Cleanaway Waste Management Limited (ASX: CWY), the largest waste management company in Australia, has released very good results for FY25. The company reported that the solid waste services segment was the main contributor to a net revenue growth of 3.4% to A$3,302.7 million.
Underlying EBIT jumped 14.6% to A$411.8 million as compared to A$359.2 million in FY24. The underlying EBIT margin was increased by 130 basis points to 12.5%. Statutory EBIT grew by 3.6% to A$353.7 million, this figure includes A$58.1 million of non-recurring items.
All in all, these figures testify to the substantial profit increase of Cleanaway Waste Management in 2025, thanks to the company’s efficient cost structure and disciplined pricing strategies. 
Cleanaway Waste Management Limited shows strong Growth Results
What Drove The Segment-Wise Performance?
The Solid Waste Services (SWS) division kept growing and made A$2,356.6 million in net revenue, a rise of 6.0 % compared to the last year. Underlying EBIT went up by 12.8 % to A$371.2 million.
The Environmental and Technical Solutions (ETS) segment, which includes Oils & Technical, Health Services, and Industrial Services, showed varied performance. The combined revenue of the Oils & Technical and Health Services categories was A$684.2 million, marking a very slight decrease of 1.1 %. Only A$84.1 million of EBIT was claimed by this part of the business which was a huge leap of 24 %.
On the other hand, the Industrial Services division suffered difficulties, with a drop of 6.5 % in revenue to A$378.5 million and a drop of 10.2 % in EBIT to A$23.8 million. The decline indicated a decrease in the project work and difficult market conditions.
The company’s overall results indicate that the total growth was underpinned by the strong performance of Solid Waste Services and operational discipline despite the pressure in some sectors.
Dividend Boost Reflects Shareholder Confidence
Cleanaway announced a fully-franked total dividend of 6.0 cents per share, which is a 20 % increase compared to the previous financial year (FY24). The payout ratio, calculated using the underlying NPAT, was 68.2 %.
Underlying Earnings Per Share (EPS) grew by 15.8 % to 8.8 cents while Return on Invested Capital (ROIC) also increased from 5.5 % to 6.0 %. Such results are an indication of strong cash generation at Cleanaway and a dedication to shareholder return
Track record of delivering double digit growth rate
Can Cleanaway Sustain Double-Digit Growth?
Cleanaway has announced a rosy scenario to come for FY26. The firm is looking for underlying EBIT in the range of A$470 million to A$500 million, of which around A$30 million will originate from the recent purchases. The firm has indicated that, excluding acquisitions, the underlying EBIT will be at least A$450 million.
According to management, the “Branch-led Operating Model” is responsible for the success, which has reached more than 90% of the Solid Waste branches. The initiative has resulted in cutting costs in the areas of fuel, logistics, and labour. It will be very important to keep these advantages in order to continue the expansion of margins.
What Are The Key Risks Ahead?
Cleanaway, contraction by strong increase, still has to confront some issues. Higher debt levels are expected by the company, with net finance costs estimated to A$150 million approximately in FY26. Industrial Services is still facing a tough situation with project demand at low levels.
Free cash flow reached A$270.2 million which is 6.2% less than last year mainly due to a tax payment made once. However, taking out this payment, cash flow would have increased by 26.1%. Cleanaway is continually investing in its fleet, recycling and landfill infrastructure to ensure long-term efficiency and growth.
Cleanaway Waste Management Profit Growth 2025: Outlook Remains Bright
The Cleanaway FY25 financial results affirm the company’s status as the top waste management provider in Australia. Cleanaway is continuously fortifying its financial base through margin expansion, prudent cost management, and consistent revenue growth.
Sustainability targets of the company and the expansion of circular economy practices also place it well in a market that is becoming more and more concerned with environmental responsibility. Investors and analysts regard the FY25 results as a robust basis for further growth through FY26 and even beyond.
Why The Results Matter For Global Investors
The remarkable performance of Cleanaway in FY25 not only turned the heads of its investors but also the whole world of waste management worldwide whose players are under pressure to boost efficiency and sustainability. Not only does the company’s capability to grow its profits while controlling its environmental impact give it a good reputation overseas but it also very much enhances it.
The financial results of the Australian waste management company showcase resilience and the ability to adjust to the situation, thus setting a standard for the industry. Cleanaway, through its operational improvements and clear strategic direction, is still in a position to create long-term value for its shareholders.
Also Read: Recycling and Circular Economy in Australian Mining: Reducing Waste
FAQs
Q1: What were the key financial highlights of FY25?
A1: Cleanaway reported A$3,302.7 million in net revenue, A$411.8 million in underlying EBIT, and a 20 % higher dividend.
Q2: What is Cleanaway’s EBIT outlook for FY26?
A2: The company expects EBIT between A$470 million and A$500 million, including acquisition contributions.
Q3: Which business segment drove the profit growth?
A3: The Solid Waste Services division was the main driver, with 6 % revenue growth and 12.8 % EBIT increase.
Q4: What risks does the company face?
A4: Higher debt, weaker Industrial Services demand, and inflationary pressures could affect FY26 results.
