Executive Summary

Q1 2025 delivered strong top-line growth and pricing: revenue rose 22.3% to $417.1M; solid waste pricing increased 5.6% (collection +5.8%, disposal +5.5%), while landfill tons grew 3.9% .
Adjusted EPS of $0.19 beat S&P Global consensus $0.10*, and revenue of $417.1M topped $403.4M*; company Adjusted EBITDA was $86.4M, with margins essentially flat YoY at 20.7% .
Guidance reaffirmed: FY25 revenue $1.775–$1.805B, Adjusted EBITDA $410–$425M, Adj. FCF $165–$180M; management cited macro and policy uncertainty and opted for caution despite a strong start .
Call color emphasized internalization, automation, and integration progress; management highlighted robust M&A pipeline (~~$500M+ revenues) and ample liquidity (~~$900M availability) as catalysts for continued value creation .

What Went Well and What Went Wrong

What Went Well

Pricing and margin execution: solid waste price +5.6% with collection price +5.8%, disposal +5.5%; base business cost of operations down ~200 bps as a % of revenue; Adjusted EBITDA +21.7% to $86.4M .
Landfill and Resource Solutions traction: landfill tons +3.9% YoY; National Accounts organic growth +10.9% (volume +7.4%); Willimantic MRF upgrade supports efficiency and circularity initiatives (“on track to deliver $4M incremental Adjusted EBITDA in 2025”) .
Strong cash generation and disciplined growth: net cash from operations $50.1M (vs $7.7M prior year); Adjusted FCF $29.1M (vs -$2.4M); four acquisitions YTD (~$50M annualized revenue) .

Quotes:

“We had a strong first quarter… our guidance for the year remains unchanged.” — John W. Casella .
“Adjusted free cash flow was $29.1M, a record for the first quarter.” — Ned Coletta .
“Our active M&A pipeline is full… approximately $900M of availability…” — Ned Coletta .

What Went Wrong

Volumes mixed; collection volume -1.7% and disposal volumes -2.2% (transfer weakness tied to roll-off softness amid a tough winter); operating income down 54% YoY on higher D&A from acquisitions .
Adjusted EBITDA margin down ~10 bps YoY, primarily due to ~$2.6M long-term stock comp adjustment (~60 bps headwind); excluding it, margins would have expanded ~50 bps .
GAAP net loss widened to $(4.8)M from $(4.1)M on acquisition-related amortization; company continues to face PFAS-related compliance risks and broader macro/policy uncertainty (risk disclosures) .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$341.0	$427.5	$417.1
GAAP Diluted EPS ($USD)	$(0.07)	$0.08	$(0.08)
Adjusted Diluted EPS ($USD)	$0.15	$0.41	$0.19
Operating Income ($USD Millions)	$6.8	$18.5	$3.1
Adjusted EBITDA ($USD Millions)	$71.0	$95.0	$86.4
Adjusted EBITDA Margin (%)	20.8%	22.2%	20.7%
Net Cash from Operations ($USD Millions)	$7.7	$109.8	$50.1
Adjusted Free Cash Flow ($USD Millions)	$(2.4)	$59.6	$29.1

Segment revenue breakdown (third-party):

Segment	Q1 2024	Q1 2025
Solid Waste (Third-Party) ($USD Millions)	$265.9	$334.9
Resource Solutions (Third-Party) ($USD Millions)	$75.1	$82.2
Collection (Third-Party) ($USD Millions)	$211.4	$276.5
Disposal (Third-Party) ($USD Millions)	$50.1	$53.7
Landfill Gas-to-Energy (Third-Party) ($USD Millions)	$2.5	$2.8
Processing (Solid Waste) (Third-Party) ($USD Millions)	$1.9	$2.0
Resource Solutions Processing (Third-Party) ($USD Millions)	$29.8	$32.0
National Accounts (Third-Party) ($USD Millions)	$45.3	$50.2

KPIs (YoY Q1 change):

KPI	Q1 2024	Q1 2025
Solid Waste Price Growth (%)	—	5.6%
Collection Price Growth (%)	—	5.8%
Disposal Price Growth (%)	—	5.5%
Collection Volume (%)	—	(1.7%)
Landfill Tons (%)	—	+3.9%
National Accounts Organic Growth (%)	—	+10.9%
National Accounts Volume Growth (%)	—	+7.4%

Vs. Estimates (S&P Global):

Metric	Q4 2024	Q1 2025
Revenue – Estimate ($USD)	$419.5M*	$403.4M*
Revenue – Actual ($USD)	$427.5M	$417.1M
Adjusted EPS – Estimate ($USD)	$0.156*	$0.103*
Adjusted EPS – Actual ($USD)	$0.41	$0.19

Values marked with * were retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance (Feb 12, 2025)	Current Guidance (May 1, 2025)	Change
Revenue ($USD Billions)	FY 2025	$1.775–$1.805	$1.775–$1.805	Maintained
Net Income ($USD Millions)	FY 2025	$10–$25	$10–$25	Maintained
Adjusted EBITDA ($USD Millions)	FY 2025	$410–$425	$410–$425	Maintained
Net Cash from Operations ($USD Millions)	FY 2025	$320–$335	$320–$335	Maintained
Adjusted Free Cash Flow ($USD Millions)	FY 2025	$165–$180	$165–$180	Maintained

Earnings Call Themes & Trends

Topic	Q3 2024 (Previous-2)	Q4 2024 (Previous-1)	Q1 2025 (Current)	Trend
Automation & onboard computing	Emphasized route optimization; collection margins up despite C&D headwinds .	Added 17 automated trucks in 2024; further rollouts planned; margin expansion >100 bps in collection .	Plan to add ~40 automated trucks in 2025; legacy collection margins +140 bps; onboard computing driving “extra revenues” .	Strengthening execution and scope
Landfill internalization & capacity	Working to internalize more tons; C&D headwinds weighed on volumes .	New lanes; incremental 120k tons internalized; McKean rail as long-term risk mitigation .	Landfill tons +3.9%; ~30% excess capacity (ex-McKean); internalization efforts ongoing .	Improving volumes and internalization
C&D/special waste volumes	Headwinds; price discipline preserved airspace .	Weakness in special/C&D continued in Q4 2024; expect improvement in 2025 .	Recovery underway; ~1/3 rebound from NY C&D; 2/3 from internalization/sales .	Easing headwinds
Recycling infrastructure	Boston MRF upgrade boosted 2024; Willimantic retrofit coming online .	Willimantic upgrade completed in Jan; expected ~$4M EBITDA in 2025 .	Willimantic MRF upgrade unveiled; expected to double capacity .	Capacity and efficiency rising
Tariffs/macro	Not a major direct impact, but macro monitored .	Low exposure; guidance assumes stable conditions; cautious stance .	“Exposure to tariffs is low”; monitoring vendor impacts; pricing flexibility .	Stable risk posture
PFAS/regulatory	PFAS highlighted as a risk factor .	Deployed PFAS treatment pilots (foam fractionation/RO); working with agencies .	Continued risk disclosure; compliance costs possible .	Active mitigation; ongoing monitoring
IT systems & scalability	Integration complexity acknowledged .	Upgrading order-to-cash (SoftPak) and portals; temporary G&A/IT spend uptick .	Integration progress; “beat behind” on systems; more value creation ahead .	Near-term investment, long-term efficiency

Management Commentary

“Pricing continued to exceed internal inflation… expanded margins by 140 bps in our legacy collection operations” — John W. Casella (prepared remarks) .
“Adjusted free cash flow was $29.1M… capital expenditures included ~$25M upfront investments in recent acquisitions… consolidated net leverage 2.45x” — Ned Coletta .
“Our active M&A pipeline is over $500M of revenues… we remain very well positioned to deliver attractive organic growth combined with strategic acquisitions” — Ned Coletta .
“We remain confident in our 2025 outlook… low exposure to tariffs… multiple options to offset such tariffs on the revenue side” — Ned Coletta .

Q&A Highlights

Landfill volume recovery drivers: ~1/3 from recapturing NY C&D tons; ~2/3 from internalization and revamped sales process .
Capacity headroom: ~30% excess landfill capacity excluding McKean; McKean adds ~1.5M tons/year long-term, used defensively .
RNG projects: Juniper Ridge online but ~10% production; BP/RNG partners working to ramp; three plants expected online in Q3–Q4 2025 .
Pricing trajectory: Solid waste pricing slightly ahead of budget in Q1; FY guide ~5% with modest moderation through the year .
Acquisitions: Four deals YTD (~$50M annualized); ~+$10M of revenue incremental to earlier FY guide; integration ahead of pro formas .
Weather impact: Tough winter pressured roll-off/transfer volumes; improvement observed into April/May .

Estimates Context

Q1 2025 beat on revenue and Adjusted EPS versus S&P consensus: revenue $417.1M vs $403.4M*; Adjusted EPS $0.19 vs $0.10*; S&P EBITDA consensus $83.98M* versus company-reported Adjusted EBITDA $86.4M (S&P tracked EBITDA ‘actual’ at $80.16M*, reflecting differing definitions). Values retrieved from S&P Global.
Prior quarter Q4 2024 also above consensus on revenue and Adjusted EPS: $427.5M vs $419.5M*; $0.41 vs $0.16*. Values retrieved from S&P Global.

Key Takeaways for Investors

Pricing power and operational initiatives are offsetting inflation, supporting margin resilience; legacy collection margins expanding despite mixed volumes .
Landfill internalization is a key earnings lever; near-term volume recovery plus longer-term capacity (including McKean) underpin disposal security and cash economics .
Strong cash generation and disciplined capital deployment (upfront acquisition capex) align with robust M&A optionality; liquidity ~$900M strengthens inorganic growth potential .
Guidance held despite Q1 beats, reflecting prudent stance amid macro/policy uncertainty; upside optionality exists if C&D/special waste recovery sustains and MRF upgrades deliver .
Watch for integration and IT upgrades (SoftPak) to unlock further efficiencies; temporary G&A/IT spend should ease as systems modernize and scale .
Monitor RNG ramp timelines and PFAS compliance costs; both can influence segment earnings and capex needs .
Near-term trading: positive estimate beats and reaffirmed guide are supportive; medium-term thesis centers on pricing discipline, internalization, automation, and accretive M&A execution .

Additional Relevant Press Releases (Q1 2025 context)

Willimantic MRF upgrade unveiled; expected to double prior throughput and enhance efficiency; ~$20M investment, part of >$50M into Resource Solutions over three years .
NWRA Drivers of the Year: three Casella drivers recognized, reinforcing operational excellence culture (May 27, 2025) .

Non-GAAP adjustments: Casella’s Adjusted Net Income and Adjusted EPS exclude amortization of acquired intangibles and acquisition-related costs; management updated its non-GAAP presentation beginning with 2024 results to better reflect underlying performance amid elevated acquisition activity .

CASELLA WASTE SYSTEMS INC (CWST)·Q1 2025 Earnings Summary