,473
Amortization of intangibles (i)		19,466				12,564
Expense from acquisition activities (ii)		5,529				5,010
Depletion of landfill operating lease obligations		2,539				2,198
Interest accretion on landfill and environmental remediation liabilities		3,711				2,937
Adjusted EBITDA	$	86,413			$	71,017
Adjusted EBITDA as a percentage of revenues		20.7	%			20.8	%
Depreciation and landfill amortization		(52,025	)			(41,473	)
Depletion of landfill operating lease obligations		(2,539	)			(2,198	)
Interest accretion on landfill and environmental remediation liabilities		(3,711	)			(2,937	)
Adjusted Operating Income	$	28,138			$	24,409

	Three Months Ended March 31,
	2025				2024
Net loss	$	(4,810	)		$	(4,117	)
Amortization of intangibles (i)		19,466				12,564
Expense from acquisition activities (ii)		5,529				5,010
Tax effect (iii)		(7,990	)			(4,737	)
Adjusted Net Income	$	12,195			$	8,720
Basic weighted average common shares outstanding		63,387				58,030
Dilutive effect of options and other stock awards		100				94
Adjusted Diluted Weighted Average Common Shares Outstanding		63,487				58,124
Basic loss per common share	$	(0.08	)		$	(0.07	)
Amortization of intangibles (i)		0.31				0.22
Expense from acquisition activities (ii)		0.09				0.09
Tax effect (iii)		(0.13	)			(0.09	)
Adjusted Diluted Earnings Per Common Share	$	0.19			$	0.15

(i) Amortization of intangibles is the add-back of non-cash amortization of acquired intangibles such as covenants not-to-compete, customer relationships and trade names.

(ii) Expense from acquisition activities is comprised primarily of legal, consulting, rebranding and other costs associated with the due diligence, acquisition and integration of acquired businesses.

(iii) Tax effect of the adjustments is an aggregate of the current and deferred tax impact of each adjustment, including the impact to the effective tax rate, current provision and deferred provision. The computation considers all relevant impacts of the adjustments, including available net operating loss carryforwards and the impact on the remaining valuation allowance.

Non-GAAP Liquidity Measures

In addition to disclosing financial results prepared in accordance with GAAP, the Company also presents non-GAAP liquidity measures such as Adjusted Free Cash Flow that provide an understanding of the Company's liquidity because it considers them important supplemental measures of its liquidity that are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company's cash flow generation from its core operations that are then available to be deployed for strategic acquisitions, growth investments, development projects, unusual landfill closures, site improvement and remediation, and strengthening the Company’s balance sheet through paying down debt. The Company also believes that showing the impact of certain items as adjustments provides more transparency and comparability across periods. Management uses non-GAAP liquidity measures to understand the Company’s cash flow provided by operating activities after certain expenditures along with its consolidated net leverage and believes that these measures demonstrate the Company’s ability to execute on its strategic initiatives. The Company believes that providing such non-GAAP liquidity measures to investors, in addition to corresponding cash flow statement measures, affords investors the benefit of viewing the Company’s liquidity using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and cash flow generation has performed. The table below, on an adjusted basis to exclude certain items, sets forth such liquidity measures:

	Three Months Ended March 31,
	2025				2024
Net cash provided by operating activities	$	50,123			$	7,679
Capital expenditures		(55,475	)			(30,251	)
Proceeds from sale of property and equipment		216				488
Southbridge Landfill closure (i)		—				695
Cash outlays for acquisition expenses (ii)		6,326				4,494
Acquisition capital expenditures (iii)		27,869				6,088
McKean Landfill rail capital expenditures (iv)		—				2,195
FLSA legal settlement payment (v)		—				6,150
Landfill capping charge - veneer failure payment (vi)		—				56
Adjusted Free Cash Flow	$	29,059			$	(2,406	)

(i) Southbridge Landfill closure are cash outlays associated with the unplanned, early closure of the of our landfill located in Southbridge, Massachusetts (“Southbridge Landfill”). The Company initiated the unplanned, premature closure of the Southbridge Landfill in the fiscal year ended December 31, 2017, and expects to incur cash outlays through satisfaction of the closure requirements and the environmental remediation process. In August 2024, the Company received the final closure permit related to Southbridge Landfill and entered the post-closure period.

(ii) Cash outlays for acquisition expenses are cash outlays for transaction and integration costs relating to specific acquisition transactions and include legal, consulting, rebranding and other costs as part of the Company’s strategic growth initiative.

(iii) Acquisition capital expenditures are acquisition-related capital expenditures that are necessary to transition and upgrade acquired assets to Company operating standards and to achieve strategic synergies associated with integrating newly acquired operations, which can be considered, together with acquisition purchase price, as part of the initial overall investment in an acquired business.

(iv) McKean Landfill rail capital expenditures are long-term infrastructure capital expenditures related to rail side development at the Company's landfill in Mount Jewett, PA ("McKean Landfill"), which is different from the landfill construction investments in the normal course of operations.

(v) FLSA legal settlement payment is the cash outlay of a legal settlement related to reaching an agreement in June 2023 with the collective class members of a class action lawsuit relating to certain claims under the FLSA as well as state wage and hours laws.

(vi) Landfill capping charge - veneer failure payment is the cash outlay associated with operating expenses incurred to clean up the affected capping material at the Company's landfill in Seneca, New York that has been reimbursed to us by a third party.

Non-GAAP financial measures are not in accordance with or an alternative for GAAP. Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, and Adjusted Free Cash Flow should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP, and may be different from Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, and Adjusted Free Cash Flow presented by other companies.

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED RECONCILIATION OF FISCAL YEAR 2025 OUTLOOK NON-GAAP MEASURES (In thousands)

Following is a reconciliation of the Company's estimated Adjusted EBITDA⁽ⁱ⁾ from estimated Net income for fiscal year 2025:

	(Estimated) Twelve Months Ending December 31, 2025
Net income	$10,000 - $25,000
Provision for income taxes	5,000 - 10,000
Other income	(1,500)
Interest expense, net	55,000
Expense from acquisition activities	15,000
Depreciation and landfill amortization	224,000
Amortization of intangibles	75,000
Depletion of landfill operating lease obligations	11,000
Interest accretion on landfill and environmental remediation liabilities	14,000
Adjusted EBITDA	$410,000 - $425,000

Following is a reconciliation of the Company's estimated Adjusted Free Cash Flow⁽ⁱ⁾ from estimated Net cash provided by operating activities for fiscal year 2025:

	(Estimated) Twelve Months Ending December 31, 2025
Net cash provided by operating activities	$320,000 - $335,000
Capital expenditures	(215,000)
Acquisition capital expenditures	45,000
Cash outlays for acquisition expenses	15,000
Adjusted Free Cash Flow	$165,000 - $180,000

(i) See footnotes for Non-GAAP Performance Measures and Non-GAAP Liquidity Measures included in the Unaudited Reconciliation of Certain Non-GAAP Measures for further disclosure over the nature of the various adjustments to estimated Adjusted EBITDA and estimated Adjusted Free Cash Flow.

CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIES UNAUDITED SUPPLEMENTAL DATA TABLES (In thousands)

Amounts of total revenues attributable to services provided for the three months ended March 31, 2025 and 2024 are as follows:

	Three Months Ended March 31,
	2025												2024
	Gross Revenues				Intercompany Revenues				Third-Party Revenues				Gross Revenues				Intercompany Revenues				Third-Party Revenues
Collection	$	293,775			$	(17,314	)		$	276,461			$	225,728			$	(14,368	)		$	211,360
Disposal		113,923				(60,224	)			53,699				104,455				(54,316	)			50,139
Landfill gas-to-energy		2,765				—				2,765				2,509				—				2,509
Processing		2,640				(661	)			1,979				2,382				(453	)			1,929
Solid waste		413,103				(78,199	)			334,904				335,074				(69,137	)			265,937
Processing		35,302				(3,333	)			31,969				32,705				(2,943	)			29,762
National Accounts		50,371				(143	)			50,228				45,489				(180	)			45,309
Resource Solutions		85,673				(3,476	)			82,197				78,194				(3,123	)			75,071
Total revenues	$	498,776			$	(81,675	)		$	417,101			$	413,268			$	(72,260	)		$	341,008

Components of consolidated revenue growth for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 are as follows:

	Amount				% of Related Business			% of Total Company
Solid waste operations:
Collection	$	12,180			5.8	%		3.6	%
Disposal		2,750			5.5	%		0.8	%
Processing		(11	)		(0.6	)%		—	%
Solid waste price		14,919			5.6	%		4.4	%
Collection		(3,626	)		(1.7	)%		(1.1	)%
Disposal		(1,095	)		(2.2	)%		(0.3	)%
Processing		226			11.7	%		0.1	%
Solid waste volume		(4,495	)		(1.7	)%		(1.3	)%
Surcharges and other fees		1,427						0.2	%
Commodity price and volume		(26	)					—	%
Acquisitions		57,142			21.5	%		16.9	%
Total solid waste operations		68,967			25.9	%		20.2	%
Resource Solutions operations:
Price		2,743			3.7	%		0.8	%
Volume		4,125			5.5	%		1.2	%
Surcharges and other fees		(293	)					(0.1	)%
Acquisitions		551			0.7	%		0.2	%
Total Resource Solutions operations		7,126			9.5	%		2.1	%
Total Company	$	76,093						22.3	%

Components of capital expenditures⁽ⁱ⁾ for the three months ended March 31, 2025 and 2024 are as follows:

	Three Months Ended March 31,
	2025				2024
Growth capital expenditures:
Acquisition capital expenditures	$	25,342			$	6,088
McKean Landfill rail capital expenditures		—				2,195
Other		2,092				2,634
Growth capital expenditures		27,434				10,917
Replacement capital expenditures:
Landfill development		2,140				4,202
Vehicles, machinery, equipment and containers		21,202				12,754
Facilities		2,943				1,562
Other		1,756				816
Replacement capital expenditures		28,041				19,334
Capital expenditures	$	55,475			$	30,251

(i) The Company's capital expenditures are broadly defined as pertaining to either growth or replacement activities. Growth capital expenditures are defined as costs related to development projects, organic business growth, and the integration of newly acquired operations. Growth capital expenditures include costs related to the following: 1) acquisition capital expenditures that are necessary to transition and upgrade acquired assets to Company operating standards and to achieve strategic synergies associated with integrating newly acquired operations, which can be considered, together with acquisition purchase price, as part of the initial overall investment in an acquired business; 2) McKean Landfill rail capital expenditures, which is unique and different from landfill construction investments in the normal course of operations because the Company is investing in long-term infrastructure; and 3) development of landfill permit expansions, investment in infrastructure to increase throughput at transfer stations and recycling and other processing facilities, capital expenditures for new equipment, such as trucks, containers or compactors, to support new contracts or other organic business growth, and other development projects in support of our growth strategies. Replacement capital expenditures are defined as landfill cell construction costs not related to expansion airspace, costs for normal permit renewals, replacement costs for equipment and other capital expenditures due to age or obsolescence, and capital items not otherwise defined as growth capital expenditures.

FAQ

What were Casella Waste Systems (CWST) key financial results for Q1 2025?

In Q1 2025, CWST reported revenue of $417.1 million (up 22.3%), Adjusted EBITDA of $86.4 million (up 21.7%), and a net loss of $(4.8) million. Operating cash flow was $50.1 million.

How many acquisitions did CWST complete in early 2025 and what was their value?

CWST completed four acquisitions year-to-date with approximately $50 million in annualized revenue, including a recent tuck-in acquisition in western New York.

What is Casella Waste Systems' revenue guidance for fiscal year 2025?

CWST maintained its fiscal year 2025 guidance with expected revenues between $1.775 billion and $1.805 billion.

How did CWST's pricing perform in Q1 2025?

CWST achieved solid waste pricing growth of 5.6%, with collection pricing up 5.8% and disposal pricing up 5.5%.

What was CWST's volume performance in Q1 2025?

Collection volume declined 1.7% due to weakness in roll-off business, but landfill tons increased 3.9% and National Accounts showed 10.9% organic growth with 7.4% volume growth.