Casella Waste Systems Inc. (NASDAQ:CWST), a waste management company with a market capitalization of $6.9 billion and impressive year-to-date returns of 28%, announced that the Ontario County landfill in New York is set to close by the end of 2028.
According to InvestingPro data, the company has demonstrated strong financial performance with revenue growth of 26.5% in the last twelve months. This decision follows the Board of Supervisors of Ontario County's approval on December 5, 2024, to not renew the 25-year Operation, Management, and Lease agreement with Casella Waste Services of Ontario LLC, which was originally signed in 2003.
The closure aligns with the company's existing operating plan, which anticipated the end of the landfill's operations concurrent with the agreement's expiration.
Casella Waste Systems has stated that the closure is not expected to materially affect its financial accounting for the landfill, as costs and asset retirement obligations have been amortized based on the planned closure. The company's strong financial position is evidenced by its healthy current ratio of 2.55 and moderate debt levels, with a debt-to-capital ratio of just 0.14, as reported by InvestingPro.
In preparation for the landfill's closure, Casella Waste Systems plans to reallocate the waste currently managed at the Ontario site to other landfills it operates in New York and Pennsylvania. The company has expressed confidence that these alternative arrangements will mitigate any significant impact on its operational results or financial condition.
The forward-looking statements regarding the expected closure of the Ontario Landfill and its estimated impact are based on the company's current expectations and projections. However, the company cautions that these statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
Factors that may affect the closure process or the financial implications include economic conditions and other variables beyond the company's control. For deeper insights into CWST's financial health and future prospects, investors can access comprehensive analysis and 13 additional ProTips through InvestingPro's detailed research reports, which provide expert analysis on over 1,400 US stocks.
In other recent news, Casella Waste Systems reported a revenue increase of 16.7% year-over-year to $411.6 million in its third-quarter earnings for 2024, largely due to acquisitions and organic growth. The company also saw a 14.9% growth in adjusted EBITDA, reaching $102.9 million. However, challenges such as lower landfill volumes and increased expenses led to a decrease in adjusted net income to $15.9 million.
Casella completed the acquisition of Royal, contributing to the company's growth expectations. Despite a decline in landfill volumes, the average price per ton increased by 7.1%, and solid waste revenue grew by 17.3% due to price hikes. The company also managed to raise over $500 million in financing for future mergers and acquisitions activities.
Looking ahead, Casella expects a 12% to 15% growth in adjusted EBITDA and a 10% to 15% growth in free cash flow for 2025, assuming no further acquisitions. The company plans to focus on smaller acquisitions while prioritizing recent integration efforts. It also anticipates improvements in margins due to operational efficiencies and internalization of waste.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.