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1. Company Snapshot

1.a. Company Description

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically integrated solid waste services company in the northeastern United States.It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, institutional, and industrial customers.The company provides a range of non-hazardous solid waste services, including collections, transfer stations, and disposal facilities.


It also markets recyclable metals, aluminum, plastics, and paper and corrugated cardboard that are processed at its facilities, as well as recyclables purchased from third parties.In addition, the company is involved in commodity brokerage operations.As of January 31, 2022, it owned and/or operated 50 solid waste collection operations, 65 transfer stations, 23 recycling facilities, 8 Subtitle D landfills, 3 landfill gas-to-energy facilities, and 1 landfill permitted to accept construction and demolition materials.


Casella Waste Systems, Inc.was founded in 1975 and is headquartered in Rutland, Vermont.

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1.b. Last Insights on CWST

Casella Waste Systems' recent performance was negatively impacted by a new 52-week low, with shares trading as low as $74.05. Despite an impressive earnings surprise history, the company's rating was previously upgraded to Buy, citing operational catalysts and EBITDA growth. However, Granite Investment Partners LLC reduced its position by 9.5%, selling 17,310 shares. The company also completed the acquisition of Star Waste Systems, expanding its presence in eastern Massachusetts and southern New Hampshire. Upcoming Q1 2026 results may provide insight into the company's performance. (Source: Bloomberg)

1.c. Company Highlights

2. Casella Waste Systems Q1 2026: Solid Growth, Margin Expansion, and Strategic Acquisitions

In the first quarter of 2026, Casella Waste Systems, Inc. delivered a robust performance, with revenues climbing 9.6% YoY to $457.3 million, driven by both organic growth and the integration of four acquisitions adding roughly $150 million in annualized revenue. Adjusted EBITDA rose 12.3% YoY to $97.1 million, reflecting a 50‑basis‑point margin expansion. The company’s diluted EPS came in at $0.20, beating consensus estimates of $0.10. Valuation metrics suggest the stock trades at a lofty P/E of 772.55 and an EV/EBITDA of 15.89, underscoring the premium investors are willing to pay for its growth and margin trajectory. <cite>[Coletta]</cite>

Publication Date: May -03

📋 Highlights
  • Revenue Growth:: Q1 2026 revenue increased 9.6% to $457.3M, driven by acquisitions and base business growth.
  • Adjusted EBITDA Expansion:: Adjusted EBITDA rose 12.3% to $97.1M, with 50 bps margin expansion.
  • Acquisition Impact:: Four 2026 acquisitions added $150M in annualized revenue, including the $100M Star Waste deal.
  • 2026 Guidance:: Revenue expected between $2.06B–$2.08B; adjusted EBITDA projected at $473M–$483M.
  • Cost Savings Target:: $15M in G&A savings over 3 years and $15M in operating cost reductions from Mid-Atlantic integration.

Financial Highlights

Revenue growth is driven by the Star Waste acquisition and organic expansion, while adjusted EBITDA growth reflects margin gains and cost discipline, positioning Casella for a strong earnings trajectory.

Acquisition Impact

Four 2026 acquisitions add $150 million in revenue, with Star Waste alone contributing $100 million, creating immediate scale and future synergies in the Greater Boston market.

Margin Outlook

Management targets 50‑bp recurring margin expansion, supported by $15 million in G&A savings over three years and $5 million in operating cost cuts in 2026, while maintaining EBITDA‑neutral landfill closures.

Operational Efficiency

Landfill gas projects generate multi‑million EBITDA, and new Waga and Hyland operations perform well, complementing process discipline that has accelerated landfill pricing to mid‑single‑digit levels.

Pricing Strategy

With 75% of collection business in open markets, Casella retains pricing flexibility; Mid‑Atlantic pricing tailwinds are expected in the second half, supported by digital customer engagement growth.

Capital Allocation & Leverage

Pro‑forma leverage sits at ~2.75 post‑Star Waste, with $500 million liquidity and a healthy pipeline, allowing selective M&A while keeping leverage moderate for risk management.

Future Growth & Outlook

Guidance projects 2026 revenue of $2.06‑$2.08 billion, adjusted EBITDA $473‑$483 million, and free cash flow $200‑$210 million, driven by margin expansion, acquisitions, and disciplined cost structure, supporting sustained shareholder value through 2027.

3. NewsRoom

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Casella Waste Systems Deserves A Bullish Outlook After A Nice Increase In Guidance

May -02

Source: seekingalpha.com

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Casella Waste Systems, Inc. (CWST) Q1 2026 Earnings Call Transcript

May -01

Source: seekingalpha.com

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Casella (CWST) Tops Q1 Earnings Estimates

Apr -30

Source: zacks.com

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Casella Waste Systems, Inc. Announces First Quarter 2026 Results; Updates Fiscal Year 2026 Guidance

Apr -30

Source: globenewswire.com

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Conestoga Capital SMid Cap Composite Q1 2026 Portfolio Holdings

Apr -27

Source: seekingalpha.com

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Casella Waste Systems, Inc. $CWST Shares Sold by Comerica Bank

Apr -27

Source: defenseworld.net

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Why Casella (CWST) is Poised to Beat Earnings Estimates Again

Apr -16

Source: zacks.com

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Casella Waste Systems, Inc. to Host Conference Call on Its First Quarter 2026 Results

Apr -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.73%)

6. Segments

Western

Expected Growth: 6.5%

Casella Waste Systems' Western segment growth of 6.5% is driven by increasing municipal solid waste volumes, rising recycling commodity prices, and strategic acquisitions. Additionally, the region's growing population, urbanization, and environmental concerns contribute to the demand for waste management services, further boosting growth.

Eastern

Expected Growth: 6.8%

Casella Waste Systems' Eastern segment growth of 6.8% is driven by increasing municipal solid waste volumes, rising recycling commodity prices, and strategic acquisitions. Additionally, the region's growing population, urbanization, and environmental concerns contribute to increased demand for waste management services, further boosting growth.

Resource Solutions

Expected Growth: 7.2%

Casella Waste Systems' Resource Solutions segment growth of 7.2% is driven by increasing adoption of sustainable waste management practices, rising demand for recycling services, and strategic acquisitions. Additionally, the company's focus on organic growth initiatives, such as expanding its customer base and increasing pricing, contributes to the segment's growth.

Mid-Atlantic

Expected Growth: 6.2%

The Mid-Atlantic segment of Casella Waste Systems, Inc. achieved 6.2% growth driven by increasing municipal solid waste volumes, rising recycling commodity prices, and strategic acquisitions. Additionally, the region's growing population, urbanization, and infrastructure development contributed to the segment's growth.

7. Detailed Products

Solid Waste Collection

Casella Waste Systems, Inc. provides solid waste collection services to residential, commercial, and industrial customers.

Recycling Services

Casella offers recycling services to help customers reduce waste and conserve natural resources.

Organics Services

Casella provides organics services, including food waste and yard trimmings collection, to help customers reduce waste and create nutrient-rich compost.

Landfill Operations

Casella owns and operates landfills that safely and efficiently manage waste disposal.

Transfer Stations

Casella operates transfer stations that facilitate the efficient transfer of waste from collection vehicles to long-haul trucks for transport to landfills or recycling facilities.

Environmental Services

Casella offers environmental services, including remediation, demolition, and emergency response, to help customers manage environmental risks.

8. Casella Waste Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Casella Waste Systems, Inc. is medium due to the availability of alternative waste management services and recycling options.

Bargaining Power Of Customers

The bargaining power of customers for Casella Waste Systems, Inc. is low due to the lack of negotiating power of individual customers and the company's diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Casella Waste Systems, Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Casella Waste Systems, Inc. is low due to the high barriers to entry, including regulatory hurdles and significant capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Casella Waste Systems, Inc. is high due to the competitive nature of the waste management industry and the presence of several large competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.76%
Debt Cost 5.46%
Equity Weight 50.24%
Equity Cost 8.54%
WACC 7.01%
Leverage 99.03%

11. Quality Control: Casella Waste Systems, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Booz Allen Hamilton

A-Score: 5.4/10

Value: 5.5

Growth: 7.7

Quality: 7.4

Yield: 5.0

Momentum: 0.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Clean Harbors

A-Score: 4.9/10

Value: 3.0

Growth: 7.6

Quality: 6.6

Yield: 0.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Casella Waste Systems

A-Score: 3.9/10

Value: 3.1

Growth: 5.6

Quality: 4.0

Yield: 0.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Atkore

A-Score: 3.9/10

Value: 6.9

Growth: 4.3

Quality: 3.4

Yield: 2.0

Momentum: 3.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
CBIZ

A-Score: 3.8/10

Value: 4.9

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Stericycle

A-Score: 3.1/10

Value: 3.3

Growth: 3.3

Quality: 2.9

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

86.83$

Current Price

86.83$

Potential

-0.00%

Expected Cash-Flows