Cleanaway Waste Management (ASX:CWY): FY26 Earnings, Waste Services and FY27 Guidance

Aditi Sarkar

19 October 2026 09:10 PM AEDT

Cleanaway Waste Management (ASX:CWY): FY26 Earnings, Waste Services and FY27 Guidance

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Highlights

Cleanaway Waste Management (ASX:CWY) reported FY26 net revenue of AUD 3,736.7 million, an increase of 13.1%.
Underlying EBIT rose 14.2% to AUD 470.2 million, while statutory profit after tax fell to AUD 98.5 million.
FY26 free cash flow increased to AUD 213.8 million; total dividends reached 6.85 cents per share.
The company guided for FY27 underlying EBIT of AUD 500 million to AUD 530 million.

Cleanaway Waste Management Limited provides collection, treatment, recycling and disposal services for commercial, municipal and industrial waste across Australia. The company’s FY26 results, released in August 2026, showed revenue growth alongside lower statutory earnings and increased free cash flow. Cleanaway Waste Management (ASX:CWY) closed at AUD 2.97 on 19 October 2026, gaining 20.24% for the session. Its latest full-year reporting also outlined acquisition contributions, performance differences between operating divisions and an underlying EBIT range for FY27.

Company Business

Cleanaway operates through Solid Waste Services and Environmental and Technical Solutions. Solid Waste Services covers general waste collection, recycling, organics processing, transfer stations and engineered landfills. These activities serve councils, businesses and other waste generators through a national operating network. Collection activity creates demand for processing and disposal capacity, while recycling facilities recover material from selected waste streams.

Environmental and Technical Solutions includes oils and technical services, health-related waste and specialist industrial operations. Work involves liquid waste treatment, management of regulated materials, medical waste handling and maintenance or shutdown services for industrial customers. Its Contract Resources business serves facilities in sectors including mining, energy and manufacturing. Cleanaway Waste Management (ASX:CWY) therefore combines recurring collection work with businesses exposed to project schedules and industrial activity.

Recent Development

In August 2026, the company reported that the acquisitions of Contract Resources and Citywide Waste had contributed AUD 319.8 million and AUD 103.3 million, respectively, to FY26 gross revenue. Contract Resources generated AUD 36.1 million of EBIT excluding integration synergies during its first 11 months under Cleanaway. The integration of Citywide Waste was described as progressing in line with management’s plans.

The company also described operational changes under its Blueprint 2030 2.0 program, focusing on fleet use, sales processes, productivity and cash conversion. Cleanaway Waste Management (ASX:CWY) reported that its municipal operations had secured a 7.5-year Cairns Regional Council contract scheduled to begin in December 2026. Separately, the company announced in May that Samantha Hogg was appointed chair-elect ahead of a planned board transition around the October 2026 annual general meeting.

Financial Performance and Sector Context

FY26 gross revenue increased 13.5% to AUD 4,371.3 million and net revenue rose 13.1% to AUD 3,736.7 million. Underlying EBITDA reached AUD 892.6 million, up 12.8%, while underlying EBIT increased 14.2% to AUD 470.2 million. The underlying EBIT margin edged up to 12.6%. These measures differ from statutory results, which include specified adjustments and non-recurring expenses.

Statutory EBIT decreased 12.2% to AUD 310.6 million. Statutory net profit attributable to ordinary shareholders fell 37.2% to AUD 98.5 million, whereas underlying net profit increased 13.6% to AUD 223.1 million. The company disclosed AUD 159.6 million of underlying adjustments, including AUD 44.4 million of non-cash impairments relating to construction-and-demolition assets and an investment in Circular Plastics Australia.

Free cash flow climbed 63.7% to AUD 213.8 million, including an AUD 40.2 million benefit from improved fleet payment terms. Total capital expenditure, including non-cash leases, was AUD 374.3 million. For Cleanaway Waste Management (ASX:CWY), the distinction between reported earnings, underlying earnings and cash generation remains material when comparing performance.

Solid Waste Services recorded AUD 2,506.4 million of net revenue and AUD 405.0 million of underlying EBIT, with a 16.2% margin. The oils, technical and health operations recorded lower revenue and EBIT, reflecting weaker conditions in parts of the business. Waste handling is shaped by environmental requirements, facility capacity, contract pricing, labour and vehicle costs, and the market for recovered materials.

Risks to Consider

Operational risks include fleet and facility costs, environmental compliance, landfill remediation commitments and the execution of integration and technology programs. Industrial Services also experienced deferred projects and fewer shutdowns in FY26, reducing utilisation and project margins. Cleanaway Waste Management (ASX:CWY) disclosed planned landfill remediation spending of approximately AUD 180 million across FY27 to FY29, alongside cash impacts associated with its technology transformation.

What to Watch Next

Cleanaway expects FY27 underlying EBIT between AUD 500 million and AUD 530 million. Its disclosed assumptions include improved collections activity, performance recovery in some Environmental and Technical Solutions operations and higher technology-related costs. The company indicated FY27 cash capital expenditure of approximately AUD 360 million and cash interest paid of approximately AUD 140 million. Investors can track subsequent disclosures on contract starts, operating margins, integration progress and cash conversion.

Key Insights

Cleanaway Waste Management (ASX:CWY) enters FY27 after a year of higher underlying operating earnings and free cash flow, but lower statutory profit. Its waste collections network and recently acquired industrial businesses contributed differently to results. The next reporting periods will clarify whether segment recovery plans, expenditure requirements and FY27 guidance translate into reported earnings and cash flow.

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