Casella reports Q2 revenue growth, income dip

Casella Waste Systems Inc. has reported second quarter 2025 net income of $5.2 million for the three month span, down 25.7 percent from the second quarter of 2024.

The Rutland, Vermont-based regional waste and recycling firm says the income reduction was driven by higher depreciation and amortization expenses related to its growth by acquisition. That same acquisition activity meant Casella's second quarter 2025 revenue of $465.3 million represented a 23.4 increase compared with the second quarter of 2024.

In addition to the rollover impact from acquisitions, Casella cites sustained collection and disposal price growth and strong national accounts growth in its Resource Solutions segment for its increased revenue.

“We delivered strong growth again in the second quarter across our key financial metrics, as we continue to execute on our operating plans and acquisition strategy, including six acquisitions completed in the first half of this year with over $90 million in annualized revenue,” CEO John W. Casella says.

“We are excited about our pending acquisition of Mountain State Waste, which will expand our footprint in Pennsylvania and into the adjacent West Virginia market and look forward to welcoming their employees and customers to Casella.”

John Casella says the company also achieved stronger landfill volumes year over year in this year’s second quarter.

“From a margin perspective, our recent acquisition activity, where we tend to acquire private businesses at initial adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] margins below our consolidated levels, as well as the pace of synergy realization in the Mid-Atlantic, were a near-term headwind, but represent opportunities for margin expansion going forward," he says.

The company also has announced revised guidance for full year results in its fiscal year ending this Dec. 31.

Regarding revenue, Casella Waste now predicts a potentially higher figure ranging from $1.82 billion to $1.84 billion, which compares with an earlier range of from $1.775 billion to $1.805 billion.

For its full year net income, however, Casella Waste now predicts a result between $8 million and $18 million, revised slightly downward from a previous range of from $10 million to $25 million.

In an email sent shortly after the Casella Waste results were released, Trevor Romeo, an analyst with Chicago-based equities research firm William Blair, expressed an opinion that the firm’s “margin headwinds [are] driven by integration challenges in the Mid-Atlantic region.

"We believe they are largely temporary [and] relate to specific Mid-Atlantic assets Casella purchased in 2023," he adds.

“We continue to see a strong [acquisition] pipeline with plenty of potential upside from additional deals the next several quarters [and] volumes were positive on a consolidated basis despite some macro-related softness” he says in part was driven by strong landfill volume growth.

“Further, Casella’s risk-averse recycling contract and renewable natural gas partnership structures limit exposure to volatile recycled commodities and renewable identification number prices.”