Casella Waste Systems, Inc. Q4 FY2025 earnings call

• Ned Coletta, new CEO, is honored to lead the team and confident in continuing growth. 2025 had sustained organic growth, meaningful operating improvement, and strategic momentum. Completed 9 acquisitions in 2025, started 2026 with Mountain State Waste acquisition. Balance sheet is a strategic advantage. - Solid waste operations had disciplined organic growth and acquisitions. Resource solutions had strong performance despite commodity price volatility. Frontline team provided solid service during harsh winter. Focus on safety, employee engagement, and process improvements in 2026, including AI-enabled onboard truck technology.

Solid waste collection and disposal operations: Revenues increased 20.3% in 2025. Base collection and disposal margins, excluding acquisition impacts, increased 170 basis points year-over-year. In 2026, expect $5 million savings from automated trucks, labor efficiencies, and route optimization. Mid-Atlantic region made progress in migration of customers from acquired billing systems. Permitting progress on Hakes and Hyland landfills in New York. McKean Landfill Rail Upgrade Project on track for Q2 2026 completion. Resource solutions segment: Revenues up 9.1% in 2025, segment adjusted EBITDA up 9.6%. Strong national accounts performance and operational efficiencies from upgraded Willimantic Recycling Facility. Effective risk management programs offset about 80% of commodity downside risk.

2026 revenue range $1.97B - $1.99B (8% growth at midpoint). Adjusted EBITDA range $455M - $465M (9% growth at midpoint). Adjusted free cash flow range $195M - $205M (11% growth at midpoint). Guidance includes ~$60M from acquisitions, 4.5% organic growth. Solid waste pricing ~5%, volumes flat plus or minus. Adjusted EBITDA guidance implies flat to 40 basis points margin improvement, driven by pricing, integration, and landfill volumes, offset by Hawk Ridge closure and North Country landfill ramp down. Adjusted free cash flow driven by EBITDA growth and capital expenditures.

• Weather impacts on operations, including productivity, equipment, and economic activity. - Technology transformation risks, such as costs and potential inefficiencies during system upgrades and integrations. - Legal and permitting risks, including challenges with landfill permits and local politics affecting expansion opportunities. - Commodity price volatility risks, although risk management programs help offset some downside, but still a factor.

Q: Patrick Brown asked about vision for Casella over next 5 years, M&A, Mid-Atlantic system rollout, etc.

A: Focus on same building blocks, safety, HR, internal comms. M&A pipeline good. Mid-Atlantic system rollout nearly complete, but conservative on synergies.

Q: Tami Zakaria asked about volume growth, G&A leverage.

A: Landfill volumes had blip due to internalization, collection volume flat. G&A goal to get to industry average 10%, 2026 pivotal year for laying groundwork.

Q: Adam Bubes asked about internalization vs external volumes, Ontario landfill.

A: Internalization for stability, Ontario landfill closure planned with accruals, Hyland landfill expansion to take some tons.

Q: Trevor Romeo asked about M&A outlook, Hawk Ridge and North Country impacts.

A: M&A pipeline good, aiming for $150M+ revenues in 2026. Hawk Ridge closure minor, North Country ramp down a 20 basis point EBITDA margin headwind.

Q: James Schumm asked about Mid-Atlantic automated trucks, M&A timing.

A: $5M savings from automated trucks, M&A slowed temporarily but now opportunity to ramp up.

Q: Stephanie Benjamin Moore asked about Mid-Atlantic pricing opportunity.

A: Systems in place allow dynamic pricing, Mid-Atlantic has pricing opportunity to improve quality of revenue.

Q: Shlomo Rosenbaum asked about national accounts growth, weather impact, Ontario closure, NH bill 707.

A: National accounts growth from industrial services. Weather impact on operations. Ontario closure planned with better earnings. NH bill 707 work ongoing.

Q: William Grippin asked about M&A opportunities, landfill pricing.

A: M&A opportunities in Northeast and Mid-Atlantic. Landfill pricing affected by rail moves, now focusing on quality of revenue.