Cleanaway Waste Management (ASX:CWY): FY26 Results and EQT Scheme Update

Aditi Sarkar

20 October 2026 09:34 PM AEDT

Cleanaway Waste Management (ASX:CWY): FY26 Results and EQT Scheme Update

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

Cleanaway Waste Management (ASX:CWY) reported FY26 net revenue of AUD 3,736.7 million.
FY26 underlying EBIT reached AUD 470.2 million, while statutory NPAT was AUD 98.5 million.
Free cash flow totalled AUD 213.8 million; FY27 underlying EBIT guidance is AUD 500–530 million.
A binding scheme implementation deed with EQT Infrastructure was announced on 19 October 2026.

Cleanaway Waste Management Limited (ASX:CWY) provides waste collection, recycling, landfill, industrial and environmental services through an extensive operating network serving customers in Australia and other markets. The company reported its full-year financial results in August 2026 and announced a scheme implementation agreement with EQT Infrastructure in October. Cleanaway (ASX:CWY) closed at AUD 2.99 on 20 October 2026, a daily increase of 0.67%, according to the closing figures for the session. Its operating results and the proposed corporate transaction remain separate matters.

Company Business

Cleanaway (ASX:CWY) serves municipal, commercial and industrial customers, operating collection fleets, transfer stations, recycling facilities, engineered landfills and specialised treatment infrastructure. Solid Waste Services encompasses collection and disposal activities. Environmental & Technical Solutions includes oils and technical services, health services, Contract Resources and industrial services. These operations expose the group to contracted collection volumes, industrial project activity, processing requirements and environmental compliance obligations.

The Contract Resources business supplies specialised services including chemical cleaning and related work to industrial and resources customers. Activities extend beyond Australia to New Zealand and the Middle East. Waste infrastructure requires investment in vehicles, treatment assets and facilities, while customer contracts and regulatory requirements influence how services are delivered and priced.

Recent Development

In October 2026, Cleanaway (ASX:CWY) announced a binding scheme implementation deed with EQT Infrastructure following earlier non-binding discussions. The proposed scheme envisages the acquisition of Cleanaway shares for AUD 3.095 cash per share, subject to adjustments for specified dividends or distributions. The board recommendation is conditional on the absence of a superior proposal and an independent expert concluding that the scheme is in shareholders’ best interests. The agreement does not itself constitute completion: implementation remains subject to applicable approvals and conditions.

The development followed the company’s FY26 results announcement on 20 August. Management also outlined Blueprint 2030 2.0, focusing on customer growth, productivity, network utilisation and cash generation. The 2026 annual general meeting was scheduled for 22 October, including a board chair transition announced earlier in the year.

Financial Performance and Sector Context

For the twelve months ended 30 June 2026, Cleanaway (ASX:CWY) recorded AUD 4,371.3 million in gross revenue and AUD 3,736.7 million in net revenue. Underlying earnings before interest and tax (EBIT) were AUD 470.2 million, with a 12.6% underlying EBIT margin. Statutory EBIT was AUD 310.6 million, reflecting significant adjustments including impairment charges. Statutory net profit after tax attributable to shareholders was AUD 98.5 million, while underlying profit was AUD 223.1 million.

Free cash flow reached AUD 213.8 million. The company identified working-capital management and improved fleet payment terms among the factors affecting cash generation. Total capital expenditure, including non-cash leases, was AUD 374.3 million. Contract Resources contributed AUD 319.8 million in revenue and AUD 36.1 million in EBIT excluding integration synergies. Health Services and parts of Industrial Services faced operational and margin pressures.

Cleanaway’s FY27 guidance calls for underlying EBIT of AUD 500 million to AUD 530 million. The company also indicated approximately AUD 360 million of cash capital expenditure and AUD 140 million of cash interest payments. Its operating environment includes transport fuel costs, waste-disposal regulation, industrial project schedules and demand for recycling and resource recovery services.

Risks to Consider

Execution of the proposed EQT scheme depends on shareholder, court and regulatory processes and other conditions. Separate operating risks include fuel-price fluctuations, labour and maintenance costs, landfill remediation obligations and fluctuations in industrial-services activity. Cleanaway (ASX:CWY) also faces commissioning and utilisation challenges in parts of its Health Services business. Significant restructuring, technology spending and remediation payments can affect the timing of cash flows even where underlying earnings are positive.

What to Watch Next

Relevant developments include formal scheme documentation, the independent expert’s assessment, regulatory approvals and the proposed shareholder vote. The 22 October 2026 annual general meeting and subsequent company disclosures may provide further information on governance and strategic matters. Beyond the transaction, Cleanaway (ASX:CWY) will report on FY27 progress against its EBIT guidance, industrial-services recovery, cost initiatives and cash investment requirements.

Key Insights

Cleanaway combined FY26 underlying EBIT growth and higher free cash flow with lower statutory profit and continuing performance challenges in selected services. The EQT scheme is now a significant corporate development, although completion is not assured. Financial reporting, transaction conditions and capital spending remain measurable items for tracking Cleanaway (ASX:CWY) through the next reporting periods.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.