Casella Waste boosted revenue by 23% last quarter, thanks to a flurry of recent acquisitions – leading the environmental services firm to beat analyst expectations and bump up its forecast for 2025.

What does this mean?

Casella’s growth story this quarter was powered by a mix of acquisitions and firm pricing moves. The company brought in $465.3 million, well ahead of the $454.3 million analysts expected, topped off by six fresh acquisitions that delivered $90 million in annualized sales. That was complemented by a 5% jump in solid waste pricing and strong numbers from its Resource Solutions arm. Adjusted net income hit $23 million, beating the consensus, though adjusted EBITDA just missed at $109.5 million. Still, management sounds upbeat – raising next year’s revenue outlook to as much as $1.84 billion, and aiming for adjusted free cash flow over $170 million.

Why should I care?

For markets: Growth brings confidence but price is still lofty.

Casella's acquisition streak has analysts feeling optimistic, with six rating the firm a 'buy' or 'strong buy.' The stock’s median 12-month price target sits nearly 15% above its latest close, signaling faith in the company’s strategy. Still, shares trade at 91 times next year’s earnings – far above the market average – showing that investors believe in the outlook but remain cautious about valuation. Even so, the sector’s momentum is strong, with Casella’s peers also earning bullish marks from analysts.

The bigger picture: Bigger moves for a cleaner future.

Casella’s deal-driven approach echoes a wider trend of consolidation and pricing discipline across the waste management space. The firm’s lifted guidance – aiming for scale and efficiency – points to how companies in this sector are adapting to new environmental pressures and tighter competition. Peers are following suit, using strategic deals and price hikes to stay resilient and meet shifting environmental expectations throughout North America.

Casella Waste’s Acquisitions Drive Strong Revenue Jump And Upbeat Outlook

Casella Waste reported a 23% revenue increase in Q2 2025, driven by six acquisitions and pricing adjustments, surpassing analyst expectations. The company raised its 2025 revenue forecast to $1.84 billion and aims for $170 million in adjusted free cash flow. Analysts rate the stock positively, though its valuation remains high at 91x next-year earnings.