Cleanaway Waste Management (ASX:CWY): FY26 Earnings, Cash Flow and EQT Proposal

Aditi Sarkar

08 October 2026 11:44 PM AEDT

Cleanaway Waste Management (ASX:CWY): FY26 Earnings, Cash Flow and EQT Proposal

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Highlights

FY26 net Revenue reached $3,736.7 million, supported by acquired businesses and performance in core waste services.
Underlying EBIT increased to $470.2 million, while statutory profit reflected Impairment and other significant items.
Free Cash Flow increased to $213.8 million as Working Capital and fleet payment terms supported cash conversion.
The total FY26 Dividend was 6.85 cents per share, fully franked.
A non-binding EQT Infrastructure proposal remained under discussion in October 2026, with no certainty of a transaction.

Cleanaway Waste Management Limited (ASX:CWY) is a total waste solutions provider with an integrated network of collection, processing, recycling and disposal assets. Its FY26 result combined higher underlying Earnings and improved free cash flow with a separate corporate development: a non-binding proposal from EQT Infrastructure to acquire the company. The two developments place operating performance and transaction execution at the centre of the current company narrative.

FY26 Performance and Cash Flow

For the year ended 30 June 2026, Cleanaway reported gross revenue of $4,371.3 million and net revenue of $3,736.7 million. Underlying EBIT was $470.2 million, with an underlying EBIT Margin of 12.6%. The company said the result was supported by Solid Waste Services and Contract Resources, partly offset by weaker performance in Health Services and Industrial Services.

Statutory NPAT was $98.5 million, while underlying NPAT was $223.1 million. The statutory result included $124.6 million of significant and non-recurring items. Cleanaway also reported $159.6 million of underlying adjustments at EBIT level, including $44.4 million of non-cash impairment costs related to Construction and Demolition Assets and its Investment in Circular Plastics Australia Pty Ltd.

Free cash flow increased to $213.8 million. Cleanaway linked the improvement to earnings growth, Working Capital Management and a $40.2 million benefit from improved fleet payment terms. Total capital expenditure, including non-cash leases, was $374.3 million. The board declared a final fully Franked Dividend of 3.5 cents per share, taking the FY26 total to 6.85 cents per share.

EQT Infrastructure Proposal Remains Conditional

Cleanaway (ASX:CWY) disclosed in August 2026 that EQT Infrastructure had made a confidential, non-binding indicative proposal to acquire 100% of the company at $3.13 cash per share, subject to adjustments for dividends and other conditions. Cleanaway subsequently issued further market updates in September and October as Due Diligence and discussions continued.

As at 5 October 2026, the company had released another update on the proposal. The process remained non-binding, which means there was still no certainty that a transaction would proceed. Until a binding implementation agreement is signed and the required approvals are obtained, the proposal remains separate from Cleanaway’s operating outlook.

FY27 Operating Focus

For FY27, Cleanaway has guided to underlying EBIT of $500 million to $530 million. Management has framed Blueprint 2030 2.0 around recurring customer growth, pricing, productivity, asset utilisation and improved cash conversion. The company is also seeking to generate more growth from its existing network while continuing to improve returns from recent acquisitions.

The guidance is forward-looking and remains dependent on operating conditions, customer activity, cost management and delivery across businesses that underperformed in FY26. The transaction process with EQT adds a separate layer of uncertainty because any binding deal could alter the company’s ownership structure and capital priorities.

Key Insights

Cleanaway’s (ASX:CWY) FY26 result showed a wider gap between statutory and underlying earnings because of impairment and other significant items, while free cash flow moved higher. The company enters FY27 with an established earnings range, an updated operating programme and an unresolved Takeover process. These factors make cash conversion, performance in weaker divisions and the status of the EQT proposal important measures of progress through the next reporting period.

FAQs

Q: What was Cleanaway’s FY26 underlying EBIT?

A:Underlying EBIT was $470.2 million for the year ended 30 June 2026.

Q: How much free cash flow did Cleanaway (ASX:CWY) report in FY26?

A:Free cash flow was $213.8 million.

Q: What dividend did Cleanaway declare for FY26?

A:The total FY26 dividend was 6.85 cents per share, fully franked, including a 3.5 cent final dividend.

Q: What is Cleanaway’s FY27 underlying EBIT guidance?

A:Cleanaway has guided to underlying EBIT of $500 million to $530 million for FY27.

Q: Is the EQT Infrastructure proposal binding?

A:No. The proposal remained non-binding in early October 2026, and there was no certainty that a transaction would proceed.

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