Jim Schamm

Jim Schamm sought clarification on the Mid-Atlantic integration, specifically if the $5 million benefit from new automated trucks in 2026 was solely from labor reduction and if operational benefits from route optimization were excluded from the guidance. He also asked if M&A in the Mid-Atlantic had slowed due to systems work and if it would now ramp up.

Answer

Brad Helgeson, EVP and CFO, clarified that the $5 million benefit includes both automated side-load trucks and combining routes after system integration, calling it the 'tip of the iceberg' for future opportunities. Ned Coletta, President and CEO, added that G&A and back-office savings are currently offset by doubled-up costs from redundant systems and investments, with full savings expected in late 2026 and 2027. Ned Coletta confirmed that M&A in the Mid-Atlantic had 'hit the brakes a touch' due to the integration work, but they still completed 10 acquisitions. He noted that new acquisitions would now integrate faster onto the modern Casella system.