Cleanaway Waste Management Limited

FY26 underlying EBIT was $470.2 million, up 14.2%, on net revenue of $3.7 billion, up 13.1%. Underlying NPAT was $223.1 million, up 13.6%, and underlying EPS was $0.10, also up 13.6%. EBIT margin improved to 12.6% and ROCE rose 60 bps to 9.7%. Free cash flow was $213.8 million, up 63.7% or $83.2 million, and statutory NPAT was $98.5 million. Segment highlights included Solid Waste Services EBIT of $405 million, up 9.1%, and Industrial Services EBIT of $55.9 million, up 135%, while OTS and Health together saw net revenue fall 1.2% to $676 million and EBIT fall 10.7% to $75.1 million. For FY27, management guided to underlying EBIT of $500 million to $530 million, D&A of $435 million to $455 million, implied EBITDA of $935 million to $985 million, cash CapEx of about $360 million, cash interest of about $140 million, landfill remediation costs of around $180 million over FY27-FY29, and net cash impact of underlying adjustments of $40 million to $50 million.

Mark Schubert framed FY26 as a year of progress but uneven execution, saying the company delivered earnings and cash flow growth while some portfolio areas underperformed expectations. He emphasized Blueprint 2.0 as a shift from building the platform to making it work harder through better branch execution, higher asset utilization, tighter capital discipline and more data-led operations. He also said the FY27 guidance reflects both recovery in weaker businesses and higher investment in IT and capability, while stressing that the company remains focused on safer, more stable and more cash-generative earnings.

Nigel Simonsz highlighted the financial improvement in the core metrics: net revenue above $3.7 billion, underlying EBIT of $470.2 million, underlying NPAT of $223.1 million, underlying EPS of $0.10, and free cash flow of $213.8 million. He said free cash flow benefited from $49.1 million of favorable working capital, lower cash CapEx of $326.8 million versus $335.1 million last year, and a roughly $40 million timing benefit on fleet and payment terms, but warned that this fleet timing benefit will not repeat in FY27. He also pointed to FY27 net finance costs of around $170 million, cash interest around $140 million, and said the company expects no significant net working capital movements in FY27.

Analysts pressed management on the bridge from FY26 to FY27, especially how the company could guide to $500 million to $530 million of EBIT after a weaker organic year. Management said the uplift comes from removing FY26 headwinds tied to closed businesses and Yatala repairs, about $25 million more indirect cost benefit, organic recovery in weak segments, and an offset from higher IT and Blueprint 2030 spend. Questions also focused on Health margin recovery, IS project deferrals, Contract Resources synergies, and the new free cash flow definition; management said Health should improve as the roof repair, product destruction, liquid injection and added sales capability flow through, IS is being reshaped to mirror CR’s embedded branch model, and the $12 million CR synergy target remains on track for FY28. On the EQT bid, management said no talks with other parties have occurred because of the no-shop/no-talk process deed.