Cleanaway Waste Management (ASX:CWY): What Does the Proposed Acquisition Mean for Its FY26 Business?

Aditi Sarkar

27 October 2026 06:56 PM AEDT

Cleanaway Waste Management (ASX:CWY): What Does the Proposed Acquisition Mean for Its FY26 Business?

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) signed a scheme implementation deed on 19 October 2026.
The proposed transaction provides for AUD 3.095 cash per share, less any cash dividends paid.
FY26 net revenue increased 13.1% YoY to AUD 3,736.7mn; underlying EBIT rose 14.2%.
FY26 statutory NPAT declined 37.2% YoY to AUD 98.5mn, while free cash flow increased.

Cleanaway Waste Management Limited (ASX:CWY) provides waste collection, recycling, treatment, disposal and industrial services across Australia and international markets. Following its FY26 financial results, the company entered into a scheme implementation deed for a proposed acquisition of all its shares by an entity associated with EQT Infrastructure. Cleanaway Waste Management Limited (ASX:CWY) shares closed at AUD 3.00 on 27 October 2026, an increase of approximately 0.33% from the previous session. The proposed transaction and the company’s operating performance are separate developments, with the acquisition still subject to approvals and other conditions.

Company Business

Cleanaway Waste Management Limited (ASX:CWY) operates waste collection fleets, resource recovery infrastructure, recycling facilities, engineered landfills, transfer stations and liquid treatment assets. Its activities cover municipal, commercial and industrial customers, with operations extending across Australia, New Zealand and the Middle East. The company reported more than 9,700 employees, over 350 locations and a fleet exceeding 6,200 vehicles in October 2026.

The reporting segments include Solid Waste Services, Oils and Technical Services and Health Services, and Contract Resources and Industrial Services. Operating results depend on collection volumes, disposal and treatment requirements, contract pricing, labour productivity and utilisation of processing infrastructure. Capital expenditure is required to maintain vehicles, plants and treatment capacity.

Recent Development

On 19 October 2026, Cleanaway Waste Management Limited (ASX:CWY) announced that it had signed a scheme implementation deed with Sedum Group Pty Ltd, an entity owned by funds associated with EQT. Under the proposal, the bidder would acquire 100% of Cleanaway’s shares through a scheme of arrangement. The announced cash consideration is AUD 3.095 per share, reduced by the cash amount of any dividends paid before implementation. The agreement is not a completed acquisition.

The board may determine one or more cash dividends of up to AUD 0.19 per share in aggregate, with the amount deducted from the scheme consideration. A special dividend was indicated as a possibility, but its size, timing and franking remain subject to board determination and other considerations. The board recommended the scheme subject to stated qualifications, including an independent expert’s assessment and the absence of a superior proposal.

The proposed transaction requires shareholder and court approvals, regulatory clearances and specified contractual consents. The company’s indicative timetable envisaged a shareholder meeting before the end of February 2027 and possible implementation by the end of March 2027, subject to the relevant conditions. Its 22 October 2026 annual general meeting followed the transaction announcement.

Financial Performance and Sector Context

Cleanaway Waste Management Limited (ASX:CWY) reported FY26 net revenue of AUD 3,736.7mn, up 13.1% YoY from AUD 3,302.7mn. Gross revenue increased 13.5% YoY to AUD 4,371.3mn. Underlying EBITDA rose 12.8% to AUD 892.6mn, while underlying EBIT increased 14.2% to AUD 470.2mn from AUD 411.8mn. The underlying EBIT margin increased to 12.6% from 12.5%. Acquisitions contributed to revenue growth alongside changes in underlying operations.

Underlying NPAT increased 13.6% YoY to AUD 223.1mn. However, statutory NPAT fell 37.2% to AUD 98.5mn from AUD 156.9mn, reflecting significant and non-recurring items. Statutory EBIT decreased 12.2% to AUD 310.6mn. Free cash flow increased 63.7% from AUD 130.6mn to AUD 213.8mn; the company identified cash generation, working capital and improved fleet payment terms as contributors.

Solid Waste Services recorded FY26 net revenue of AUD 2,506.4mn, up 6.4% YoY, and underlying EBIT of AUD 405.0mn, up 9.1%. By contrast, Oils and Technical Services and Health Services net revenue fell 1.2% to AUD 676.0mn, with EBIT down 10.7% to AUD 75.1mn. Contract Resources and Industrial Services revenue rose 76.9% to AUD 669.7mn, reflecting acquisition effects. FY27 underlying EBIT guidance was AUD 500mn–530mn.

Risks to Consider

Cleanaway Waste Management Limited (ASX:CWY) remains exposed to operating costs, fleet replacement requirements, contractual execution and demand across waste and industrial services. The scheme could be delayed or fail if regulatory, shareholder, court or contractual conditions are not satisfied. Any permitted dividend reduces the announced per-share cash scheme consideration. Integration expenditure and weaker profitability in certain service lines also warrant monitoring.

What to Watch Next

Key milestones include publication of the scheme booklet and independent expert’s report, regulatory decisions, the planned shareholder vote and court proceedings. Separately, the company’s reporting for the half year ending 31 December 2026 will provide further information on divisional trading, free cash flow, fleet investment and FY27 guidance. Progress against the timetable remains conditional rather than assured.

Key Insights

Cleanaway Waste Management Limited (ASX:CWY) reported higher FY26 underlying earnings and net revenue alongside lower statutory profit. Its proposed acquisition introduces a separate set of approval and implementation milestones. The treatment of any permitted dividend, satisfaction of scheme conditions and subsequent operating disclosures are material developments to follow.

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.