Casella posts a loss in Q4 2025

Rutland, Vermont-based Casella Waste Systems Inc., has reported a net loss of about $2.5 million in the fourth quarter of 2025, cutting into what was otherwise a profitable year for the regional solid waste, recycling and resource management services firm.

Casella says its revenue from October through December 2025 rose by 9.7 percent compared with the same time frame in 2024. On its balance sheet, however, a more than $6.4 million loss in last year’s fourth quarter was attributed to a “tax effect” described in a footnote as adjustments comprised of “an aggregate of the current and deferred tax impact of each adjustment, including the impact to the effective tax rate, current provision and deferred provision.”

In all of 2025, Casella has reported revenue of $1.837 billion, an increase of nearly $280 million or 18 percent compared with 2024. The company’s year-end net income of $7.9 million represents a decline from $13.5 million in 2024, marking a 42 percent drop.

With 2025 in the books, Casella says it acquired nine businesses during the year “with approximately $115 million in annualized revenue” attached to those firms. Casella started 2026 with another estimated $30 million in annualized revenue added with its acquisition of Morgantown, West Virginia-based Mountain State Waste effective Jan. 1, 2026.

Despite the net loss in the quarter, Casella president and CEO Edmond (Ned) R. Coletta, remarks, “We delivered strong fourth quarter results in line with expectations, closing the year on a high note and carrying positive momentum into 2026. These results reflect the success of our ongoing acquisition integrations in our Mid-Atlantic region and marked our fifth consecutive year of double-digit revenue, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted free cash flow growth.”

Also commenting on those aspects of Casella’s financials, Trevor Romeo of Chicago-based investment firm William Blair remarks, “We view Casella’s fourth quarter as solid, as a slight revenue miss versus consensus was more than offset by adjusted EBITDA, margin and adjusted free cash flow upside.”

Regarding Casella’s merger and acquisition activity, Romeo writes, “We believe M&A and/or better-than-expected Mid-Atlantic synergy realization could drive upside as 2026 progresses.”

Coletta also expresses confidence in the firm’s M&A activities. “Over the past five years, we have acquired more than $800 million of annualized revenue through tuck-in acquisitions and new market entries, expanding our geographic footprint and creating meaningful shareholder value,” he says.

“Looking ahead to 2026, our acquisition pipeline remains robust, with attractive opportunities to further expand and densify our platform,” adds Coletta.

“Since assuming the role of CEO on Jan. 1, I remain impressed by, and deeply grateful for, the efforts of our entire team,” states Coletta. “Our execution of long-term strategy continues to strengthen our foundation for future growth, with a clear focus on investing in our people and fostering a culture of safety, innovation and accountability.”