Description

Casella Waste’s Landfill Surge — C&D Volumes Jump Roughly 17%!

Casella Waste Systems delivered a quarter that reflected solid underlying execution, although reported margin progression was restrained by fuel-related revenue gross-ups, acquisition dilution, and weaker Resource Solutions comparisons. Management indicated that the base business generated more than 50 basis points of margin expansion after excluding acquisition effects, supported by pricing, higher landfill volumes, and positive price-cost performance. This suggests that the core operating model remains healthy, even though consolidated adjusted EBITDA margin declined year over year. The Mid-Atlantic business remains an important source of potential improvement, but the benefits are still developing. Pricing in the region increased 4.7%, while systems integration was completed in May and route consolidation accelerated in late June and July. Management expects margins to improve through the third and fourth quarters and more meaningfully into 2027.