Casella Waste Systems, Inc. (CWST) Q3 2025 Earnings Call Transcript
Revenue $485.4 million, up $73.7 million or 17.9% year-over-year. Growth driven by $53.4 million from acquisitions and $20.4 million from same-store growth (4.9%).
Solid Waste Revenues Up 20.6% year-over-year. Price increased by 4.6%, while volume was essentially flat (down 0.1%).
Landfill Business Same-store price up 3%, total tons up 11.7%, including higher third-party MSW and C&D volumes and nearly 20% growth in internalized volumes.
Resource Solutions Revenues Up 7.8% year-over-year. Recycling and other processing revenue down 5% due to lower commodity prices, but national accounts up 16.5%. Average recycled commodity revenue per ton down 29% year-over-year.
Adjusted EBITDA $119.9 million, up $16.9 million or 16.4% year-over-year. Adjusted EBITDA margin was 24.7%, down approximately 30 basis points year-over-year. Margin dilution due to new acquisitions contributing at lower initial EBITDA margins.
Adjusted Free Cash Flow $119.5 million year-to-date, up 21% year-over-year. Growth supported by EBITDA growth and stronger working capital performance.
Net Cash Provided by Operating Activities $233.2 million in the first 9 months of 2025, up $61.6 million year-over-year, largely driven by EBITDA growth.
Capital Expenditures $187.8 million, up $61.4 million year-over-year, including $54 million of upfront investment in recent acquisitions.
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Small-Cap Stocks Are Gaining Momentum: Reasons This Rally May Endure.
Small-Cap Stocks Performance: Small-cap stocks have started 2026 strongly, with the Russell 2000 index rising over 6% this month.
Comparison with Larger Indices: This performance surpasses that of larger indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite.
January Effect: The strong start for small-cap stocks may be attributed to the "January effect," a phenomenon where these stocks typically see gains in the first month of the year.
Market Trends: The trend indicates a potential shift in investor sentiment favoring smaller companies at the beginning of the year.
Casella Waste Systems (CWST) Shares Rise Over 3% Following Jefferies Upgrade
- Stock Price Increase: Casella Waste Systems' shares rose over 3% in recent trading, indicating increased market confidence in the company's future performance, which may attract more investor interest.
- Analyst Upgrade: Jefferies' upgrade of Casella Waste Systems reflects a positive outlook from analysts regarding the company's business prospects, potentially driving further stock price increases and improving market sentiment.
- Market Reaction: This stock price increase may draw more institutional investors' attention, thereby enhancing the company's liquidity and strengthening its market position, further solidifying its competitiveness in the waste management industry.
- Investor Confidence: The positive rating from analysts could bolster investor confidence in Casella Waste Systems, promoting more capital inflow and subsequently driving the company's future growth and expansion plans.
CWST Stock Surpasses 200-Day Moving Average with Last Trade at $103.37
- Stock Performance: CWST's 52-week low is $82.22 and high is $121.24, with the last trade at $103.37, indicating stability within its trading range, which may enhance investor confidence.
- Technical Indicator Breakthrough: The stock recently surpassed its 200-day moving average, suggesting a potential upward trend in the short term, attracting more attention from technical analysis investors and possibly driving further price increases.
- Market Reaction: This price performance may reflect market optimism regarding CWST's future growth potential, especially as investor demand for stable returns increases in the current economic environment.
- Investor Focus: As the stock approaches its 52-week high, investors may reassess CWST's investment value, potentially impacting its market liquidity and trading volume.
Insider at Casella Waste Systems Sells Shares Valued at $700,490, Per Recent SEC Filing
Stock Sale: Edmond Coletta, President of Casella Waste Systems, sold 7,000 shares of the company on December 08, 2025.
Company Overview: Casella Waste Systems (CWST) is involved in waste management and recycling services.
S&P 500 Index Adjustments: Six New Additions Announced
- Index Adjustments: The S&P 500 will add six companies, including CRH, Carvana, and Comfort Systems USA, effective December 22, 2025, aiming to enhance the index's representation of market capitalization ranges, thereby increasing its investment appeal.
- Small-Cap Changes: The S&P SmallCap 600 will remove several companies, such as SPX Technologies and Dycom Industries, indicating these firms no longer represent the small-cap market, which may influence asset allocation strategies for investors.
- Mid-Cap Updates: The S&P MidCap 400 will add companies like UL Solutions and Pinterest, enhancing its representation in the industrial and communication services sectors, potentially attracting more mid-cap investors.
- Market Impact: These adjustments will affect investment portfolios across multiple sectors, particularly in materials and consumer goods, prompting investors to monitor the potential implications for market liquidity and sector performance.
S&P 500 Index Adjustments: Additions of CRH and Others
- Index Adjustments: The S&P 500 will add CRH, Carvana, and Comfort Systems USA on December 22, 2025, reflecting changes in market capitalization and enhancing the index's representativeness.
- Small-Cap Changes: The S&P SmallCap 600 will remove LKQ, Solstice Advanced Materials, and Mohawk Industries, indicating these companies no longer meet small-cap market standards.
- Mid-Cap Updates: The S&P MidCap 400 will add UL Solutions, Pinterest, and Booz Allen Hamilton, aiming to improve mid-cap market performance and investment appeal.
- Market Impact: These adjustments will likely increase investor attention on the affected companies, potentially leading to stock price volatility and reflecting dynamic changes in the small and mid-cap markets.
Small-Cap Stocks Are Gaining Momentum: Reasons This Rally May Endure.
Small-Cap Stocks Performance: Small-cap stocks have started 2026 strongly, with the Russell 2000 index rising over 6% this month.
Comparison with Larger Indices: This performance surpasses that of larger indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite.
January Effect: The strong start for small-cap stocks may be attributed to the "January effect," a phenomenon where these stocks typically see gains in the first month of the year.
Market Trends: The trend indicates a potential shift in investor sentiment favoring smaller companies at the beginning of the year.
Casella Waste Systems (CWST) Shares Rise Over 3% Following Jefferies Upgrade
- Stock Price Increase: Casella Waste Systems' shares rose over 3% in recent trading, indicating increased market confidence in the company's future performance, which may attract more investor interest.
- Analyst Upgrade: Jefferies' upgrade of Casella Waste Systems reflects a positive outlook from analysts regarding the company's business prospects, potentially driving further stock price increases and improving market sentiment.
- Market Reaction: This stock price increase may draw more institutional investors' attention, thereby enhancing the company's liquidity and strengthening its market position, further solidifying its competitiveness in the waste management industry.
- Investor Confidence: The positive rating from analysts could bolster investor confidence in Casella Waste Systems, promoting more capital inflow and subsequently driving the company's future growth and expansion plans.
CWST Stock Surpasses 200-Day Moving Average with Last Trade at $103.37
- Stock Performance: CWST's 52-week low is $82.22 and high is $121.24, with the last trade at $103.37, indicating stability within its trading range, which may enhance investor confidence.
- Technical Indicator Breakthrough: The stock recently surpassed its 200-day moving average, suggesting a potential upward trend in the short term, attracting more attention from technical analysis investors and possibly driving further price increases.
- Market Reaction: This price performance may reflect market optimism regarding CWST's future growth potential, especially as investor demand for stable returns increases in the current economic environment.
- Investor Focus: As the stock approaches its 52-week high, investors may reassess CWST's investment value, potentially impacting its market liquidity and trading volume.
Insider at Casella Waste Systems Sells Shares Valued at $700,490, Per Recent SEC Filing
Stock Sale: Edmond Coletta, President of Casella Waste Systems, sold 7,000 shares of the company on December 08, 2025.
Company Overview: Casella Waste Systems (CWST) is involved in waste management and recycling services.
S&P 500 Index Adjustments: Six New Additions Announced
- Index Adjustments: The S&P 500 will add six companies, including CRH, Carvana, and Comfort Systems USA, effective December 22, 2025, aiming to enhance the index's representation of market capitalization ranges, thereby increasing its investment appeal.
- Small-Cap Changes: The S&P SmallCap 600 will remove several companies, such as SPX Technologies and Dycom Industries, indicating these firms no longer represent the small-cap market, which may influence asset allocation strategies for investors.
- Mid-Cap Updates: The S&P MidCap 400 will add companies like UL Solutions and Pinterest, enhancing its representation in the industrial and communication services sectors, potentially attracting more mid-cap investors.
- Market Impact: These adjustments will affect investment portfolios across multiple sectors, particularly in materials and consumer goods, prompting investors to monitor the potential implications for market liquidity and sector performance.
S&P 500 Index Adjustments: Additions of CRH and Others
- Index Adjustments: The S&P 500 will add CRH, Carvana, and Comfort Systems USA on December 22, 2025, reflecting changes in market capitalization and enhancing the index's representativeness.
- Small-Cap Changes: The S&P SmallCap 600 will remove LKQ, Solstice Advanced Materials, and Mohawk Industries, indicating these companies no longer meet small-cap market standards.
- Mid-Cap Updates: The S&P MidCap 400 will add UL Solutions, Pinterest, and Booz Allen Hamilton, aiming to improve mid-cap market performance and investment appeal.
- Market Impact: These adjustments will likely increase investor attention on the affected companies, potentially leading to stock price volatility and reflecting dynamic changes in the small and mid-cap markets.
