- New Leadership & Strategic Vision Ned Coletta, the new CEO, emphasized growth confidence, team capabilities, and long-term value creation, with plans to leverage the integrated Casella Lead to Cash System for pricing and operational efficiency.
- Strong 2025 Financial Performance Revenue rose 18% ($1.97–$1.99B guidance for 2026), Adjusted EBITDA increased 17% ($455–$465M guidance), and adjusted free cash flow grew 14%, driven by disciplined organic growth and 9 acquisitions over $115M in annualized revenue.
- Mid-Atlantic Integration Progress System conversion for 2026 is 90% complete, unlocking $5M in synergies by Q2 2026, with improved customer profitability analysis and route optimization expected post-integration.
- Resource Solutions Growth The segment saw 9.1% revenue growth and 9.6% EBITDA growth, supported by national account expansion and operational upgrades (e.g., Willimantic Recycling Facility), despite 20% lower recycled commodity prices.
- Landfill Strategy & Cost Improvements Ontario landfill closure (850K tons/year) is offset by Hyland landfill expansion, with G&A costs targeting industry average 10% through tech upgrades and process automation, incurring transitional costs until 2028.
Operational Highlights
The company completed 9 acquisitions in 2025, representing over $115 million in annualized revenues, and started 2026 strong with the Mountain State Waste acquisition. The team advanced key acquisition, integration, and system conversion initiatives in the Mid-Atlantic region, with substantially completed migration of customers to the integrated Casella Lead to Cash System. As Ned Coletta mentioned, "We're a touch conservative" regarding the $5 million of synergies baked into the guide, as they've completed almost all of the systems integration work.
Guidance and Outlook
The company provided 2026 guidance, expecting revenue to grow 8% to $1.97 billion-$1.99 billion and adjusted EBITDA to increase 9% to $455 million-$465 million. Casella Waste Systems expects to continue being acquisitive this year, with a stable economic environment for the balance of the year. The company's pipeline is strong, with several high-quality companies in the advanced stage, and they are looking at opportunities in both the Northeast and Mid-Atlantic regions.
Valuation
With a P/E Ratio of 747.88, the stock appears to be richly valued. However, considering the company's growth prospects and the fact that it trades at a P/S Ratio of 3.15, which is reasonable for a company with a strong track record of acquisitions and organic growth, the valuation is not entirely unjustified. The EV/EBITDA ratio of 17.0 also suggests that the company's valuation is in line with its earnings growth prospects.