Highlights:

• Underlying EBIT climbed 14.2%, but statutory profit fell sharply.
• Free cash flow surged 63.7%, strengthening Cleanaway’s financial position.
• FY27 EBIT guidance points higher, but execution remains the key test.

FY26 Results ReleasedCleanaway Waste Management Limited (ASX: CWY) announced its FY26 financial results on 20 August 2026, reporting stronger underlying earnings and cash generation despite a sizeable decline in statutory profit. Gross revenue increased 13.5% to AU$4,371.3 million, supported by contributions from the Contract Resources and Citywide Waste acquisitions.Underlying Performance Gains MomentumCleanaway’s underlying EBIT advanced 14.2% to AU$470.2 million, while underlying NPAT increased 13.6% to AU$223.1 million. Free cash flow jumped 63.7% to AU$213.8 million, supported by higher earnings, disciplined working-capital control and more favourable fleet payment arrangements. However, statutory profit attributable to ordinary shareholders dropped 37.2% to AU$98.5 million, highlighting the gap between reported and underlying performance.

Solid Waste Services remained a major earnings engine, with net revenue rising 6.4% to AU$2,506.4 million and underlying EBIT increasing 9.1% to AU$405.0 million. Pricing, labour productivity and fleet efficiencies helped lift the segment’s EBIT margin to 16.2%.Dividend Strengthens Shareholder ReturnsThe Board approved a fully franked final dividend of 3.50 cents per share, taking the total FY26 distribution to 6.85 cents per share, a 14.2% increase from FY25. Shareholders eligible for the final payout are expected to receive it on 8 October 2026.FY27 Outlook Raises the BarManagement expects FY27 underlying EBIT of AU$500 million to AU$530 million. Growth is expected from collections, a recovery across parts of Environmental & Technical Solutions and continued momentum at Contract Resources. Higher technology and Blueprint 2030 2.0 investment costs could partly offset these benefits.

Cleanaway enters FY27 with stronger cash generation and improving underlying profitability. The next test will be whether management can convert operational efficiencies, acquisition benefits and portfolio recovery into sustainable earnings growth while maintaining disciplined capital expenditure.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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