Acquisitions, pricing programs drive growth for Casella in Q1

Casella Waste Systems Inc., a regional solid waste, recycling and resource management services company based in Rutland, Vermont, has reported its financial results for the first quarter of 2025. 

Revenue was $417.1 million for the quarter, up $76.1 million, or 22.3 percent, from the same period in 2024. Revenue growth was mainly driven by the rollover impact from acquisitions, including deals closed in prior periods; sustained collection and disposal price growth; and strong national accounts growth in the company’s Resource Solutions segment.

“Acquisitions remain a key strategic priority, and year-to-date we have acquired four businesses with approximately $50 million in annualized revenue, including a recent tuck-in in the western New York market,” says John W. Casella, chairman and CEO. “We continue to work a robust deal pipeline, including both geographic overlays and strategic adjacencies, that we hope will drive further value creation in the future.”

Operating income was $3.1 million for the quarter, down $3.7 million, or 54 percent, from the same period in 2024, primarily affected by higher depreciation and amortization expense related to acquisition growth.

Net loss was $4.8 million for the quarter, or 8 cents per diluted common share, compared with $4.1 million and 7 cents per diluted common share from the same period in 2024, driven by the factors impacting operating income, partially offset by lower interest expense. Adjusted net income was $12.2 million for the quarter, or 19 cents adjusted diluted earnings per common share, both non-GAAP (generally accepted accounting principles) measures, compared with adjusted net income of $8.7 million and 15 cents adjusted diluted earnings per common share for the same period in 2024.

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, were $86.4 million for the quarter, up $15.4 million (21.7 percent), from the same period in 2024, driven by acquisition contribution and organic growth.

“We had a strong first quarter to start the year, with both revenue and adjusted EBITDA up over 20 percent year-over-year, as we continue to execute successfully on our operating and growth strategies,” Casella says. “Notwithstanding heightened uncertainty in the overall economy, our business is performing well, and our guidance for the year remains unchanged.”

He adds that pricing programs are on track, with solid waste price growth of 5.6 percent, collection pricing up 5.8 percent and disposal pricing up 5.5 percent in the quarter. 

“Collection volume remained a slight headwind at 1.7 percent in the quarter, with relative weakness in the roll-off line of business, as well as lighter transfer station volumes. However, landfill tons were up 3.9 percent in the quarter, as the market headwinds have subsided, and we have increased internalization and revamped sales efforts,” Casella says. “Our national accounts business remains a nice driver of top-line growth as well, with 10.9 percent organic growth, including 7.4 percent volume growth.”

The company’s fiscal year outlook includes revenue between 1.77 billion and 1.8 billion, with net income estimated to be $10 million to $25 million.