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Casella Waste Systems, Inc. (CWST) is a regional, vertically integrated solid waste services company headquartered in Rutland, Vermont. The company provides resource management expertise and services, including solid waste collection, disposal, transfer, recycling, and organics services. CWST operates across ten states, serving residential, commercial, municipal, institutional, and industrial customers.
- Western Region - Offers solid waste collection and disposal services, including landfill, transfer station, transportation, landfill gas-to-energy, and processing services.
- Eastern Region - Provides solid waste collection and disposal services, focusing on landfill, transfer station, transportation, landfill gas-to-energy, and processing services.
- Resource Solutions - Delivers materials processing, industrial recycling, organics, and resource management services, including processing services and National Accounts business.
- Mid-Atlantic Region - Focuses on solid waste collection and disposal services, covering operations in Pennsylvania, New Jersey, Delaware, and Maryland.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
John W. Casella ExecutiveBoard | Chairman of the Board, CEO, and Secretary | Executive Officer and Director of Casella Construction, Inc. | Co-founder of CWST, serving as CEO since 1993 and Chairman since 2001. Oversees strategic direction and has extensive experience in waste management and recycling. | |
Bradford J. Helgeson Executive | EVP and CFO | None | Joined CWST in November 2023. Previously CFO at Covanta Holding Corporation and has extensive experience in finance and environmental services. | |
Edmond "Ned" R. Coletta Executive | President | Trustee at Killington Mountain School | Joined CWST in 2004. Held various financial leadership roles, including CFO, before becoming President in November 2023. Focuses on driving growth and operational excellence. | |
Kevin J. Drohan Executive | VP and Chief Accounting Officer | None | Joined CWST in 2021 as Corporate Controller. Promoted to Chief Accounting Officer in 2022. Oversees accounting and financial reporting. | |
Paul J. Ligon Executive | SVP of Sustainable Growth | None | Joined CWST in 2012. Leads sustainable growth initiatives, including sales, marketing, and sustainability programs. | |
Sean M. Steves Executive | SVP and COO of Solid Waste Operations | None | Joined CWST in 2018. Oversees operations support, fleet management, landfill operations, and service excellence. Previously worked at Republic Services. | |
Shelley E. Sayward Executive | SVP and General Counsel | None | Joined CWST in 2006. Promoted to General Counsel in 2021. Oversees legal and compliance matters for the company. | |
Emily Nagle Green Board | Director | None | Director at CWST since 2012. Brings expertise in technology and innovation. | |
Gary Sova Board | Director | None | Director at CWST since 2021. Member of the Audit Committee and Compensation and Human Capital Committee. Brings expertise in solid waste operations and strategic planning. | |
Joseph G. Doody Board | Lead Director | None | Director at CWST since 2004. Provides leadership and governance expertise. Former executive with extensive experience in business operations. | |
Michael K. Burke Board | Director | None | Director at CWST since 2008. Former CFO at EndoGastric Solutions, Inc. Brings financial and risk management expertise. | |
Michael L. Battles Board | Director | Co-CEO and Co-President of Clean Harbors, Inc. | Director at CWST since 2019. Brings leadership and operational expertise from his role at Clean Harbors, Inc.. | |
Rose Stuckey Kirk Board | Class III Director | Chief Corporate Social Responsibility Officer at Verizon Communications Corporation | Director at CWST since 2020. Brings expertise in corporate social responsibility and sustainability. | |
William P. Hulligan Board | Director | None | Director at CWST since 2015. Former President and COO of Progressive Waste Solutions Ltd. Brings industry expertise in waste management. |
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Your guidance for 2025 includes approximately 7% organic growth , despite positive factors like the Willimantic facility coming back online , internalization efforts , and the Brookhaven closure. Do you believe your guidance is conservative given these idiosyncratic benefits, and what risks might prevent you from achieving higher growth?
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You mentioned investing significantly in technology, with G&A expenses increasing by 10 basis points due to IT spend. Can you elaborate on the nature of these technology investments, their expected return, and how they will impact your margins in the near and long term?
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Your volume outlook for 2025 is flat to down 1%, partly due to shedding underperforming acquired assets. How much of this decline is intentional versus indicative of underlying market weakness, and what strategies are in place to drive volume growth?
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Acquisitions are contributing at a lower initial adjusted EBITDA margin, representing a headwind of approximately 30 to 40 basis points. When do you expect these acquisitions to align with your consolidated margins, and what initiatives are you implementing to improve their profitability?
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With your NOLs shielding most of your federal tax liability in 2025, but expecting to pay federal taxes more meaningfully in 2026 , can you provide more clarity on your projected cash tax position beyond 2025 and its impact on free cash flow?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
In the larger, more densely populated markets where we operate, we typically compete against one or more of the large national solid waste companies, any of which may be able to achieve greater economies of scale than we can. | |
In the larger, more densely populated markets where we operate, we typically compete against one or more of the large national solid waste companies, any of which may be able to achieve greater economies of scale than we can. | |
In the larger, more densely populated markets where we operate, we typically compete against one or more of the large national solid waste companies, any of which may be able to achieve greater economies of scale than we can. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Royal Carting and Welsh Sanitation | 2024 | Completed acquisition that expanded Casella’s footprint into New York’s middle and lower Hudson Valley and western Connecticut, expected to generate over $90 million in annualized revenues and financed with proceeds from a public offering of Class A common stock. |
Whitetail Disposal, Inc. | 2024 | Completed acquisition on August 1, 2024, in eastern Pennsylvania and western New Jersey, which complements Casella’s Mid-Atlantic operations and is expected to contribute to over $100 million in total annualized revenues alongside LMR Disposal, reflecting a disciplined growth strategy and opportunities for cost efficiencies. |
LMR Disposal LLC | 2024 | Completed acquisition on July 1, 2024, that expanded operations into eastern Pennsylvania and western New Jersey, aligning with Casella’s strategy to enhance market density and contribute jointly with Whitetail Disposal to over $100 million in annualized revenues. |
Consolidated Waste Services, LLC (Twin Bridges) | 2023 | Completed acquisition on September 1, 2023, for approximately $219 million, which added collection operations, a transfer station, a state-of-the-art material recovery facility, and several properties in greater Albany, New York, generating around $70 million in annualized revenues and promising significant EBITDA and synergy benefits. |
GFL Environmental Inc. Operations | 2023 | Completed acquisition of operations including nine hauling operations, one transfer station, and one material recovery facility across Pennsylvania, Delaware, and Maryland for $525 million, funded with a Term Loan A, equity, and cash, to generate approximately $185 million in annualized revenues and $43 million in EBITDA with expected annual synergies and significant cash tax benefits. |
Multiple businesses (13 acquisitions) | 2022 | Completed set of 13 acquisitions contributing about $48 million in annualized revenues for a total purchase consideration of $78.1 million (including cash and contingent payments) and resulting in $38.7 million in goodwill, integrating diverse waste management and recycling operations in key Northeast markets. |
Recent press releases and 8-K filings for CWST.
- Revenue growth: Q1 2025 revenue reached $417.1 million, up 22.3% YoY, driven by both acquisition contributions and organic improvements in solid waste operations.
- Profitability metrics: Adjusted EBITDA increased to $86.4 million, with operational improvements offset by margin headwinds from stock-based compensation adjustments.
- Strategic execution: The company closed 4 acquisitions adding approximately $50 million in annualized revenues, is advancing integration efforts, and maintains robust liquidity with about $900 million available, supporting a strong M&A pipeline.
- Transaction Completion: On March 11, 2025, the company closed a financing transaction, incurring $25 million in debt through the issuance of Series 2022A-2 Bonds under an established Loan Agreement.
- Bond Terms: The Series 2022A-2 Bonds carry an initial fixed interest rate of 4.375% per annum until May 31, 2032, after which the rate may be reset or converted to a variable rate.
- Guaranty Assurance: The bonds are supported by a Guaranty Agreement executed on March 11, 2025, whereby subsidiaries of the company guarantee the repayment of principal, interest, and other payments under the Loan Agreement.