Casella Waste Systems Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Adam Bubes - Goldman Sachs - Analyst : Good morning, nice to see the positive landfill volume trajectory in the quarter. Just wondering how much of that is the loss construction and demolition volumes flowing back to you, 1Q versus 4Q? And is there still room for continued recovery there as we move through the balance of the year?

Question: Adam Bubes - Goldman Sachs - Analyst : Great. And then as we think about your landfill positioning today and opportunities for incremental internalization, can you just help us think about sort of how much unfilled annual landfill capacity you have today? I think McKean is close to $1.5 million in incremental capacity, but just trying to figure out where else there is a slack for more internalization of third-party tons.

Question: Adam Bubes - Goldman Sachs - Analyst : And then last one for me. Can you just provide an update on the Juniper Ridge landfill gas plant ramp? And any update on timing on the three plants in partnership with WAGA?

Question: Adam Bubes - Goldman Sachs - Analyst : Great. Thanks so much.

Question: Trevor Romeo - William Blair - Analyst : Hey, good morning, guys. Thanks so much for taking the questions. I had one on price. I think 5.6% for solid waste in the quarter. I think that was a little above your full year expectation. I guess, are there any areas where you saw pricing stick a little bit better than you expected? And then thinking as we move throughout the rest of the year, is there any reason to think whether it's either mix or underlying environment or anything like that? Any reason you might see a deceleration from these levels in the next few quarters?

Question: Trevor Romeo - William Blair - Analyst : All right. That's helpful. And then I did want to ask on your integration efforts. I think you mentioned a little in the prepared remarks. Just a lot of activity in the past two years a few kind of larger ones towards the end of '24. How have all those integrations progressed thus far relative to your expectations? And then in terms of -- I think Ned, you mentioned there was a net margin tailwind from acquired businesses if I heard you right. So just thinking of efficiency and synergy capture and such, how has all that kind of performed so far for those acquired businesses? Thanks.

Question: Trevor Romeo - William Blair - Analyst : All right. Thanks so much, guys. Appreciate it.

Question: James Schumm - TD Cowen - Analyst : Thanks. Good morning, guys. So I wanted to -- you made four acquisitions with $50 million of annualized revenue. I wanted to understand how much of that is incremental to the annual rollover guidance that you gave to revenues?

Question: James Schumm - TD Cowen - Analyst : Understood. And then I wanted to understand the disposal volumes. So your disposal volumes are down, but your landfill volumes are up nicely. So that's implying -- is it that the transfer stations are very weak from roll off? Is it? Is that what's going on where maybe you had roll off work that would go to a third-party landfill that really got weak? Or just help me understand the sort of dynamic there?

Question: James Schumm - TD Cowen - Analyst : Okay. That's encouraging. All right. Thanks, guys. Appreciate it.

Question: Stephanie Moore - Jefferies - Analyst : Hi. Good morning. Thank you. I wanted to -- first question, just a clarification question. Did you highlight or call out what the weather impact to the first quarter was either from a revenue or margin standpoint?

Question: Stephanie Moore - Jefferies - Analyst : Got it. Okay. No, that's clear. And then maybe taking a bigger picture question or I think you're very clear about the opportunity from internalizing volumes, particularly after doing M&A and just some of the dynamics in the Northeast. But just for us, as we continue to monitor and watch your M&A activity, is there a way for us to think about the expected EBITDA contribution from internalization. So like every 100 basis points of improvement or increase in internalization, what that could actually translate into from an EBITDA or margin standpoint, just kind of rough numbers there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 2:00PM, CWST.OQ - Q1 2025 Casella Waste Systems Inc Earnings Call

Question: Stephanie Moore - Jefferies - Analyst : Absolutely. Well, I appreciate the time. Thanks, guys.

Question: Tony Bancroft - Gabelli Funds - Analyst : Good morning. Hey, how are you guys? Great job, well done as usual. Again, probably more a bigger picture question following in that line. But maybe you could talk a little bit, just you've been doing so much M&A, and it seems like you've had some pretty successful acquisitions in recent years. Something more transformation. I know some of the industry has done some more transformational things or something outside your core business, maybe new markets maybe outside of your adjacencies, have you thought? And then would you use -- obviously, you performed so well, your stock price has performed so well, potential for using stock in any of these potential transactions and you just mentioned how many great ones -- some great acquisitions you've had. How many would you say? Is there a handful left of great ones left in the Northeast, some of these great larger, midsized, larger operators. What's out there?

Question: Tony Bancroft - Gabelli Funds - Analyst : All right. Thanks so much. Keep doing it. You're doing great. Thank you.

Question: Timna Tanners - Wolfe Research - Analyst : Hey, good morning. I wanted to just ask a high-level question. So given that you had a strong first quarter, you just told us there's an additional $10 million of revenue from recent acquisitions, but you didn't change your full year guidance, and you also said that C&D market seems to be improving, which would be a big cyclical part of your business typically. So I guess the question is, what does it take to get more positive on the full year with all those components, is it just more time? Or is there anything specific you're looking at?

Question: Timna Tanners - Wolfe Research - Analyst : That makes sense. And then similarly, wondering if some of this uncertainty that you referenced is impacting your acquisition candidates or how they're looking at their business feature.

Question: Timna Tanners - Wolfe Research - Analyst : Okay. I appreciate it. Thank you very much.