Cleanaway Waste Management Ltd reported a 14.2% increase in underlying earnings before interest and tax (EBIT) to AUD 470.2 million for the fiscal year ended June 30, 2026, as revenue climbed 13.1% to AUD 3.7 billion.
Underlying net profit after tax rose 13.6% to AUD 223.1 million, while underlying earnings per share increased by the same margin to AUD 0.10. The group’s EBIT margin expanded by 10 basis points to 12.6%, and return on capital employed rose 60 basis points to 9.7%. Free cash flow surged 63.7% to AUD 213.8 million, offsetting a statutory net profit after tax of AUD 98.5 million, which was impacted by approximately AUD 125 million in one-off items.
Revenue growth was led by Solid Waste Services, which increased 6.4% to AUD 2.5 billion, with EBIT up 9.1% to AUD 405 million. Industrial Services delivered the strongest performance, with revenue jumping 77% to AUD 670 million and EBIT more than doubling to AUD 55.9 million. Contract Resources contributed AUD 320 million in revenue and AUD 36.1 million in EBIT, excluding AUD 6.4 million in synergies.
Oils and Technical Services, along with Health Services, reported a 1.2% decline in revenue to AUD 676 million, with EBIT falling 10.7% to AUD 75.1 million. Disruptions at the Yatala Health facility in Queensland, caused by Ex-Tropical Cyclone Alfred, added approximately AUD 2.4 million in logistics costs. Solid Waste Services also incurred a AUD 3 million loss at the now-closed New Chum Landfill prior to its November 30 closure.
For the fiscal year ending June 30, 2027, Cleanaway raised its underlying EBIT guidance to AUD 500 million-AUD 530 million, up from AUD 470.2 million in FY26, representing growth of 6.4% to 12.8%. Underlying EBITDA is projected at AUD 935 million-AUD 985 million, while total capital expenditure is expected to reach AUD 400 million-AUD 410 million. Cash capital expenditure is forecast at AUD 360 million, with cash interest payments estimated at AUD 140 million.
Management highlighted the transition to Blueprint 2.0, with CEO Mark Schubert noting the company’s focus on free cash flow generation as a key driver. CFO Nigel Simonsz added that structural improvements in cash generation are in place, though FY27 will still face timing and transition-related cash costs. The board also reiterated its recommendation of EQT’s AUD 3.13 per share proposal, contingent on confirmatory due diligence and a binding bid.
