Casella’s (CWST) Growth Machine Is Outrunning Its Own Profits

On August 6, Casella Waste Systems (CWST) reported a 16.9% increase in second-quarter revenue to $543.7 million, while simultaneously reducing GAAP net income by 27.6% to $3.8 million. Adjusted EBITDA rose by 12.5% to $123.2 million. The company closed five acquisitions in 2026, adding $165 million in annualized revenue to the top line.

Revenue growth came from acquisitions, National Accounts growth, and pricing increases. Solid waste pricing climbed 5.5%, with collection prices up 5.8% and disposal prices up 4.7%. Landfill volumes grew due to third-party sales and internalization efforts. Adjusted Net Income reached $25.3 million, and six-month net cash from operations climbed 15.3% to $161 million.

Casella raised its full-year revenue guidance to a range of $2.09 billion to $2.11 billion but lowered net income guidance to $0 to $6 million. Hedge fund ownership increased from 28 to 31 funds. The mixed results highlight the challenges of managing growth through acquisitions and pricing while controlling costs.