Casella Waste Systems delivered better-than-expected results in Q2, supported by robust pricing execution, higher landfill volumes, and ongoing acquisition activity. Management attributed revenue growth to higher prices in both collection and disposal segments, as well as an 8.4% increase in landfill volume. CEO Ned Coletta emphasized that the company’s operating model, use of dynamic fuel recovery fees, and continued focus on efficiency and customer service helped offset rising fuel costs. Investments in technology, route optimization, and fleet automation further contributed to operational stability during the quarter.
Is now the time to buy CWST? Find out in our full research report (it’s free for active Edge members).
Casella Waste Systems (CWST) Q2 CY2026 Highlights:
- Revenue: $543.7 million vs analyst estimates of $525.5 million (16.9% year-on-year growth, 3.5% beat)
- Adjusted EPS: $0.40 vs analyst estimates of $0.29 (36.1% beat)
- Adjusted EBITDA: $115.6 million vs analyst estimates of $122.9 million (21.3% margin, 5.9% miss)
- The company lifted its revenue guidance for the full year to $2.1 billion at the midpoint from $2.07 billion, a 1.4% increase
- EBITDA guidance for the full year is $478 million at the midpoint, in line with analyst expectations
- Operating Margin: 3.7%, in line with the same quarter last year
- Market Capitalization: $5.76 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Casella Waste Systems’s Q2 Earnings Call
- Adam Bubes (Goldman Sachs) asked if underlying margin expansion excluded M&A dilution; CFO Brad Helgeson clarified that acquisitions were included, and the base business showed strong margin improvement.
- James Schumm (TD Cowen) questioned if lower stock price would impact M&A pace; CEO Ned Coletta responded they remain focused on extracting synergies and scale rather than slowing acquisitions.
- Tami Zakaria (JPMorgan) sought clarity on the composition of raised revenue guidance; Helgeson noted the majority of the increase was due to higher fuel recovery fees, with some contribution from recent M&A.
- Trevor Romeo (William Blair) inquired about integration progress of recent acquisitions; Coletta indicated early successes in safety and culture, with integration focus currently on the Mid-Atlantic before turning to other deals.
- Shlomo Rosenbaum (Stifel) asked about the landfill sales team’s ability to push pricing beyond current targets; Coletta said there is potential to reach higher third-party price growth as market dynamics evolve.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace and effectiveness of acquisition integration, particularly in the Mid-Atlantic and recent tuck-ins, (2) continued pricing strength and volume trends in landfill and collection segments amid regional capacity tightening, and (3) the realized benefits from technology investments and leadership changes. Progress in these areas will be key to sustaining growth and margin improvement.
Casella Waste Systems currently trades at $90.62, in line with $90.46 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free).
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