Casella Waste Systems Inc - Class A

Casella Waste Systems, a regional waste management company operating in the northeastern U.S., was our biggest detractor within Industrials. The stock underperformed primarily because it was overlooked by the market, which was more focused on AI infrastructure and defense stocks during the quarter. In addition, the newly appointed CEO laid out conservative guidance, which disappointed some of the fast-money investors. We continue to be confident in the company’s ability to compound revenue at a double-digit pace and grow operating profits even faster.

Casella Waste Systems, Inc. (CWST) has shown earnings per share growth that was slightly ahead of expectations in its most recent financial results. Despite a decline in profitability, we continue to like the business and the management team, which has a long history of successfully integrating acquisitions. This positions Casella well for future growth, and we believe its competitive advantages will help it navigate market challenges effectively.

Casella Waste Systems, Inc. (CWST) is one of the largest solid waste services companies in the Northeast, uniquely positioned with excess landfill capacity in a capacity constrained region. CWST, along with most waste management stocks, continued to perform well in the face of economic uncertainty and market volatility given the consistency of its business model. The company is witnessing strong demand, and management raised guidance for the year, indicating that this demand should continue.

Casella Waste Systems Inc. is a vertically integrated solid waste services company. Its stock price improved by 5% despite a mixed earnings report that included higher revenues, though lower-than-expected profits. Pricing and volume growth were favorable in the resource solutions business, while solid waste generated a modest upside with better pricing. Lower margin acquisitions and an unfavorable mix shift weighed on profits.