Casella Waste Systems generated $469.1 million in revenue for the fourth quarter of 2025, a 9.7% year‑over‑year increase that was driven by the company’s acquisition activity and its ability to maintain pricing power across its core waste‑management segments. The adjusted earnings per share of $0.30 beat consensus estimates of $0.22–$0.25, a $0.05–$0.08 (20–35%) upside that reflects disciplined cost management and the continued integration of nine acquisitions completed during the year.
Adjusted EBITDA rose 12.7% to $107.0 million, but operating income fell 35.9% to $11.9 million. The decline in operating income is largely attributable to higher depreciation and amortization expenses linked to the recent acquisitions, as well as the transition to the legacy Soft‑Pak billing platform. Operating margins contracted from 4.3% to 2.5% year‑over‑year, underscoring short‑term integration costs that management expects to recoup in 2026.
For the full year, Casella reported $1.837 billion in revenue, up 18.0% from 2024, and adjusted EBITDA of $422.8 million, a 17.3% increase. Net income fell 41.9% to $7.9 million, driven by higher operating costs and one‑time charges. The company guided fiscal 2026 revenue to $1.970 billion–$1.990 billion, a modest upside to prior guidance, while adjusted EBITDA guidance was left unchanged, signaling confidence in the integration of its acquisition pipeline.
CEO Edmond R. Coletta highlighted the company’s aggressive acquisition strategy, noting that nine businesses were added in 2025 and the Mountain State Waste acquisition closed on January 1, 2026. Coletta emphasized that the acquisitions are expected to deliver scale, broaden service offerings, and create long‑term value, while acknowledging that the integration of these assets is the primary source of current margin pressure.
Market reaction to the earnings was mixed. Investors praised the EPS beat and the company’s ability to grow revenue, but expressed caution over the decline in operating income and net income. Analysts noted that the guidance for 2026 reflects a realistic view of integration costs, and that the company’s focus on consolidating its regional footprint should position it for margin recovery in the next fiscal year.
Overall, Casella’s Q4 2025 results demonstrate strong top‑line growth driven by acquisitions, a solid EPS beat, and a clear path to margin improvement as integration costs are absorbed. The company’s guidance and management commentary suggest confidence in its strategy, while the current headwinds highlight the short‑term impact of expansion on profitability.
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