• Revenue: $427.5 million in Q4, up 18.9% year-over-year.
• Acquisition Revenue: $50.1 million from acquisitions in Q4.
• Organic Growth: $17.8 million or 4.9% in Q4.
• Solid Waste Revenue Growth: 21.4% year-over-year in Q4.
• Adjusted EBITDA: $95 million in Q4, up 15.6% year-over-year.
• Adjusted EBITDA Margin: 22.2% in Q4, down 60 basis points year-over-year.
• Net Income: $4.9 million in Q4, up $6 million year-over-year.
• Adjusted Net Income: $25.8 million in Q4, up $8.7 million year-over-year.
• Adjusted EPS: $0.41 in Q4 and $1.35 for fiscal year 2024.
• Adjusted Free Cash Flow: $158.3 million for fiscal year 2024, up 23% year-over-year.
• Net Cash Provided by Operating Activities: $281.4 million for fiscal year 2024, up $48.3 million year-over-year.
• Debt: $1.1 billion as of December 31, 2024.
• Cash: $383 million as of December 31, 2024.
• Guidance for 2025 Revenue: $1.775 billion to $1.805 billion.
• Guidance for 2025 Adjusted EBITDA: $410 million to $425 million.
• Guidance for 2025 Adjusted Free Cash Flow: $165 million to $180 million.

• Warning! GuruFocus has detected 8 Warning Signs with CWST.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Casella Waste Systems Inc (NASDAQ:CWST) achieved over 20% growth in revenues, adjusted EBITDA, and adjusted free cash flow for the third consecutive year.
• The company completed 8 acquisitions in 2024, adding over $200 million in annualized revenues, and has already closed 3 acquisitions in 2025 with approximately $40 million in annualized revenues.
• The McKean rail landfill is now online, providing long-term opportunities for disposal needs and potential partnerships.
• The company has successfully internalized more tonnages, focusing on increasing landfill internalization across newly acquired and existing markets.
• Casella Waste Systems Inc (NASDAQ:CWST) maintains a low leverage profile, reflecting disciplined growth strategy and strong pricing and operating programs.

Negative Points

• Volumes in the solid waste business were down 1.8% year-over-year, with landfill volumes particularly impacted by an 8.2% decline.
• The company faced challenges with collections in the Mid-Atlantic region, although improvements have been made.
• Adjusted EBITDA margins decreased by 60 basis points year-over-year, impacted by higher incentive compensation expenses.
• The company anticipates flat to down 1% solid waste volumes in 2025, with continued churn in the collection book of business.
• Increased investment in technology is expected to create a headwind of approximately 10 basis points to EBITDA margins in 2025.

Q & A Highlights

Q: Can you provide an update on the M&A landscape for 2025 and any changes in competition for assets? A: Edmond Coletta, President, stated that the M&A pipeline is very active, with numerous opportunities. The company continues to focus on acquisitions that align with strategic goals, such as market densification and vertical integration. John Casella, CEO, noted that the intensity of M&A activity has increased, and the company is well-positioned to support growth with the right resources.

Q: What are the plans for the recently acquired MRF in Eastern Massachusetts, and what synergies do you expect? A: Edmond Coletta explained that the acquisition of Save That Stuff, a recycling and resource management company, complements Casella's existing operations in Massachusetts. The acquisition offers synergies in both hauling and processing, with opportunities to handle unique industrial streams and optimize existing facilities.

Q: Can you provide an update on the Brookhaven landfill closure and its impact on Casella's operations? A: John Casella confirmed that the Brookhaven landfill has closed, and Casella's facilities are seeing a slight increase in tons. The company expects continued improvement in 2025 as volumes are redirected to its facilities.

Q: How is Casella addressing the internalization of tons, and what are the expected benefits? A: Edmond Coletta highlighted that the company is focusing on internalizing tons to its landfills, which were not running at full capacity in 2024. This strategy is expected to yield incremental margin benefits of 50% to 75% per ton, with all internalization efforts included in the 2025 guidance.

Q: What is the outlook for Casella's national accounts business, and how does it contribute to growth? A: John Casella noted that the national accounts business continues to grow, particularly in the industrial sector in the Mid-Atlantic region. The company is leveraging its expanded footprint to win new contracts and provide comprehensive waste and recycling services, contributing to volume growth and customer retention.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.