Cleanaway (ASX:CWY) Heads Into an EQT Scheme Deal With Stronger Earnings and a Higher FY27 Target

Aditi Sarkar

23 October 2026 09:40 PM AEDT

Cleanaway (ASX:CWY) Heads Into an EQT Scheme Deal With Stronger Earnings and a Higher FY27 Target

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Highlights

• Cleanaway lifted FY26 underlying EBIT 14.2 per cent to $470.2 million, with underlying net profit after tax of $223.1 million.

• The company declared a final dividend of 3.5 cents, taking the FY26 total to 6.85 cents per share.

• Cleanaway guided to FY27 underlying EBIT of $500 million to $530 million, calling the year a transitional one.

• EQT Infrastructure moved from a non-binding proposal to a scheme implementation deed with Cleanaway announced on 19 October 2026.

Cleanaway Waste Management Limited (ASX:CWY) has moved a takeover approach from EQT Infrastructure from an indicative proposal in August to a scheme implementation deed announced on 19 October 2026, while reporting a year of stronger underlying earnings. Shares were trading at A$2.99 on 23 October 2026, down 0.33%.

From Indicative Offer to Signed Deed

The path began on 13 August 2026, when the company disclosed a non-binding proposal from EQT Infrastructure to acquire all of its shares through a scheme of arrangement. The indicative price was $3.13 cash per share, reduced by any dividends paid or declared after the proposal date. That implied an enterprise value of about $9.4 billion and a 32.1 per cent premium to the $2.37 close on 12 August.

The board granted EQT exclusive due diligence and said directors intended to recommend a scheme and vote their own shares in favour, provided the price was at least $3.13, the terms were acceptable, no superior proposal emerged and an independent expert concluded the deal was in shareholders' best interests. On 14 September the company said confirmatory due diligence was continuing as the parties worked toward an implementation deed. The scheme implementation deed announcement came on 19 October.

The August proposal was conditional on satisfactory due diligence, a unanimous board recommendation, a binding deed on customary terms and regulatory approvals from FIRB and the ACCC.

Underlying Profit Rises, Statutory Profit Falls

Behind the transaction sits an FY26 result that showed a split between underlying and statutory measures. Gross revenue climbed 13.5 per cent to $4,371.3 million, and underlying EBIT rose 14.2 per cent to $470.2 million. Underlying net profit after tax increased 13.6 per cent to $223.1 million.

Statutory net profit after tax fell 37.2 per cent to $98.5 million because of $124.6 million of significant and non-recurring items. Free cash flow rose 63.7 per cent to $213.8 million.

Segments and Acquisitions Drive the Mix

Solid Waste Services produced net revenue of $2,506.4 million, up 6.4 per cent, and EBIT of $405.0 million, up 9.1 per cent.

The Contract Resources acquisition added $319.8 million of revenue and EBIT of $36.1 million before synergies. Cleanaway reported $6.4 million of synergies in FY26.

Oils and Technical Services and Health Services moved the other way. EBIT fell 10.7 per cent to $75.1 million as a major health customer was retained at lower rates.

Shareholder Returns and the FY27 Roadmap

The board declared a final dividend of 3.5 cents per share, fully franked, lifting the FY26 total to 6.85 cents, up 14.2 per cent, or 68.8 per cent of underlying profit. It was payable on 8 October 2026.

Management expects FY27 underlying EBIT of $500 million to $530 million and calls the year transitional. Cash capital expenditure is guided at about $360 million and cash interest at about $140 million.

The strategy, labelled Blueprint 2030 2.0, aims to draw more growth from the existing platform. FY27 priorities include recurring customer growth, pricing, productivity and asset utilisation. A seven and a half year Cairns Regional Council contract is due to start in December 2026.

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