FY26 Financial Results
14.2% EBIT growth driven by Solid Waste Services and Contract Resources
Cleanaway Waste Management Limited (Cleanaway or the Company) (ASX: CWY) today announced its financial results for the 12 months ended 30 June 2026 (FY26), delivering growth in key financial metrics compared to the 12 months ended 30 June 2025 (FY25 or prior corresponding period (pcp)).
FY26 financial highlights (compared to the pcp where applicable)
- Gross revenue up 13.5% to $4,371.3 million and net revenue up 13.1% to $3,736.7 million supported by the Contract Resources ($319.8 million) and Citywide Waste ($103.3million) acquisitions
- Statutory NPAT down 37.2% to $98.5 million, which included $124.6 million of significant and non-recurring items
- Underlying EBIT up 14.2% to $470.2 million, driven by Solid Waste Services (+9.1%) and Contract resources ($36.1m) delivered above expectations
- Underlying EBIT margin up 10 basis points to 12.6%, driven largely by price, labour efficiency and fleet transformation benefits offset by weakness in Health Services and Industrial Services.
- Declared a fully franked final dividend of 3.51 cents per share, taking the total FY26 dividend per share to 6.85 cents, up 14.2% and representing a payout ratio of 68.8% of underlying NPAT
- FY27 guidance; underlying EBIT expected to be between $500 million and $530 million
| FY26 | FY25 | Variance | |
| Statutory | |||
| Gross Revenue ($m) | 4,371.3 | 3,850.7 | 🡅 13.5% |
| Net Revenue ($m) | 3,736.7 | 3,302.7 | 🡅 13.1 % |
| EBIT ($m) | 310.6 | 353.7 | 🡇 12.2% |
| Free Cash Flow | 213.8 | 130.6 | 🡅 63.7% |
| Dividend Per Share (cents) | 6.85 | 6.0 | 🡅 14.2% |
| Underlying | |||
| EBITDA ($m) | 892.6 | 791.3 | 🡅 12.8% |
| EBIT ($m) | 470.2 | 411.8 | 🡅 14.2% |
| EBITA 2 ($m) | 491.4 | 427.5 | 🡅 14.9% |
| EBIT Margin (%) | 12.6% | 12.5% | 🡅 10 bps |
| Net Profit After Tax ($m) | 223.1 | 196.4 | 🡅 13.6% |
| EPS (cents) | 10.0 | 8.8 | 🡅 13.6% |
| EPSA (cents) | 10.6 | 9.3 | 🡅 14.0% |
| Return on Capital Employed | 9.7% | 9.1% | 🡅 60 bps |
| Return on Invested Capital (%) | 6.6% | 6.0% | 🡅 60 bps |
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1 As per Cleanaway's ASX announcement of 13 August 2026, EQT Infrastructure's non-binding indicative proposal to acquire Cleanaway at $3.13 per share is reduced by the cash amount of the dividend to $3.095.
2 EBIT adding back amortisation of acquired customer and licence intangibles of $21.2 million in FY26 and $15.7 million in FY25.
Cleanaway CEO & Managing Director, Mark Schubert, said:
“FY26 was a demanding year for Cleanaway, but also one in which we delivered earnings growth, materially stronger free cash flow and improved returns.
“The strength of our core business remains clear. Solid Waste Services and Contract Resources performed strongly. Where we did not meet our expectations, the issues are concentrated in specific parts of the portfolio, we understand them and we are focused on improving performance.
“The opportunity from here is to generate more growth from the platform we already have. In FY27 our focus is on recurring customer growth, price, productivity and utilisation, so that more of our earnings growth is organic, predictable and sustainable.
“Contract Resources performed ahead of the acquisition business case in its first 11 months under Cleanaway, demonstrating the quality of the business and the strategic rationale for the acquisition.
“Free cash flow improved materially in FY26. Blueprint 2030 2.0 is focused on converting earnings growth into stronger and more sustainable free cash flow and improving returns over time.
“We have spent the past several years strengthening and building the platform. Blueprint 2030 2.0 is about making that platform work harder, using our scale, network and data more effectively to deliver higher-quality earnings, stronger cash flow and long-term shareholder value.”
Financial performance
Cleanaway reported FY26 net revenue of $3,736.7 million, an increase of 13.1% (pcp: $3,302.7million).
Statutory EBIT decreased by 12.2% to $310.6 million (2025: $353.7 million). This result includes $159.6 million of underlying adjustments, comprising $44.4 million in non-cash impairment costs relating to Construction and Demolition (C&D) assets and the Group’s investment in Circular Plastics Australia Pty Ltd, and other significant
and non-recurring items of $115.2 million.
Excluding significant items, underlying EBIT was $470.2 million, an increase of 14.2% (pcp: $411.8 million). The increase was primarily driven by the Solid Waste Services segment and the Contract Resources acquisition, partly offset by lower revenue from Health Services and Industrial Services businesses.
Statutory profit after income tax (attributable to ordinary equity holders) decreased by 37.2% to $98.5 million (2025: $156.9 million).
Underlying profit after income tax (attributable to ordinary equity holders) increased by 13.6% to $223.1 million (2025: $196.4 million).
Free cash flow3 increased by 63.7% to $213.8 million (2025: $130.6 million). The increase reflects a disciplined focus on free cash flow, overall earnings growth, good working capital management and a $40.2 million benefit from improved fleet payment terms.
Total capital expenditure, including non-cash leases, was $374.3 million (pcp: $382.0 million).
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3 Free Cash Flow is defined as net operating cash flow less cash capex plus net proceeds from the sale PPE (excluding land and buildings).
Dividend
The Board declared a final, fully franked dividend of 3.5 cents per share, bringing the total dividend declared
during the period to 6.85 cents per share (pcp: 6.00 cents per share), representing an increase of 14.2%. It will
be paid on 8 October 2026 to shareholders on the register on 14 September 2026.
Operating performance
| Underlying | |||
|---|---|---|---|
| 1H FY26 | 1H FY25 | Variance | |
| Solid Waste Services | |||
| Net revenue ($m) | 2,506.4 | 2,356.6 | 🡅 6.4% |
| EBIT ($m) | 405.0 | 371.2 | 🡅 9.1% |
| EBIT Margin (%) | 16.2% | 15.8% | 🡅 40 bps |
| Environmental & Technical Solutions | |||
| Oils &Technical Services and Health Services (OTSHS) | |||
| Net revenue ($m) | 676.0 | 684.2 | 🡇 1.2% |
| EBIT ($m) | 75.1 | 84.1 | 🡇 10.7% |
| EBIT Margin (%) | 11.1% | 12.3% | 🡇 120 bps |
| Contract Resources and Industrial Services (CRIS) | |||
| Net revenue ($m) | 669.7 | 378.5 | 🡅 76.9% |
| EBIT ($m) | 55.9 | 23.8 | 🡅 134.9% |
| EBIT Margin (%) | 8.3% | 6.3% | 🡅 200 bps |
Solid Waste Services
Net revenue increased by 6.4% to $2,506.4 million (2025: $2,356.6 million), and underlying EBIT increased by 9.1% to $405.0 million (2025: $371.2 million). Through our effective contractual pricing mechanisms, the direct costs related to higher fuel prices were substantially recovered, reflecting the resilience of the business. The result included strong contributions from Collections, the core landfill portfolio and the national Container Deposit Scheme (CDS) business.
EBIT margin increased by 40 basis points to 16.2% supported by pricing and productivity, improved labour and fleet efficiency and lower indirect costs.
Commercial and Industrial (C&I) collections achieved revenue and margin growth across Metro and Regional operations, while the integration of Citywide Waste remained on track. Metro Municipal also improved, supported by stronger contract performance. New municipal tender participation remains selective and we won a new 7.5-year Cairns Regional Council contract commencing December 2026.
Our core landfills benefited from higher project volumes, pricing, and landfill gas-related revenue, while transfer stations improved profitability through better asset utilisation. Resource Recovery delivered CDS volume growth and efficiency gains, alongside increased Material Recovery Facility and Old Corrugated Cardboard (OCC) volumes. These benefits were partly offset by lower OCC prices, planned Food Organics and Garden Organics (FOGO) transition costs in NSW, the closure of New Chum landfill and the Construction and Demolition business unit.
Environmental & Technical Solutions (ETS)
ETS comprises the two reporting segments: Oils & Technical Services and Health Services (OTSHS), and Contract Resources and Industrial Services (CRIS).
ETS - Oils &Technical Services and Health Services (OTSHS)
Revenue decreased by 1.2% to $676.0 million (2025: $684.2 million), and underlying EBIT decreased by 10.7% to $75.1 million (2025: $84.1 million). The results reflected EBIT growth in Oils & Technical Services (OTS), offset by lower EBIT in Health Services.
OTS EBIT benefited from higher Re-Refined Base Oil (RRBO) prices and growth from equipment cleaning services. A continued focus on higher-value work and implementation of a new pricing model partly offset lower second-half hazardous waste volumes.
Health Services earnings reduced following the retention of a major customer at lower rates in April 2025.
Performance was further impacted by an unexpected facility outage, delays in commissioning the new product destruction facility, and the centralisation of the sales functions temporarily slowed new business activity and other initiatives.
ETS - Contract Resources and Industrial Services
Revenue increased by 76.9% to $669.7 million (2025: $378.5 million), and underlying EBIT increased by 134.9% to $55.9 million (2025: $23.8 million), reflecting the eleven-month contribution from the recently acquired Contract Resources business.
Contract Resources performed ahead of its acquisition business case, delivering $319.8 million of revenue. EBIT, excluding integration synergies, was $36.1 million, representing an 11.3% EBIT margin, while EBITA was $41.4 million at a 12.9% EBITA margin. The increase reflects higher project activity by our major customers in Australia and New Zealand, partially offset by reduced activity in the Middle East.
Cleanaway Industrial Services experienced lower contract and project activity, reflecting project deferrals and fewer shutdowns in key regions. This resulted in lower utilisation rates and lower project margins. Site rationalisation, a stronger focus on margin, and contract attrition reduced volumes in Metro markets, which also affected earnings. The operating model realignment is underway.
FY27 outlook and guidance
FY27 will be a transitional year for Cleanaway as we continue to execute BP 2.0 and position the business for sustainable growth. We enter the year with confidence in the resilience of our business, underpinned by our people, high-quality asset base, integrated national network and the essential nature of the services we provide.
FY27 underlying EBIT is expected to be between $500 million and $530 million, driven by:
- Solid Waste Services - Collections-led growth benefiting from centralised sales and fleet teams
- Environmental & Technical Solutions - OTS and Health recovery and Contract Resources continue to deliver strong growth with Middle East recovery expected
- Higher costs related to IT systems, technology and BP2.0 capability with benefits expected over time
FY27 free cash flow expectations:
- Depreciation and amortisation - $435 million to $455 million
- Cash capex - approximately $360 million
- Cash interest paid - approximately $140 million
- Remediation costs of landfills - approximately $180 million over FY27 to FY29
- Underlying adjustments
- Cash impact of FY27 IT transformation costs - $40 million to $50 million
- Cash impact of FY26 provisions to be used in FY27 - approximately $39 million
ENDS
Investor enquiries
Richie Farrell, General Manager, Investor Relations and Sustainability
M: 0409 829 014, E: [email protected]
Bruce Song, Senior Manager, Investor Relations and Sustainability
M: 0426 386 006, E: [email protected]
Cleanaway Waste Management Limited is Australia’s leading total waste solution provider. Our team of more than 9,700 people operates across more than 350 locations in Australia, New Zealand and the Middle East. We manage Australia’s largest waste and industrial services fleet, with over 6,200 vehicles, and are supported by an extensive network of recycling facilities, transfer stations, engineered landfills, liquid treatment plants and refineries. Alongside our customers, communities, governments, regulators and industry partners, we are committed to delivering on our purpose: making a sustainable future possible together.