Q2 2026 Casella Waste Systems Inc Earnings Call

August 7, 2026

Operator: Hello, and welcome to the Casella Waste Systems Inc. Q2 2026 conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Vice President of Investor Relations and Finance, Henry Bobby.

Operator: Hello, and welcome to the Casella Waste Systems Inc. Q2 2026 Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Vice President of Investor Relations and Finance, Henry Baby.

Speaker #1: To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand has been raised.

Speaker #1: To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Vice President of Investor Relations and Finance, Henry Bobby.

Speaker #2: Good morning, and thank you for joining us on the call. Today we'll be discussing our second quarter 2026 results, which were released yesterday afternoon.

Henry Bobby: Good morning, and thank you for joining us on the call. Today, we'll be discussing our Q2 2026 results, which were released yesterday afternoon. This morning, I'm joined by Ned Coletta, President and Chief Executive Officer of Casella Waste Systems, Bradford Helgeson, our Chief Financial Officer, Damian Ribar, our Chief Operating Officer, and Jason Mead, our Senior Vice President of Finance and Treasurer. After a review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. First, please note that various remarks we may make about the company's future expectations, plans, and prospects constitute forward-looking statements for the purpose of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.

Henry Baby: Good morning, and thank you for joining us on the call. Today, we'll be discussing our Q2 2026 results, which were released yesterday afternoon. This morning, I'm joined by Ned Coletta, President and Chief Executive Officer of Casella Waste Systems, Bradford Helgeson, our Chief Financial Officer, Damian Ribar, our Chief Operating Officer, and Jason Mead, our Senior Vice President of Finance and Treasurer. After a review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. First, please note that various remarks we may make about the company's future expectations, plans, and prospects constitute forward-looking statements for the purpose of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995.

Speaker #2: This morning, I'm joined by Ned Coletta, President and Chief Executive Officer of Casella Waste Systems; Brad Helgeson, our Chief Financial Officer; and Damon Rivar, our Chief Operating Officer.

Speaker #2: And Jason Meade, our Senior Vice President of Finance and Treasurer. After review of these results and an update on the company's activities and business environment, we'll be happy to take your questions.

Speaker #2: But first, please note that various remarks we may make about the company's future expectations, plans, and prospects constitute forward-looking statements for the purpose of the Safe Harbor Provisions under the Private Securities Litigation Reform Act of 1995.

Speaker #2: Actual results may differ materially from those indicated by those forward-looking statements as the result of various important factors including those discussed in the risk factor section of our most recent Form 10-K, which is on file with the SEC.

Henry Bobby: Actual results may differ materially from those indicated by those forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent Form 10-K, which is on file with the SEC. In addition, any forward-looking statements represent views only as of today and should not be relied upon as representing our views on any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, 7 August 2026. Also, during this call, we may be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles.

Henry Baby: Actual results may differ materially from those indicated by those forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent Form 10-K, which is on file with the SEC. In addition, any forward-looking statements represent views only as of today and should not be relied upon as representing our views on any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, 7 August 2026. Also, during this call, we may be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles.

Speaker #2: In represent views only as of today, and should not be replied upon as representing our views on any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change.

Speaker #2: These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, August 7, 2026. Also, during this call, we may be referring to non-GAAP financial measures.

Speaker #2: These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, to the extent they are available without unreasonable effort, are included in our press release filed on Form 8-K with the SEC.

Henry Bobby: Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, to the extent they are available without unreasonable effort, are included in our press release filed on Form 8-K with the SEC. With that, I'll turn it over to Ned Coletta to begin today's discussion.

Henry Baby: Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, to the extent they are available without unreasonable effort, are included in our press release filed on Form 8-K with the SEC. With that, I'll turn it over to Ned Coletta to begin today's discussion.

Speaker #2: And with that, I'll turn it over to Ned Coletta to begin today's discussion.

Speaker #3: Good morning, and thank you for joining us. I'd like to first welcome Damon Rivar, our new Executive Vice President and Chief Operating Officer. Damon is joining us on the call this morning.

Edmond R. Coletta: Good morning. Thank you for joining us. I'd like to first welcome Damian Ribar, our new Executive Vice President and Chief Operating Officer. Damian is joining us on the call this morning. Damian brings over 30 years of solid waste industry operating and finance experience and is an excellent addition to our already strong senior management team. We're also joined by our new Vice President of Investor Relations and Finance, Henry Bobby. Henry joins us after a 20-year career on the buy side, most recently as a small-cap generalist at William Blair. We are pleased with our performance in Q2. Our team executed well across the business, delivering solid financial performance while also advancing our key strategic initiatives. Our disciplined operating approach, strong pricing execution, higher landfill volumes, and continued acquisition activity drove positive results during the quarter.

Ned Coletta: Good morning. Thank you for joining us. I'd like to first welcome Damian Ribar, our new Executive Vice President and Chief Operating Officer. Damian is joining us on the call this morning. Damian brings over 30 years of solid waste industry operating and finance experience and is an excellent addition to our already strong senior management team. We're also joined by our new Vice President of Investor Relations and Finance, Henry Baby. Henry joins us after a 20-year career on the buy side, most recently as a small-cap generalist at William Blair. We are pleased with our performance in Q2. Our team executed well across the business, delivering solid financial performance while also advancing our key strategic initiatives. Our disciplined operating approach, strong pricing execution, higher landfill volumes, and continued acquisition activity drove positive results during the quarter.

Speaker #3: Damon brings over 30 years of solid waste industry operating and finance experience and is an excellent addition to our already strong senior management team.

Speaker #3: We're also joined by our new Vice President of Investor Relations and Finance, Henry Bobby. Henry joins us after a 20-year career on the buy side, most recently as a small-cap generalist at William Blair.

Speaker #3: We are pleased with our performance in the second quarter. Our team executed well across the business. Delivering solid financial performance while also advancing our key strategic initiatives.

Speaker #3: Our disciplined operating approach, strong pricing execution, higher landfill volumes, and continued acquisition activity drove positive results during the quarter. Our solid results in the quarter reflect the consistency of our operating model, the effectiveness of our dynamic fuel recovery fees, and the continued focus of our teams on safety, execution, and customer service.

Edmond R. Coletta: Our solid results in the quarter reflect the consistency of our operating model, the effectiveness of our dynamic fuel recovery fees, the continued focus of our teams on safety, execution, and customer service. Revenue for the quarter was $543.7 million, up 16.9% year over year. Growth was driven by contributions from acquisition, the base business with strong pricing across our collection and disposal lines, volume growth at the landfills, continued growth in our resource solutions segment. Pricing continues to perform well and remains a core driver of our positive results. Solid waste pricing was up 5.5% overall, including 5.8% in the collection line of business and 4.7% in the disposal line of business. Equally as important, landfill tons were up 8.4% year over year.

Ned Coletta: Our solid results in the quarter reflect the consistency of our operating model, the effectiveness of our dynamic fuel recovery fees, the continued focus of our teams on safety, execution, and customer service. Revenue for the quarter was $543.7 million, up 16.9% year-over-year. Growth was driven by contributions from acquisition, the base business with strong pricing across our collection and disposal lines, volume growth at the landfills, continued growth in our resource solutions segment. Pricing continues to perform well and remains a core driver of our positive results. Solid waste pricing was up 5.5% overall, including 5.8% in the collection line of business and 4.7% in the disposal line of business. Equally as important, landfill tons were up 8.4% year-over-year.

Speaker #3: Revenue for the quarter was $543.7 million, up 16.9% year over year. Growth was driven by contributions from acquisitions and the base business, with strong pricing across our collection and disposal lines, volume growth at the landfills, and continued growth in our Resource Solutions segment.

Speaker #3: Pricing continues to perform well and remains a core driver of our positive results. Solid waste pricing was up 5.5% overall, including 5.8% in the collection line of business and 4.7% in the disposal line of business.

Speaker #3: Equally as important, landfill tons were up 8.4% year over year. In the quarter, reflecting the strength of our newly constituted post-collection sales team, internalization efforts, and our unique landfill asset positioning in the Northeast.

Edmond R. Coletta: In the quarter, reflecting the strength of our newly constituted post-collection sales team, internalization efforts, our unique landfill asset positioning in the Northeast. From a volume perspective, the quarter played out largely as we expected, with higher disposal volumes mainly offsetting lower collection volumes as we continue to prioritize price and profitability in the collection line of business. Volume trends follow the normal seasonal uptick through July and into early August. We are well-positioned as we move through the back half of the year. On the cost side, our fuel recovery program worked effectively in the quarter, with floating fees fully offsetting the dollar increase in fuel costs across the business. This continues to be an important component of our ability to manage risk and produce stable and predictable operating results.

Ned Coletta: In the quarter, reflecting the strength of our newly constituted post-collection sales team, internalization efforts, our unique landfill asset positioning in the Northeast. From a volume perspective, the quarter played out largely as we expected, with higher disposal volumes mainly offsetting lower collection volumes as we continue to prioritize price and profitability in the collection line of business. Volume trends follow the normal seasonal uptick through July and into early August. We are well-positioned as we move through the back half of the year. On the cost side, our fuel recovery program worked effectively in the quarter, with floating fees fully offsetting the dollar increase in fuel costs across the business. This continues to be an important component of our ability to manage risk and produce stable and predictable operating results.

Speaker #3: From a volume perspective, the quarter played out largely as we expected, with higher disposal volumes mainly offsetting lower collection volumes as we continued to prioritize price and profitability in the collection line of business.

Speaker #3: Volume trends followed the normal seasonal uptick through July and into early August, and we are well positioned as we move through the back half of the year.

Speaker #3: On the cost side, our fuel recovery program worked effectively in the quarter, with floating fees fully offsetting the dollar increase in fuel costs across the business.

Speaker #3: This continues to be an important component of our ability to manage risk and produce stable and predictable operating results. As previously discussed, our fuel recovery program is designed to recover costs, and as such, we experienced roughly 40 basis points of margin headwind, as recovery fees and fuel grossed up revenues and costs, respectively.

Edmond R. Coletta: As previously discussed, our fuel recovery program is designed to recover costs. As such, we experienced roughly 40 basis points of margin headwind as recovery fees and fuel grossed up revenues and costs respectively. As we have emphasized, our focus remains on disciplined execution at the operating level. Our teams continue to make progress with route optimization, fleet efficiency, and automation. We're seeing those efforts translate into results. Adjusted EBITDA of $123.2 million was up 12.5% year over year. Safety is our first core value at Casella, and we continue to invest in key initiatives across the business. These efforts have resulted in better safety performance, with our key OSHA metric improving 34% year over year. A huge thank you to everyone on the team for their focus and discipline.

Ned Coletta: As previously discussed, our fuel recovery program is designed to recover costs. As such, we experienced roughly 40 basis points of margin headwind as recovery fees and fuel grossed up revenues and costs respectively. As we have emphasized, our focus remains on disciplined execution at the operating level. Our teams continue to make progress with route optimization, fleet efficiency, and automation. We're seeing those efforts translate into results. Adjusted EBITDA of $123.2 million was up 12.5% year-over-year. Safety is our first core value at Casella, and we continue to invest in key initiatives across the business. These efforts have resulted in better safety performance, with our key OSHA metric improving 34% year-over-year. A huge thank you to everyone on the team for their focus and discipline.

Speaker #3: As we have emphasized, our focus remains on disciplined execution at the operating level. Our teams continue to make progress with route optimization, fleet efficiency, and automation, and we're seeing those efforts translate into results.

Speaker #3: Adjusted EBITDA of $123.2 million was up 12.5% year over year. Safety is our first core value at CASELLA, and we continue to invest in key initiatives across the business.

Speaker #3: These efforts have resulted in better safety performance with our key OSHA metric improving 34% year over year. A huge thank you to everyone on the team for their focus and discipline.

Speaker #3: We continue to deploy the LYTICS in-cab AI technology across our fleet and it's helping to drive safer behavior through real-time coaching. Further, our expanded triage program continues to reduce workers' compensation costs and claims.

Edmond R. Coletta: We continue to deploy the Lytx in-cab AI technology across our fleet. It's helping to drive safer behavior through real-time coaching. Further, our expanded triage program continues to reduce workers' compensation costs and claims. In the Mid-Atlantic region, we made significant progress on our integration efforts during Q2. As guided, we are on track to cut $5 million of operating costs in 2026 and another $10 million over the next two years. We completed the migration of our customers to our new lead to cash system and integrated customer payment portal in early May. Our team quickly pivoted to driving operational synergies through route consolidations and automated truck conversions. With these early efforts, we have already eliminated 13 routes and the related trucks and labor from the business. From a technology and efficiency standpoint, we're making great progress.

Ned Coletta: We continue to deploy the Lytx in-cab AI technology across our fleet. It's helping to drive safer behavior through real-time coaching. Further, our expanded triage program continues to reduce workers' compensation costs and claims. In the Mid-Atlantic region, we made significant progress on our integration efforts during Q2. As guided, we are on track to cut $5 million of operating costs in 2026 and another $10 million over the next two years. We completed the migration of our customers to our new lead to cash system and integrated customer payment portal in early May. Our team quickly pivoted to driving operational synergies through route consolidations and automated truck conversions. With these early efforts, we have already eliminated 13 routes and the related trucks and labor from the business. From a technology and efficiency standpoint, we're making great progress.

Speaker #3: In the Mid-Atlantic region, we made significant progress on our integration efforts during the second quarter. As guided, we are on track to cut $5 million of operating costs in 2026 and another $10 million over the next two years.

Speaker #3: We completed the migration of our customers to our new lead-to-cash system and integrated customer payment portal in early May, and our team quickly pivoted to driving operational synergies through route consolidations and automated truck conversions.

Speaker #3: With these early efforts, we have already eliminated 13 routes and a related trucks and labor from the business. From a technology and efficiency standpoint, we're making great progress.

Speaker #3: From a customer side, we continue to invest in key platforms to improve experience, including the launch of our new customer payment portal in April, the new CASELLA phone app in May, and the new CASELLA.com website in July.

Edmond R. Coletta: From a customer side, we continue to invest in key platforms to improve experience, including the launch of our new customer payment portal in April, the new Casella phone app in May, and the new casella.com website in July. Everyone should check out these in the iPhone store and online. These efforts are focused on improving customer experience through the development of robust e-commerce capabilities while also yielding cost efficiencies and enhancing our selling capabilities. We remain focused on reducing G&A costs. We are on track with our previously identified $15 million in targeted savings over the next three years. We expect these savings will come in three phases, with the first phase yielded in H2 2026 as we roll out credit card convenience fees.

Ned Coletta: From a customer side, we continue to invest in key platforms to improve experience, including the launch of our new customer payment portal in April, the new Casella phone app in May, and the new casella.com website in July. Everyone should check out these in the iPhone store and online. These efforts are focused on improving customer experience through the development of robust e-commerce capabilities while also yielding cost efficiencies and enhancing our selling capabilities. We remain focused on reducing G&A costs. We are on track with our previously identified $15 million in targeted savings over the next three years. We expect these savings will come in three phases, with the first phase yielded in H2 2026 as we roll out credit card convenience fees.

Speaker #3: Everyone should check out these in the iPhone store and online. These efforts are focused on improving customer experience through the development of robust e-commerce capabilities while also yielding cost efficiencies and enhancing our selling capabilities.

Speaker #3: We remain focused on reducing G&A costs, and we are on track with our previously identified $15 million in targeted savings over the next three years.

Speaker #3: We expect these savings will come in three phases. With the first phase, yielded in the second half of 2026 as we roll out credit card convenience fees.

Speaker #3: The second phase will be yielded in 2027, as we eliminate the cost of redundant systems, and the last phase, as we further automate back-office functions.

Edmond R. Coletta: The second phase will be yielded in 2027 as we eliminate the cost of redundant systems. The last phase as we further automate back-office functions. Across these initiatives, we are focusing on AI-enabled tools and investing in data infrastructure to support this capability. Over time, we expect these investments to generate additional leverage across our back office, yielding efficiency gains throughout the business. I would also like to provide an update on our Hakes Construction and Demolition Landfill in New York. We expect to receive a permit in Q3 to expand our airspace at this site. With this permit expansion, at our current run rate, we'll have roughly 20 years of valuable airspace at the site. In addition, we continue to make excellent progress on expansion efforts at our Highland, Juniper Ridge, and Clinton landfills.

Ned Coletta: The second phase will be yielded in 2027 as we eliminate the cost of redundant systems. The last phase as we further automate back-office functions. Across these initiatives, we are focusing on AI-enabled tools and investing in data infrastructure to support this capability. Over time, we expect these investments to generate additional leverage across our back office, yielding efficiency gains throughout the business. I would also like to provide an update on our Hakes Construction and Demolition Landfill in New York. We expect to receive a permit in Q3 to expand our airspace at this site. With this permit expansion, at our current run rate, we'll have roughly 20 years of valuable airspace at the site. In addition, we continue to make excellent progress on expansion efforts at our Highland, Juniper Ridge, and Clinton landfills.

Speaker #3: Across these initiatives, we are focusing on AI-enabled tools and investing in data infrastructure to support this capability. Over time, we expect these investments to generate additional leverage across our back office yielding efficiency gains throughout the business.

Speaker #3: I would also like to provide an update on our HAICS construction and demolition landfill in New York. We expect to receive a permit in the third quarter to expand our airspace at this site.

Speaker #3: With this permit expansion and our current run rates, we'll have roughly 20 years of valuable airspace at this site. In addition, we continue to make excellent progress on the expansion efforts at our Highland, Juniper Ridge, and Clinton landfills.

Speaker #3: Acquisitions remain an important component of our growth strategy, and we've had a strong start to the year. We have completed five acquisitions so far in 2026, representing approximately $165 million of annualized revenues.

Edmond R. Coletta: Acquisitions remain an important component of our growth strategy. We've had a strong start to the year. We have completed five acquisitions so far in 2026, representing approximately $165 million of annualized revenues. We closed on one acquisition in early January, three on 1 April, and one tuck-in in Pennsylvania on 1 July. These transactions continue to align well with our strategy of building density and adding key transfer stations and recycling facilities within our existing operating footprint. Our teams are making good progress on integration with an early focus on safety, onboarding our new team members, and executing integration plans. At the same time, our acquisition pipeline remains strong, and we have a number of tuck-in opportunities in later stages that fit well within our existing markets. Overall, we feel very good about our execution year-to-date and our outlook for the remainder of the year.

Ned Coletta: Acquisitions remain an important component of our growth strategy. We've had a strong start to the year. We have completed five acquisitions so far in 2026, representing approximately $165 million of annualized revenues. We closed on one acquisition in early January, three on 1 April, and one tuck-in in Pennsylvania on 1 July. These transactions continue to align well with our strategy of building density and adding key transfer stations and recycling facilities within our existing operating footprint. Our teams are making good progress on integration with an early focus on safety, onboarding our new team members, and executing integration plans. At the same time, our acquisition pipeline remains strong, and we have a number of tuck-in opportunities in later stages that fit well within our existing markets. Overall, we feel very good about our execution year-to-date and our outlook for the remainder of the year.

Speaker #3: We closed on one acquisition in early January; three on April 1st; and then one tucked in in Pennsylvania on July 1st. These transactions continue to align well with our strategy of building density and adding key transfers stations and recycling facilities within our existing operating footprint.

Speaker #3: Our teams are making good progress on integration with an early focus on safety, onboarding our new team members, and executing integration plans. At the same time, our acquisition pipeline remains strong, and we have a number of tucked-in opportunities in later stages that fit well within our existing markets.

Speaker #3: Overall, we feel very good about our execution year to date and our outlook for the remainder of the year. We're executing well against our core priorities, including improving our safety profile, pricing in excess of cost inflation, operational efficiency programs, yielding acquisition synergies, and delivering on new acquisitions.

Edmond R. Coletta: We're executing well against our core priorities, including improving our safety profile, pricing in excess of cost inflation, operational efficiency programs, yielding acquisition synergies, and delivering on new acquisitions. At the same time, we're continuing to invest in the business in a disciplined way, particularly in technology and long-term efficiencies. I want to thank our employees for their continued focus on safety, service, and customer execution. With that, I'll turn you over to Brad to walk through the financials in more detail.

Ned Coletta: We're executing well against our core priorities, including improving our safety profile, pricing in excess of cost inflation, operational efficiency programs, yielding acquisition synergies, and delivering on new acquisitions. At the same time, we're continuing to invest in the business in a disciplined way, particularly in technology and long-term efficiencies. I want to thank our employees for their continued focus on safety, service, and customer execution. With that, I'll turn you over to Brad to walk through the financials in more detail.

Speaker #3: At the same time, we're continuing to invest in the business and the discipline way, particularly in technology and long-term efficiencies. I want to thank our employees for their continued focus on safety, service, and customer execution.

Speaker #3: With that, I'll turn it over to Brad to walk through the financials in more detail.

Speaker #2: Thanks, Ned. Good morning, everyone. Revenues in the second quarter were $543.7 million, up 78.4 million, or 16.9% year over year, with $46.2 million from acquisitions, including rollover, and $32.2 million from same-store growth, or 6.9%.

Bradford J. Helgeson: Thanks, Ned. Good morning, everyone. Revenues in Q2 were $543.7 million, up $78.4 million or 16.9% year-over-year, with $46.2 million from acquisitions, including rollover, and $32.2 million from same-store growth or 6.9%. Solid Waste revenues were up 18.4% year-over-year, with price up 5.5% and volume down 0.6%. Within Solid Waste, price in the collection line of business was up 5.8% in the quarter, led by 7% price in roll off and 7% price in front load commercial, and volume was down 1.4%. Price in the disposal line of business was up 4.7%, including 4% third-party price at landfills and 5.1% at transfer stations. Landfill volumes overall were up 86,000 tons or 8.4% in the quarter, with internalized volume up 24,000 tons and third-party volume up 62,000 tons. We expect this to continue through H2.

Brad Helgeson: Thanks, Ned. Good morning, everyone. Revenues in Q2 were $543.7 million, up $78.4 million or 16.9% year-over-year, with $46.2 million from acquisitions, including rollover, and $32.2 million from same-store growth or 6.9%. Solid Waste revenues were up 18.4% year-over-year, with price up 5.5% and volume down 0.6%. Within Solid Waste, price in the collection line of business was up 5.8% in the quarter, led by 7% price in roll off and 7% price in front load commercial, and volume was down 1.4%. Price in the disposal line of business was up 4.7%, including 4% third-party price at landfills and 5.1% at transfer stations. Landfill volumes overall were up 86,000 tons or 8.4% in the quarter, with internalized volume up 24,000 tons and third-party volume up 62,000 tons. We expect this to continue through H2.

Speaker #2: Solid waste revenues were up 18.4% year over year, with price up 5.5% and volume down 0.6%. Within solid waste, pricing the collection line of business was up 5.8% in the quarter, led by 7% price in rolloff and 7% price in front-load commercial, and volume was down 1.4%.

Speaker #2: Pricing the disposal line of business was up 4.7%, including 4% third-party price at landfills and 5.1% at transfer stations. Landfill volumes overall were up 86,000 tons, or 8.4% in the quarter, with internalized volume up 24,000 tons and third-party volume up 62,000 tons.

Speaker #2: Landfill activity was strong this spring and we expect this to continue through the second half. In 2026, we anticipate improved year-over-year third-party landfill pricing of 4 to 5 percent, consistent with our guidance expectation for 5% price growth overall in the solid waste business.

Bradford J. Helgeson: In 2026, we anticipate improved year-over-year third-party landfill pricing of 4% to 5%, consistent with our guidance expectation for 5% price growth overall in the Solid Waste business. Resource Solutions revenues were up 10.7% year-over-year, with recycling and other processing revenues up 5.5% and national accounts up 17.1%, including 4.3% price and 6.4% volume growth. Overall, we generated $11.6 million in additional revenue in the quarter from higher cost recovery fees, including those tied to fuel prices. As Ned mentioned, we successfully offset all of the dollar increase in fuel costs in the quarter with higher related fees. Adjusted EBITDA was $123.2 million in the quarter, up $13.7 million or 12.5% year-over-year, with $7.5 million of contribution from acquisitions, including rollover and 5.7% organic growth. Adjusted EBITDA margin was 22.7% in the quarter, down 80 basis points year-over-year.

Brad Helgeson: In 2026, we anticipate improved year-over-year third-party landfill pricing of 4% to 5%, consistent with our guidance expectation for 5% price growth overall in the Solid Waste business. Resource Solutions revenues were up 10.7% year-over-year, with recycling and other processing revenues up 5.5% and national accounts up 17.1%, including 4.3% price and 6.4% volume growth. Overall, we generated $11.6 million in additional revenue in the quarter from higher cost recovery fees, including those tied to fuel prices. As Ned mentioned, we successfully offset all of the dollar increase in fuel costs in the quarter with higher related fees. Adjusted EBITDA was $123.2 million in the quarter, up $13.7 million or 12.5% year-over-year, with $7.5 million of contribution from acquisitions, including rollover and 5.7% organic growth. Adjusted EBITDA margin was 22.7% in the quarter, down 80 basis points year-over-year.

Speaker #2: Resource Solutions revenues were up 10.7% year over year, with recycling and other processing revenues up 5.5%, and National Accounts up 17.1%, including 4.3% price and 6.4% volume growth.

Speaker #2: Overall, we generated $11.6 million in additional revenue in the quarter from higher cost recovery fees, including those tied to fuel prices. As Ned mentioned, we successfully offset all of the dollar increase in fuel costs in the quarter with higher related fees.

Speaker #2: Adjusted EBITDA was $123.2 million in the quarter, up $13.7 million, or 12.5% year over year, with $7.5 million of contribution from acquisitions, including Rollover, and 5.7% organic growth.

Speaker #2: Adjusted EBITDA margin was $22.7% in the quarter, down 80 basis points year over year. Bridging the year-over-year change in adjusted EBITDA margin, fuel represented a 40 basis point negative impact, as higher fee revenue offsetting higher fuel expense diluted margins.

Bradford J. Helgeson: Bridging the year-over-year change in adjusted EBITDA margin, fuel represented a -40 basis point negative impact as higher fee revenue offsetting higher fuel expense diluted margins, resource solutions was a 70 basis point headwind year-over-year against a strong EBITDA comparable in Q2 2025, with higher recycling volumes last year from a competitor undergoing a facility retrofit, the previously announced closure of the organics facility in Maine in Q3, and lower margins in national accounts. Excluding fuel and resource solutions, the business expanded margins by 30 basis points, driven by the benefits of higher landfill volumes and positive price cost spread across the collection business. In the Mid-Atlantic, we have completed our systems integrations and are well into route consolidations as Ned discussed.

Brad Helgeson: Bridging the year-over-year change in adjusted EBITDA margin, fuel represented a -40 basis point negative impact as higher fee revenue offsetting higher fuel expense diluted margins, resource solutions was a 70 basis point headwind year-over-year against a strong EBITDA comparable in Q2 2025, with higher recycling volumes last year from a competitor undergoing a facility retrofit, the previously announced closure of the organics facility in Maine in Q3, and lower margins in national accounts. Excluding fuel and resource solutions, the business expanded margins by 30 basis points, driven by the benefits of higher landfill volumes and positive price cost spread across the collection business. In the Mid-Atlantic, we have completed our systems integrations and are well into route consolidations as Ned discussed.

Speaker #2: And resource solutions was a 70 basis point headwind year over year, against a strong EBITDA comparable in Q2, 2025, with higher recycling volumes last year from a competitor undergoing a facility retrofit, the previously announced closure of the organic facility in Maine in Q3, and lower margins in national accounts.

Speaker #2: Excluding fuel and resource solutions, the business expanded margins by 30 basis points, driven by the benefits of higher landfill volumes and positive price-cost spread across the collection business.

Speaker #2: In the Mid-Atlantic, we've completed our systems integrations and are well into route consolidations, as Ned discussed. We expect to begin to see the benefit of these cost reductions in margins in the second half this year, as the Mid-Atlantic transitions to a long-term margin tailwind, as we execute on our strategy with this increasingly integrated business.

Bradford J. Helgeson: We expect to begin to see the benefit of these cost reductions in margins in H2 of this year as the Mid-Atlantic transitions to a long-term margin tailwind as we execute on our strategy with this increasingly integrated business. Cost of operations were $364.9 million in the quarter, up $56.9 million year-over-year, with $34.1 million of the increase from acquisitions and $22.8 million in the base business, including higher fuel costs, which we covered with our fuel recovery program. General and administrative costs were $63.2 million in the quarter, up $8.6 million year-over-year, but down 10 basis points as a percentage of revenue. Depreciation and amortization costs were up $11.5 million year-over-year, with $9.9 million resulting from acquisition activity in the past 12 months, including the amortization of acquired intangibles.

Brad Helgeson: We expect to begin to see the benefit of these cost reductions in margins in H2 of this year as the Mid-Atlantic transitions to a long-term margin tailwind as we execute on our strategy with this increasingly integrated business. Cost of operations were $364.9 million in the quarter, up $56.9 million year-over-year, with $34.1 million of the increase from acquisitions and $22.8 million in the base business, including higher fuel costs, which we covered with our fuel recovery program. General and administrative costs were $63.2 million in the quarter, up $8.6 million year-over-year, but down 10 basis points as a percentage of revenue. Depreciation and amortization costs were up $11.5 million year-over-year, with $9.9 million resulting from acquisition activity in the past 12 months, including the amortization of acquired intangibles.

Speaker #2: Cost of operations were $364.9 million in the quarter, up $56.9 million year-over-year, with $34.1 million of the increase from acquisitions and $22.8 million in the base business, including higher fuel costs, which we covered with our fuel recovery program.

Speaker #2: General and administrative costs were $63.2 million in the quarter, up $8.6 million year over year, but down 10 basis points as a percentage of revenue.

Speaker #2: Depreciation and amortization costs were up 11.5 million year over year, with 9.9 million resulting from acquisition activity in the past 12 months, including the amortization of acquired intangibles.

Speaker #2: Adjusted net income was $25.3 million in the quarter, or 40 cents per diluted share, up 1.1 million and 2 cents per share. Gap net income was lower by 1.4 million in the quarter, on higher depreciation and amortization, interest, and the organics facility closure costs.

Bradford J. Helgeson: Adjusted net income was $25.3 million in the quarter, or $0.40 per diluted share, up $1.1 million and $0.02 per share. GAAP net income was lower by $1.4 million in the quarter on higher depreciation and amortization, interest, and the organics facility closure costs. Net cash provided by operating activities was $161 million in H1 of the year, up $21.4 million year-over-year or 15.3%, driven by EBITDA growth. Adjusted free cash flow was $78.1 million for H1 of the year, up 10.3%. Capital expenditures were $122.3 million, with $20.6 million of upfront investment in recent acquisitions. Overall, capital expenditures were relatively flat year-over-year, but with a higher mix of recurring spend, which is reflected in adjusted free cash flow and less for acquisitions.

Brad Helgeson: Adjusted net income was $25.3 million in the quarter, or $0.40 per diluted share, up $1.1 million and $0.02 per share. GAAP net income was lower by $1.4 million in the quarter on higher depreciation and amortization, interest, and the organics facility closure costs. Net cash provided by operating activities was $161 million in H1 of the year, up $21.4 million year-over-year or 15.3%, driven by EBITDA growth. Adjusted free cash flow was $78.1 million for H1 of the year, up 10.3%. Capital expenditures were $122.3 million, with $20.6 million of upfront investment in recent acquisitions. Overall, capital expenditures were relatively flat year-over-year, but with a higher mix of recurring spend, which is reflected in adjusted free cash flow and less for acquisitions.

Speaker #2: Net cash provided by operating activities was $161 million in the first six months of the year, up 21.4 million year over year, or 15.3%, driven by EBITDA growth.

Speaker #2: Adjusted free cash flow was $78.1 million for the first six months of the year, up 10.3%. Capital expenditures were $122.3 million, with 20.6 million of upfront investment in recent acquisitions.

Speaker #2: Overall, capital expenditures were relatively flat year over year, but with a higher mix of recurring spend, which is reflected in adjusted free cash flow, and less for acquisitions.

Speaker #2: As of June 30, we had $1.35 billion of debt and $25 million of cash, with our consolidated net leverage ratio for purposes of our bank covenants at 2.7 times.

Bradford J. Helgeson: As of 30 June, we had $1.35 billion of debt and $25 million of cash, with our consolidated net leverage ratio for purposes of our bank covenants at 2.7 times. We have approximately $500 million in available liquidity, which will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline. As announced in our press release yesterday, we raised our revenue guidance to a range of $2.09 to 2.11 billion, an increase of $30 million, reflecting our acquisition activity to date and higher expected fuel recovery fees associated with elevated fuel costs. This updated revenue assumes that fuel remains elevated around current levels for the balance of the year.

Brad Helgeson: As of 30 June, we had $1.35 billion of debt and $25 million of cash, with our consolidated net leverage ratio for purposes of our bank covenants at 2.7 times. We have approximately $500 million in available liquidity, which will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline. As announced in our press release yesterday, we raised our revenue guidance to a range of $2.09 to 2.11 billion, an increase of $30 million, reflecting our acquisition activity to date and higher expected fuel recovery fees associated with elevated fuel costs. This updated revenue assumes that fuel remains elevated around current levels for the balance of the year.

Speaker #2: We have approximately $500 million in available liquidity, which will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline.

Speaker #2: As announced in our press release yesterday, we raised our revenue guidance to a range of $2.09 billion to $2.11 billion, an increase of $30 million reflecting our acquisition activity to date and higher expected fuel recovery fees associated with elevated fuel costs.

Speaker #2: This updated revenue assumes that fuel remains elevated around current levels for the balance of the year. We reaffirmed our adjusted EBITDA guidance range of $473 to $483 million; our adjusted free cash flow range of $200 million to $210 million; and our net cash provided by operating activities range of $370 to $380 million as the business is performing in line weather with our expectations and we remain well positioned relative to our internal plan for the year.

Bradford J. Helgeson: We reaffirmed our adjusted EBITDA guidance range of $473 to $483 million, our adjusted free cash flow range of $200 million to $210 million, and our net cash provided by operating activities range of $370 to $380 million as the business is performing in line with our expectations. We remain well positioned relative to our internal plan for the year. From an EBITDA margin standpoint, the impact of higher fuel recovery fees and costs, as well as a modest dilutive impact from the acquisitions closed to date, weighs on margins by approximately 40 to 50 basis points, implying flat to 40 basis points of margin improvement across the rest of the business, consistent with our outlook at the beginning of the year. We lowered our GAAP net income guidance to a range of $0 to $6 million, reflecting higher forecasted amortization expense and income tax provision.

Brad Helgeson: We reaffirmed our adjusted EBITDA guidance range of $473 to $483 million, our adjusted free cash flow range of $200 million to $210 million, and our net cash provided by operating activities range of $370 to $380 million as the business is performing in line with our expectations. We remain well positioned relative to our internal plan for the year. From an EBITDA margin standpoint, the impact of higher fuel recovery fees and costs, as well as a modest dilutive impact from the acquisitions closed to date, weighs on margins by approximately 40 to 50 basis points, implying flat to 40 basis points of margin improvement across the rest of the business, consistent with our outlook at the beginning of the year. We lowered our GAAP net income guidance to a range of $0 to $6 million, reflecting higher forecasted amortization expense and income tax provision.

Speaker #2: From an EBITDA margin standpoint, the impact of higher fuel recovery fees and costs as well as a modest dilutive impact from the acquisitions closed to date weighs on margins by approximately 40 to 50 basis points.

Speaker #2: Implying flat to 40 basis points of margin improvement across the rest of the business, consistent with our outlook at the beginning of the year.

Speaker #2: We lowered our gap net income guidance to a range of $0 0 to $6 million reflecting higher forecasted amortization expense and income tax provision.

Speaker #2: If you recall, we currently do not pay federal cash taxes and with advantage tax structuring of our acquisition activity and benefits of the new tax law, we do not expect to be cash taxpayer for several years into the future.

Bradford J. Helgeson: If you recall, we currently do not pay federal cash taxes. With advantaged tax structuring of our acquisition activity and benefits of the new tax law, we do not expect to be a cash taxpayer for several years into the future. With that, operator, would you please open the line for Q&A?

Brad Helgeson: If you recall, we currently do not pay federal cash taxes. With advantaged tax structuring of our acquisition activity and benefits of the new tax law, we do not expect to be a cash taxpayer for several years into the future. With that, operator, would you please open the line for Q&A?

Speaker #2: With that, operator, would you please open the line for Q&A?

Operator: As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. One moment, please. Our first question comes from the line of Adam Bubes with Goldman Sachs.

Speaker #1: Really. As a reminder, to ask a question, please press star 11 on your telephone. And wait for your name to be announced. To withdraw your question, please press star 11 again.

Speaker #1: One moment, please. And our first question comes from the line of Adam Bubis with Goldman Sachs.

Speaker #3: Hi, good morning.

Adam Bubes: Hi, good morning.

Speaker #4: Good morning.

Bradford J. Helgeson: Good morning.

Brad Helgeson: Good morning.

Edmond R. Coletta: Good morning.

Ned Coletta: Good morning.

Speaker #3: Brad, I think you good morning. Brad, I think you said underlying margins were 30 basis points in the business, excluding fuel and the national accounts headway.

Adam Bubes: Brad, I think you said underlying margins were 30 basis points in the business, excluding fuel in the national accounts headwind. Does that include M&A dilution? I think you normally target 50 basis points of underlying margin expansion just from price cost. Just trying to get all the moving pieces on the underlying piece.

Speaker #3: Does that include M&A dilution? I think you normally target 50 basis points of underlying margin expansion. Just from price costs or just trying to get all the moving pieces on the underlying piece.

Speaker #2: Yeah, it does. It includes acquisitions knitted within that. So if you pull that out, an acquisitions were a bit of a dilutive impact as well.

Bradford J. Helgeson: Yeah. It does include acquisitions netted within that. If you pull that out, and acquisitions were a bit of a dilutive impact as well, the base business performed well in excess of 50 basis points of margin expansion.

Brad Helgeson: Yeah. It does include acquisitions netted within that. If you pull that out, and acquisitions were a bit of a dilutive impact as well, the base business performed well in excess of 50 basis points of margin expansion.

Speaker #2: The base business performed well in excess of 50 basis points of margin expansion.

Speaker #3: Great. Appreciate the clarification there. And now that systems integration is complete in the Mid-Atlantic, can you just update us on how that business is performing on key metrics like volumes, price, margins, and how do you expect the Mid-Atlantic margin cadence to trend over the remainder of the year?

Adam Bubes: Great. Appreciate the clarification there. Now that systems integration is complete in the Mid-Atlantic, can you just update us on how that business is performing on key metrics like volumes, price, margins, and how do you expect the Mid-Atlantic margin cadence to trend over the remainder of the year?

Speaker #2: Yeah. Margins in the segment, and you'll see this in the 10Q that we file later, were relatively flat in the quarter year over year.

Bradford J. Helgeson: Yeah. Margins in the segment, you'll see this in the 10-Q that we file later, were relatively flat in the quarter year over year. We're up slightly year over year. We really do expect, though, for the margins to start to move in the positive direction, in Q3, Q4, and then especially into next year. Pricing was actually pretty good in the Mid-Atlantic. We were, just from the top of my head, a little over 4% price, so a touch below the rest of the business. We are getting some price. I think an important achievement in the quarter was us getting our floating fuel fees in place to cover our fuel costs. Sometimes there's a little bit of a delay of us getting those fees in place for acquired customers, but we did a good job making sure that at least we were covered from that standpoint.

Brad Helgeson: Yeah. Margins in the segment, you'll see this in the 10-Q that we file later, were relatively flat in the quarter year-over-year. We're up slightly year-over-year. We really do expect, though, for the margins to start to move in the positive direction, in Q3, Q4, and then especially into next year. Pricing was actually pretty good in the Mid-Atlantic. We were, just from the top of my head, a little over 4% price, so a touch below the rest of the business. We are getting some price. I think an important achievement in the quarter was us getting our floating fuel fees in place to cover our fuel costs. Sometimes there's a little bit of a delay of us getting those fees in place for acquired customers, but we did a good job making sure that at least we were covered from that standpoint.

Speaker #2: We're up slightly year over year. Yeah, we really do expect, though, for the margins to start to move in a positive direction in Q3, Q4, and then especially into next year.

Speaker #2: Pricing was actually pretty good in the Mid-Atlantic. We were just from the top of my head, a little over 4% price. So a touch below the rest of the business, but we are getting some price.

Speaker #2: I think an important achievement in the quarter was us getting our floating fuel fees in place. To cover our fuel costs, sometimes it was a little bit of a delay of us getting those fees in place for acquired customers, but we did a good job making sure that at least we were covered from that standpoint.

Speaker #3: Yeah, in price looking at the report, Brad, up 4.7% in the Mid-Atlantic. But one of the important things to note is the timing. So we got through our systems integration work in the second week of May, and a lot of training a lot of work with our teams down there to really get everyone comfortable in the new system, ensuring that our trucks were routed, dispatched, we were giving the right level of service to our customers.

Edmond R. Coletta: Yeah. Price, looking at the quarter, Brad, is up 4.7% in the Mid-Atlantic. One of the important things to note is the timing. We got through our systems integration work in the second week of May, a lot of training, a lot of work with our teams down there to really get everyone comfortable in the new system, ensuring that our trucks were routed, dispatched, we were giving the right level of service to our customers. Then, in late June and coming into July, that's when we started to put routes together and businesses together. This is going to be a five-plus month process. It doesn't all happen at once. There's a lot of people impacted, from our dispatchers, our drivers, our ops people, to our customers, our customer care reps.

Ned Coletta: Yeah. Price, looking at the quarter, Brad, is up 4.7% in the Mid-Atlantic. One of the important things to note is the timing. We got through our systems integration work in the second week of May, a lot of training, a lot of work with our teams down there to really get everyone comfortable in the new system, ensuring that our trucks were routed, dispatched, we were giving the right level of service to our customers. Then, in late June and coming into July, that's when we started to put routes together and businesses together. This is going to be a five-plus month process. It doesn't all happen at once. There's a lot of people impacted, from our dispatchers, our drivers, our ops people, to our customers, our customer care reps.

Speaker #3: And then kind of in late June, and coming into July, that's when we started to put routes together and businesses together. And this is going to be a five-plus month process.

Speaker #3: It doesn't all happen at once. There are a lot of people impacted—from our dispatchers, our drivers, our ops people, to our customers and our customer care reps.

Edmond R. Coletta: There's a lot going on there, and all the building blocks are there. We're just ticking through one market by market. There's not a lot of that tailwind in the quarter, but it really is starting to show in July as we're getting those trucks off the road, as I talked about earlier. Really exciting time down in that market. Another thing that you mentioned, and it is important, now that we're on the unified platform that has all of our legacy profitability tools and pricing tools, we really get a lot more visibility of our book of business, and we're starting a thoughtful approach to understand customer by customer, the profitability, and if any adjustments need to be made over time.

Speaker #3: So there's a lot going on there, and all the building blocks are there, and we're just ticking through one market by market. So there's not a lot of that tailwind in the quarter, but it really is starting to show in July as we're getting those trucks off the road, as I talked about earlier.

Ned Coletta: There's a lot going on there, and all the building blocks are there. We're just ticking through one market by market. There's not a lot of that tailwind in the quarter, but it really is starting to show in July as we're getting those trucks off the road, as I talked about earlier. Really exciting time down in that market. Another thing that you mentioned, and it is important, now that we're on the unified platform that has all of our legacy profitability tools and pricing tools, we really get a lot more visibility of our book of business, and we're starting a thoughtful approach to understand customer by customer, the profitability, and if any adjustments need to be made over time.

Speaker #3: So really exciting time down that market. Another thing that you mentioned, and it is important, now that we're on the unified platform that has all of our legacy profitability tools and pricing tools, we really get a lot more visibility of our book of business, and we're starting a thoughtful approach to understand customer by customer the profitability and if any adjustments need to be made over time.

Speaker #3: Great, appreciate the color. And last one for me: just on landfill volumes—you touched on it briefly, but can you expand on what's driving the performance there?

Adam Bubes: Great. Appreciate the color. Last one from me, just on landfill volumes. You touched on it briefly, but can you just expand on what's driving the performance there? Because really sharp accelerations, I think 8% volumes. What are you seeing on that line item, and how should we think about it going forward?

Speaker #3: Because of the really sharp acceleration to, I think, 8% volumes. What are you seeing on that line item, and how should we think about it going forward?

Speaker #2: Yeah, I mean, we're seeing healthy volumes in the market generally. Indicating a relatively healthy economy. And kind of taking a step back, I mean, the dynamic in the Northeast is that landfill capacity is coming out of the market.

Bradford J. Helgeson: Yeah. We're seeing healthy volumes in the market generally, indicating a relatively healthy economy. Taking a step back, the dynamic in the Northeast is that landfill capacity is coming out of the market, and you have more and more tons looking for less and less landfill capacity.

Brad Helgeson: Yeah. We're seeing healthy volumes in the market generally, indicating a relatively healthy economy. Taking a step back, the dynamic in the Northeast is that landfill capacity is coming out of the market, and you have more and more tons looking for less and less landfill capacity.

Speaker #2: And you have more and more tons looking for less and less landfill capacity.

Edmond R. Coletta: Waste-to-energy capacity.

Speaker #3: Or waste energy capacity. I mean, one of the most key facilities in the New York market has announced its closure at the end of 2026, the Hudson Falls incinerator owned by WIN.

Ned Coletta: Waste-to-energy capacity.

Bradford J. Helgeson: Yeah.

Brad Helgeson: Yeah.

Edmond R. Coletta: One of the most key facilities in the New York market, it has announced its closure at the end of 2026, the Hudson Falls Incinerator, owned by WIN. It sits right in the middle of our market area, and part of the market where there are already some pretty tight constraints, just north of Albany. Albany has announced plans to close their landfill. They're starting to build out a transfer station, which will be another leg of tightening in that marketplace. That blip, we'll call it a blip, over the last couple of years with the one construction demo landfill closing on Long Island, we've had such great trends since that point in time. Our construction and demo tons were up close to 17% in the quarter as we're getting flows back into mainly Hakes, but some of our other sites as well.

Ned Coletta: One of the most key facilities in the New York market, it has announced its closure at the end of 2026, the Hudson Falls Incinerator, owned by WIN. It sits right in the middle of our market area, and part of the market where there are already some pretty tight constraints, just north of Albany. Albany has announced plans to close their landfill. They're starting to build out a transfer station, which will be another leg of tightening in that marketplace. That blip, we'll call it a blip, over the last couple of years with the one construction demo landfill closing on Long Island, we've had such great trends since that point in time. Our construction and demo tons were up close to 17% in the quarter as we're getting flows back into mainly Hakes, but some of our other sites as well.

Speaker #3: And this sits right in the middle of our market area, and part of the market where there are already some pretty tight constraints, just north of Albany.

Speaker #3: Albany, has announced plans to close their landfill. They're starting to build out a transfer station, which will be another leg of tightening in that marketplace.

Speaker #3: So that blip we'll call it a blip over the last couple of years with the one construction demo landfill closing on Long Island. We've had such great trends since that point in time.

Speaker #3: I mean, our construction demo tons were up close to 17% in the quarter as we're getting flows back into mainly Hague, but some of our other sites as well.

Speaker #3: But we had strong trends across MSW and special waste as well. And I really attribute both of those to two different things. One, our work, our hard work by our team over the last year and a half to get internalization increase, to get the right transportation lanes in place, the right assets, and waste flowing.

Edmond R. Coletta: We had strong trends across MSW and special waste as well, and I really attribute both of those to two different things. One, our hard work, our team over the last year and a half to get internalization increased, to get the right transportation lanes in place, the right assets and waste flowing. Also the reconstitution of our landfill sales team. Liza Casella has done a great job. We've got Chris Rains now on the team as our Chief Revenue Officer, and the two of them have partnered up and really rebuilt that effort from the ground up and are doing a great job. It's very organized. We're coming to market in an efficient way and really getting the flows back to sites.

Ned Coletta: We had strong trends across MSW and special waste as well, and I really attribute both of those to two different things. One, our hard work, our team over the last year and a half to get internalization increased, to get the right transportation lanes in place, the right assets and waste flowing. Also the reconstitution of our landfill sales team. Liza Casella has done a great job. We've got Chris Rains now on the team as our Chief Revenue Officer, and the two of them have partnered up and really rebuilt that effort from the ground up and are doing a great job. It's very organized. We're coming to market in an efficient way and really getting the flows back to sites.

Speaker #3: But also the reconstitution of our landfill sales team. Liza Casella has done a great job. We've got Chris Raines now on the team as our Chief Revenue Officer.

Speaker #3: The two of them have partnered up and really rebuilt that effort from the ground up, and are doing a great job. It's very organized.

Speaker #3: We're coming to market in an efficient way and really getting the flows back to sites. Great, thanks so much. Thank you.

Adam Bubes: Great. Thanks so much.

Edmond R. Coletta: Thank you.

Ned Coletta: Thank you.

Bradford J. Helgeson: Thank you.

Brad Helgeson: Thank you.

Speaker #2: Thank you.

Speaker #1: Thank you. And our next question comes from the line of James Shum with TD Cowen.

Operator: Thank you. Our next question comes from the line of James Shum with TD Cowen.

Speaker #4: Hey, good morning, guys.

James Shum: Hey, good morning, guys.

James Schumm: Hey, good morning, guys.

Speaker #3: Good morning.

Edmond R. Coletta: Good morning.

Ned Coletta: Good morning.

Speaker #2: Good morning.

Bradford J. Helgeson: Good morning.

Brad Helgeson: Good morning.

James Shum: You guys aren't getting really much credit for your growth these days via the stock price, just wondering, does it give you pause, or do you sort of reconsider the growth versus margin debate at this point? I recognize that fuel fees are dilutive to margins, so the EBITDA margin guidance steps down a little bit. Just curious, if you guys contemplate if we're not going to get credit for all this growth, do we back off on M&A a little bit and try to get the margins up, or how are you guys thinking about that?

Speaker #4: So you guys aren't getting really much credit for your growth these days, via the stock price. And just sort of wondering does it give you pause or do you sort of reconsider the growth versus margin debate at this point?

James Schumm: You guys aren't getting really much credit for your growth these days via the stock price, just wondering, does it give you pause, or do you sort of reconsider the growth versus margin debate at this point? I recognize that fuel fees are dilutive to margins, so the EBITDA margin guidance steps down a little bit. Just curious, if you guys contemplate if we're not going to get credit for all this growth, do we back off on M&A a little bit and try to get the margins up, or how are you guys thinking about that?

Speaker #4: I recognize that fuel fees are diluted to margins and so even that margin guidance steps down a little bit. But just curious, if you guys contemplate if we're not going to get credit for all this growth, do we back off on M&A a little bit and try to get the margins up?

Speaker #4: Or how are you guys thinking about that?

Speaker #2: Yeah, I think you can look at it through an even different.

Edmond R. Coletta: Yeah, I think you can look at it through an even different lens than that. We've gone through a transition period in the last, let's say, two years from a regional company to an enterprise. We need to have scalable functions in this business that allow us to take on the growth while getting margin accretion. These truly are accretive acquisitions that add density, integration, and vertical integration into the business. As we've added revenues over the last couple of years, $1 of revenue adds more people, it really needs to be scalable systems, scalable process that allow us to get that leverage. We've done just such great jobs behind the scenes, from our tech team, to our business teams, to our finance, across the board, to really get the foundation in place.

Ned Coletta: Yeah, I think you can look at it through an even different lens than that. We've gone through a transition period in the last, let's say, two years from a regional company to an enterprise. We need to have scalable functions in this business that allow us to take on the growth while getting margin accretion. These truly are accretive acquisitions that add density, integration, and vertical integration into the business. As we've added revenues over the last couple of years, $1 of revenue adds more people, it really needs to be scalable systems, scalable process that allow us to get that leverage. We've done just such great jobs behind the scenes, from our tech team, to our business teams, to our finance, across the board, to really get the foundation in place.

Speaker #3: Less than that. We've gone through a transition period in the last, let's say, two years from a regional company to an enterprise. And we need to have scalable functions in this business that allow us to take on the growth while getting margin accretion.

Speaker #3: Because these truly are accretive acquisitions that add density, add integration, and vertical integration into the business. But as we've added revenues over the last couple of years, $1 revenue adds more people.

Speaker #3: And it really needs to be scalable systems, scalable processes that allow us to get that leverage. And we've done just such great jobs behind the scenes from our tech team to our business teams to our finance across the board to really get the foundation in place.

Speaker #3: And we're on the cusp of unlocking a lot of that from automated processes, from sales, to customer care, to finance with our new systems, processes.

Edmond R. Coletta: We're on the cusp of unlocking a lot of that, from automated processes, from sales, to customer care, to finance with our new systems processes. We've brought in some really talented leaders who have deep experience in larger organizations that understand the power of scale. I think we look at it through that lens. We don't need to tap the brakes, we do need to unlock synergy value and scale from acquisitions faster. That's our goal as a management team over the coming quarters, coming years.

Ned Coletta: We're on the cusp of unlocking a lot of that, from automated processes, from sales, to customer care, to finance with our new systems processes. We've brought in some really talented leaders who have deep experience in larger organizations that understand the power of scale. I think we look at it through that lens. We don't need to tap the brakes, we do need to unlock synergy value and scale from acquisitions faster. That's our goal as a management team over the coming quarters, coming years.

Speaker #3: We've brought in some really talented leaders who have deep experience in larger organizations that understand the power of scale. So I think we look at it through that lens.

Speaker #3: We don't need to tap the brakes, but we do need to unlock synergy value and scale from acquisitions faster. And that's our goal as a management team over the coming quarters, coming years.

Speaker #4: Okay. Thanks. That makes sense. And then just if you could help me with some of the third-quarter margin considerations, I think you said fuel was a 40 basis point headwind in the second quarter.

James Shum: Okay, thanks. That makes sense. Just if you could help me with some of the Q3 margin considerations. I think you said fuel was a 40 basis points headwind in Q2. How should we be thinking about that? I think Brad said maybe X all the items, it would be 50 basis points underlying improvement in Q2. Could we think about something similar in Q3 and back out a similar 40 basis points for fuel? I guess that's part one of the question, the other consideration that you guys mentioned was Resource Solutions sort of had that benefit last year with the closure of, I guess, a MRF. What was the benefit last year in 3 quarters? What do you think the headwind is going to be from that this year?

James Schumm: Okay, thanks. That makes sense. Just if you could help me with some of the Q3 margin considerations. I think you said fuel was a 40 basis points headwind in Q2. How should we be thinking about that? I think Brad said maybe X all the items, it would be 50 basis points underlying improvement in Q2. Could we think about something similar in Q3 and back out a similar 40 basis points for fuel? I guess that's part one of the question, the other consideration that you guys mentioned was Resource Solutions sort of had that benefit last year with the closure of, I guess, a MRF. What was the benefit last year in 3 quarters? What do you think the headwind is going to be from that this year?

Speaker #4: How should we be thinking about that? I think Brad said maybe, if you X all the items, it would be a 50 basis point underlying improvement in the second quarter.

Speaker #4: So could we think about something similar in the third quarter and then back out a similar 40 basis points for fuel, so I guess that's part one of the question.

Speaker #4: And then the other consideration that you guys mentioned was resource solutions sort of had that benefit last year. With the closure of, I guess, a MERF.

Speaker #4: So what was the benefit last year in three-quarter? So what do you think the headwind is going to be from that this year?

Speaker #2: Yeah. So yeah, a couple of questions in there. So I think that the year-over-year comparison taking the resource solutions first, should be easier in the third quarter.

Bradford J. Helgeson: Yeah. Two questions in there. I think that the year-over-year comparison, taking Resource Solutions first, should be easier in Q3. The volume that we benefited from last year won't be quite the comparable headwind in Q3 that it was in Q2. We will still see the impact of having closed the organics processing facility in Maine in Q3 last year. That's going to be a year-over-year impact extending into Q3. That was something we talked about at the beginning of the year with our overall guidance expectation. I think fuel, as we said, we're assuming that their prices remain elevated. Who knows what it does?

Brad Helgeson: Yeah. Two questions in there. I think that the year-over-year comparison, taking Resource Solutions first, should be easier in Q3. The volume that we benefited from last year won't be quite the comparable headwind in Q3 that it was in Q2. We will still see the impact of having closed the organics processing facility in Maine in Q3 last year. That's going to be a year-over-year impact extending into Q3. That was something we talked about at the beginning of the year with our overall guidance expectation. I think fuel, as we said, we're assuming that their prices remain elevated. Who knows what it does?

Speaker #2: The volume that we benefited from last year won't be quite the comparable headwind in the third quarter. There was in the second quarter. We do we will still see the impact of having closed the organics processing facility in Maine in the third quarter last year.

Speaker #2: So that's going to be a year-over-year impact extending into the third quarter. And that was something we talked about at the beginning of the year with our overall guidance expectation.

Speaker #2: I think fuel—as we said—I mean, fuel, we're assuming that the prices remain elevated. I mean, who knows what it does? We don't have a crystal ball.

Bradford J. Helgeson: We don't have a crystal ball, but we thought it'd be simple to assume that prices remain certainly where they are, and we haven't really seen any evidence that they're moving lower materially. That'll remain a headwind based on our guidance for the rest of the year. Overall for the year, fuel is probably a 30 basis point headwind, 2026 over 2025. You can kind of factor that into your model. In terms of the quarters, as you know, we don't get into specific quarterly guidance, but usually the sequential trends historically can be a good starting point, a good guide. I would look to Q2 to Q3 last year with kind of a step down relative to the impact of fuel, but sequentially, a consistent improvement, plus or minus, this year compared to last year.

Brad Helgeson: We don't have a crystal ball, but we thought it'd be simple to assume that prices remain certainly where they are, and we haven't really seen any evidence that they're moving lower materially. That'll remain a headwind based on our guidance for the rest of the year. Overall for the year, fuel is probably a 30 basis point headwind, 2026 over 2025. You can kind of factor that into your model. In terms of the quarters, as you know, we don't get into specific quarterly guidance, but usually the sequential trends historically can be a good starting point, a good guide. I would look to Q2 to Q3 last year with kind of a step down relative to the impact of fuel, but sequentially, a consistent improvement, plus or minus, this year compared to last year.

Speaker #2: But we thought it would be simple to assume that prices remain certainly where they are and we haven't really seen any evidence that they're moving lower materially.

Speaker #2: So that'll remain a headwind based on our guidance for the rest of the year. Overall for the year, fuel is probably a 30 basis point headwind, 26 over 25.

Speaker #2: So you can kind of factor that into your model. In terms of the quarters, as you know, we don't get into specific quarterly guidance, but usually the sequential trends historically can be a good starting point, a good second to the third quarter last year with kind of a step-down relative to the impact of fuel.

Speaker #2: But sequentially, a consistent improvement, plus or minus. This year compared to last year.

Speaker #4: Okay. Thanks, Brad. And just on that resource solutions benefit last year, did that persist? Did that go into the fourth quarter or how did that sort of how long was it?

James Shum: Okay. Thanks, Brad. Just on that Resource Solutions benefit last year, did that persist? Did that go into Q4 or how long was that?

James Schumm: Okay. Thanks, Brad. Just on that Resource Solutions benefit last year, did that persist? Did that go into Q4 or how long was that?

Edmond R. Coletta: That competitor facility that was shut down in one of our markets came back online in Q3.

Speaker #3: No, that competitor facility that was shut down in one of our markets came back online in the third quarter.

Ned Coletta: That competitor facility that was shut down in one of our markets came back online in Q3.

Speaker #4: Okay. Okay. Great. Thanks, Lacos. Appreciate it.

James Shum: Okay. Great. Thanks a lot, guys. Appreciate it.

James Schumm: Okay. Great. Thanks a lot, guys. Appreciate it.

Speaker #3: Thank you.

Edmond R. Coletta: Thank you.

Ned Coletta: Thank you.

Speaker #2: Thank you.

Bradford J. Helgeson: Thank you.

Brad Helgeson: Thank you.

Speaker #1: Thank you. And our next question comes from the line of Tammy Zachariah with JP Morgan.

Operator: Thank you. Our next question comes from the line of Tami Zakaria with JPMorgan.

Tami Zakaria: Hi. Good morning. Thank you so much.

Speaker #5: Hi. Good morning. Thank you so much. Wanted to get clarity on the updated revenue guidance. You're raising it by 30 million. Could you parse out how much of that 30 million raise is fuel versus M&A versus price versus volume?

Operator: You're welcome.

Operator: Wanted to get clarity on the updated revenue guidance. You're raising it by $30 million. Could you parse out how much of that $30 million raise is fuel versus M&A versus price versus volume?

Speaker #2: Sure. Yeah. It's majority fuel actually. So the acquisition that we closed on July 1st that Ned mentioned, that's about 15 million dollars of annual revenue.

Bradford J. Helgeson: Sure. Yeah. It's majority fuel, actually. The acquisition that we closed on 1 July that Ned mentioned, that's about $15 million of annual revenue. Half of that, less than $10 million. The balance is fuel. We're assuming, again, that fuel does not decline over the course of the year, it just sort of stays relatively where it is. Based on that and assuming our fuel fees continue to cover the higher fuel costs, that's a little over $20 million of the $30. We haven't really updated our guidance for anything else in the underlying base business. Frankly, the business is performing pretty close to how we expect it going into the year. Not a lot of material changes that would move us out of our guidance range, at least year to date.

Brad Helgeson: Sure. Yeah. It's majority fuel, actually. The acquisition that we closed on 1 July that Ned mentioned, that's about $15 million of annual revenue. Half of that, less than $10 million. The balance is fuel. We're assuming, again, that fuel does not decline over the course of the year, it just sort of stays relatively where it is. Based on that and assuming our fuel fees continue to cover the higher fuel costs, that's a little over $20 million of the $30. We haven't really updated our guidance for anything else in the underlying base business. Frankly, the business is performing pretty close to how we expect it going into the year. Not a lot of material changes that would move us out of our guidance range, at least year to date.

Speaker #2: So half of that, less than 10 million dollars. The balance is fuel. We're assuming again that fuel does not decline over the course of the year.

Speaker #2: It just stays relatively where it is. So based on that and assuming our fuel fees continue to cover the higher fuel costs, that's a little over 20 million dollars of the 30.

Speaker #2: We haven't really updated our guidance for anything else in the underlying base business. I mean, frankly, the business is performing pretty close to how we expected it going into the year.

Speaker #2: So not a lot of material changes that would move us out of our guidance range at least year to date.

Tami Zakaria: Understood. Similar question, but on the EBITDA margin. The full year EBITDA margin guidance is now, I think, 30 basis points lower than before. How much of that is M&A versus fuel?

Speaker #5: Understood. And then similar question, but on the EBITDA margin, the full-year EBITDA margin guidance is now, I think, 30 bits lower than before. How much of that is M&A versus fuel?

Speaker #2: Most of it is fuel. A little bit of it is M&A. That's majority fuel. Yeah.

Bradford J. Helgeson: Most of it is fuel. A little bit of it is M&A. It's majority fuel. Yeah.

Brad Helgeson: Most of it is fuel. A little bit of it is M&A. It's majority fuel. Yeah.

Speaker #5: Understood. Thank you.

Tami Zakaria: Understood. Thank you.

Speaker #1: Thank you. And our next question comes from the line of Trevor Romeo with William Blair.

Operator: Thank you. Our next question comes from the line of Trevor Romeo with William Blair.

Speaker #6: Hey. Good morning, guys. Thanks for taking the questions. I had a couple maybe to start on M&A. So maybe one, it looked like you made one more tuck-in in the last quarter, about 15 million of revenue.

Trevor Romeo: Hey, good morning, guys. Thanks for taking the questions. I had a couple maybe to start on M&A. Maybe one, it looked like you made one more tuck-in, in the last quarter, about $15 million of revenue. Anything you'd call out on that business that you bought? Just thinking about your integrations that are ongoing for Star Waste and Mountain Waste, it's still probably early days there, but are you kind of realizing results from all of the platform unification and efficiency efforts you've put in place? Just maybe updates on how those processes are going for those two deals.

Speaker #6: Anything you'd call out on that business that you bought? And then just thinking about your integrations that are ongoing for Star Waste and Mountain Waste, it's still probably early days there, but are you kind of realizing results from all of the platform unification and efficiency efforts you put in place?

Speaker #6: Just maybe updates on how those processes are going for those two deals.

Speaker #3: Yeah. Thanks for the question. So early days on both of them, we've hit all the important marks from a safety, culture, training, people side.

Edmond R. Coletta: Yeah. Thanks for the question. Early days on both of them. We've hit all the important marks from a safety, culture, training, people side. That's the early stuff, but frankly, we're probably a beat behind on integration because we've been so focused on putting the Mid-Atlantic back together. It's just such a key initiative, and it unlocks so much value. Our tech team, our ops teams are just in that marketplace working to get those pieces put back together, and then we'll kind of shift to both Mountain State Waste and Star. They're both well-run businesses. There was an urgency to change anything immediately. It's more of what are the next steps to get those synergies out of business. We looked at our business plan and our roadmap and frankly, our team. We're focused in the Mid-Atlantic right now, and then onto that.

Ned Coletta: Yeah. Thanks for the question. Early days on both of them. We've hit all the important marks from a safety, culture, training, people side. That's the early stuff, but frankly, we're probably a beat behind on integration because we've been so focused on putting the Mid-Atlantic back together. It's just such a key initiative, and it unlocks so much value. Our tech team, our ops teams are just in that marketplace working to get those pieces put back together, and then we'll kind of shift to both Mountain State Waste and Star. They're both well-run businesses. There was an urgency to change anything immediately. It's more of what are the next steps to get those synergies out of business. We looked at our business plan and our roadmap and frankly, our team. We're focused in the Mid-Atlantic right now, and then onto that.

Speaker #3: That's their early stuff. But frankly, we're probably a beat behind on integration because we've been so focused on putting the Mid-Atlantic back together. It's just such a key initiative.

Speaker #3: It unlocks so much value. So our tech team, our ops teams, are just in that marketplace working to get those pieces put back together.

Speaker #3: And then we'll kind of shift to both Mountain State Waste and Star. They're both well-run businesses that wasn't urgency to change anything immediately. It's more of what are the next steps to get those synergies out of business.

Speaker #3: And when we looked at our business plan and our roadmap and our, frankly, our team, we're focused in the Mid-Atlantic right now. And then onto that.

Speaker #3: But we're happy early days all the important stuff's working right and we're in a good position to add more value in the coming quarters.

Edmond R. Coletta: We're happy early days, all the important stuff's working right, and we're in a good position to add more value in the coming quarters.

Ned Coletta: We're happy early days, all the important stuff's working right, and we're in a good position to add more value in the coming quarters.

Speaker #6: Okay. Thanks, Ned. I mean, just I guess along those lines, if you're kind of more focused on the Mid-Atlantic at the moment, what does that kind of say about M&A pipeline?

Trevor Romeo: Okay. Thanks, Ned. I guess along those lines, if you're more focused on the Mid-Atlantic at the moment, what does that say about your maybe second half M&A pipeline? It sounds like generally you still have a lot of opportunities out there, but

Speaker #6: It sounds like, generally, you still have a lot of opportunities out there. But are you maybe—yeah, go ahead. Sorry.

Edmond R. Coletta: Yeah

Ned Coletta: Yeah

Trevor Romeo: Are you maybe going to? Go ahead. Sorry.

Speaker #3: Yeah. What you'll see from a second half into early next year, a lot focus on very small tuck-ins that either overlay existing businesses or have a strategic asset like a transfer station that allows us to move waste and create more value.

Edmond R. Coletta: What you'll see from a H2 into early next year, a lot focus on very small tuck-ins that either overlay existing businesses or have a strategic asset like a transfer station that allows us to move waste and create more value. Nothing large coming. It's more of that typical kind of $10 million revenue type of $20 million revenue type of company that tucks in quite easily. As an example of a company we bought on 01 July, we had it day one onto our systems and our processes. Getting to that point where we're doing acquisitions, getting them into our system, our data, our processes day one, up to day 30, will start to yield synergy value much, much faster. We'll get to that point, and that's really to my point earlier that we were talking about of how do we create more value.

Ned Coletta: What you'll see from a H2 into early next year, a lot focus on very small tuck-ins that either overlay existing businesses or have a strategic asset like a transfer station that allows us to move waste and create more value. Nothing large coming. It's more of that typical kind of $10 million revenue type of $20 million revenue type of company that tucks in quite easily. As an example of a company we bought on 01 July, we had it day one onto our systems and our processes. Getting to that point where we're doing acquisitions, getting them into our system, our data, our processes day one, up to day 30, will start to yield synergy value much, much faster. We'll get to that point, and that's really to my point earlier that we were talking about of how do we create more value.

Speaker #3: Nothing large coming. It’s more of that typical kind of $10 million revenue, $20 million revenue type of company that tucks in quite easily.

Speaker #3: As an example, the company we bought on July 1st, we had day one onto our systems and our processes. So getting to that point where we're doing acquisitions, getting them to our system, our data, our processes—day one up to day 30—we'll start to yield synergy value much, much faster.

Speaker #3: So, we'll get to that point, and that's really, to my earlier point, what we're talking about—how do we create more value. It's getting that with these small deals day one, and we're really focused there from an acquisition standpoint now through the end of the year.

Edmond R. Coletta: It's getting that scalability, getting those efficiencies faster. We're doing that with these small deals day one, and we're really focused there from an acquisition standpoint now through the end of the year.

Ned Coletta: It's getting that scalability, getting those efficiencies faster. We're doing that with these small deals day one, and we're really focused there from an acquisition standpoint now through the end of the year.

Speaker #6: Okay. Thanks. That's helpful. If I could maybe sneak one more quick one kind of a big picture question on leadership. And I guess welcome Damien to the call first of all, but I think Ned, you've made several key hires lately across the company, I think.

Trevor Romeo: Okay. Thanks. That's helpful. If I could maybe sneak one more quick one, kind of a big picture question on leadership. I guess, welcome Damian to the call first of all, but I think Ned, you've made several key hires lately across the company, I think, and kind of feels like you've been very intentional about who you're hiring and where they're coming from and the kind of experience they have. Maybe you could talk a little more about how you're thinking about the leadership team and what you and they are focused on for evolving the company going forward.

Speaker #6: And kind of feels like you've been very intentional about who you're hiring and where they're coming from and the kind of experience they have.

Speaker #6: So maybe you could talk a little more about how you're thinking about the leadership team, and what you and they are focused on for evolving the company going forward.

Speaker #3: Yeah. Thank you for the question. This has been a period of change for Casella, where we've got some really talented team members, but we're growing very rapidly.

Edmond R. Coletta: Yeah. Thank you for the question. This has been a period of change for Casella where we've got some really talented team members, but we're growing very rapidly. As we've moved from, say, $1 billion of revenue to $2 billion of revenues, we realized pretty quickly that a lot of the old ways of doing business internally didn't scale as effectively as they should or need to allow us to be successful into the future. We've been looking to fill roles with both internal candidates and some really talented external candidates that have been in scaled enterprises, but also bring with them a mindset where they're amazing cultural fits. They believe in our value system as a company, but also have been in a role where they've helped to scale businesses and put in process discipline technology to help move to the next level.

Ned Coletta: Yeah. Thank you for the question. This has been a period of change for Casella where we've got some really talented team members, but we're growing very rapidly. As we've moved from, say, $1 billion of revenue to $2 billion of revenues, we realized pretty quickly that a lot of the old ways of doing business internally didn't scale as effectively as they should or need to allow us to be successful into the future. We've been looking to fill roles with both internal candidates and some really talented external candidates that have been in scaled enterprises, but also bring with them a mindset where they're amazing cultural fits. They believe in our value system as a company, but also have been in a role where they've helped to scale businesses and put in process discipline technology to help move to the next level.

Speaker #3: And as we've moved from, say, $1 billion of revenue to $2 billion of revenue, we realized pretty quickly that a lot of the old ways of doing business internally didn't scale as effectively as they should, or need to, to allow us to be successful into the future.

Speaker #3: So we've been looking to fill roles with both internal candidates and some really talented external candidates that have been in scaled enterprises, but also bring with them a mindset where they're amazing cultural fits.

Speaker #3: They believe in our value system as a company but also have been in a role where they've helped to scale businesses and put in process discipline level.

Edmond R. Coletta: We're really blessed as a team. We've got great balance right now. Our team's working well together. We're gelling around key initiatives. We've got great objectives in front of us. It's an exciting time for us. Energy is very, very good, we just came out of a board meeting where we're able to showcase some of our great new team members and strategies coming from this year to next year.

Speaker #3: So we're really blessed as a team. We've got great balance right now. Our team's working well together. We're gelling around key initiatives. We've got great objectives in front of us.

Ned Coletta: We're really blessed as a team. We've got great balance right now. Our team's working well together. We're gelling around key initiatives. We've got great objectives in front of us. It's an exciting time for us. Energy is very, very good, we just came out of a board meeting where we're able to showcase some of our great new team members and strategies coming from this year to next year.

Speaker #3: So, it's an exciting time for us. Our energy is very, very good, and we just came out of a board meeting where we were able to showcase some of our great new team members and strategies coming from this year to next year.

Speaker #6: All right, that's great. Thank you, guys.

Trevor Romeo: All right. That's great. Thank you, guys.

Speaker #3: Thank you.

Edmond R. Coletta: Thank you.

Ned Coletta: Thank you.

Speaker #2: Thank you.

Damian Ribar: Thank you.

Speaker #1: Thank you. And our next question comes from the line of Shlomo Rosenbaum with Stifel.

Operator: Thank you. Our next question comes from the line of Shlomo Rosenbaum with Stifel.

Speaker #7: Hi, good morning. Thank you for taking my questions. Hey Ned, could you talk a little bit about what you've seen with the reconstituted landfill sales team?

Shlomo Rosenbaum: Hi, good morning. Thank you for taking my questions. Hey, Ned, could you talk a little bit about what you've seen with the reconstituted landfill sales team, the progress they've made over there, what looks different right now than it did 18 months ago? Is there potential for them to move the pricing beyond kind of the 4% to 5% targeted range for a third party or how are you thinking about that?

Speaker #7: The progress they've made over there—what looks different right now than it did 18 months ago? And is there a potential for them to move the pricing beyond kind of the 4% to 5% targeted range for third party, or how are you thinking about that?

Speaker #3: Yeah. Right now, the teams come together. We've got great leadership from the team. As I mentioned earlier, it's slipped under Liza Casella, who's been our VP of Sales for years.

Edmond R. Coletta: Yeah. Right now, the team's come together. We've got great leadership from the team. As I mentioned earlier, it's slipped under Liza Casella, who's been our VP of sales for years, and that responsibility is tucked under her. We've put a new director of post-collection sales in place. We've moved in a really talented sales lead from our hauling side of business. We've just started from the bottom up from a process discipline standpoint, following best practice from a sales standpoint, building out pipelines, working the market for both price and volumes, and building out a pipeline that stretches out several years. Some of these jobs, they take a long time to get through permitting and execution, especially on the special waste contaminated soil side. We're starting to fill back up that blank spot that existed in our pipeline, and we're working jobs.

Ned Coletta: Yeah. Right now, the team's come together. We've got great leadership from the team. As I mentioned earlier, it's slipped under Liza Casella, who's been our VP of sales for years, and that responsibility is tucked under her. We've put a new director of post-collection sales in place. We've moved in a really talented sales lead from our hauling side of business. We've just started from the bottom up from a process discipline standpoint, following best practice from a sales standpoint, building out pipelines, working the market for both price and volumes, and building out a pipeline that stretches out several years. Some of these jobs, they take a long time to get through permitting and execution, especially on the special waste contaminated soil side. We're starting to fill back up that blank spot that existed in our pipeline, and we're working jobs.

Speaker #3: And that responsibility is tucked under her. We've put a new director of post-collection sales in place. We've moved in a really talented sales lead from our hauling side of business.

Speaker #3: And we've just started from the bottom up, from a process discipline standpoint, following best practices from a sales standpoint—building out pipelines, working the market for both price and volumes.

Speaker #3: And building out a pipeline that stretches out several years. Some of these jobs they take a long time to get through permitting and execution, especially on the special waste contaminated soil side.

Speaker #3: So we're starting to fill back up that blank spot that existed in our pipeline and we're working jobs. Now, from our vantage point, it's a balance, right?

Edmond R. Coletta: From our vantage point, it's a balance, right? We love to maximize price at the landfills, many of these sites, the last ton in at the end of the day might have a 60% or 70% margin. We're also balancing that as well with the special waste pipeline where many of our landfills have needs for soils, and if you don't have to go dig that soil out of the ground, but you can get paid for it, that's a much better place to be. Getting that balance of meeting our needs while pushing price in the market, you'll continue to see us doing that. We're around 4% this quarter. Working that up a bit to 5% plus, would, I think, be a pretty comfortable spot for us and one of our goals.

Ned Coletta: From our vantage point, it's a balance, right? We love to maximize price at the landfills, many of these sites, the last ton in at the end of the day might have a 60% or 70% margin. We're also balancing that as well with the special waste pipeline where many of our landfills have needs for soils, and if you don't have to go dig that soil out of the ground, but you can get paid for it, that's a much better place to be. Getting that balance of meeting our needs while pushing price in the market, you'll continue to see us doing that. We're around 4% this quarter. Working that up a bit to 5% plus, would, I think, be a pretty comfortable spot for us and one of our goals.

Speaker #3: So we love to maximize price at the landfills, but many of these sites, the last ton in has ended a day, might have a 60 or 70 percent margin.

Speaker #3: So we're also balancing that as well with the special waste pipeline, where many of our landfills have needs for soils. And if you don't have to go dig that soil out of the ground but you can get paid for it, that's a much better place to be.

Speaker #3: So, getting that balance of meeting our needs while pushing price in the market—you'll continue to see us doing that. We're around 4% this quarter.

Speaker #3: Working that up a bit to 5-plus percent would, I think, be a pretty comfortable spot for us in one of our goals.

Speaker #7: Okay, and then thank you. Does the $5 million savings in the Mid-Atlantic that you're looking for this year, does that include the better targeted pricing that you're hoping to get, or would the targeted pricing be incremental to that?

Shlomo Rosenbaum: Okay. Thank you. Does the $5 million savings in the Mid-Atlantic that you're looking for this year, does that include the better targeted pricing that you're hoping to get, or would the targeted pricing be incremental to that?

Speaker #2: No, that's primarily our cost reduction. That's sort of the—I hesitate to say low-hanging fruit because there's a lot of work, as Ned was describing.

Bradford J. Helgeson: No, that's primarily a cost reduction. I hesitate to say low-hanging fruit because there's a lot of work, as Ned was describing, that's the immediate opportunity for us, taking costs out of the business by running the business with fewer routes after the integration. Pricing, I think, is a longer-term opportunity, the way we look at it. With the data that we now have in place, the analytical tools that we have in place going into the back half, we're looking to drive price in that market. We haven't put a specific dollar number on that opportunity, and that'll play out, I think, over a period of a couple of years.

Brad Helgeson: No, that's primarily a cost reduction. I hesitate to say low-hanging fruit because there's a lot of work, as Ned was describing, that's the immediate opportunity for us, taking costs out of the business by running the business with fewer routes after the integration. Pricing, I think, is a longer-term opportunity, the way we look at it. With the data that we now have in place, the analytical tools that we have in place going into the back half, we're looking to drive price in that market. We haven't put a specific dollar number on that opportunity, and that'll play out, I think, over a period of a couple of years.

Speaker #2: But that's the immediate opportunity for us taking costs out of the business by running the business with fewer routes after the integration. Pricing, I think, is a longer-term opportunity the way we look at it.

Speaker #2: With the data that we now have in place and the analytical tools that we have in place, going into the back half, we're looking to drive price in that market.

Speaker #2: But we haven't put a specific dollar number on that opportunity and that'll play out, I think, over a period of a couple of years.

Speaker #7: Okay. So the pricing is something that hasn't been quantified and it's really incremental to anything that you're talking about right now. I just want to get that clear.

Shlomo Rosenbaum: Okay. The pricing is something that hasn't been quantified, and it's really incremental to anything that you're talking about right now. Just want to get that clear.

Speaker #2: Correct. That's right.

Bradford J. Helgeson: Correct. Yeah, that's right.

Brad Helgeson: Correct. Yeah, that's right.

Speaker #7: Okay. And then just again, the pricing in the Mid-Atlantic—I think you said it's 4.7% in the quarter. Is that inclusive or exclusive of any fuel recovery fees?

Shlomo Rosenbaum: Okay. Just again, the pricing in the Mid-Atlantic, I think you said is 4.7% in the quarter. Is that inclusive or exclusive of any fuel recovery fees?

Speaker #3: So that does not include fuel recovery fees. Our fuel recovery fee runs through a line you'd see in our it's down below that in our tables in the press release.

Edmond R. Coletta: That does not include fuel recovery fees. Our fuel recovery fee runs through a line you'd see down below that in our tables in the press release. I think we call it Jason, what's the exact language we use? Fuel surcharge and other fees, maybe?

Ned Coletta: That does not include fuel recovery fees. Our fuel recovery fee runs through a line you'd see down below that in our tables in the press release. I think we call it Jason, what's the exact language we use? Fuel surcharge and other fees, maybe?

Speaker #3: I think we'd call it—Jason, what's the exact language we use? Fuel surcharge and other fees, maybe.

Speaker #2: Yeah, that's correct.

Bradford J. Helgeson: That's it. Yeah, that's right.

Brad Helgeson: That's it. Yeah, that's right.

Speaker #7: Okay, got it. Thank you very much.

Shlomo Rosenbaum: Okay. Got it. Thank you very much.

Speaker #3: Yeah. Thank you, Shlomo.

Edmond R. Coletta: Yeah. Thank you, Sean.

Ned Coletta: Yeah. Thank you, Sean.

Speaker #1: Thank you. And our next question comes from the line of Tyler Brown with Raymond James.

Operator: Thank you. Our next question comes from the line of Tyler Brown with Raymond James.

Speaker #8: Hey, good morning, guys. This is Ethan Prolinger on for Tyler.

Ethan Collingridge: Hey, good morning, guys. This is Ethan Collinger on for Tyler.

Ethan Trollinger: Hey, good morning, guys. This is Ethan Collinger on for Tyler.

Edmond R. Coletta: Hey, good morning. How are you doing?

Ned Coletta: Hey, good morning. How are you doing?

Speaker #3: Hey, good morning. How are you doing?

Speaker #8: All right. Good. Good. Yeah. So, I just wanted to ask, the Northeastern market is clearly a longer-haul market, with a lot of transfer.

Ethan Collingridge: Good. I just wanted to ask, the Northeastern market is clearly a longer-haul market with a lot of transfer. Curious what you are seeing in the transportation markets, not only from a fuel, but for core rate increases, given that market is very tight. How should we think about inflation in the context of the guide?

Ethan Trollinger: Good. I just wanted to ask, the Northeastern market is clearly a longer-haul market with a lot of transfer. Curious what you are seeing in the transportation markets, not only from a fuel, but for core rate increases, given that market is very tight. How should we think about inflation in the context of the guide?

Speaker #8: I'm curious what you were seeing in the transportation markets, not only from a fuel perspective, but also for core rate increases, given that the market is very tight.

Speaker #8: How should we think about inflation in the context of the guide?

Speaker #3: Yeah. So we have a balance between our own trucks that are running long haul and third-party trucks that are running long haul.

Edmond R. Coletta: Yeah. We have a balance between our own trucks that are running long-haul and third-party trucks that are running long-haul. You have both within our business model today. With our third-party contractors who haul for us, there are fuel surcharge formulas within those contracts, and they kick in above set fuel levels. Every one of those has kicked in with this 50% increase in fuel over the last four or five months here. When we look at our fuel recovery program as a business, we are focused on recovering that cost of fuel to move our waste or recycling from transfer stations to end disposal sites. That's included in what we're trying to accomplish within the cost offset.

Ned Coletta: Yeah. We have a balance between our own trucks that are running long-haul and third-party trucks that are running long-haul. You have both within our business model today. With our third-party contractors who haul for us, there are fuel surcharge formulas within those contracts, and they kick in above set fuel levels. Every one of those has kicked in with this 50% increase in fuel over the last four or five months here. When we look at our fuel recovery program as a business, we are focused on recovering that cost of fuel to move our waste or recycling from transfer stations to end disposal sites. That's included in what we're trying to accomplish within the cost offset.

Speaker #3: So, you have both within our business model today. With our third-party contractors who haul for us, there are fuel surcharge formulas within those contracts, and they kick in above set fuel levels.

Speaker #3: So every one of those has clicked in with this 50% increase in fuel over the last four or five months here. When we look at our fuel recovery program as a business, we are focused on recovering that cost of fuel to move our waste or recycling from transfer stations to end disposal sites.

Speaker #3: So that's included in what we're trying to accomplish within the cost offset. However, as we've mentioned, our fuel recovery fees do not recover margin.

Edmond R. Coletta: However, as we've mentioned, our fuel recovery fees do not recover margin, so they have a headwind there, but we've done a great job of offsetting any of that inflation. To your second question of are we seeing inflationary pressures outside of fuel and long-haul trucking? Yeah, a bit, but it's not outside of any other inflation in our book of business today. We've been through a multi-year cycle right now on inflationary pressures across all industries. As you know, we're in a pretty unique spot. As much as 70% of our collection line of business we can price at will, and we can really try to get inflation back to our customer base. I think like all companies this spring, we are laser-focused on trying to make sure fuel got back to our customers, and that was job number one.

Ned Coletta: However, as we've mentioned, our fuel recovery fees do not recover margin, so they have a headwind there, but we've done a great job of offsetting any of that inflation. To your second question of are we seeing inflationary pressures outside of fuel and long-haul trucking? Yeah, a bit, but it's not outside of any other inflation in our book of business today. We've been through a multi-year cycle right now on inflationary pressures across all industries. As you know, we're in a pretty unique spot. As much as 70% of our collection line of business we can price at will, and we can really try to get inflation back to our customer base. I think like all companies this spring, we are laser-focused on trying to make sure fuel got back to our customers, and that was job number one.

Speaker #3: So, they have a headwind there. But we've done a great job of offsetting any of that inflation. To your second question of, are we seeing inflationary pressures outside of fuel and long-haul trucking? Yeah, a bit, but it's not outside of any other inflation in our book of business today.

Speaker #3: I mean, we've been through a multi-year cycle right now of inflationary pressures across all industries. And as you know, we're in a pretty unique spot.

Speaker #3: I mean, as much as 70% of our collection line of business, we can price at will. And we can really try to get inflation back to our customer base.

Speaker #3: I think, like all companies, this spring we're laser-focused on trying to make sure fuel got back to our customers. And that was job number one.

Speaker #3: As far as any other kind of price increases, we'll get that back to the market if we see anything outsized.

Edmond R. Coletta: As far as any other kind of price increases, we'll get that back to the market if we see anything outsized.

Ned Coletta: As far as any other kind of price increases, we'll get that back to the market if we see anything outsized.

Speaker #8: Great, thank you so much for the color, Ned. That'll be all for me.

Ethan Collingridge: Great. Thank you so much for the color, Ned. That'll be all for me.

Ethan Trollinger: Great. Thank you so much for the color, Ned. That'll be all for me.

Speaker #3: Thank you.

Edmond R. Coletta: Thank you.

Ned Coletta: Thank you.

Speaker #1: Thank you. And our next question comes from the line of Stephanie Moore with Jefferies.

Operator: Thank you. Our next question comes from the line of Stephanie Moore with Jefferies.

Stephanie Moore: Hi. Good morning. Thanks for the question.

Speaker #9: Hi, good morning. Thanks for the question.

Edmond R. Coletta: Morning.

Ned Coletta: Morning.

Speaker #3: Good morning.

Speaker #9: I was thank you guys. I was hoping you could give us an update on McKeen. I think it's always helpful to get a sense on how that's ramping and then how I think long-term you're thinking about leveraging McKeen in your portfolio just as the supply shortage dynamics in the northeast continue to progress.

Stephanie Moore: Thank you, guys. I was hoping you could give us an update on McKean. I think it's always helpful to get a sense of how that's ramping, and then how, long-term, you're thinking about leveraging McKean in your portfolio, just as the supply shortage dynamics in the Northeast continue to progress. Thanks.

Speaker #9: Thanks.

Speaker #3: Thank you. So, things at McKeen are going well. As we've talked about over time, we haven't gone out and just made a big push from a third-party standpoint to ramp line significantly through the site.

Edmond R. Coletta: Thank you. Things at McKean are going well. As we've talked about over time, we haven't gone out and just made a big push from a third-party standpoint to ramp lines significantly through the site. The Q2 was actually kind of an exciting time into early July for McKean, where our new transfer station came online at McKean. Now we have capabilities to offload open gondolas on site, whether they're filled with construction demo debris, contaminated soils, or even MSW that has Posi-Shell or Atmos on top of it to seal in the waste. Our first Casella railcars were delivered a couple of weeks ago. If you see some blue railcars on the track with CWXX on them, those are ours. They're traveling around the Northeast now. That was an exciting moment for us as well.

Ned Coletta: Thank you. Things at McKean are going well. As we've talked about over time, we haven't gone out and just made a big push from a third-party standpoint to ramp lines significantly through the site. The Q2 was actually kind of an exciting time into early July for McKean, where our new transfer station came online at McKean. Now we have capabilities to offload open gondolas on site, whether they're filled with construction demo debris, contaminated soils, or even MSW that has Posi-Shell or Atmos on top of it to seal in the waste. Our first Casella railcars were delivered a couple of weeks ago. If you see some blue railcars on the track with CWXX on them, those are ours. They're traveling around the Northeast now. That was an exciting moment for us as well.

Speaker #3: But the second quarter was actually kind of an exciting time into early July for McKeen, where our new transfer station came online at McKeen.

Speaker #3: So now we have capabilities to offload open gondolas on site whether they're filled with construction demo debris, contaminated soils, or even MSW that has posse shell or Atmos on top of it to seal in the waste.

Speaker #3: Our first Casella rail cars were delivered a couple of weeks ago. So if you see some blue rail cars on the track with CWXX on them, those are ours.

Speaker #3: So they're traveling around the Northeast now, so that's an exciting moment for us as well. We started moving intercompany waste in July from Massachusetts to McKean.

Edmond R. Coletta: We started moving intercompany waste in July from Massachusetts to McKean. Great movement there. It's still a little bit slow, but this is long-term positioning for us. We'll start to see more and more waste flow from our facilities to McKean over time. We're also working on some specialty streams that we think could have some long-term value at the site. Much of the biosolids or sludges that were going through composting projects to land application now need to be placed in landfills, and we're looking at strategies to get more of that to McKean over time, Stephanie.

Ned Coletta: We started moving intercompany waste in July from Massachusetts to McKean. Great movement there. It's still a little bit slow, but this is long-term positioning for us. We'll start to see more and more waste flow from our facilities to McKean over time. We're also working on some specialty streams that we think could have some long-term value at the site. Much of the biosolids or sludges that were going through composting projects to land application now need to be placed in landfills, and we're looking at strategies to get more of that to McKean over time, Stephanie.

Speaker #3: So great movement there. It's still a little bit slow, but this is long-term positioning for us. We'll start to see more and more waste flow from our facilities to McKeen over time.

Speaker #3: We're also working on some specialty streams that we think could have some long-term value at the site. Much of the biosolids or sludges that we're going through composting projects to land application now need to be placed in landfills.

Speaker #3: And we're looking at strategies to get more of that to McKeen over time, Stephanie.

Stephanie Moore: All right. Thank you.

Speaker #1: All right. Thank you, Shlomo, for the questions. With that, I would like to hand the call back over to President and CEO Ned Coletta for any closing remarks.

Edmond R. Coletta: Thank you.

Ned Coletta: Thank you.

Operator: I am shown no further questions. With that, I would like to hand the call back over to President and CEO, Ned Coletta, for any closing remarks.

Speaker #3: Thank you, everyone, for joining us today. We appreciate the great questions and the call. We look forward to speaking with everyone in early November to discuss our third quarter 2026 results.

Edmond R. Coletta: Thank you everyone for joining us today. We appreciate the great questions on the call. We look forward to speaking with everyone in early November to discuss our Q3 2026 results. I hope everyone has a wonderful end to this summer. Thank you. Have a nice day.

Ned Coletta: Thank you everyone for joining us today. We appreciate the great questions on the call. We look forward to speaking with everyone in early November to discuss our Q3 2026 results. I hope everyone has a wonderful end to this summer. Thank you. Have a nice day.

Speaker #3: I hope everyone has a wonderful end to the summer. And thank you. Have a nice day.

Operator: Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect.

Q2 2026 Casella Waste Systems Inc Earnings Call

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