Highlights

  • FY26 gross Revenue rose 13.5% to AUD 4,371.3 million.
  • Net revenue increased 13.1% to AUD 3,736.7 million.
  • Underlying EBIT rose 14.2% to AUD 470.2 million.
  • Free Cash Flow increased 63.7% to AUD 213.8 million.
  • FY27 underlying EBIT guidance was AUD 500 million to AUD 530 million.

Cleanaway Waste Management Limited (ASX:CWY) provides waste collection, treatment, recycling and disposal services across Australia. Its operations include solid waste, industrial and environmental services. The FY26 result reflected acquisitions and higher Earnings from parts of the portfolio, although some service lines experienced weaker performance. An indicative Acquisition proposal announced during 2026 introduced a separate corporate development that should be distinguished from the company’s operating results.

FY26 earnings and cash flow

For the year ended 30 June 2026, CWY reported gross revenue of AUD 4,371.3 million, up 13.5%, and net revenue of AUD 3,736.7 million, up 13.1%. Underlying EBIT increased 14.2% to AUD 470.2 million, while the underlying EBIT Margin rose 10 basis points to 12.6%. Underlying net profit after tax increased 13.6% to AUD 223.1 million. Statutory net profit after tax declined 37.2% to AUD 98.5 million after significant items. Free cash flow increased 63.7% to AUD 213.8 million, a separate measure of the cash generated after relevant spending.

Operational differences across services

Cleanaway attributed its FY26 EBIT growth principally to Solid Waste Services and Contract Resources. The acquired Contract Resources Business contributed to revenue and earnings, while the Citywide Waste acquisition also added sales. Health Services and Industrial Services were comparatively weaker, illustrating that portfolio-wide growth did not extend equally across every activity. CWY is pursuing improvements in customer growth, pricing, productivity and asset utilisation under its Blueprint 2030 2.0 strategy. These initiatives are management priorities and their financial impact will depend on execution and market conditions.

Capital returns and the indicative approach

CWY declared a fully franked final Dividend of 3.5 cents per share, taking FY26 dividends to 6.85 cents per share, up 14.2%. The company also disclosed a non-binding indicative proposal from EQT Infrastructure at AUD 3.13 per share, reduced by the cash amount of the final dividend to AUD 3.095. An indicative proposal is not a completed acquisition and does not guarantee an agreed transaction. It is therefore important to distinguish the disclosed proposal terms from the operating outlook. For FY27, CWY guided to underlying EBIT of AUD 500 million to AUD 530 million.

The distinction between reported outcomes and management expectations remains important. Figures for completed reporting periods describe performance already achieved, whereas targets and guidance depend on assumptions about operating conditions. Changes in costs, Demand and the timing of Investment can affect results in subsequent periods. Readers should assess each measure using its stated definition and reporting period.

Key Insights

CWY recorded higher FY26 underlying earnings and free cash flow, supported by its solid waste activities and acquisitions. Weaker service lines remain an operational focus, while the indicative transaction proposal is a distinct source of uncertainty. Future updates will clarify the progress of management’s improvement programme and the outcome of any corporate discussions.