Key Highlights

  • Total revenues were USD 559.2 million, compared with USD 485.4 million.
  • Operating income was USD 15.6 million, compared with USD 29.4 million.
  • Fuel costs were USD 27.3 million, or 4.9% of revenue.
  • The company had USD 450.7 million of undrawn revolver capacity.

Casella Waste Systems, Inc. (NASDAQ:CWST) reported third quarter 2026 total revenues of USD 559.2 million, compared with USD 485.4 million in the third quarter of 2025, an increase of USD 73.8 million. Reported EPS was USD 0.35 and Revenue was USD 559.23 million, compared with estimates of EPS of USD 0.42 and revenue of USD 563.17 million.

For the nine months ended September 30, 2026, total revenues were USD 1,560.3 million, compared with USD 1,367.8 million, an increase of USD 192.5 million.

Operating Income and Cost Items

Operating income was USD 15.6 million, compared with USD 29.4 million a year earlier, a decrease of USD 13.8 million. For the nine months, Operating Income was USD 40.5 million, compared with USD 51.8 million, a decrease of USD 11.3 million.

Fuel costs were USD 27.3 million, or 4.9% of revenue, in the quarter, compared with USD 17.2 million, or 3.6% of revenue, a year earlier. For the nine months, fuel costs were USD 71.9 million, or 4.6% of revenue, compared with USD 48.3 million, or 3.5% of revenue.

The filing reports that other income increased USD 3.6 million in the quarter and USD 3.8 million for the nine months, primarily from proceeds tied to the monetization of federal investment tax credits by a third party that owns and operates a renewable Natural Gas Facility at one of the company's landfills. The provision for income taxes increased USD 2.6 million in the quarter and USD 0.5 million for the nine months.

Segment and Disposal Detail

Collection revenues are reported across the company's regional operating segments, with the Resource Solutions operating segment described as leveraging core competencies in materials processing and industrial recycling. In the disposal line, the company cited higher landfill volumes, partly offset by lower transfer station volumes, as the driver of the year-to-date change.

The filing also notes that operating income improved by USD 3.7 million in the quarter and USD 7.6 million for the nine months in one reported grouping, and increased by USD 4.6 million and USD 16.3 million respectively in another.

Liquidity and Financing

As of September 30, 2026, the company had USD 450.7 million of available and undrawn capacity under its USD 700.0 million Revolving Credit Facility and USD 11.7 million of cash and cash equivalents. The company has the right to request an increase in the amount of loans under the Credit Facility by an aggregate of USD 200.0 million, subject to the terms of the Credit Agreement.

Net cash provided by Operating Activities increased USD 8.6 million in the nine months compared with the prior year period. Net cash from financing activities associated with Debt activity increased USD 210.5 million, primarily due to borrowings against the Revolving Credit Facility driven by Acquisition growth.

Consolidated Funded Debt was USD 1,393.9 million as of September 30, 2026. Net of USD 11.7 million of unencumbered cash, the covenant calculation used USD 1,382.2 million, divided by consolidated EBITDA to determine the maximum consolidated net leverage ratio.

Revolver Capacity and Cost Ratios

Casella's revenue rose USD 73.8 million to USD 559.2 million, with operating income of USD 15.6 million. The filing ties debt activity to acquisition growth and discloses USD 450.7 million of undrawn revolver capacity, fuel costs at 4.9% of revenue and the covenant leverage calculation.