Casella Waste Systems, Inc. (NASDAQ: CWST) reported first‑quarter 2026 financial results on April 30, 2026. Revenue rose 9.6% to $457.3 million, up from $417.1 million in Q1 2025, and beat the consensus estimate of $454.57 million by $2.73 million. Operating income increased 54.5% to $4.9 million, while GAAP net loss widened to $5.5 million from $4.8 million in the prior year. Adjusted EBITDA climbed 12.3% to $97.1 million, surpassing the analyst expectation of $94.3 million.
The growth was driven by a 12.3% rise in Adjusted EBITDA, largely attributable to acquisition contributions and a disciplined pricing program. Landfill pricing increased 4.3% and municipal solid waste pricing rose 5.0%, while total landfill tons also grew, offsetting higher fuel costs through fuel‑recovery fees. The company’s mix shift toward higher‑margin services and the integration of four acquisitions, including Star Waste, added $23.9 million in revenue and $150 million in annualized revenue from the new businesses.
Management raised its fiscal‑year 2026 revenue guidance to $2.06 billion–$2.08 billion from the previous $1.97 billion–$1.99 billion range, and adjusted EBITDA guidance to $473 million–$483 million from $455 million–$465 million. The update reflects confidence in continued acquisition momentum and operational improvements, while net‑income guidance was lowered to $4 million–$10 million from $16 million–$22 million due to higher non‑cash charges and acquisition‑related expenses.
Compared with Q1 2025, revenue grew by $40.2 million, and Adjusted EBITDA increased by $10.7 million. Operating income, however, rose from $2.9 million to $4.9 million, driven by the pricing program and the acquisition mix. The GAAP net loss widened by $0.7 million, reflecting higher depreciation, amortization, and interest costs associated with the recent acquisitions.
Management highlighted the results: "We are pleased with our strong start to the year as our execution delivered solid financial and operating performance in the quarter." Ned Coletta added, "In addition, we have closed four acquisitions to date in 2026 as we continue to grow the business through our disciplined acquisition strategy. This early success provides momentum for the remainder of the year." He also noted, "Our results were driven in part by a strong pricing programs, with positive landfill pricing of 4.3% in the quarter, including municipal solid waste pricing up 5.0% year-over-year, and total landfill tons also up in the quarter."
The company welcomed Star Waste, stating, "We are excited to welcome the Star Waste team to Casella. This acquisition strategically augments our asset positioning and enhances our collection density in the highly attractive Boston market. We look forward to working with Star Waste's employees to further build on their strong reputation for exceptional customer service." "With the acquisition of Star Waste, we have acquired four businesses year-to-date, with total annualized revenues of approximately $150 million. This is a strong start to 2026, and positions us well for continued growth and strategic execution."
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