Highlights

  • Cleanaway reported FY26 net Revenue of $3.74 billion and underlying EBIT of $470.2 million.
  • Cleanaway Waste Management Ltd (ASX:CWY) was trading at $2.74 on October 7, 2026, up 3.01% during the session.
  • The company remains in discussions with EQT Infrastructure regarding a potential scheme transaction, with no certainty a binding deal will proceed.
  • FY27 underlying EBIT guidance is $500 million to $530 million, while management is also progressing Blueprint 2030 2.0 initiatives.

Cleanaway Waste Management Limited (ASX:CWY) provides waste management, recycling, industrial and environmental services through an integrated network spanning Australia, New Zealand and the Middle East. On October 7, 2026, the shares were changing hands at $2.74, representing a 3.01% rise during today’s trading session. The company is being reviewed after a series of 2026 developments that include its full-year financial results, FY27 guidance and continuing discussions regarding EQT Infrastructure’s non-binding Acquisition proposal.

Company Business

Cleanaway operates across more than 350 locations and provides services supported by a national fleet and infrastructure network that includes recycling facilities, transfer stations, engineered landfills, liquid treatment plants and refineries. Its operations are reported through Solid Waste Services and Environmental & Technical Solutions, with Contract Resources contributing to the latter following its acquisition. The Business serves commercial, industrial, municipal and infrastructure customers, giving it exposure to recurring waste collection, resource recovery, industrial services and regulated environmental activities.

Recent Development

In early October 2026, Cleanaway said EQT Infrastructure had again reconfirmed its position under the transaction process deed relating to a potential acquisition of all Cleanaway shares by scheme of arrangement. EQT stated that nothing identified in confirmatory Due Diligence was likely to cause it not to proceed on the proposal terms, that it did not intend to make the terms less favourable to shareholders, and that it remained committed to progressing toward an implementation deed. Cleanaway also reiterated that there is no certainty a binding proposal will result or that a transaction will proceed.

The proposal was initially disclosed in August 2026 at an indicative price of $3.13 per share, with the amount subsequently reduced for the company’s final Cash Dividend to $3.095 per share. Separately, Cleanaway’s 2026 AGM is scheduled for October 22, when the planned chair transition is also expected to take effect following the retirement of Philippe Etienne and the appointment of Samantha Hogg as Chair.

Financial Performance and Sector Context

For FY26, Cleanaway reported gross revenue of $4.37 billion and net revenue of $3.74 billion, both higher than the prior year. Underlying EBIT increased to $470.2 million, while statutory net profit after tax declined to $98.5 million after $124.6 million of significant and non-recurring items. Free Cash Flow increased to $213.8 million, and total capital expenditure, including non-cash leases, was $374.3 million. The board declared a fully franked final dividend of 3.5 cents per share, taking total FY26 dividends to 6.85 cents per share.

For FY27, Cleanaway expects underlying EBIT of $500 million to $530 million. Management has indicated that performance will depend on collections growth, recovery in selected Environmental & Technical Solutions activities, Contract Resources execution, and the cost of technology and Blueprint 2030 2.0 initiatives. Waste management remains an essential-service sector, but Earnings can still be affected by labour, fuel and logistics costs, regulatory requirements, landfill remediation obligations and activity levels in industrial end markets.

Risks to Consider

Cleanaway faces execution risk across technology transformation, operating-efficiency programs and major infrastructure projects. FY27 cash flow will also reflect remediation spending, with approximately $180 million expected across FY27 to FY29, as well as an estimated $40 million to $50 million cash impact from FY27 IT transformation costs. The company is exposed to environmental regulation, landfill liabilities, fuel and logistics cost movements and changes in industrial activity. The potential EQT transaction remains conditional and uncertain, so its timing and ultimate outcome cannot be assumed.

What to Watch Next

Near-term monitoring points include any further update on the EQT process, the October AGM, delivery against FY27 EBIT guidance and the pace of improvement within Health Services, Industrial Services and Middle East Contract Resources operations. Investors may also monitor free cash flow conversion, landfill remediation spending, technology transformation costs and progress on projects intended to expand recycling and resource-recovery capacity.

Key Insights

Cleanaway enters FY27 with a larger revenue base, higher underlying EBIT and improved free cash flow, while also carrying material transformation, remediation and execution commitments. Its core waste and industrial-services network continues to provide recurring operating activity, but performance will depend on cost control, portfolio improvement and delivery of management’s FY27 objectives. The ongoing EQT process adds a separate corporate development that remains unresolved and will require further formal disclosure before any transaction can be treated as certain.