Half Year Results ASX & Media Release and Presentation
| Stock | Cleanaway Waste Management Ltd (CWY.ASX) |
|---|---|
| Release Time | 19 Feb 2025, 8 a.m. |
| Price Sensitive | Yes |
Cleanaway delivers double-digit EBIT growth and increased returns
- Underlying EBIT up 12.2% to $195.2 million
- Underlying EBIT margin up 80 basis points to 11.8%
- Confident in delivering FY26 EBIT ambition of over $450 million
Cleanaway Waste Management Limited (ASX: CWY) announced its financial results for the six months ended 31 December 2024 (1H FY25), delivering improvement across its key financial metrics. Gross revenue was up 3.7% to $1,940.2 million and net revenue up 4.6% to $1,659.4 million, driven by volume growth and disciplined price management. Profit from operations (statutory EBIT) increased 7.5% to $174.1 million, while underlying EBIT rose 12.2% to $195.2 million. The underlying EBIT margin expanded by 80 basis points to 11.8%, reflecting a focus on operational excellence across the branch network. Underlying NPAT and EPS both grew more than 13%, reflecting disciplined price and cost management. The company declared a fully franked interim dividend of 2.80 cents per share, up 14.3%. Cleanaway is tracking towards the midpoint of its FY25 underlying EBIT guidance range of $395-$425 million, with the second half expected to see strong growth in Solids, additional operational excellence benefits, and the earnings contribution from the new LMS joint venture. Looking beyond FY25, the company is confident in delivering its mid-term underlying EBIT target of over $450 million in FY26, driven by the full embedding of operational excellence initiatives and strategic infrastructure growth.
Cleanaway's FY25 underlying EBIT is tracking towards the midpoint of the $395 to $425 million guidance range. Net finance costs are expected to be between $120 and $125 million, and capital expenditure guidance remains at approximately $400 million.
As Cleanaway's operational excellence initiatives become fully embedded, their impact will accelerate, driving lasting structural improvements. Combined with the company's strategic infrastructure growth, this reinforces its confidence in delivering the FY26 underlying EBIT ambition of over $450 million, while sustaining earnings growth and margin expansion into FY27 and beyond.