Cleanaway reports 16% lift in underlying profit, hikes dividend
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The news: Cleanaway Waste Management’s underlying net profit after tax grew 16.1% to $198 million in the 2025 financial year, from $170.6 million in FY24, as revenue from its key solid waste services business climbed 6% to $2.37 billion.
The numbers: This was lower than the market consensus estimate of $202.8 million, according to Visible Alpha. Statutory profit after tax grew 0.2% year on year to $156.9 million.
Net revenue for FY25 was $3.30 billion, 3.4% higher than $3.19 billion in the previous corresponding period. Underlying EBIT was $411.8 million, 14.6% higher than $359.2 million reported in the previous year. The market consensus estimate for revenue was $3.36 billion and for underlying EBIT was $410.8 million.
A final dividend of 3.2 cents per share was declared, putting the full-year dividend at 6 cents per share. This is up 20% compared to last year’s 5 cents and topped analysts' expectation of 5.9 cents.
Cleanaway has guided underlying EBIT of $470 million to $500 million in FY26, excluding acquisitions, which would represent year-on-year growth of 18.4% at the midpoint.
The context: The company said that "despite subdued market conditions", its solid waste services division performed well during the year, driven by earnings growth in its collections and post collections business lines.
Cleanaway acquired a number of new assets in FY25, including Citywide Waste and Contract Resources.
What they said: "FY26 is going to be a year of delivery and integration," said CEO and managing director Mark Schubert.
"We are on-track to deliver our mid-term ambition of more than $450 million EBIT, excluding acquisitions.
"We will also progress the integration of both Citywide and Contract Resources, whose collective EBIT contribution of approximately $30 million supports our guidance range of between $470 million and $500 million."
The source: ASX
