The quarter cleared the market’s bar. Published estimates were approximately $527.2 million of revenue and $0.36 of adjusted EPS; Casella delivered $543.7 million and $0.40, respectively—roughly a 3% revenue beat and an 11% adjusted-EPS beat.
| Metric | Q2 2026 | Q2 2025 | Market expectation |
|---|---|---|---|
| Revenue | $543.7 million (Income Statement) | $465.3 million (Income Statement) | ~$527.2 million |
| Adjusted EBITDA | $123.2 million (Non-GAAP Performance Measures) | $109.5 million (Non-GAAP Performance Measures) | Not reliably published |
| Adjusted EBITDA margin | 22.7% (Non-GAAP Performance Measures) | 23.5% (Non-GAAP Performance Measures) | — |
| Adjusted diluted EPS | $0.40 (Non-GAAP Performance Measures) | $0.38 (Non-GAAP Performance Measures) | ~$0.36 |
| Adjusted free cash flow | $47.5 million (Non-GAAP Liquidity Measures) | $41.8 million (Non-GAAP Liquidity Measures) | — |
Growth was acquisition-led, but the underlying operating picture was still constructive. Revenue rose 16.9%, including $46.2 million from acquisitions, while solid-waste pricing contributed $20.4 million and volume was slightly negative overall at $(2.2) million (Components of Consolidated Revenues Growth). Adjusted EBITDA increased 12.5%, but below revenue growth, leaving the margin 80 basis points lower at 22.7% (Non-GAAP Performance Measures). That is a quality-of-growth tradeoff rather than a clean margin beat.
The guidance message was better on growth than on profitability. Management raised full-year revenue guidance to reflect completed acquisitions and higher fuel-recovery fees, while leaving the previously raised $473 million–$483 million Adjusted EBITDA and $200 million–$210 million Adjusted Free Cash Flow ranges unchanged (Fiscal Year 2026 Outlook). The company therefore improved the top-line outlook without increasing its EBITDA or cash-flow targets—a reaffirmation of the existing profit framework, not a fresh earnings upgrade.
Cash generation improved, but expansion is consuming the balance sheet. Six-month operating cash flow rose to $161.0 million from $139.6 million and adjusted free cash flow reached $78.1 million from $70.8 million (Cash Flow statement; Non-GAAP Liquidity Measures). However, acquisitions used $400.8 million of cash, cash and restricted cash fell to $25.5 million from $217.8 million, and total debt rose to approximately $1.35 billion from $1.15 billion (Cash Flow statement; Balance Sheet). The beat is therefore supported by stronger operations, but also comes with materially higher leverage and integration exposure.
Read the original 8-K on SEC EDGAR ↗