CASELLA WASTE SYSTEMS INC — Call Transcript 2026

Good day, and thank you for standing by. Welcome to the Casella Waste Systems, Inc first quarter 2026 conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'll now hand the conference over to your first speaker today, Jason Mead, Senior Vice President of Finance and Treasurer. Please go ahead. Good morning, and thank you for joining us on the call. Today, we'll be discussing our first quarter 2026 results, which were released yesterday afternoon. This morning, I'm joined by Ned Coletta, President and Chief Executive Officer of Casella Waste Systems, and Brad Helgeson, our Chief Financial Officer. After a review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. First, please note that various remarks we make about the company's future expectations, plans and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent Form 10-K, which is on file with the SEC. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views on any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, May 1st, 2026. During the call, we'll be referring to non-GAAP financial measures. These non-GAAP measures are prepared in accordance with generally accepted accounting principles. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures to the extent they are available without unreasonable effort, are included in our press release filed on Form 8-K with the SEC. With that, I'll now turn it over to Ned to begin today's discussion. Good morning. Thank you, everyone, for joining us today. We are very pleased with our performance in the first quarter and the strong start it provides for 2026. Our team executed well across the business, delivering solid financial results and margin expansion that exceeded our budget while also advancing our strategic priorities. We combined disciplined positive pricing, steady core operations and meaningful acquisition activity to position the business for a strong year. Importantly, the momentum we are seeing is broad-based. It reflects the consistency of our operating model and the continued focus of our teams on execution, safety and customer service. Revenues for the quarter were $457.3 million, or up 9.6% year-over-year. Growth was driven by contributions from acquisitions and the base business, with strong pricing across our collection and disposal lines and continued strength in our resource solutions segment, particularly in national accounts. Pricing continues to perform well and remains a core driver of our results. Solid waste pricing was up 5.1% overall, including 5.3% in the collection line of business and 4.7% in disposal. From a volume perspective, the quarter played out largely as we expected, with slightly negative volumes mainly due to the challenging winter weather across our footprint. Despite these headwinds, total landfill tons were up year-over-year, including increases in both MSW and C&D volumes, with C&D volumes actually up 13% year-over-year at the landfills. These results reflect the strength of our sales pipeline, all of our internalization efforts over the last year and a half, and our unique landfill asset positioning in the Northeast. Further, we are well-positioned for the seasonal upswing in volumes that we see in the spring, and we've seen positive trends through April. On the cost side, our fuel recovery program worked effectively in the quarter, with floating fees fully offsetting the increase in fuel costs across our business. This continues to be an important component of our ability to manage risk and produce stable and predictable operating results. As we've emphasized, our focus remains on disciplined execution at the offering level. Our teams continue to make progress on route optimization, fleet efficiency and automation, and we're seeing those efforts translate into our results. Adjusted EBITDA increased 12.3% year-over-year, and we delivered 50 basis points of margin expansion in the quarter. Safety is our first priority in our operations every day, and we continue to invest in safety initiatives, including the expansion of our triage programs to minimize the cost associated with workers' compensation claims and the implementation of the Lytx in-cab AI technology across our entire fleet in 2026. The Lytx system is helping our drivers with real-time coaching to reduce unsafe behaviors. This leads to lower incidents and strengthens our overall safety culture. These efforts have resulted in better safety performance with our key OSHA metric TRIR improving by 20% year-over-year. We have also attracted several excellent new leaders to Casella over the last several months, including Chris Rains as our new Chief Revenue Officer joining in March. We're excited to have these accomplished executives join our team, adding key skills to our already strong leadership team. In the Mid-Atlantic, we've made significant progress on our integration efforts. We've migrated nearly all customers to our new Lead-to-Cash system and integrated customer payment portal. We are on track to complete the remaining migration by the end of next week. This is an important milestone as it allows us to shift our focus from systems migration to the exciting work of recognizing operational synergies through route consolidations, automations, and facility consolidations. As guided, we're on track to cut $5 million of operating costs in 2026 and another $10 million over the next two years. From a technology and efficiency standpoint, we continue to make steady progress. On the customer side, we've been investing in key platforms to improve customer experience, including the launch of our new payment portal last month and the planned rollout of the new Casella app in the second quarter. We also continue to develop our e-commerce capabilities. These efforts are focused on improving the customer experience while also yielding cost efficiencies. At the same time, we remain focused on reducing G&A costs, and we are on track with our previously announced $15 million in targeted G&A savings over the next three years. As mentioned last quarter, these savings will come in three phases, with the first phase yielding in the second half of 2026 as we implement credit card convenience fees. The second phase will come in 2027 as we eliminate redundant systems costs. The last phase will come throughout 2027 and 2028 as we automate back-office functions and take out costs. Across these initiatives, we're also focusing on AI-enabled tools and investing in data infrastructure to support further capabilities. Over time, we expect these investments to generate additional leverage across our back office and yield additional efficiency gains. We continue to make great permitting progress on our expansion efforts at the Hakes and Highland landfills in New York. With the Hakes permit expected by the third quarter of 2026 and the Highland permit expected by the first quarter of 2027. As we previously mentioned, we're working to more than double the annual permit at Highland from 460,000 tons a year to 1 million tons a year, while also working to add 60 years of capacity. At the Hakes C&D landfill, we're permitting a 10-plus year expansion. Additionally, we completed the new rail transfer station at the McKean Landfill in the last month, allowing us now to accept materials from both gondolas and intermodal containers, including internalized MSW volumes from Massachusetts later this year. Our McKean Landfill is a great rail option for the Northeastern waste that does not have access to local disposal. As a reminder, about 30% of the waste that's generated in the Northeast needs to be exported given the lack of disposal capacity in our markets. The McKean Landfill is proximate to dense populations in the Northeast and is one of only a few rail-served landfills that can service the market given the capital intensity and logistical complexity. Acquisitions remain an important component of our growth strategy. We've had a strong start to the year. We have completed four acquisitions so far in 2026, representing approximately $150 million of annualized revenues. This includes the Star Waste acquisition, which closed on April 1st and adds approximately $100 million of annualized revenues. These transactions continue to align well with our strategy of building density within our existing footprint. Star Waste is an excellent example of that approach, with strong overlap in Massachusetts and clear opportunities for integration and operational improvements. Our teams are making great progress on integration with an early focus on safety, onboarding our new team members and aligning integration plans. At the same time, our acquisition pipeline remains very strong, and we have a number of tuck-in opportunities in later stages that fit well within our existing markets. Overall, we feel very good about our execution year-to-date, and we believe we have a solid outlook for the remainder of the year, including adjusted free cash flow growth of roughly 14% at the midpoint of guidance. Our business proved its resiliency in the quarter as we beat our budget, expanded margins by 65 basis points in the base business, and fully recovered rapidly rising fuel costs. I want to thank our employees for their continued focus on safety, service, and execution. With that, I'll turn it over to Brad to walk through the financials in more detail. Thanks, Ned. Good morning, everyone. Revenues in the first quarter were $457.3 million, up $40.2 million or 9.6% year-over-year, with $23.9 million from acquisitions, including rollover, and $16.2 million from same-store growth, or 3.9%. Solid waste revenues were up 10% year-over-year, with price up 5.1% and volume down 2.5%. Within solid waste, price in the collection line of business was up 5.3% in the quarter, led by 6.5% price in roll-off and 6% price in front-load commercial. As a reminder, our reported price figure represents realized price net of rollbacks, not gross price increases, and is more comparable to what several of our peers report as yield. Collection volume was down 2.1%, with softer roll-off volumes in particular during a quarter of difficult weather. Price in the disposal line of business was up 4.7%, including 4.3% third-party price at the landfills. Landfill volumes overall were up 19,000 tons or 2.3% in the quarter, with internalized volume up 13,000 tons and third-party volume up 6,000 tons. The landfill business is strong coming out of the winter months, and we anticipate improved year-over-year third-party pricing in 2026 of 4%-5%, consistent with our guidance expectation for 5% price growth overall in the solid waste business. You'll note that we are providing additional detail in our press release starting this quarter to break out disposal price and volume between landfills and transfer stations. These metrics for transfer stations give visibility to disposal market trends generally across our footprint. Do not represent significant EBITDA contribution on a line of business basis in the same way that landfills do. Resource Solutions revenues were up 8% year-over-year, with recycling and other processing revenue down 2.7% impacted by lower commodity prices and national accounts up 20.7%. Within Resource Solutions processing operations, our average recycled commodity revenue per ton was down 22% year-over-year, though the market has stabilized, and we expect the negative year-over-year comparisons to moderate as we move through the year. Notwithstanding market pressures, our contract structures share this risk with our customers by adjusting tip fees in down markets. The net impact of lower commodity prices on our revenue was only about $1 million. Note that this full picture is not reflected in our processing price statistic because further offset is generated by our floating SRA fee, which shares risk with our collection customers at the curb and is passed back to the recycling facilities intercompany. Processing volume in revenue terms was up 6%. National accounts continues to grow nicely with volume growth of 11.2% and price of 4.4%. It's worth noting the contribution of national accounts to our overall collection business. As I mentioned, we reported a volume decline in third-party collection revenue in our solid waste business in the quarter, but this does not reflect the work that we do to service our national account sales with our own trucks, which is intercompany. Including this new business coming via national accounts, we would have added 1% to the collection volume statistic for the solid waste segment. We generated $3.6 million in additional revenue in the quarter from higher fees, including our floating fee programs for recycled commodity and fuel risk. As Ned mentioned, we successfully covered all of the increase in fuel costs in the quarter with minimal lag as diesel prices rose quickly. Adjusted EBITDA was $97.1 million in the quarter, up $10.7 million or 12.3% year-over-year, with $4.4 million of contribution from acquisitions, including rollover and over 7% organic growth. Adjusted EBITDA margin was 21.2% in the quarter, up approximately 50 basis points year-over-year overall. Bridging the year-over-year change in adjusted EBITDA margin, new acquisitions contributing at lower initial EBITDA margins than our overall business diluted margins by 15 basis points in the quarter. The base business, excluding new acquisitions completed in the past 12 months, expanded margins as on a same store basis by 65 basis points. Recall the privately held businesses that we acquire typically operate at lower margins, which can create short-term margin dilution. As we integrate these businesses, capture synergies, and apply our operating model, they become margin expansion opportunities over time, creating a regenerative benefit as we continue to execute on our acquisition strategy. Cost of operations were $308.9 million in the quarter, up $28.5 million year-over-year, with $17.2 million of the increase from acquisitions and $11.3 million in the base business, including $1.9 million from higher fuel costs, which we covered with our fuel recovery program. General and administrative costs were $58.1 million in the quarter, up $1.6 million year-over-year. As I said last quarter, 2026 will be a pivotal year as we lay the groundwork with better systems and process for becoming more efficient in our back office and generating better scale as we continue to grow, transitioning to lower G&A as a percentage of revenue beginning in 2027. Depreciation and amortization costs were up $6.5 million year-over-year, with $5 million resulting from acquisition activity in the past 12 months, including the amortization of acquired intangibles. Adjusted net income was $12.8 million in the quarter, or $0.20 per diluted share, up $0.6 million and $0.01 per share. GAAP net income was lower by $0.7 million in the quarter on higher acquisition expenses and additional costs associated with the organics facility closure in the quarter. Net cash provided by operating activities was $62.3 million in the quarter, up $12.1 million year-over-year, or 24%, driven by EBITDA growth. DSO was 34 days at March 31. Adjusted free cash flow was $30.7 million, up 5% year-over-year. Capital expenditures were $50 million, down five and a half. $5.5 million year-over-year, with $9.2 million of upfront investment in recent acquisitions. As of March 31, we had $1.16 billion of debt and $127 million of cash, with our consolidated net leverage ratio for purposes of our bank covenants at 2.29x. On a pro forma basis for the acquisitions closed on April 1, including Star Waste, our leverage ticked up to approximately 2.75x. We still have approximately $500 million in available liquidity, which will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline. As laid out in our press release yesterday, we updated financial guidance for 2026 to reflect acquisitions closed to date. We increased guidance for revenue to a range of $2.06 billion-$2.08 billion, an increase of $90 million. Adjusted EBITDA to a range of $473 million-$483 million, an increase of $18 million. Adjusted free cash flow to a range of $200 million-$210 million, an increase of $5 million. As a reminder, we completed the acquisition of Mountain State Waste on January 1st, and it was included in our original guidance for the full year. We completed three more acquisitions, including Star Waste, on April 1st, this guidance revision reflects approximately $120 million of new annualized revenue for nine months of the year. Guidance further assumes adjusted EBITDA margins of approximately 20% and adjusted free cash flow with a typical conversion from EBITDA, but reflecting the incremental impact on net interest costs as we finance the transactions entirely with cash on hand and borrowing on our revolver. We have not yet increased our guidance for the base business after the first quarter. We are well positioned relative to our internal plan and will reevaluate guidance in future quarters. With that, operator, would you please open the line for Q&A? Thank you. At this time, we'll conduct a question-and-answer session. As a reminder to ask a question you need to press star one one on your telephone and wait for your name to be announced. To withdraw your question please press star one one again. Please wait as we compile the Q&A roster. Our first question comes from the line of Adam Bubes of Goldman Sachs. Hi, good morning. Good morning. I think you spoke about. Good morning. I think you spoke about $30 million of cost reduction over three years between G&A and Mid-Atlantic synergies. I think that translates to something like 50 basis points of additional annual average margin expansion. I know there's always moving pieces and unanticipated bad guys, all else equal, should we be thinking about a period of outsized margin expansion over the next couple years? Hey, hey, Adam Bubes, it's Brad. Yeah, I think you should. We've always talked about over time, and as you said, there are puts and takes in any given quarter or year. Generally, we like to get 50 basis points of recurring margin expansion in the base business over time. You know, given the, I'll call it pent-up synergy opportunity in the Mid-Atlantic, that's been delayed by certain factors and the opportunities we see to start to get to the G&A line as a percentage of revenue in a way that the company hasn't really been able to before, we do see an above-trend margin improvement opportunity over the next two to three years. I think that's a fair assumption. Great. You recently remarked, I think, that the closure on Ontario could work out to be EBITDA neutral. Can you just talk about the moving pieces there? Presumably, the closure could result in lost external tons and maybe longer transportation distances, but I think there are some offsets. Can you just help us think through the different moving pieces? Yeah, sure. We'll work on additional information on this over the next several years. Right now, we plan to close the Ontario landfill on December 31st of 2028. As you're aware, we've been working on two important permit increases in New York for a number of years, going on five to six years now. The most important is Highland, where we're moving the tonnage up from 460,000 tons-1 million tons a year. Ontario does roughly 750,000 tons-800,000 tons a year of mainly MSW, but there are C&D volumes that go into the site. We will look, as Ontario is winding down, we will look to shift volumes that were historically going into Ontario to both Hakes and Highland, and more of them into Highland over that time period. What's really important to note here is Ontario is our most expensive airspace in the company to build and operate each year, and Hakes and Highland represent some of the least expensive to build and operate each year. We'll have a capital efficiency, we'll have operating efficiency, and as you can do the simple math, it doesn't track ton for ton, but as we look at it from an EBITDA standpoint, we should be pretty neutral during that period. On an operating income basis, we'll actually come out the other side with a benefit, and it'll improve both our operating income and net income as we close Ontario. Great. Last one from me. Can you just provide an update on where we are along the landfill gas program? I know you're not putting up dollars, but could still be a nice royalty stream. How are you thinking about the timing of the ramp there? Yeah. This has been an interesting journey. The first thing to note, I think everyone on the line knows this, but we should reinforce it, is that we chose many years ago to not develop and invest in RNG facilities ourselves. We've chosen partners through selection processes to develop these sites, and they've invested all of the capital to develop each of the sites and bring them online. We've had mixed results, frankly. It's taken far longer for these developers to develop the projects and come online successfully. It's frankly a bit of complexity as well. As you know, you know, managing the landfill and managing gas at the landfill appropriately within permit compliance doesn't always align with creating the best pipeline quality of gas. We have four projects online today. We have our project at Juniper Ridge, Maine, which is an Archaea BP project. We have our project at North Country, New Hampshire. It's a Veregy project. We have two new projects that came online in Q1, both with Waga, at our Shamong and Highland landfills. You know, they're all kind of in shakedown stage right now, and they're generating, you know, we expect this year several million dollars of EBITDA from overall the portfolio of these assets. There's a wide range of outcomes, and we'll be watching very closely over the next quarter or two quarters in getting additional information out to the street. The Waga projects in particular appear to be operating very well in these early shakedown stages. I think we're a little early to start calling, you know, the exact production levels of each of these. Great. Thanks so much. Just to give you a sense, like we're running 25,000 MMBtu a month at Shamong, Highland, North Country right now in the shakedown phase, just to give you a sense of scale. Thank you. One moment for our next question. Our next question comes from the line of Trevor Romeo of William Blair. Your line's now open. Hi, guys. Thank you for taking the questions here. I wanted to ask maybe one or two on Star Waste. you know, sounds like a good deal. I guess $100 million of revenue, how should we think about the current margin profile for that business? I think they had done something like eight acquisitions in the last four years themselves. you know, what are your thoughts on where they are from an operating efficiency perspective and how they've kind of integrated the deals that they had done? Yeah. Hey, Trevor. It's Brad. You know, our assumption for guidance purposes and external conversation is it's about 20% EBITDA margin. I mean, it's broadly consistent with other acquisitions that we've acquired. You know, I think like with most or all of our acquisitions, we're gonna seek to get those margins up materially over time. Given in particular where Star fits into our existing business in the greater Boston area, growth opportunities that unlocks for us, particularly on the south side of Boston, we're actually really bullish on the opportunity to improve that business within the Casella footprint over time. On your integration point, the entrepreneur who founded Star, Patsy Sperduto, really did things the right way. He had a great team. They invested heavily in systems and process, and they were integrating these small tuck-ins as they went along. We bought, you know, a great company that's operating extremely well, has a strong management team, as I said, is a nice platform for growth into the future. This is not a fix-it one. Sometimes you buy companies that we spend quite a bit of time working on fixing things and having to overinvest to get them to a certain standard. This is backed by a great PE firm, Clairvest, that, you know, is putting some excellent capital into it. As an example, they had just completed, a great retrofit to their construction demo processing facility, transfer station and processing facility, and had state-of-the-art technology in the facility. We're buying something that's a very nice platform and integrates well with our businesses. Yeah. You mentioned recent acquisitions that the company has made. Something that's somewhat unique with this acquisition is, they have some potential future acquisitions in their pipeline that will fold into our efforts going forward. That's interesting. Okay. Maybe just a quick follow-up on Star again. I think you mentioned, I think the transfer station coming on and the key and it could take volumes from Massachusetts now. Just in terms of kind of the disposal and maybe internalization opportunities with this deal, anything there or just maybe anything broadly on the synergy opportunities you could point out? Yeah. In this first phase, we're looking at it as more of how do our trucks, Casella's trucks pre-acquisition route to their transfer station, can we take advantage of that from a route synergy standpoint? Initially, the materials from that transfer station will continue to go to third-party sites. They have, you know, attractive contracts with several third-party disposal sites. We'll look at that long term to see if there's a internalization opportunity. That's not one of the first phases of synergy. If we're able to advance permits in New Hampshire over the next several years and develop additional landfill capacity in New Hampshire, there would be very strong vertical integration there. Yep. Okay, great. If you don't mind maybe one more quick one, just on the national accounts business, 'cause I think, you know, obviously very strong growth there. I, you know, I think that business has a sort of a margin mix impact. If you think about that growing, call it double the rate of the company, you know, maybe you could just remind us kind of the incremental margins on that business and whether that makes, you know, the 65 basis points of kind of base business margin you're talking about, maybe look even better on an underlying basis. Yeah. It's a good question. We love that business. Obviously, you know, as you alluded to, the growth profile, it's very little capital investment. It helps to drive business back across our solid waste segment to the extent that there are customers that are coming in through the national account sales effort that, you know, are serviced ultimately by our own trucks. That's the kind of work that we love. You know, really the solutions-based sales effort, you know, aligns really well with Casella and our strengths and our focus areas. It's a great business. The only footnote, I guess, from a financial standpoint is low margin because it's low capital and the nature of the business. On an EBITDA margin basis, it's mid-single digits, mid-upper single digits EBITDA margin. If you were to pull national accounts out, you know, that would be accretive to our EBITDA margin. Obviously, there are many other factors that lead us to think this is a great business that we wanna push forward. Right. Okay. Thank you very much, guys. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Tyler Brown of Raymond James. Your line is now open. Hey, good morning, guys. Morning. Morning. Hey, I wanna come back to the 4.3% landfill price number. I think that number last quarter was 2.5%, so that's a really nice acceleration. Can you kinda talk about what drove that acceleration? Was the issue more about last quarter being a bit low, or was it a more concerted effort this quarter? Just any color on that metric specifically. Yeah. We're working hard to get more process and discipline around our sales efforts up and down the company, you know, great new hire in Chris Rains. About a year and a half ago, our longtime lead of landfill sales stepped away. That responsibility was kind of absorbed across a couple other places. We frankly didn't have enough management of pipeline, quality of revenue and what we're doing. We rebuilt that through 2025, and we're working to further advance it now under Chris's leadership. I think it's one part like we didn't get the job done as well as we could have gotten it done. Two, you know, frankly, for a little bit there's a one rail move that was ramping up out of New Jersey that was putting a little downwards pressure on the overall northeastern environment. That rail move is full now. It's a third-party company that's moving waste out of New Jersey out to Ohio. They, they really don't have a lot of excess capacity in that system, so they never directly took one of our customers, but generally probably a little bit of pressure on the overall environment as well. Okay. Okay, that's helpful. Quickly on Star. Just to be clear, they are not in, or at least not materially in heavily flow-controlled markets tied to the Massachusetts burner, so internalization could be an opportunity long term? Just want to understand that. Yeah. There is no flow control in those markets, but as with any major metropolitan market, traffic matters, and the positioning of assets matter. As Brad said earlier, we're really strong today, Boston North to the west. Star is very strong to the south from the positioning of their hauling businesses, and it really gives us the opportunity to grow in those markets. We've had the strongest organic collection growth over the last decade in the greater Boston market. You kinda think about this, you know, from our sustainability, our resource solutions approach, the integration with our state-of-the-art recycling facility in that market. We've sold a lot of really premier customers, and we've grown share of wallet, and we think we can kind of expand upon the success Star has had in a similar way over the next coming years. Okay, great. Brad, to help us on Q2 margins. I know that there's a normal step-up because it kinda unthaws, if you will, up in the Northeast. Revenue kind of takes a step up sequentially, you've got acquisitions that are dilutive by nature. Fuel is dilutive by nature. Can you just give us any color on how we should think about margins, either sequentially or year-over-year, just to kind of get us in the right spot? Yeah. As you pointed out, sequentially, margins are much better in the second quarter and then advancing into the third quarter, in our business, particularly given our geography. On a year-over-year basis, I mean, you really mentioned the two main factors that we'll be dealing with this second quarter, which is fuel surcharges. I mean, we'll see where fuel goes over the second quarter, higher fuel costs that are covered by our recovery fees, are of course margin dilutive and the acquisitions. We'll see how the acquisitions impact things. You know, another point I would make on the base business, just thinking about your modeling quarter-over-quarter, is the synergies in the Mid-Atlantic, and also actually the G&A savings that Ned had mentioned earlier, those will be more back-end loaded. We'll start to see as we've completed the consolidation of the Mid-Atlantic onto our system, we're gonna start to see those benefits in the second quarter of the synergy realization, but that's really a Q3 and Q4 story more so. The convenience fees that Ned mentioned are entirely back-end loaded. You know, Q2, we'll see, we'll see where we end up. You know, there are some headwinds, as you mentioned. You know, our focus is really on, frankly, the third quarter and the fourth quarter for this year and then, you know, of course, going into 2027. Right. If your kind of updated guidance is flattish on the margin line with the dilution, is it crazy to think it could be slightly down in Q2 on a year-over-year basis up sequentially, though? It's a really good question. That's not crazy to think that way. Okay. Okay. To be clear, the base business will be even deposited. Acquisitions could weigh on it slightly negative. You know, we weren't able to get fully under the hood on Star since it was a DOJ process on the customers, the routes, all of those things until really day one, Tyler. We're digging in now and really looking at the progression of what we can do there. As we've said, you know, probably little more overhang on margins of 20-ish% to start with, and we'll look to improve from there. Yeah. Okay. I just wanna make sure I had that. Just last one, if I can, Ned. This is a bit of a periphery question, but I'm kinda curious about it. I think in Massachusetts, there are a couple of larger, sorry, ash landfills that are set to close in coming years that are kind of related to some of the burners. How do you think that's gonna play? What do you think and how will they deal with that excess ash? Yeah, it needs to go somewhere, and it needs to go to Subtitle D landfill. That will take up capacity in the marketplace and something that really hasn't been discussed. I can't get into a lot of details there, but we believe there's some real value working with some of our peers across the waste to energy business on certain of those streams and it's an area that we've been actively engaged, and we think there's some value creation over time, and hopefully we'll have more to report. But it's a great point. I think the easiest part of the point is those landfills are closing or filling up, and that ash, the further you move it, the more expensive it gets. We've got some great in-market solutions. Our McKean rail facility actually fits very well- Right. ...with some of, the burn plants as well. Tyler, you mentioned Massachusetts landfills, but there's, as a reminder, there's also a lot of ash that goes into the Brookhaven Landfill on Long Island, which- Mm. ... is going to be closing to ash over the next few years. Yeah, that's as much as 400,000 tons a year that goes into that landfill today. The Brookhaven Landfill, you know, that caused a little upheaval when it was closing from a C&D standpoint, but it's still open for ash through the next- Ah. ... two years. Okay ... it will be closed at that point in time. Still, you know, we talk about this sometimes, this ebbs and flows. As we look out over the next 10 years, there's still a lot of disposals coming offline in the Northeast, as you pointed out, some of these sites are just taking ash. At any point in time, you could go through a year period of time where you have a little bit more capacity like we did in 2025 of rail, then that fills up, people look to the next phase of sites closing. I think the long-term horizon is still the same as we've been talking about for years. There's a supply-demand imbalance in these markets, our in-market capacity is very valuable and will continue to have pricing power. Yeah. Yeah. Super interesting. Okay. Thank you, guys. Thank you. Thank you. One moment for our next question. Our next question comes from the line of James Schumm of TD Cowen. Line is now open. That's actually my question is I wanted you guys to address a little bit more the supply-demand situation in the Northeast, because I think a lot of investors are solely focused on rail or hearing rail is moving waste out. Maybe you look at some of the landfill pricing recently, which is sub 5%, which maybe is not that impressive to some folks. There's a concern that, you know, that landfill pricing is going to be depressed longer term. You know, I just wanted to get your views. You know, you've talked about a couple of moving parts, but, like, what is your longer term view on, you know, your Northeast landfill pricing? You know, from time to time, you are gonna see these rail projects move waste out. You know, when you guys look at the closures, what does that mean for pricing, you know, in 2027, 2028, 2029? You know, is it more mid-single digits? Can you get upper single digits at some point? Or, like, how are you guys thinking about that? Yeah. Thanks for the question. If we look at the last decade plus, you know, pricing at the landfills has generally been mid-single digits, and it's ranged from a couple of lows for us in 2025 to highs as much as 8% or 9% during that time period. It really depends. I mean, you need to look at the book of business. You know, some of our outsized years also have a relationship with big, large contracts that might be renewing in those periods, and there might be step-ups in those contracts. Say you have a five year contract, and the market continues to tighten over the five years, you might get some of those outsized pricing years around those resets. Generally, we're kind of stacking up to that mid-single digits, and I think we feel really confident that if we can price at those levels, we'll have a great economic outcome and returns for shareholders. I said it to Tyler a minute ago, and I feel the same way. If you look at all the sites that we'll be closing over the next decade, there's not enough space for all of this waste in the marketplace. You start to look at what are the alternatives. The, you know, the best alternatives are in market, right? Where you can use a truck, move the waste via long-haul truck to a landfill or to a waste-to-energy plant. The more expensive solution, both capital and operating costs, is to move it via rail. It's far more expensive, but it's the only viable option as in-market capacity comes out. We see that as a tailwind for us over the next number of years as well. Sites will be closing. We've got a great outlook on capacity. We have over 25 years at our sites today. We've got some important expansions in progress that are working well, and we expect to land those in the next year. We look at the backdrop, which should be positive over the next decade. Okay, great. Then I just wanted to ask you know, another, you know, question I get from investors a lot is you have this network of landfills in the Northeast, and then you make this platform acquisition into the Mid-Atlantic, and then you're growing west or southeast from there. You don't really have any landfills in this area. You know, you kind of have McKean in Pennsylvania. How should people think about your collection margins? What is the, sort of the ultimate goal? I mean, can you earn 30% margins without a landfill in Mid-Atlantic geography? Is it more like, should we be thinking more like 25%? I know that you guys have said it's closer to 20% right now. Let's think about 25%, I think, over the next couple of years. Longer term, is there upside to that 25% number? Yeah. One of the things that's important to note is we use market-based pricing at all of our landfills, our recycling facilities, our transfer stations, so we charge ourselves market-based rates. If you look at our collection business, say, in the Northeast, where it's vertically integrated, the margins produced by that collection business are apples to apples to the Mid-Atlantic, 'cause we're charging intercompany market-based rates. We generally generate about 30% EBITDA margins on our collection line of business. In the Mid-Atlantic today, our margins are roughly 20%. This is not because we don't have landfills. This is because we have work to do. This is a business that, you know, the quality of the truck fleet was lacking. There wasn't enough density in certain parts, quality of revenue. We've got strategies around each of these points, and we've laid out a plan for the next three years as we put more automated trucks in the fleet collapse routes to add about $15 million of EBITDA to that market, which will translate to, you know, mid-20% margins. You know, having landfills is a great thing and having the vertical integration, but what also is important is having the right transfer assets so you can get your trucks off the road, consolidate waste, and then be able to look to multiple disposal options. Much of our focus right now in the Mid-Atlantic is either on buying or developing the right transfer assets in that marketplace that will allow us to successfully continue to grow. We've had some great progress here. We bought an excellent transfer station, last year in the third quarter. We're working on some additional opportunities. We have a new recycling facility we just bought on April 1st. We're working on developing another recycling facility ourselves. You'll look to see that margin progression come up, and we do look at over time as apples to apples and, you know, we'll be able to have a trajectory, hopefully over the number of years, to get to the same 30% margin level. I would just add on to that is, I mean, not every market is created equal, of course, from a disposal perspective. Having the security of disposal capacity in our markets in New England, let's say upstate New York, is incredibly strategically valuable. You contrast that with the Mid-Atlantic, Eastern Pennsylvania would be a great example, there's plenty of landfill capacity down there. You know, we like the landfill business. It would help margins. We wouldn't turn down the opportunity to own landfill there, but it's not a strategic imperative. I think the focus, as Ned said, the focus down there is really gonna be building out our transfer station network so that we can most efficiently access the disposal sites that are down there. Okay, great. Thanks for all the color, guys. Appreciate it. Thank you. Thank you. One moment for our next question. Our next question is Tami Zakaria of JPMorgan. Your line is now open. Hi. Good morning. Congrats on the nice results. Hi. Hi, how are you? We've seen the CPI tick up lately, so can you remind us how any acceleration in the headline CPI impacts your pricing maybe on the entire parts of the portfolio, and is there a typical lag? Yeah. Hey, Tami, it's Brad. It does impact our pricing on some of our business, most notably municipal contracts, you know, where there's that direct relationship between the contract pricing and underlying inflation index. You know, as a reminder, 70%-75% of our collection business is open market, meaning we just have service agreements directly with customers where pricing is wherever we wanna set it and whatever the market will bear and whatever is appropriate given our underlying cost inflation. You know, I would say directionally it impacts us, but actually not necessarily directly because, you know, we have total flexibility to react to the circumstances. I think higher CPI prints, you know, in a certain way do allow maybe a bit more pricing spread. You know, as Brad said, 70%-75% of our book of business we can price at will, and we've shown that amazing flexibility over time. Last year, we talked about this. We saw our price cost spread narrow more than we wanted to in the first half of the year, and we came out on a select group of customers with a second set of price increases in the last half of the year. And we, you know, we thought that was the important thing to do to get that spread back to where we believe it should be. We're trying to be really dynamic, but of course, the CPI print is something we're always looking at, but we're also looking at our own cost profile and where we need to be. That is good to know. Thank you. I'll pass it on. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Shlomo Rosenbaum of Stifel. Your line is now open. Hi. Good morning. Thank you very much for taking my questions. Hey, Ned, it was just echoing that it was really good to see that third-party landfill pricing stepping back up. You talked about two factors, one of your own, just putting in more effort and ensuring appropriate pricing and getting good business, and the other one was rail. Just in terms of the impact over the last few quarters and then the turnaround, would you say that it was more a matter of turning around because the rail, you know, the competitor just kind of filled up already over there? The other aspect I want to just dig a little bit into is, do you have a sense in terms of the comparison between the rail pricing and what you're getting at your own kinda transfer stations and tipping at the landfills? Just, you know, at what point would it make more sense for someone else to add a lot more capital and just go ahead and add more capacity to rail? I guess what I'm trying to just get at is to understand, you know, the risk of something just popping up again, or is it, you know, something that is unlikely because, you know, the amount of capital would be very expensive and right now given, you know, the comparability cost is not worth it. Yeah. Great questions. So I'll start off with your first question around the pricing in the quarter and the pricing trajectory at our landfills. As I mentioned earlier, I think it was one part kind of pipeline management and quality of revenue we're seeking and managing the customer base, and one part, you know, looking at a certain rail move that was ramping up out of New Jersey over the last several years that they gave some negative pricing pressure to the overall marketplace. There's only a few landfills that accept rail waste from the Northeast or just rail waste in general. A few of them have some excess capacity, but they're very expensive to get to, and they take a long time and a lot of rail exchanges. A few of them are a bit closer to the market and more reasonably costed. If we look at both sides of the equation, one, the capacity to actually move more rail cars each day out of certain transfer stations, and two, the actual capacity at these landfills against their daily permits. You're seeing both sides of that have constraint today. The last factor, and we heard about one of our competitors talk about this on their earnings call last week. You know, generally, I would say the major companies who have rail served landfills, including Casella, we're not looking at these as merchant sites where we're looking to get the lowest cost waste. We're looking at these as long-term defensive strategies to take care of our own customers. We talked, we heard this one company talk about how the vast majority of their rail move was really tied to their own tons in New York state, in New York City, and looking to gain certainty there of costs and certainty of disposal. Casella looks at it through the same lens, and I know others do as well, where this isn't a merchant play to, you know, seek the bottom of the market. This is very capital-intensive, very costly to move the material. Coming back to your point, you know, this one competitor is ramping up capacity. They're at capacity today on the transfer side, forming the trains, and they're generally at capacity at the landfill site. You know, they're gonna look to returns and pricing quality. You know, they don't have room for a lot more tons. Yeah, I think through periods like this, what we do is we look at returns at our sites, and we're laser-focused on taking the right materials in at the right price and long-term return profiles because the scarcity is real, and you can't replicate many of these assets. Okay, great. I just want to, a little bit more tactically, in the quarter, you know, you drove that margin, EBITDA margin outperformance, and even though in the beginning of the year, you were talking about there being more margin expansion in the second half of the year and really drove, you know, pretty good margin expansion this quarter. I was wondering, what went better than expected just from an operational perspective? Like, what really surprised you or where were you able to really execute better than you thought you would? One example of where we did a little bit better than we expected and better year-over-year was on the maintenance side. You know, in the Mid-Atlantic, we're, as Ned was talking about, we're just on the cusp of completing our system integration and really being able- Next week, Brad. Next week. Next week. There you go. Next week. You know, to be in a position to execute on our synergy plan. We've also, as we've been working on that, we've received delivery of a large number of trucks into that market. The ongoing maintenance costs, equipment rental for us to keep trucks on the road, to keep customer service, we no longer have a need for those. You know, that's just one example, not necessarily the whole story, but that's been a nice tailwind for us. Okay. Thanks. If I could just squeeze one more in. Would you mind just going over, you know, the volumes in terms of year-over-year growth along the various lines that are kind of cyclical? The special waste to C&D, the temporary pulls, just things that people are looking at to see, you know, where things are going cyclically. Yeah. on the, you know, first off, on the collection side, the portion of our collection business that is most cyclically impacted is the roll-off business. The roll-off was down a little over 3% year-over-year. That's something that we look at and point to for, you know, where the economy might be impacting us. In our case, I think it was probably more weather than it was economy. You know, that's an area we look at. At the landfills, you know, we saw MSW stronger, we saw C&D stronger. C&D would be a potentially economically cyclical volume stream. One area where we did see relative weakness year-over-year, which impacted us on mix, was special waste volumes. Again, that's another area where we don't have perfect knowledge on whether that's weather, whether that's uncertainty given the fact that we're at war, and projects not moving forward. Hard to know exactly, but that's another area where we may have seen it. Yeah. You know, in a particularly cold winter, though, many of those jobs, whether they be infrastructure jobs or the start of major construction projects where you're digging out contaminated soils or even just industrial jobs where you're dredging out industrial lagoons and things like that, like, they're just not happening at the same pace in the winter. You know, not to blame the weather, but when it gets really cold, you're just not doing that work. Got it. Okay, thank you. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Harold Lanto of Jefferies. Your line is now open. Good morning, guys. This is Harold on for Steph Moore. Just one for me. I guess just on the pricing front, you know, I think you did 5.1% in the quarter, the guidance at around 5%. I guess, typically, 1Q is a high-water mark. I guess, will we expect, you know, I guess this implies kind of consistent pricing at these levels for the rest of the year. I guess, you know, what's kind of driving that? Do you expect second half pricing to ramp just given improvement in the Mid-Atlantic? Anything, Dan, I guess just on, could you remind us how trends performed in the quarter. I think, you know, the industry has been seeing, you know, better trend metrics in the quarter. Just wanted to get a sense for, you know, the turnaround for you guys and how that, if you're making any investments on the tech side that's improving that. Thank you. Hey, Harold, it's Brad. We feel pretty good about the trend of pricing as we look forward to the end of the year. I guess a couple points to highlight. One, really this is a function of the price number that we report. You know, we're not reporting the price increases that we go out with and then see that number erode as prices are rolled back over the course of the year. I mean, that's a net number of rollbacks, it's not one that, all else being equal, should deteriorate over the course of the year. The other important point I think for us right now is the Mid-Atlantic. Given where we are with systems consolidation, we've had very limited ability to assess pricing across the customer base, assess profitability, and implement our pricing programs with the intelligence and specificity that we do in the rest of our business. You know, we would expect that to, you know, be a consistent tailwind over the course of the second half of this year and into next year on pricing. As far as technology, and Ned hinted at this at his in his prepared remarks, we're actually on the cusp of rolling out an app, and really a different way of accessing the customer and meeting the customer where they wanna do business, where they can pick up an app and sign up for service rather than picking up the phone. Yeah. In our digital customer engagement, e-commerce activities are right now across about 60% of our markets, will be across 100% in the third quarter. This is actually our fastest growing sales channel, as you can imagine, and we're rejiggering our back office, our sales alignment to support this growth as well. Thank you. One moment for our next question. Our next question comes to the line of William Grippin of Barclays. Your line is now open. Great. I appreciate you squeezing me in and thanks for the opportunity. Just one quick one here. You know, given the Star Waste acquisition on April 1st, and that was kind of a chunkier deal, could you just elaborate a little bit on how you're thinking about maybe balancing leverage versus, you know, further tuck-in M&A over the balance of the year, and just your capacity to do that following Star Waste? Thank you. Yeah. I mentioned in the prepared remarks that pro forma for Star and the other two acquisitions that we closed on April 1st, were at about 2.75x leverage. That has room to grow. You know, we don't aspire to be highly levered. I think a key tenet of our capital allocation strategy and capital strategy generally has been to maintain moderate leverage to stay nimble and for risk management purposes. That all being said, at 2.75x, you know, we do have capacity to move that a bit higher. For immediate, quickly emerging opportunities, we have about $500 million of available liquidity. You know, we're not done. You know, we're looking at a lot of attractive opportunities. Our pipeline is healthy. We'll see what we can cross over the course of the year. All right. Thank you very much. Thank you. Thank you. I'm showing no further questions at this time. I'll now turn it back to Ned Coletta for closing remarks. Thank you everyone for joining us today. We look forward to speaking with you again in early August to discuss our second quarter results. Everyone have a wonderful day and weekend. Thank you. Thank you for your participation in today's conference. This just concludes the program. You may now disconnect.

Speaker 7: Good day, and thank you for standing by. Welcome to the Casella Waste Systems, Inc first quarter 2026 conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I'll now hand the conference over to your first speaker today, Jason Mead, Senior Vice President of Finance and Treasurer. Please go ahead. Good day, and thank you for standing by. good day and thank you for standing by Welcome to the Casella Waste Systems, Inc first quarter 2026 conference call. welcome to the casella waste systems inc first quarter 2026 conference call At this time, all participants are in listen only mode. at this time all participants are in listen only mode After the speaker's presentation, there'll be a question- and- answer session. after the speaker's presentation there'll be a question- and- answer session To ask a question during the session, you'll need to press star one one on your telephone. to ask a question during the session you'll need to press star one one on your telephone You will then hear an automated message advising your hand is raised. you will then hear an automated message advising your hand is raised To withdraw your question, please press star one one again. to withdraw your question please press star one one again Please be advised that today's conference is being recorded. please be advised that today's conference is being recorded I'll now hand the conference over to your first speaker today, Jason Mead, Senior Vice President of Finance and Treasurer. i'll now hand the conference over to your first speaker today jason mead senior vice president of finance and treasurer Please go ahead. please go ahead

Speaker 5: Good morning, and thank you for joining us on the call. Today, we'll be discussing our first quarter 2026 results, which were released yesterday afternoon. This morning, I'm joined by Ned Coletta, President and Chief Executive Officer of Casella Waste Systems, and Brad Helgeson, our Chief Financial Officer. After a review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. Good morning, and thank you for joining us on the call. good morning and thank you for joining us on the call Today, we'll be discussing our first quarter 2026 results, which were released yesterday afternoon. today we'll be discussing our first quarter 2026 results which were released yesterday afternoon This morning, I'm joined by Ned Coletta, President and Chief Executive Officer of Casella Waste Systems, and Brad Helgeson, our Chief Financial Officer. this morning i'm joined by ned coletta president and chief executive officer of casella waste systems and brad helgeson our chief financial officer After a review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. after a review of these results and an update on the company's activities and business environment we'll be happy to take your questions First, please note that various remarks we make about the company's future expectations, plans and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent Form 10-K, which is on file with the SEC. First, please note that various remarks we make about the company's future expectations, plans and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. first please note that various remarks we make about the company's future expectations plans and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under the private securities litigation reform act of 1995 Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent Form 10-K, which is on file with the SEC. actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including those discussed in the risk factors section of our most recent form 10-k which is on file with the sec In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views on any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views on any subsequent date. in addition any forward-looking statements represent our views only as of today and should not be relied upon as representing our views on any subsequent date While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change. while we may elect to update forward-looking statements at some point in the future we specifically disclaim any obligation to do so even if our views change These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, May 1st, 2026. During the call, we'll be referring to non-GAAP financial measures. These non-GAAP measures are prepared in accordance with generally accepted accounting principles. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures to the extent they are available without unreasonable effort, are included in our press release filed on Form 8-K with the SEC. With that, I'll now turn it over to Ned to begin today's discussion. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, May 1st, 2026. these forward-looking statements should not be relied upon as representing our views as of any date subsequent to today may 1st 2026 During the call, we'll be referring to non-GAAP financial measures. during the call we'll be referring to non-gaap financial measures These non-GAAP measures are prepared in accordance with generally accepted accounting principles. these non-gaap measures are prepared in accordance with generally accepted accounting principles Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures to the extent they are available without unreasonable effort, are included in our press release filed on Form 8-K with the SEC. reconciliations of the non-gaap financial measures to the most directly comparable gaap measures to the extent they are available without unreasonable effort are included in our press release filed on form 8-k with the sec With that, I'll now turn it over to Ned to begin today's discussion. with that i'll now turn it over to ned to begin today's discussion

Speaker 6: Good morning. Thank you, everyone, for joining us today. We are very pleased with our performance in the first quarter and the strong start it provides for 2026. Our team executed well across the business, delivering solid financial results and margin expansion that exceeded our budget while also advancing our strategic priorities. Good morning. good morning Thank you, everyone, for joining us today. thank you everyone for joining us today We are very pleased with our performance in the first quarter and the strong start it provides for 2026. we are very pleased with our performance in the first quarter and the strong start it provides for 2026 Our team executed well across the business, delivering solid financial results and margin expansion that exceeded our budget while also advancing our strategic priorities. our team executed well across the business delivering solid financial results and margin expansion that exceeded our budget while also advancing our strategic priorities We combined disciplined positive pricing, steady core operations and meaningful acquisition activity to position the business for a strong year. Importantly, the momentum we are seeing is broad-based. It reflects the consistency of our operating model and the continued focus of our teams on execution, safety and customer service. Revenues for the quarter were $457.3 million, or up 9.6% year-over-year. We combined disciplined positive pricing, steady core operations and meaningful acquisition activity to position the business for a strong year. we combined disciplined positive pricing steady core operations and meaningful acquisition activity to position the business for a strong year Importantly, the momentum we are seeing is broad-based. importantly the momentum we are seeing is broad-based It reflects the consistency of our operating model and the continued focus of our teams on execution, safety and customer service. it reflects the consistency of our operating model and the continued focus of our teams on execution safety and customer service Revenues for the quarter were $457.3 million, or up 9.6% year-over-year. revenues for the quarter were $457.3 million or up 9.6% year-over-year Growth was driven by contributions from acquisitions and the base business, with strong pricing across our collection and disposal lines and continued strength in our resource solutions segment, particularly in national accounts. Pricing continues to perform well and remains a core driver of our results. Solid waste pricing was up 5.1% overall, including 5.3% in the collection line of business and 4.7% in disposal. Growth was driven by contributions from acquisitions and the base business, with strong pricing across our collection and disposal lines and continued strength in our resource solutions segment, particularly in national accounts. growth was driven by contributions from acquisitions and the base business with strong pricing across our collection and disposal lines and continued strength in our resource solutions segment particularly in national accounts Pricing continues to perform well and remains a core driver of our results. pricing continues to perform well and remains a core driver of our results Solid waste pricing was up 5.1% overall, including 5.3% in the collection line of business and 4.7% in disposal. solid waste pricing was up 5.1% overall including 5.3% in the collection line of business and 4.7% in disposal From a volume perspective, the quarter played out largely as we expected, with slightly negative volumes mainly due to the challenging winter weather across our footprint. Despite these headwinds, total landfill tons were up year-over-year, including increases in both MSW and C&D volumes, with C&D volumes actually up 13% year-over-year at the landfills. From a volume perspective, the quarter played out largely as we expected, with slightly negative volumes mainly due to the challenging winter weather across our footprint. from a volume perspective the quarter played out largely as we expected with slightly negative volumes mainly due to the challenging winter weather across our footprint Despite these headwinds, total landfill tons were up year-over-year, including increases in both MSW and C&D volumes, with C&D volumes actually up 13% year-over-year at the landfills. despite these headwinds total landfill tons were up year-over-year including increases in both msw and c&d volumes with c&d volumes actually up 13% year-over-year at the landfills These results reflect the strength of our sales pipeline, all of our internalization efforts over the last year and a half, and our unique landfill asset positioning in the Northeast. Further, we are well-positioned for the seasonal upswing in volumes that we see in the spring, and we've seen positive trends through April. On the cost side, our fuel recovery program worked effectively in the quarter, with floating fees fully offsetting the increase in fuel costs across our business. These results reflect the strength of our sales pipeline, all of our internalization efforts over the last year and a half, and our unique landfill asset positioning in the Northeast. these results reflect the strength of our sales pipeline all of our internalization efforts over the last year and a half and our unique landfill asset positioning in the northeast Further, we are well-positioned for the seasonal upswing in volumes that we see in the spring, and we've seen positive trends through April. further we are well-positioned for the seasonal upswing in volumes that we see in the spring and we've seen positive trends through april On the cost side, our fuel recovery program worked effectively in the quarter, with floating fees fully offsetting the increase in fuel costs across our business. on the cost side our fuel recovery program worked effectively in the quarter with floating fees fully offsetting the increase in fuel costs across our business This continues to be an important component of our ability to manage risk and produce stable and predictable operating results. As we've emphasized, our focus remains on disciplined execution at the offering level. Our teams continue to make progress on route optimization, fleet efficiency and automation, and we're seeing those efforts translate into our results. This continues to be an important component of our ability to manage risk and produce stable and predictable operating results. this continues to be an important component of our ability to manage risk and produce stable and predictable operating results As we've emphasized, our focus remains on disciplined execution at the offering level. as we've emphasized our focus remains on disciplined execution at the offering level Our teams continue to make progress on route optimization, fleet efficiency and automation, and we're seeing those efforts translate into our results. our teams continue to make progress on route optimization fleet efficiency and automation and we're seeing those efforts translate into our results Adjusted EBITDA increased 12.3% year-over-year, and we delivered 50 basis points of margin expansion in the quarter. Safety is our first priority in our operations every day, and we continue to invest in safety initiatives, including the expansion of our triage programs to minimize the cost associated with workers' compensation claims and the implementation of the Lytx in-cab AI technology across our entire fleet in 2026. Adjusted EBITDA increased 12.3% year-over-year, and we delivered 50 basis points of margin expansion in the quarter. adjusted ebitda increased 12.3% year-over-year and we delivered 50 basis points of margin expansion in the quarter Safety is our first priority in our operations every day, and we continue to invest in safety initiatives, including the expansion of our triage programs to minimize the cost associated with workers' compensation claims and the implementation of the Lytx in-cab AI technology across our entire fleet in 2026. safety is our first priority in our operations every day and we continue to invest in safety initiatives including the expansion of our triage programs to minimize the cost associated with workers' compensation claims and the implementation of the lytx in-cab ai technology across our entire fleet in 2026 The Lytx system is helping our drivers with real-time coaching to reduce unsafe behaviors. This leads to lower incidents and strengthens our overall safety culture. These efforts have resulted in better safety performance with our key OSHA metric TRIR improving by 20% year-over-year. We have also attracted several excellent new leaders to Casella over the last several months, including Chris Rains as our new Chief Revenue Officer joining in March. The Lytx system is helping our drivers with real-time coaching to reduce unsafe behaviors. the lytx system is helping our drivers with real-time coaching to reduce unsafe behaviors This leads to lower incidents and strengthens our overall safety culture. this leads to lower incidents and strengthens our overall safety culture These efforts have resulted in better safety performance with our key OSHA metric TRIR improving by 20% year-over-year. these efforts have resulted in better safety performance with our key osha metric trir improving by 20% year-over-year We have also attracted several excellent new leaders to Casella over the last several months, including Chris Rains as our new Chief Revenue Officer joining in March. we have also attracted several excellent new leaders to casella over the last several months including chris rains as our new chief revenue officer joining in march We're excited to have these accomplished executives join our team, adding key skills to our already strong leadership team. In the Mid-Atlantic, we've made significant progress on our integration efforts. We've migrated nearly all customers to our new Lead-to-Cash system and integrated customer payment portal. We're excited to have these accomplished executives join our team, adding key skills to our already strong leadership team. we're excited to have these accomplished executives join our team adding key skills to our already strong leadership team In the Mid-Atlantic, we've made significant progress on our integration efforts. in the mid-atlantic we've made significant progress on our integration efforts We've migrated nearly all customers to our new Lead-to-Cash system and integrated customer payment portal. we've migrated nearly all customers to our new lead-to-cash system and integrated customer payment portal We are on track to complete the remaining migration by the end of next week. This is an important milestone as it allows us to shift our focus from systems migration to the exciting work of recognizing operational synergies through route consolidations, automations, and facility consolidations. As guided, we're on track to cut $5 million of operating costs in 2026 and another $10 million over the next two years. From a technology and efficiency standpoint, we continue to make steady progress. We are on track to complete the remaining migration by the end of next week. we are on track to complete the remaining migration by the end of next week This is an important milestone as it allows us to shift our focus from systems migration to the exciting work of recognizing operational synergies through route consolidations, automations, and facility consolidations. this is an important milestone as it allows us to shift our focus from systems migration to the exciting work of recognizing operational synergies through route consolidations automations and facility consolidations As guided, we're on track to cut $5 million of operating costs in 2026 and another $10 million over the next two years. as guided we're on track to cut $5 million of operating costs in 2026 and another $10 million over the next two years From a technology and efficiency standpoint, we continue to make steady progress. from a technology and efficiency standpoint we continue to make steady progress On the customer side, we've been investing in key platforms to improve customer experience, including the launch of our new payment portal last month and the planned rollout of the new Casella app in the second quarter. We also continue to develop our e-commerce capabilities. These efforts are focused on improving the customer experience while also yielding cost efficiencies. On the customer side, we've been investing in key platforms to improve customer experience, including the launch of our new payment portal last month and the planned rollout of the new Casella app in the second quarter. on the customer side we've been investing in key platforms to improve customer experience including the launch of our new payment portal last month and the planned rollout of the new casella app in the second quarter We also continue to develop our e-commerce capabilities. we also continue to develop our e-commerce capabilities These efforts are focused on improving the customer experience while also yielding cost efficiencies. these efforts are focused on improving the customer experience while also yielding cost efficiencies At the same time, we remain focused on reducing G&A costs, and we are on track with our previously announced $15 million in targeted G&A savings over the next three years. As mentioned last quarter, these savings will come in three phases, with the first phase yielding in the second half of 2026 as we implement credit card convenience fees. The second phase will come in 2027 as we eliminate redundant systems costs. At the same time, we remain focused on reducing G&A costs, and we are on track with our previously announced $15 million in targeted G&A savings over the next three years. at the same time we remain focused on reducing g&a costs and we are on track with our previously announced $15 million in targeted g&a savings over the next three years As mentioned last quarter, these savings will come in three phases, with the first phase yielding in the second half of 2026 as we implement credit card convenience fees. as mentioned last quarter these savings will come in three phases with the first phase yielding in the second half of 2026 as we implement credit card convenience fees The second phase will come in 2027 as we eliminate redundant systems costs. the second phase will come in 2027 as we eliminate redundant systems costs The last phase will come throughout 2027 and 2028 as we automate back-office functions and take out costs. Across these initiatives, we're also focusing on AI-enabled tools and investing in data infrastructure to support further capabilities. Over time, we expect these investments to generate additional leverage across our back office and yield additional efficiency gains. The last phase will come throughout 2027 and 2028 as we automate back-office functions and take out costs. the last phase will come throughout 2027 and 2028 as we automate back-office functions and take out costs Across these initiatives, we're also focusing on AI-enabled tools and investing in data infrastructure to support further capabilities. across these initiatives we're also focusing on ai-enabled tools and investing in data infrastructure to support further capabilities Over time, we expect these investments to generate additional leverage across our back office and yield additional efficiency gains. over time we expect these investments to generate additional leverage across our back office and yield additional efficiency gains We continue to make great permitting progress on our expansion efforts at the Hakes and Highland landfills in New York. With the Hakes permit expected by the third quarter of 2026 and the Highland permit expected by the first quarter of 2027. As we previously mentioned, we're working to more than double the annual permit at Highland from 460,000 tons a year to 1 million tons a year, while also working to add 60 years of capacity. We continue to make great permitting progress on our expansion efforts at the Hakes and Highland landfills in New York. we continue to make great permitting progress on our expansion efforts at the hakes and highland landfills in new york With the Hakes permit expected by the third quarter of 2026 and the Highland permit expected by the first quarter of 2027. with the hakes permit expected by the third quarter of 2026 and the highland permit expected by the first quarter of 2027 As we previously mentioned, we're working to more than double the annual permit at Highland from 460,000 tons a year to 1 million tons a year, while also working to add 60 years of capacity. as we previously mentioned we're working to more than double the annual permit at highland from 460,000 tons a year to 1 million tons a year while also working to add 60 years of capacity At the Hakes C&D landfill, we're permitting a 10-plus year expansion. Additionally, we completed the new rail transfer station at the McKean Landfill in the last month, allowing us now to accept materials from both gondolas and intermodal containers, including internalized MSW volumes from Massachusetts later this year. Our McKean Landfill is a great rail option for the Northeastern waste that does not have access to local disposal. At the Hakes C&D landfill, we're permitting a 10-plus year expansion. at the hakes c&d landfill we're permitting a 10-plus year expansion Additionally, we completed the new rail transfer station at the McKean Landfill in the last month, allowing us now to accept materials from both gondolas and intermodal containers, including internalized MSW volumes from Massachusetts later this year. additionally we completed the new rail transfer station at the mckean landfill in the last month allowing us now to accept materials from both gondolas and intermodal containers including internalized msw volumes from massachusetts later this year Our McKean Landfill is a great rail option for the Northeastern waste that does not have access to local disposal. our mckean landfill is a great rail option for the northeastern waste that does not have access to local disposal As a reminder, about 30% of the waste that's generated in the Northeast needs to be exported given the lack of disposal capacity in our markets. The McKean Landfill is proximate to dense populations in the Northeast and is one of only a few rail-served landfills that can service the market given the capital intensity and logistical complexity. Acquisitions remain an important component of our growth strategy. We've had a strong start to the year. As a reminder, about 30% of the waste that's generated in the Northeast needs to be exported given the lack of disposal capacity in our markets. as a reminder about 30% of the waste that's generated in the northeast needs to be exported given the lack of disposal capacity in our markets The McKean Landfill is proximate to dense populations in the Northeast and is one of only a few rail-served landfills that can service the market given the capital intensity and logistical complexity. the mckean landfill is proximate to dense populations in the northeast and is one of only a few rail-served landfills that can service the market given the capital intensity and logistical complexity Acquisitions remain an important component of our growth strategy. acquisitions remain an important component of our growth strategy We've had a strong start to the year. we've had a strong start to the year We have completed four acquisitions so far in 2026, representing approximately $150 million of annualized revenues. This includes the Star Waste acquisition, which closed on April 1st and adds approximately $100 million of annualized revenues. These transactions continue to align well with our strategy of building density within our existing footprint. We have completed four acquisitions so far in 2026, representing approximately $150 million of annualized revenues. we have completed four acquisitions so far in 2026 representing approximately $150 million of annualized revenues This includes the Star Waste acquisition, which closed on April 1st and adds approximately $100 million of annualized revenues. this includes the star waste acquisition which closed on april 1st and adds approximately $100 million of annualized revenues These transactions continue to align well with our strategy of building density within our existing footprint. these transactions continue to align well with our strategy of building density within our existing footprint Star Waste is an excellent example of that approach, with strong overlap in Massachusetts and clear opportunities for integration and operational improvements. Our teams are making great progress on integration with an early focus on safety, onboarding our new team members and aligning integration plans. At the same time, our acquisition pipeline remains very strong, and we have a number of tuck-in opportunities in later stages that fit well within our existing markets. Star Waste is an excellent example of that approach, with strong overlap in Massachusetts and clear opportunities for integration and operational improvements. star waste is an excellent example of that approach with strong overlap in massachusetts and clear opportunities for integration and operational improvements Our teams are making great progress on integration with an early focus on safety, onboarding our new team members and aligning integration plans. our teams are making great progress on integration with an early focus on safety onboarding our new team members and aligning integration plans At the same time, our acquisition pipeline remains very strong, and we have a number of tuck-in opportunities in later stages that fit well within our existing markets. at the same time our acquisition pipeline remains very strong and we have a number of tuck-in opportunities in later stages that fit well within our existing markets Overall, we feel very good about our execution year-to-date, and we believe we have a solid outlook for the remainder of the year, including adjusted free cash flow growth of roughly 14% at the midpoint of guidance. Our business proved its resiliency in the quarter as we beat our budget, expanded margins by 65 basis points in the base business, and fully recovered rapidly rising fuel costs. I want to thank our employees for their continued focus on safety, service, and execution. With that, I'll turn it over to Brad to walk through the financials in more detail. Overall, we feel very good about our execution year-to-date, and we believe we have a solid outlook for the remainder of the year, including adjusted free cash flow growth of roughly 14% at the midpoint of guidance. overall we feel very good about our execution year-to-date and we believe we have a solid outlook for the remainder of the year including adjusted free cash flow growth of roughly 14% at the midpoint of guidance Our business proved its resiliency in the quarter as we beat our budget, expanded margins by 65 basis points in the base business, and fully recovered rapidly rising fuel costs. our business proved its resiliency in the quarter as we beat our budget expanded margins by 65 basis points in the base business and fully recovered rapidly rising fuel costs I want to thank our employees for their continued focus on safety, service, and execution. i want to thank our employees for their continued focus on safety service and execution With that, I'll turn it over to Brad to walk through the financials in more detail. with that i'll turn it over to brad to walk through the financials in more detail

Speaker 2: Thanks, Ned. Good morning, everyone. Revenues in the first quarter were $457.3 million, up $40.2 million or 9.6% year-over-year, with $23.9 million from acquisitions, including rollover, and $16.2 million from same-store growth, or 3.9%. Solid waste revenues were up 10% year-over-year, with price up 5.1% and volume down 2.5%. Within solid waste, price in the collection line of business was up 5.3% in the quarter, led by 6.5% price in roll-off and 6% price in front-load commercial. As a reminder, our reported price figure represents realized price net of rollbacks, not gross price increases, and is more comparable to what several of our peers report as yield. Thanks, Ned. thanks ned Good morning, everyone. good morning everyone Revenues in the first quarter were $457.3 million, up $40.2 million or 9.6% year-over-year, with $23.9 million from acquisitions, including rollover, and $16.2 million from same-store growth, or 3.9%. revenues in the first quarter were $457.3 million up $40.2 million or 9.6% year-over-year with $23.9 million from acquisitions including rollover and $16.2 million from same-store growth or 3.9% Solid waste revenues were up 10% year-over-year, with price up 5.1% and volume down 2.5%. solid waste revenues were up 10% year-over-year with price up 5.1% and volume down 2.5% Within solid waste, price in the collection line of business was up 5.3% in the quarter, led by 6.5% price in roll-off and 6% price in front-load commercial. within solid waste price in the collection line of business was up 5.3% in the quarter led by 6.5% price in roll-off and 6% price in front-load commercial As a reminder, our reported price figure represents realized price net of rollbacks, not gross price increases, and is more comparable to what several of our peers report as yield. as a reminder our reported price figure represents realized price net of rollbacks not gross price increases and is more comparable to what several of our peers report as yield Collection volume was down 2.1%, with softer roll-off volumes in particular during a quarter of difficult weather. Price in the disposal line of business was up 4.7%, including 4.3% third-party price at the landfills. Landfill volumes overall were up 19,000 tons or 2.3% in the quarter, with internalized volume up 13,000 tons and third-party volume up 6,000 tons. The landfill business is strong coming out of the winter months, and we anticipate improved year-over-year third-party pricing in 2026 of 4%-5%, consistent with our guidance expectation for 5% price growth overall in the solid waste business. Collection volume was down 2.1%, with softer roll-off volumes in particular during a quarter of difficult weather. collection volume was down 2.1% with softer roll-off volumes in particular during a quarter of difficult weather Price in the disposal line of business was up 4.7%, including 4.3% third-party price at the landfills. price in the disposal line of business was up 4.7% including 4.3% third-party price at the landfills Landfill volumes overall were up 19,000 tons or 2.3% in the quarter, with internalized volume up 13,000 tons and third-party volume up 6,000 tons. landfill volumes overall were up 19,000 tons or 2.3% in the quarter with internalized volume up 13,000 tons and third-party volume up 6,000 tons The landfill business is strong coming out of the winter months, and we anticipate improved year-over-year third-party pricing in 2026 of 4%-5%, consistent with our guidance expectation for 5% price growth overall in the solid waste business. the landfill business is strong coming out of the winter months and we anticipate improved year-over-year third-party pricing in 2026 of 4%-5% consistent with our guidance expectation for 5% price growth overall in the solid waste business You'll note that we are providing additional detail in our press release starting this quarter to break out disposal price and volume between landfills and transfer stations. These metrics for transfer stations give visibility to disposal market trends generally across our footprint. Do not represent significant EBITDA contribution on a line of business basis in the same way that landfills do. Resource Solutions revenues were up 8% year-over-year, with recycling and other processing revenue down 2.7% impacted by lower commodity prices and national accounts up 20.7%. You'll note that we are providing additional detail in our press release starting this quarter to break out disposal price and volume between landfills and transfer stations. you'll note that we are providing additional detail in our press release starting this quarter to break out disposal price and volume between landfills and transfer stations These metrics for transfer stations give visibility to disposal market trends generally across our footprint. these metrics for transfer stations give visibility to disposal market trends generally across our footprint Do not represent significant EBITDA contribution on a line of business basis in the same way that landfills do. do not represent significant ebitda contribution on a line of business basis in the same way that landfills do Resource Solutions revenues were up 8% year-over-year, with recycling and other processing revenue down 2.7% impacted by lower commodity prices and national accounts up 20.7%. resource solutions revenues were up 8% year-over-year with recycling and other processing revenue down 2.7% impacted by lower commodity prices and national accounts up 20.7% Within Resource Solutions processing operations, our average recycled commodity revenue per ton was down 22% year-over-year, though the market has stabilized, and we expect the negative year-over-year comparisons to moderate as we move through the year. Notwithstanding market pressures, our contract structures share this risk with our customers by adjusting tip fees in down markets. The net impact of lower commodity prices on our revenue was only about $1 million. Within Resource Solutions processing operations, our average recycled commodity revenue per ton was down 22% year-over-year, though the market has stabilized, and we expect the negative year-over-year comparisons to moderate as we move through the year. within resource solutions processing operations our average recycled commodity revenue per ton was down 22% year-over-year though the market has stabilized and we expect the negative year-over-year comparisons to moderate as we move through the year Notwithstanding market pressures, our contract structures share this risk with our customers by adjusting tip fees in down markets. notwithstanding market pressures our contract structures share this risk with our customers by adjusting tip fees in down markets The net impact of lower commodity prices on our revenue was only about $1 million. the net impact of lower commodity prices on our revenue was only about $1 million Note that this full picture is not reflected in our processing price statistic because further offset is generated by our floating SRA fee, which shares risk with our collection customers at the curb and is passed back to the recycling facilities intercompany. Processing volume in revenue terms was up 6%. National accounts continues to grow nicely with volume growth of 11.2% and price of 4.4%. It's worth noting the contribution of national accounts to our overall collection business. Note that this full picture is not reflected in our processing price statistic because further offset is generated by our floating SRA fee, which shares risk with our collection customers at the curb and is passed back to the recycling facilities intercompany. note that this full picture is not reflected in our processing price statistic because further offset is generated by our floating sra fee which shares risk with our collection customers at the curb and is passed back to the recycling facilities intercompany Processing volume in revenue terms was up 6%. processing volume in revenue terms was up 6% National accounts continues to grow nicely with volume growth of 11.2% and price of 4.4%. national accounts continues to grow nicely with volume growth of 11.2% and price of 4.4% It's worth noting the contribution of national accounts to our overall collection business. it's worth noting the contribution of national accounts to our overall collection business As I mentioned, we reported a volume decline in third-party collection revenue in our solid waste business in the quarter, but this does not reflect the work that we do to service our national account sales with our own trucks, which is intercompany. Including this new business coming via national accounts, we would have added 1% to the collection volume statistic for the solid waste segment. We generated $3.6 million in additional revenue in the quarter from higher fees, including our floating fee programs for recycled commodity and fuel risk. As I mentioned, we reported a volume decline in third-party collection revenue in our solid waste business in the quarter, but this does not reflect the work that we do to service our national account sales with our own trucks, which is intercompany. as i mentioned we reported a volume decline in third-party collection revenue in our solid waste business in the quarter but this does not reflect the work that we do to service our national account sales with our own trucks which is intercompany Including this new business coming via national accounts, we would have added 1% to the collection volume statistic for the solid waste segment. including this new business coming via national accounts we would have added 1% to the collection volume statistic for the solid waste segment We generated $3.6 million in additional revenue in the quarter from higher fees, including our floating fee programs for recycled commodity and fuel risk. we generated $3.6 million in additional revenue in the quarter from higher fees including our floating fee programs for recycled commodity and fuel risk As Ned mentioned, we successfully covered all of the increase in fuel costs in the quarter with minimal lag as diesel prices rose quickly. Adjusted EBITDA was $97.1 million in the quarter, up $10.7 million or 12.3% year-over-year, with $4.4 million of contribution from acquisitions, including rollover and over 7% organic growth. Adjusted EBITDA margin was 21.2% in the quarter, up approximately 50 basis points year-over-year overall. As Ned mentioned, we successfully covered all of the increase in fuel costs in the quarter with minimal lag as diesel prices rose quickly. as ned mentioned we successfully covered all of the increase in fuel costs in the quarter with minimal lag as diesel prices rose quickly Adjusted EBITDA was $97.1 million in the quarter, up $10.7 million or 12.3% year-over-year, with $4.4 million of contribution from acquisitions, including rollover and over 7% organic growth. adjusted ebitda was $97.1 million in the quarter up $10.7 million or 12.3% year-over-year with $4.4 million of contribution from acquisitions including rollover and over 7% organic growth Adjusted EBITDA margin was 21.2% in the quarter, up approximately 50 basis points year-over-year overall. adjusted ebitda margin was 21.2% in the quarter up approximately 50 basis points year-over-year overall Bridging the year-over-year change in adjusted EBITDA margin, new acquisitions contributing at lower initial EBITDA margins than our overall business diluted margins by 15 basis points in the quarter. The base business, excluding new acquisitions completed in the past 12 months, expanded margins as on a same store basis by 65 basis points. Recall the privately held businesses that we acquire typically operate at lower margins, which can create short-term margin dilution. As we integrate these businesses, capture synergies, and apply our operating model, they become margin expansion opportunities over time, creating a regenerative benefit as we continue to execute on our acquisition strategy. Bridging the year-over-year change in adjusted EBITDA margin, new acquisitions contributing at lower initial EBITDA margins than our overall business diluted margins by 15 basis points in the quarter. bridging the year-over-year change in adjusted ebitda margin new acquisitions contributing at lower initial ebitda margins than our overall business diluted margins by 15 basis points in the quarter The base business, excluding new acquisitions completed in the past 12 months, expanded margins as on a same store basis by 65 basis points. the base business excluding new acquisitions completed in the past 12 months expanded margins as on a same store basis by 65 basis points Recall the privately held businesses that we acquire typically operate at lower margins, which can create short-term margin dilution. recall the privately held businesses that we acquire typically operate at lower margins which can create short-term margin dilution As we integrate these businesses, capture synergies, and apply our operating model, they become margin expansion opportunities over time, creating a regenerative benefit as we continue to execute on our acquisition strategy. as we integrate these businesses capture synergies and apply our operating model they become margin expansion opportunities over time creating a regenerative benefit as we continue to execute on our acquisition strategy Cost of operations were $308.9 million in the quarter, up $28.5 million year-over-year, with $17.2 million of the increase from acquisitions and $11.3 million in the base business, including $1.9 million from higher fuel costs, which we covered with our fuel recovery program. General and administrative costs were $58.1 million in the quarter, up $1.6 million year-over-year. As I said last quarter, 2026 will be a pivotal year as we lay the groundwork with better systems and process for becoming more efficient in our back office and generating better scale as we continue to grow, transitioning to lower G&A as a percentage of revenue beginning in 2027. Cost of operations were $308.9 million in the quarter, up $28.5 million year-over-year, with $17.2 million of the increase from acquisitions and $11.3 million in the base business, including $1.9 million from higher fuel costs, which we covered with our fuel recovery program. cost of operations were $308.9 million in the quarter up $28.5 million year-over-year with $17.2 million of the increase from acquisitions and $11.3 million in the base business including $1.9 million from higher fuel costs which we covered with our fuel recovery program General and administrative costs were $58.1 million in the quarter, up $1.6 million year-over-year. general and administrative costs were $58.1 million in the quarter up $1.6 million year-over-year As I said last quarter, 2026 will be a pivotal year as we lay the groundwork with better systems and process for becoming more efficient in our back office and generating better scale as we continue to grow, transitioning to lower G&A as a percentage of revenue beginning in 2027. as i said last quarter 2026 will be a pivotal year as we lay the groundwork with better systems and process for becoming more efficient in our back office and generating better scale as we continue to grow transitioning to lower g&a as a percentage of revenue beginning in 2027 Depreciation and amortization costs were up $6.5 million year-over-year, with $5 million resulting from acquisition activity in the past 12 months, including the amortization of acquired intangibles. Adjusted net income was $12.8 million in the quarter, or $0.20 per diluted share, up $0.6 million and $0.01 per share. GAAP net income was lower by $0.7 million in the quarter on higher acquisition expenses and additional costs associated with the organics facility closure in the quarter. Net cash provided by operating activities was $62.3 million in the quarter, up $12.1 million year-over-year, or 24%, driven by EBITDA growth. Depreciation and amortization costs were up $6.5 million year-over-year, with $5 million resulting from acquisition activity in the past 12 months, including the amortization of acquired intangibles. depreciation and amortization costs were up $6.5 million year-over-year with $5 million resulting from acquisition activity in the past 12 months including the amortization of acquired intangibles Adjusted net income was $12.8 million in the quarter, or $0.20 per diluted share, up $0.6 million and $0.01 per share. adjusted net income was $12.8 million in the quarter or $0.20 per diluted share up $0.6 million and $0.01 per share GAAP net income was lower by $0.7 million in the quarter on higher acquisition expenses and additional costs associated with the organics facility closure in the quarter. Net cash provided by operating activities was $62.3 million in the quarter, up $12.1 million year-over-year, or 24%, driven by EBITDA growth. gaap net income was lower by $0.7 million in the quarter on higher acquisition expenses and additional costs associated with the organics facility closure in the quarter. net cash provided by operating activities was $62.3 million in the quarter up $12.1 million year-over-year or 24% driven by ebitda growth DSO was 34 days at March 31. Adjusted free cash flow was $30.7 million, up 5% year-over-year. Capital expenditures were $50 million, down five and a half. $5.5 million year-over-year, with $9.2 million of upfront investment in recent acquisitions. As of March 31, we had $1.16 billion of debt and $127 million of cash, with our consolidated net leverage ratio for purposes of our bank covenants at 2.29x. On a pro forma basis for the acquisitions closed on April 1, including Star Waste, our leverage ticked up to approximately 2.75x. DSO was 34 days at March 31. dso was 34 days at march 31 Adjusted free cash flow was $30.7 million, up 5% year-over-year. adjusted free cash flow was $30.7 million up 5% year-over-year Capital expenditures were $50 million, down five and a half. $5.5 million year-over-year, with $9.2 million of upfront investment in recent acquisitions. capital expenditures were $50 million down five and a half $5.5 million year-over-year with $9.2 million of upfront investment in recent acquisitions As of March 31, we had $1.16 billion of debt and $127 million of cash, with our consolidated net leverage ratio for purposes of our bank covenants at 2.29x . as of march 31 we had $1.16 billion of debt and $127 million of cash with our consolidated net leverage ratio for purposes of our bank covenants at 2.29x On a pro forma basis for the acquisitions closed on April 1, including Star Waste, our leverage ticked up to approximately 2.75x. on a pro forma basis for the acquisitions closed on april 1 including star waste our leverage ticked up to approximately 2.75x We still have approximately $500 million in available liquidity, which will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline. As laid out in our press release yesterday, we updated financial guidance for 2026 to reflect acquisitions closed to date. We increased guidance for revenue to a range of $2.06 billion-$2.08 billion, an increase of $90 million. We still have approximately $500 million in available liquidity, which will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline. we still have approximately $500 million in available liquidity which will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline As laid out in our press release yesterday, we updated financial guidance for 2026 to reflect acquisitions closed to date. as laid out in our press release yesterday we updated financial guidance for 2026 to reflect acquisitions closed to date We increased guidance for revenue to a range of $2.06 billion-$2.08 billion, an increase of $90 million. we increased guidance for revenue to a range of $2.06 billion-$2.08 billion an increase of $90 million Adjusted EBITDA to a range of $473 million-$483 million, an increase of $18 million. Adjusted free cash flow to a range of $200 million-$210 million, an increase of $5 million. As a reminder, we completed the acquisition of Mountain State Waste on January 1st, and it was included in our original guidance for the full year. We completed three more acquisitions, including Star Waste, on April 1st, this guidance revision reflects approximately $120 million of new annualized revenue for nine months of the year. Adjusted EBITDA to a range of $473 million-$483 million, an increase of $18 million. adjusted ebitda to a range of $473 million-$483 million an increase of $18 million Adjusted free cash flow to a range of $200 million-$210 million, an increase of $5 million. adjusted free cash flow to a range of $200 million-$210 million an increase of $5 million As a reminder, we completed the acquisition of Mountain State Waste on January 1st, and it was included in our original guidance for the full year. as a reminder we completed the acquisition of mountain state waste on january 1st and it was included in our original guidance for the full year We completed three more acquisitions, including Star Waste, on April 1st, this guidance revision reflects approximately $120 million of new annualized revenue for nine months of the year. we completed three more acquisitions including star waste on april 1st this guidance revision reflects approximately $120 million of new annualized revenue for nine months of the year Guidance further assumes adjusted EBITDA margins of approximately 20% and adjusted free cash flow with a typical conversion from EBITDA, but reflecting the incremental impact on net interest costs as we finance the transactions entirely with cash on hand and borrowing on our revolver. We have not yet increased our guidance for the base business after the first quarter. We are well positioned relative to our internal plan and will reevaluate guidance in future quarters. With that, operator, would you please open the line for Q&A? Guidance further assumes adjusted EBITDA margins of approximately 20% and adjusted free cash flow with a typical conversion from EBITDA, but reflecting the incremental impact on net interest costs as we finance the transactions entirely with cash on hand and borrowing on our revolver. guidance further assumes adjusted ebitda margins of approximately 20% and adjusted free cash flow with a typical conversion from ebitda but reflecting the incremental impact on net interest costs as we finance the transactions entirely with cash on hand and borrowing on our revolver We have not yet increased our guidance for the base business after the first quarter. we have not yet increased our guidance for the base business after the first quarter We are well positioned relative to our internal plan and will reevaluate guidance in future quarters. we are well positioned relative to our internal plan and will reevaluate guidance in future quarters With that, operator, would you please open the line for Q&A? with that operator would you please open the line for q&a

Speaker 7: Thank you. At this time, we'll conduct a question-and-answer session. As a reminder to ask a question you need to press star one one on your telephone and wait for your name to be announced. To withdraw your question please press star one one again. Please wait as we compile the Q&A roster. Our first question comes from the line of Adam Bubes of Goldman Sachs. Thank you. thank you At this time, we'll conduct a question- and- answer session. at this time we'll conduct a question- and- answer session As a reminder to ask a question you need to press star one one on your telephone and wait for your name to be announced. To withdraw your question please press star one one again. Please wait as we compile the Q&A roster. Our first question comes from the line of Adam Bubes of Goldman Sachs. as a reminder to ask a question you need to press star one one on your telephone and wait for your name to be announced. to withdraw your question please press star one one again. please wait as we compile the q&a roster. our first question comes from the line of adam bubes of goldman sachs

Speaker 1: Hi, good morning. Hi, good morning. hi good morning

Speaker 2: Good morning. Good morning. good morning

Speaker 1: I think you spoke about. Good morning. I think you spoke about $30 million of cost reduction over three years between G&A and Mid-Atlantic synergies. I think that translates to something like 50 basis points of additional annual average margin expansion. I know there's always moving pieces and unanticipated bad guys, all else equal, should we be thinking about a period of outsized margin expansion over the next couple years? I think you spoke about. i think you spoke about Good morning. good morning I think you spoke about $30 million of cost reduction over three years between G&A and Mid-Atlantic synergies. i think you spoke about $30 million of cost reduction over three years between g&a and mid-atlantic synergies I think that translates to something like 50 basis points of additional annual average margin expansion. i think that translates to something like 50 basis points of additional annual average margin expansion I know there's always moving pieces and unanticipated bad guys, all else equal, should we be thinking about a period of outsized margin expansion over the next couple years? i know there's always moving pieces and unanticipated bad guys all else equal should we be thinking about a period of outsized margin expansion over the next couple years

Speaker 2: Hey, hey, Adam Bubes, it's Brad. Yeah, I think you should. We've always talked about over time, and as you said, there are puts and takes in any given quarter or year. Generally, we like to get 50 basis points of recurring margin expansion in the base business over time. You know, given the, I'll call it pent-up synergy opportunity in the Mid-Atlantic, that's been delayed by certain factors and the opportunities we see to start to get to the G&A line as a percentage of revenue in a way that the company hasn't really been able to before, we do see an above-trend margin improvement opportunity over the next two to three years. I think that's a fair assumption. Hey, hey, Adam Bubes, it's Brad. hey hey adam bubes it's brad Yeah, I think you should. yeah i think you should We've always talked about over time, and as you said, there are puts and takes in any given quarter or year. we've always talked about over time and as you said there are puts and takes in any given quarter or year Generally, we like to get 50 basis points of recurring margin expansion in the base business over time. generally we like to get 50 basis points of recurring margin expansion in the base business over time You know, given the, I'll call it pent-up synergy opportunity in the Mid-Atlantic, that's been delayed by certain factors and the opportunities we see to start to get to the G&A line as a percentage of revenue in a way that the company hasn't really been able to before, we do see an above-trend margin improvement opportunity over the next two to three years. you know given the i'll call it pent-up synergy opportunity in the mid-atlantic that's been delayed by certain factors and the opportunities we see to start to get to the g&a line as a percentage of revenue in a way that the company hasn't really been able to before we do see an above-trend margin improvement opportunity over the next two to three years I think that's a fair assumption. i think that's a fair assumption

Speaker 1: Great. You recently remarked, I think, that the closure on Ontario could work out to be EBITDA neutral. Can you just talk about the moving pieces there? Presumably, the closure could result in lost external tons and maybe longer transportation distances, but I think there are some offsets. Can you just help us think through the different moving pieces? Great. great You recently remarked, I think, that the closure on Ontario could work out to be EBITDA neutral. you recently remarked i think that the closure on ontario could work out to be ebitda neutral Can you just talk about the moving pieces there? can you just talk about the moving pieces there Presumably, the closure could result in lost external tons and maybe longer transportation distances, but I think there are some offsets. presumably the closure could result in lost external tons and maybe longer transportation distances but i think there are some offsets Can you just help us think through the different moving pieces? can you just help us think through the different moving pieces

Speaker 6: Yeah, sure. We'll work on additional information on this over the next several years. Right now, we plan to close the Ontario landfill on December 31st of 2028. As you're aware, we've been working on two important permit increases in New York for a number of years, going on five to six years now. The most important is Highland, where we're moving the tonnage up from 460,000 tons-1 million tons a year. Ontario does roughly 750,000 tons-800,000 tons a year of mainly MSW, but there are C&D volumes that go into the site. Yeah, sure. yeah sure We'll work on additional information on this over the next several years. we'll work on additional information on this over the next several years Right now, we plan to close the Ontario landfill on December 31st of 2028. right now we plan to close the ontario landfill on december 31st of 2028 As you're aware, we've been working on two important permit increases in New York for a number of years, going on five to six years now. as you're aware we've been working on two important permit increases in new york for a number of years going on five to six years now The most important is Highland, where we're moving the tonnage up from 460,000 tons- 1 million tons a year. the most important is highland where we're moving the tonnage up from 460,000 tons- 1 million tons a year Ontario does roughly 750,000 tons- 800,000 tons a year of mainly MSW, but there are C&D volumes that go into the site. ontario does roughly 750,000 tons- 800,000 tons a year of mainly msw but there are c&d volumes that go into the site We will look, as Ontario is winding down, we will look to shift volumes that were historically going into Ontario to both Hakes and Highland, and more of them into Highland over that time period. What's really important to note here is Ontario is our most expensive airspace in the company to build and operate each year, and Hakes and Highland represent some of the least expensive to build and operate each year. We will look, as Ontario is winding down, we will look to shift volumes that were historically going into Ontario to both Hakes and Highland, and more of them into Highland over that time period. we will look as ontario is winding down we will look to shift volumes that were historically going into ontario to both hakes and highland and more of them into highland over that time period What's really important to note here is Ontario is our most expensive airspace in the company to build and operate each year, and Hakes and Highland represent some of the least expensive to build and operate each year. what's really important to note here is ontario is our most expensive airspace in the company to build and operate each year and hakes and highland represent some of the least expensive to build and operate each year We'll have a capital efficiency, we'll have operating efficiency, and as you can do the simple math, it doesn't track ton for ton, but as we look at it from an EBITDA standpoint, we should be pretty neutral during that period. On an operating income basis, we'll actually come out the other side with a benefit, and it'll improve both our operating income and net income as we close Ontario. We'll have a capital efficiency, we'll have operating efficiency, and as you can do the simple math, it doesn't track ton for ton, but as we look at it from an EBITDA standpoint, we should be pretty neutral during that period. we'll have a capital efficiency we'll have operating efficiency and as you can do the simple math it doesn't track ton for ton but as we look at it from an ebitda standpoint we should be pretty neutral during that period On an operating income basis, we'll actually come out the other side with a benefit, and it'll improve both our operating income and net income as we close Ontario. on an operating income basis we'll actually come out the other side with a benefit and it'll improve both our operating income and net income as we close ontario

Speaker 1: Great. Last one from me. Can you just provide an update on where we are along the landfill gas program? I know you're not putting up dollars, but could still be a nice royalty stream. How are you thinking about the timing of the ramp there? Great. great Last one from me. last one from me Can you just provide an update on where we are along the landfill gas program? can you just provide an update on where we are along the landfill gas program I know you're not putting up dollars, but could still be a nice royalty stream. i know you're not putting up dollars but could still be a nice royalty stream How are you thinking about the timing of the ramp there? how are you thinking about the timing of the ramp there

Speaker 6: Yeah. This has been an interesting journey. The first thing to note, I think everyone on the line knows this, but we should reinforce it, is that we chose many years ago to not develop and invest in RNG facilities ourselves. We've chosen partners through selection processes to develop these sites, and they've invested all of the capital to develop each of the sites and bring them online. Yeah. yeah This has been an interesting journey. this has been an interesting journey The first thing to note, I think everyone on the line knows this, but we should reinforce it, is that we chose many years ago to not develop and invest in RNG facilities ourselves. the first thing to note i think everyone on the line knows this but we should reinforce it is that we chose many years ago to not develop and invest in rng facilities ourselves We've chosen partners through selection processes to develop these sites, and they've invested all of the capital to develop each of the sites and bring them online. we've chosen partners through selection processes to develop these sites and they've invested all of the capital to develop each of the sites and bring them online We've had mixed results, frankly. It's taken far longer for these developers to develop the projects and come online successfully. It's frankly a bit of complexity as well. As you know, you know, managing the landfill and managing gas at the landfill appropriately within permit compliance doesn't always align with creating the best pipeline quality of gas. We have four projects online today. We've had mixed results, frankly. we've had mixed results frankly It's taken far longer for these developers to develop the projects and come online successfully. it's taken far longer for these developers to develop the projects and come online successfully It's frankly a bit of complexity as well. it's frankly a bit of complexity as well As you know, you know, managing the landfill and managing gas at the landfill appropriately within permit compliance doesn't always align with creating the best pipeline quality of gas. as you know you know managing the landfill and managing gas at the landfill appropriately within permit compliance doesn't always align with creating the best pipeline quality of gas We have four projects online today. we have four projects online today We have our project at Juniper Ridge, Maine, which is an Archaea BP project. We have our project at North Country, New Hampshire. It's a Veregy project. We have two new projects that came online in Q1, both with Waga, at our Shamong and Highland landfills. You know, they're all kind of in shakedown stage right now, and they're generating, you know, we expect this year several million dollars of EBITDA from overall the portfolio of these assets. We have our project at Juniper Ridge, Maine, which is an Archaea BP project. we have our project at juniper ridge maine which is an archaea bp project We have our project at North Country, New Hampshire. we have our project at north country new hampshire It's a Veregy project. it's a veregy project We have two new projects that came online in Q1, both with Waga, at our Shamong and Highland landfills. we have two new projects that came online in q1 both with waga at our shamong and highland landfills You know, they're all kind of in shakedown stage right now, and they're generating, you know, we expect this year several million dollars of EBITDA from overall the portfolio of these assets. you know they're all kind of in shakedown stage right now and they're generating you know we expect this year several million dollars of ebitda from overall the portfolio of these assets There's a wide range of outcomes, and we'll be watching very closely over the next quarter or two quarters in getting additional information out to the street. The Waga projects in particular appear to be operating very well in these early shakedown stages. I think we're a little early to start calling, you know, the exact production levels of each of these. There's a wide range of outcomes, and we'll be watching very closely over the next quarter or two quarters in getting additional information out to the street. there's a wide range of outcomes and we'll be watching very closely over the next quarter or two quarters in getting additional information out to the street The Waga projects in particular appear to be operating very well in these early shakedown stages. the waga projects in particular appear to be operating very well in these early shakedown stages I think we're a little early to start calling, you know, the exact production levels of each of these. i think we're a little early to start calling you know the exact production levels of each of these

Speaker 1: Great. Thanks so much. Great. great Thanks so much. thanks so much

Speaker 6: Just to give you a sense, like we're running 25,000 MMBtu a month at Shamong, Highland, North Country right now in the shakedown phase, just to give you a sense of scale. Just to give you a sense, like we're running 25,000 MMBtu a month at Shamong, Highland, North Country right now in the shakedown phase, just to give you a sense of scale. just to give you a sense like we're running 25,000 mmbtu a month at shamong highland north country right now in the shakedown phase just to give you a sense of scale

Speaker 7: Thank you. One moment for our next question. Our next question comes from the line of Trevor Romeo of William Blair. Your line's now open. Thank you. thank you One moment for our next question. one moment for our next question Our next question comes from the line of Trevor Romeo of William Blair. our next question comes from the line of trevor romeo of william blair Your line's now open. your line's now open

Speaker 10: Hi, guys. Thank you for taking the questions here. I wanted to ask maybe one or two on Star Waste. you know, sounds like a good deal. I guess $100 million of revenue, how should we think about the current margin profile for that business? I think they had done something like eight acquisitions in the last four years themselves. you know, what are your thoughts on where they are from an operating efficiency perspective and how they've kind of integrated the deals that they had done? Hi, guys. hi guys Thank you for taking the questions here. thank you for taking the questions here I wanted to ask maybe one or two on Star Waste. you know, sounds like a good deal. i wanted to ask maybe one or two on star waste you know sounds like a good deal I guess $100 million of revenue, how should we think about the current margin profile for that business? i guess $100 million of revenue how should we think about the current margin profile for that business I think they had done something like eight acquisitions in the last four years themselves. you know, what are your thoughts on where they are from an operating efficiency perspective and how they've kind of integrated the deals that they had done? i think they had done something like eight acquisitions in the last four years themselves you know what are your thoughts on where they are from an operating efficiency perspective and how they've kind of integrated the deals that they had done

Speaker 2: Yeah. Hey, Trevor. It's Brad. You know, our assumption for guidance purposes and external conversation is it's about 20% EBITDA margin. I mean, it's broadly consistent with other acquisitions that we've acquired. You know, I think like with most or all of our acquisitions, we're gonna seek to get those margins up materially over time. Given in particular where Star fits into our existing business in the greater Boston area, growth opportunities that unlocks for us, particularly on the south side of Boston, we're actually really bullish on the opportunity to improve that business within the Casella footprint over time. Yeah. yeah Hey, Trevor. hey trevor It's Brad. it's brad You know, our assumption for guidance purposes and external conversation is it's about 20% EBITDA margin. you know our assumption for guidance purposes and external conversation is it's about 20% ebitda margin I mean, it's broadly consistent with other acquisitions that we've acquired. i mean it's broadly consistent with other acquisitions that we've acquired You know, I think like with most or all of our acquisitions, we're gonna seek to get those margins up materially over time. you know i think like with most or all of our acquisitions we're gonna seek to get those margins up materially over time Given in particular where Star fits into our existing business in the greater Boston area, growth opportunities that unlocks for us, particularly on the south side of Boston, we're actually really bullish on the opportunity to improve that business within the Casella footprint over time. given in particular where star fits into our existing business in the greater boston area growth opportunities that unlocks for us particularly on the south side of boston we're actually really bullish on the opportunity to improve that business within the casella footprint over time

Speaker 6: On your integration point, the entrepreneur who founded Star, Patsy Sperduto, really did things the right way. He had a great team. They invested heavily in systems and process, and they were integrating these small tuck-ins as they went along. We bought, you know, a great company that's operating extremely well, has a strong management team, as I said, is a nice platform for growth into the future. This is not a fix-it one. On your integration point, the entrepreneur who founded Star, Patsy Sperduto, really did things the right way. on your integration point the entrepreneur who founded star patsy sperduto really did things the right way He had a great team. he had a great team They invested heavily in systems and process, and they were integrating these small tuck-ins as they went along. they invested heavily in systems and process and they were integrating these small tuck-ins as they went along We bought, you know, a great company that's operating extremely well, has a strong management team, as I said, is a nice platform for growth into the future. we bought you know a great company that's operating extremely well has a strong management team as i said is a nice platform for growth into the future This is not a fix-it one. this is not a fix-it one Sometimes you buy companies that we spend quite a bit of time working on fixing things and having to overinvest to get them to a certain standard. This is backed by a great PE firm, Clairvest, that, you know, is putting some excellent capital into it. As an example, they had just completed, a great retrofit to their construction demo processing facility, transfer station and processing facility, and had state-of-the-art technology in the facility. We're buying something that's a very nice platform and integrates well with our businesses. Sometimes you buy companies that we spend quite a bit of time working on fixing things and having to overinvest to get them to a certain standard. sometimes you buy companies that we spend quite a bit of time working on fixing things and having to overinvest to get them to a certain standard This is backed by a great PE firm, Clairvest, that, you know, is putting some excellent capital into it. this is backed by a great pe firm clairvest that you know is putting some excellent capital into it As an example, they had just completed, a great retrofit to their construction demo processing facility, transfer station and processing facility, and had state-of-the-art technology in the facility. as an example they had just completed a great retrofit to their construction demo processing facility transfer station and processing facility and had state-of-the-art technology in the facility We're buying something that's a very nice platform and integrates well with our businesses. we're buying something that's a very nice platform and integrates well with our businesses

Speaker 2: Yeah. You mentioned recent acquisitions that the company has made. Something that's somewhat unique with this acquisition is, they have some potential future acquisitions in their pipeline that will fold into our efforts going forward. Yeah. yeah You mentioned recent acquisitions that the company has made. you mentioned recent acquisitions that the company has made Something that's somewhat unique with this acquisition is, they have some potential future acquisitions in their pipeline that will fold into our efforts going forward. something that's somewhat unique with this acquisition is they have some potential future acquisitions in their pipeline that will fold into our efforts going forward

Speaker 10: That's interesting. Okay. Maybe just a quick follow-up on Star again. I think you mentioned, I think the transfer station coming on and the key and it could take volumes from Massachusetts now. Just in terms of kind of the disposal and maybe internalization opportunities with this deal, anything there or just maybe anything broadly on the synergy opportunities you could point out? That's interesting. that's interesting Okay. okay Maybe just a quick follow-up on Star again. maybe just a quick follow-up on star again I think you mentioned, I think the transfer station coming on and the key and it could take volumes from Massachusetts now. i think you mentioned i think the transfer station coming on and the key and it could take volumes from massachusetts now Just in terms of kind of the disposal and maybe internalization opportunities with this deal, anything there or just maybe anything broadly on the synergy opportunities you could point out? just in terms of kind of the disposal and maybe internalization opportunities with this deal anything there or just maybe anything broadly on the synergy opportunities you could point out

Speaker 6: Yeah. In this first phase, we're looking at it as more of how do our trucks, Casella's trucks pre-acquisition route to their transfer station, can we take advantage of that from a route synergy standpoint? Initially, the materials from that transfer station will continue to go to third-party sites. They have, you know, attractive contracts with several third-party disposal sites. We'll look at that long term to see if there's a internalization opportunity. That's not one of the first phases of synergy. If we're able to advance permits in New Hampshire over the next several years and develop additional landfill capacity in New Hampshire, there would be very strong vertical integration there. Yeah. yeah In this first phase, we're looking at it as more of how do our trucks, Casella's trucks pre-acquisition route to their transfer station, can we take advantage of that from a route synergy standpoint? in this first phase we're looking at it as more of how do our trucks casella's trucks pre-acquisition route to their transfer station can we take advantage of that from a route synergy standpoint Initially, the materials from that transfer station will continue to go to third-party sites. initially the materials from that transfer station will continue to go to third-party sites They have, you know, attractive contracts with several third-party disposal sites. they have you know attractive contracts with several third-party disposal sites We'll look at that long term to see if there's a internalization opportunity. we'll look at that long term to see if there's a internalization opportunity That's not one of the first phases of synergy. that's not one of the first phases of synergy If we're able to advance permits in New Hampshire over the next several years and develop additional landfill capacity in New Hampshire, there would be very strong vertical integration there. if we're able to advance permits in new hampshire over the next several years and develop additional landfill capacity in new hampshire there would be very strong vertical integration there

Speaker 10: Yep. Okay, great. If you don't mind maybe one more quick one, just on the national accounts business, 'cause I think, you know, obviously very strong growth there. I, you know, I think that business has a sort of a margin mix impact. If you think about that growing, call it double the rate of the company, you know, maybe you could just remind us kind of the incremental margins on that business and whether that makes, you know, the 65 basis points of kind of base business margin you're talking about, maybe look even better on an underlying basis. Yep. yep Okay, great. okay great If you don't mind maybe one more quick one, just on the national accounts business, 'cause I think, you know, obviously very strong growth there. if you don't mind maybe one more quick one just on the national accounts business 'cause i think you know obviously very strong growth there I, you know, I think that business has a sort of a margin mix impact. i you know i think that business has a sort of a margin mix impact If you think about that growing, call it double the rate of the company, you know, maybe you could just remind us kind of the incremental margins on that business and whether that makes, you know, the 65 basis points of kind of base business margin you're talking about, maybe look even better on an underlying basis. if you think about that growing call it double the rate of the company you know maybe you could just remind us kind of the incremental margins on that business and whether that makes you know the 65 basis points of kind of base business margin you're talking about maybe look even better on an underlying basis

Speaker 2: Yeah. It's a good question. We love that business. Obviously, you know, as you alluded to, the growth profile, it's very little capital investment. It helps to drive business back across our solid waste segment to the extent that there are customers that are coming in through the national account sales effort that, you know, are serviced ultimately by our own trucks. That's the kind of work that we love. You know, really the solutions-based sales effort, you know, aligns really well with Casella and our strengths and our focus areas. Yeah. yeah It's a good question. it's a good question We love that business. we love that business Obviously, you know, as you alluded to, the growth profile, it's very little capital investment. obviously you know as you alluded to the growth profile it's very little capital investment It helps to drive business back across our solid waste segment to the extent that there are customers that are coming in through the national account sales effort that, you know, are serviced ultimately by our own trucks. it helps to drive business back across our solid waste segment to the extent that there are customers that are coming in through the national account sales effort that you know are serviced ultimately by our own trucks That's the kind of work that we love. that's the kind of work that we love You know, really the solutions-based sales effort, you know, aligns really well with Casella and our strengths and our focus areas. you know really the solutions-based sales effort you know aligns really well with casella and our strengths and our focus areas It's a great business. The only footnote, I guess, from a financial standpoint is low margin because it's low capital and the nature of the business. On an EBITDA margin basis, it's mid-single digits, mid-upper single digits EBITDA margin. If you were to pull national accounts out, you know, that would be accretive to our EBITDA margin. Obviously, there are many other factors that lead us to think this is a great business that we wanna push forward. It's a great business. it's a great business The only footnote, I guess, from a financial standpoint is low margin because it's low capital and the nature of the business. the only footnote i guess from a financial standpoint is low margin because it's low capital and the nature of the business On an EBITDA margin basis, it's mid-single digits, mid-upper single digits EBITDA margin. on an ebitda margin basis it's mid-single digits mid-upper single digits ebitda margin If you were to pull national accounts out, you know, that would be accretive to our EBITDA margin. if you were to pull national accounts out you know that would be accretive to our ebitda margin Obviously, there are many other factors that lead us to think this is a great business that we wanna push forward. obviously there are many other factors that lead us to think this is a great business that we wanna push forward

Speaker 10: Right. Okay. Thank you very much, guys. Right. right Okay. okay Thank you very much, guys. thank you very much guys

Speaker 6: Thank you. Thank you. thank you

Speaker 7: Thank you. One moment for our next question. Our next question comes from the line of Tyler Brown of Raymond James. Your line is now open. Thank you. thank you One moment for our next question. one moment for our next question Our next question comes from the line of Tyler Brown of Raymond James. our next question comes from the line of tyler brown of raymond james Your line is now open. your line is now open

Speaker 11: Hey, good morning, guys. Hey, good morning, guys. hey good morning guys

Speaker 6: Morning. Morning. morning

Speaker 2: Morning. Morning. morning

Speaker 11: Hey, I wanna come back to the 4.3% landfill price number. I think that number last quarter was 2.5%, so that's a really nice acceleration. Can you kinda talk about what drove that acceleration? Was the issue more about last quarter being a bit low, or was it a more concerted effort this quarter? Just any color on that metric specifically. Hey, I wanna come back to the 4.3% landfill price number. hey i wanna come back to the 4.3% landfill price number I think that number last quarter was 2.5%, so that's a really nice acceleration. i think that number last quarter was 2.5% so that's a really nice acceleration Can you kinda talk about what drove that acceleration? can you kinda talk about what drove that acceleration Was the issue more about last quarter being a bit low, or was it a more concerted effort this quarter? was the issue more about last quarter being a bit low or was it a more concerted effort this quarter Just any color on that metric specifically. just any color on that metric specifically

Speaker 6: Yeah. We're working hard to get more process and discipline around our sales efforts up and down the company, you know, great new hire in Chris Rains. About a year and a half ago, our longtime lead of landfill sales stepped away. That responsibility was kind of absorbed across a couple other places. We frankly didn't have enough management of pipeline, quality of revenue and what we're doing. We rebuilt that through 2025, and we're working to further advance it now under Chris's leadership. I think it's one part like we didn't get the job done as well as we could have gotten it done. Yeah. yeah We're working hard to get more process and discipline around our sales efforts up and down the company, you know, great new hire in Chris Rains. we're working hard to get more process and discipline around our sales efforts up and down the company you know great new hire in chris rains About a year and a half ago, our longtime lead of landfill sales stepped away. about a year and a half ago our longtime lead of landfill sales stepped away That responsibility was kind of absorbed across a couple other places. that responsibility was kind of absorbed across a couple other places We frankly didn't have enough management of pipeline, quality of revenue and what we're doing. we frankly didn't have enough management of pipeline quality of revenue and what we're doing We rebuilt that through 2025, and we're working to further advance it now under Chris's leadership. we rebuilt that through 2025 and we're working to further advance it now under chris's leadership I think it's one part like we didn't get the job done as well as we could have gotten it done. i think it's one part like we didn't get the job done as well as we could have gotten it done Two, you know, frankly, for a little bit there's a one rail move that was ramping up out of New Jersey that was putting a little downwards pressure on the overall northeastern environment. That rail move is full now. It's a third-party company that's moving waste out of New Jersey out to Ohio. They, they really don't have a lot of excess capacity in that system, so they never directly took one of our customers, but generally probably a little bit of pressure on the overall environment as well. Two, you know, frankly, for a little bit there's a one rail move that was ramping up out of New Jersey that was putting a little downwards pressure on the overall northeastern environment. two you know frankly for a little bit there's a one rail move that was ramping up out of new jersey that was putting a little downwards pressure on the overall northeastern environment That rail move is full now. that rail move is full now It's a third-party company that's moving waste out of New Jersey out to Ohio. it's a third-party company that's moving waste out of new jersey out to ohio They, they really don't have a lot of excess capacity in that system, so they never directly took one of our customers, but generally probably a little bit of pressure on the overall environment as well. they they really don't have a lot of excess capacity in that system so they never directly took one of our customers but generally probably a little bit of pressure on the overall environment as well

Speaker 11: Okay. Okay, that's helpful. Quickly on Star. Just to be clear, they are not in, or at least not materially in heavily flow-controlled markets tied to the Massachusetts burner, so internalization could be an opportunity long term? Just want to understand that. Okay. okay Okay, that's helpful. okay that's helpful Quickly on Star. quickly on star Just to be clear, they are not in, or at least not materially in heavily flow-controlled markets tied to the Massachusetts burner, so internalization could be an opportunity long term? just to be clear they are not in or at least not materially in heavily flow-controlled markets tied to the massachusetts burner so internalization could be an opportunity long term Just want to understand that. just want to understand that

Speaker 6: Yeah. There is no flow control in those markets, but as with any major metropolitan market, traffic matters, and the positioning of assets matter. As Brad said earlier, we're really strong today, Boston North to the west. Star is very strong to the south from the positioning of their hauling businesses, and it really gives us the opportunity to grow in those markets. Yeah. yeah There is no flow control in those markets, but as with any major metropolitan market, traffic matters, and the positioning of assets matter. there is no flow control in those markets but as with any major metropolitan market traffic matters and the positioning of assets matter As Brad said earlier, we're really strong today, Boston North to the west. as brad said earlier we're really strong today boston north to the west Star is very strong to the south from the positioning of their hauling businesses, and it really gives us the opportunity to grow in those markets. star is very strong to the south from the positioning of their hauling businesses and it really gives us the opportunity to grow in those markets We've had the strongest organic collection growth over the last decade in the greater Boston market. You kinda think about this, you know, from our sustainability, our resource solutions approach, the integration with our state-of-the-art recycling facility in that market. We've sold a lot of really premier customers, and we've grown share of wallet, and we think we can kind of expand upon the success Star has had in a similar way over the next coming years. We've had the strongest organic collection growth over the last decade in the greater Boston market. we've had the strongest organic collection growth over the last decade in the greater boston market You kinda think about this, you know, from our sustainability, our resource solutions approach, the integration with our state-of-the-art recycling facility in that market. you kinda think about this you know from our sustainability our resource solutions approach the integration with our state-of-the-art recycling facility in that market We've sold a lot of really premier customers, and we've grown share of wallet, and we think we can kind of expand upon the success Star has had in a similar way over the next coming years. we've sold a lot of really premier customers and we've grown share of wallet and we think we can kind of expand upon the success star has had in a similar way over the next coming years

Speaker 11: Okay, great. Brad, to help us on Q2 margins. I know that there's a normal step-up because it kinda unthaws, if you will, up in the Northeast. Revenue kind of takes a step up sequentially, you've got acquisitions that are dilutive by nature. Fuel is dilutive by nature. Can you just give us any color on how we should think about margins, either sequentially or year-over-year, just to kind of get us in the right spot? Okay, great. okay great Brad, to help us on Q2 margins. brad to help us on q2 margins I know that there's a normal step-up because it kinda unthaws, if you will, up in the Northeast. Revenue kind of takes a step up sequentially, you've got acquisitions that are dilutive by nature. i know that there's a normal step-up because it kinda unthaws if you will up in the northeast. revenue kind of takes a step up sequentially you've got acquisitions that are dilutive by nature Fuel is dilutive by nature. fuel is dilutive by nature Can you just give us any color on how we should think about margins, either sequentially or year-over-year, just to kind of get us in the right spot? can you just give us any color on how we should think about margins either sequentially or year-over-year just to kind of get us in the right spot

Speaker 2: Yeah. As you pointed out, sequentially, margins are much better in the second quarter and then advancing into the third quarter, in our business, particularly given our geography. On a year-over-year basis, I mean, you really mentioned the two main factors that we'll be dealing with this second quarter, which is fuel surcharges. I mean, we'll see where fuel goes over the second quarter, higher fuel costs that are covered by our recovery fees, are of course margin dilutive and the acquisitions. Yeah. yeah As you pointed out, sequentially, margins are much better in the second quarter and then advancing into the third quarter, in our business, particularly given our geography. as you pointed out sequentially margins are much better in the second quarter and then advancing into the third quarter in our business particularly given our geography On a year-over-year basis, I mean, you really mentioned the two main factors that we'll be dealing with this second quarter, which is fuel surcharges. on a year-over-year basis i mean you really mentioned the two main factors that we'll be dealing with this second quarter which is fuel surcharges I mean, we'll see where fuel goes over the second quarter, higher fuel costs that are covered by our recovery fees, are of course margin dilutive and the acquisitions. i mean we'll see where fuel goes over the second quarter higher fuel costs that are covered by our recovery fees are of course margin dilutive and the acquisitions We'll see how the acquisitions impact things. You know, another point I would make on the base business, just thinking about your modeling quarter-over-quarter, is the synergies in the Mid-Atlantic, and also actually the G&A savings that Ned had mentioned earlier, those will be more back-end loaded. We'll see how the acquisitions impact things. we'll see how the acquisitions impact things You know, another point I would make on the base business, just thinking about your modeling quarter-over-quarter, is the synergies in the Mid-Atlantic, and also actually the G&A savings that Ned had mentioned earlier, those will be more back-end loaded. you know another point i would make on the base business just thinking about your modeling quarter-over-quarter is the synergies in the mid-atlantic and also actually the g&a savings that ned had mentioned earlier those will be more back-end loaded We'll start to see as we've completed the consolidation of the Mid-Atlantic onto our system, we're gonna start to see those benefits in the second quarter of the synergy realization, but that's really a Q3 and Q4 story more so. The convenience fees that Ned mentioned are entirely back-end loaded. You know, Q2, we'll see, we'll see where we end up. You know, there are some headwinds, as you mentioned. You know, our focus is really on, frankly, the third quarter and the fourth quarter for this year and then, you know, of course, going into 2027. We'll start to see as we've completed the consolidation of the Mid-Atlantic onto our system, we're gonna start to see those benefits in the second quarter of the synergy realization, but that's really a Q3 and Q4 story more so. we'll start to see as we've completed the consolidation of the mid-atlantic onto our system we're gonna start to see those benefits in the second quarter of the synergy realization but that's really a q3 and q4 story more so The convenience fees that Ned mentioned are entirely back-end loaded. the convenience fees that ned mentioned are entirely back-end loaded You know, Q2, we'll see, we'll see where we end up. you know q2 we'll see we'll see where we end up You know, there are some headwinds, as you mentioned. you know there are some headwinds as you mentioned You know, our focus is really on, frankly, the third quarter and the fourth quarter for this year and then, you know, of course, going into 2027. you know our focus is really on frankly the third quarter and the fourth quarter for this year and then you know of course going into 2027

Speaker 11: Right. If your kind of updated guidance is flattish on the margin line with the dilution, is it crazy to think it could be slightly down in Q2 on a year-over-year basis up sequentially, though? Right. right If your kind of updated guidance is flattish on the margin line with the dilution, is it crazy to think it could be slightly down in Q2 on a year-over-year basis up sequentially, though? if your kind of updated guidance is flattish on the margin line with the dilution is it crazy to think it could be slightly down in q2 on a year-over-year basis up sequentially though

Speaker 2: It's a really good question. That's not crazy to think that way. It's a really good question. it's a really good question That's not crazy to think that way. that's not crazy to think that way

Speaker 11: Okay. Okay. Okay. okay okay Okay. okay

Speaker 6: To be clear, the base business will be even deposited. Acquisitions could weigh on it slightly negative. You know, we weren't able to get fully under the hood on Star since it was a DOJ process on the customers, the routes, all of those things until really day one, Tyler. We're digging in now and really looking at the progression of what we can do there. As we've said, you know, probably little more overhang on margins of 20-ish% to start with, and we'll look to improve from there. To be clear, the base business will be even deposited. to be clear the base business will be even deposited Acquisitions could weigh on it slightly negative. acquisitions could weigh on it slightly negative You know, we weren't able to get fully under the hood on Star since it was a DOJ process on the customers, the routes, all of those things until really day one, Tyler. you know we weren't able to get fully under the hood on star since it was a doj process on the customers the routes all of those things until really day one tyler We're digging in now and really looking at the progression of what we can do there. we're digging in now and really looking at the progression of what we can do there As we've said, you know, probably little more overhang on margins of 20-ish% to start with, and we'll look to improve from there. as we've said you know probably little more overhang on margins of 20-ish% to start with and we'll look to improve from there

Speaker 11: Yeah. Okay. I just wanna make sure I had that. Just last one, if I can, Ned. This is a bit of a periphery question, but I'm kinda curious about it. I think in Massachusetts, there are a couple of larger, sorry, ash landfills that are set to close in coming years that are kind of related to some of the burners. How do you think that's gonna play? What do you think and how will they deal with that excess ash? Yeah. yeah Okay. okay I just wanna make sure I had that. i just wanna make sure i had that Just last one, if I can, Ned. just last one if i can ned This is a bit of a periphery question, but I'm kinda curious about it. this is a bit of a periphery question but i'm kinda curious about it I think in Massachusetts, there are a couple of larger, sorry, ash landfills that are set to close in coming years that are kind of related to some of the burners. i think in massachusetts there are a couple of larger sorry ash landfills that are set to close in coming years that are kind of related to some of the burners How do you think that's gonna play? how do you think that's gonna play What do you think and how will they deal with that excess ash? what do you think and how will they deal with that excess ash

Speaker 6: Yeah, it needs to go somewhere, and it needs to go to Subtitle D landfill. That will take up capacity in the marketplace and something that really hasn't been discussed. I can't get into a lot of details there, but we believe there's some real value working with some of our peers across the waste to energy business on certain of those streams and it's an area that we've been actively engaged, and we think there's some value creation over time, and hopefully we'll have more to report. But it's a great point. I think the easiest part of the point is those landfills are closing or filling up, and that ash, the further you move it, the more expensive it gets. We've got some great in-market solutions. Our McKean rail facility actually fits very well- Yeah, it needs to go somewhere, and it needs to go to Subtitle D landfill. yeah it needs to go somewhere and it needs to go to subtitle d landfill That will take up capacity in the marketplace and something that really hasn't been discussed. that will take up capacity in the marketplace and something that really hasn't been discussed I can't get into a lot of details there, but we believe there's some real value working with some of our peers across the waste to energy business on certain of those streams and it's an area that we've been actively engaged, and we think there's some value creation over time, and hopefully we'll have more to report. i can't get into a lot of details there but we believe there's some real value working with some of our peers across the waste to energy business on certain of those streams and it's an area that we've been actively engaged and we think there's some value creation over time and hopefully we'll have more to report But it's a great point. but it's a great point I think the easiest part of the point is those landfills are closing or filling up, and that ash, the further you move it, the more expensive it gets. i think the easiest part of the point is those landfills are closing or filling up and that ash the further you move it the more expensive it gets We've got some great in-market solutions. we've got some great in-market solutions Our McKean rail facility actually fits very well- our mckean rail facility actually fits very well-

Speaker 11: Right. Right. right

Speaker 6: ...with some of, the burn plants as well. ...with some of, the burn plants as well. ...with some of the burn plants as well

Speaker 2: Tyler, you mentioned Massachusetts landfills, but there's, as a reminder, there's also a lot of ash that goes into the Brookhaven Landfill on Long Island, which- Tyler, you mentioned Massachusetts landfills, but there's, as a reminder, there's also a lot of ash that goes into the Brookhaven Landfill on Long Island, which- tyler you mentioned massachusetts landfills but there's as a reminder there's also a lot of ash that goes into the brookhaven landfill on long island which-

Speaker 11: Mm. Mm. mm

Speaker 2: ... is going to be closing to ash over the next few years. ... is going to be closing to ash over the next few years. is going to be closing to ash over the next few years

Speaker 6: Yeah, that's as much as 400,000 tons a year that goes into that landfill today. The Brookhaven Landfill, you know, that caused a little upheaval when it was closing from a C&D standpoint, but it's still open for ash through the next- Yeah, that's as much as 400,000 tons a year that goes into that landfill today. yeah that's as much as 400,000 tons a year that goes into that landfill today The Brookhaven Landfill, you know, that caused a little upheaval when it was closing from a C&D standpoint, but it's still open for ash through the next- the brookhaven landfill you know that caused a little upheaval when it was closing from a c&d standpoint but it's still open for ash through the next-

Speaker 11: Ah. Ah. ah

Speaker 6: ... two years. ... two years. two years

Speaker 11: Okay Okay okay

Speaker 6: ... it will be closed at that point in time. Still, you know, we talk about this sometimes, this ebbs and flows. As we look out over the next 10 years, there's still a lot of disposals coming offline in the Northeast, as you pointed out, some of these sites are just taking ash. At any point in time, you could go through a year period of time where you have a little bit more capacity like we did in 2025 of rail, then that fills up, people look to the next phase of sites closing. I think the long-term horizon is still the same as we've been talking about for years. There's a supply-demand imbalance in these markets, our in-market capacity is very valuable and will continue to have pricing power. ... it will be closed at that point in time. it will be closed at that point in time Still, you know, we talk about this sometimes, this ebbs and flows. still you know we talk about this sometimes this ebbs and flows As we look out over the next 10 years, there's still a lot of disposals coming offline in the Northeast, as you pointed out, some of these sites are just taking ash. as we look out over the next 10 years there's still a lot of disposals coming offline in the northeast as you pointed out some of these sites are just taking ash At any point in time, you could go through a year period of time where you have a little bit more capacity like we did in 2025 of rail, then that fills up, people look to the next phase of sites closing. at any point in time you could go through a year period of time where you have a little bit more capacity like we did in 2025 of rail then that fills up people look to the next phase of sites closing I think the long-term horizon is still the same as we've been talking about for years. i think the long-term horizon is still the same as we've been talking about for years There's a supply-demand imbalance in these markets, our in-market capacity is very valuable and will continue to have pricing power. there's a supply-demand imbalance in these markets our in-market capacity is very valuable and will continue to have pricing power

Speaker 11: Yeah. Yeah. Super interesting. Okay. Thank you, guys. Yeah. yeah Yeah. yeah Super interesting. super interesting Okay. okay Thank you, guys. thank you guys

Speaker 6: Thank you. Thank you. thank you

Speaker 7: Thank you. One moment for our next question. Our next question comes from the line of James Schumm of TD Cowen. Line is now open. Thank you. thank you One moment for our next question. one moment for our next question Our next question comes from the line of James Schumm of TD Cowen. our next question comes from the line of james schumm of td cowen Line is now open. line is now open

Speaker 4: That's actually my question is I wanted you guys to address a little bit more the supply-demand situation in the Northeast, because I think a lot of investors are solely focused on rail or hearing rail is moving waste out. Maybe you look at some of the landfill pricing recently, which is sub 5%, which maybe is not that impressive to some folks. There's a concern that, you know, that landfill pricing is going to be depressed longer term. That's actually my question is I wanted you guys to address a little bit more the supply-demand situation in the Northeast, because I think a lot of investors are solely focused on rail or hearing rail is moving waste out. that's actually my question is i wanted you guys to address a little bit more the supply-demand situation in the northeast because i think a lot of investors are solely focused on rail or hearing rail is moving waste out Maybe you look at some of the landfill pricing recently, which is sub 5%, which maybe is not that impressive to some folks. maybe you look at some of the landfill pricing recently which is sub 5% which maybe is not that impressive to some folks There's a concern that, you know, that landfill pricing is going to be depressed longer term. there's a concern that you know, that landfill pricing is going to be depressed longer term You know, I just wanted to get your views. You know, you've talked about a couple of moving parts, but, like, what is your longer term view on, you know, your Northeast landfill pricing? You know, from time to time, you are gonna see these rail projects move waste out. You know, when you guys look at the closures, what does that mean for pricing, you know, in 2027, 2028, 2029? You know, is it more mid-single digits? Can you get upper single digits at some point? Or, like, how are you guys thinking about that? You know, I just wanted to get your views. you know i just wanted to get your views You know, you've talked about a couple of moving parts, but, like, what is your longer term view on, you know, your Northeast landfill pricing? you know you've talked about a couple of moving parts but like what is your longer term view on you know your northeast landfill pricing You know, from time to time, you are gonna see these rail projects move waste out. you know from time to time you are gonna see these rail projects move waste out You know, when you guys look at the closures, what does that mean for pricing, you know, in 2027, 2028, 2029? you know when you guys look at the closures what does that mean for pricing you know in 2027 2028 2029 You know, is it more mid-single digits? you know is it more mid-single digits Can you get upper single digits at some point? can you get upper single digits at some point Or, like, how are you guys thinking about that? or like how are you guys thinking about that

Speaker 6: Yeah. Thanks for the question. If we look at the last decade plus, you know, pricing at the landfills has generally been mid-single digits, and it's ranged from a couple of lows for us in 2025 to highs as much as 8% or 9% during that time period. It really depends. I mean, you need to look at the book of business. You know, some of our outsized years also have a relationship with big, large contracts that might be renewing in those periods, and there might be step-ups in those contracts. Say you have a five year contract, and the market continues to tighten over the five years, you might get some of those outsized pricing years around those resets. Yeah. yeah Thanks for the question. thanks for the question If we look at the last decade plus, you know, pricing at the landfills has generally been mid-single digits, and it's ranged from a couple of lows for us in 2025 to highs as much as 8% or 9% during that time period. if we look at the last decade plus you know pricing at the landfills has generally been mid-single digits and it's ranged from a couple of lows for us in 2025 to highs as much as 8% or 9% during that time period It really depends. it really depends I mean, you need to look at the book of business. i mean you need to look at the book of business You know, some of our outsized years also have a relationship with big, large contracts that might be renewing in those periods, and there might be step-ups in those contracts. you know some of our outsized years also have a relationship with big large contracts that might be renewing in those periods and there might be step-ups in those contracts Say you have a five year contract, and the market continues to tighten over the five years, you might get some of those outsized pricing years around those resets. say you have a five year contract and the market continues to tighten over the five years you might get some of those outsized pricing years around those resets Generally, we're kind of stacking up to that mid-single digits, and I think we feel really confident that if we can price at those levels, we'll have a great economic outcome and returns for shareholders. I said it to Tyler a minute ago, and I feel the same way. If you look at all the sites that we'll be closing over the next decade, there's not enough space for all of this waste in the marketplace. You start to look at what are the alternatives. The, you know, the best alternatives are in market, right? Where you can use a truck, move the waste via long-haul truck to a landfill or to a waste-to-energy plant. The more expensive solution, both capital and operating costs, is to move it via rail. Generally, we're kind of stacking up to that mid-single digits, and I think we feel really confident that if we can price at those levels, we'll have a great economic outcome and returns for shareholders. generally we're kind of stacking up to that mid-single digits and i think we feel really confident that if we can price at those levels we'll have a great economic outcome and returns for shareholders I said it to Tyler a minute ago, and I feel the same way. i said it to tyler a minute ago and i feel the same way If you look at all the sites that we'll be closing over the next decade, there's not enough space for all of this waste in the marketplace. if you look at all the sites that we'll be closing over the next decade there's not enough space for all of this waste in the marketplace You start to look at what are the alternatives. you start to look at what are the alternatives The, you know, the best alternatives are in market, right? the you know the best alternatives are in market right Where you can use a truck, move the waste via long-haul truck to a landfill or to a waste-to-energy plant. where you can use a truck move the waste via long-haul truck to a landfill or to a waste-to-energy plant The more expensive solution, both capital and operating costs, is to move it via rail. the more expensive solution both capital and operating costs is to move it via rail It's far more expensive, but it's the only viable option as in-market capacity comes out. We see that as a tailwind for us over the next number of years as well. Sites will be closing. We've got a great outlook on capacity. We have over 25 years at our sites today. We've got some important expansions in progress that are working well, and we expect to land those in the next year. We look at the backdrop, which should be positive over the next decade. It's far more expensive, but it's the only viable option as in-market capacity comes out. it's far more expensive but it's the only viable option as in-market capacity comes out We see that as a tailwind for us over the next number of years as well. we see that as a tailwind for us over the next number of years as well Sites will be closing. sites will be closing We've got a great outlook on capacity. we've got a great outlook on capacity We have over 25 years at our sites today. we have over 25 years at our sites today We've got some important expansions in progress that are working well, and we expect to land those in the next year. we've got some important expansions in progress that are working well and we expect to land those in the next year We look at the backdrop, which should be positive over the next decade. we look at the backdrop which should be positive over the next decade

Speaker 4: Okay, great. Then I just wanted to ask you know, another, you know, question I get from investors a lot is you have this network of landfills in the Northeast, and then you make this platform acquisition into the Mid-Atlantic, and then you're growing west or southeast from there. You don't really have any landfills in this area. Okay, great. okay great Then I just wanted to ask you know, another, you know, question I get from investors a lot is you have this network of landfills in the Northeast, and then you make this platform acquisition into the Mid-Atlantic, and then you're growing west or southeast from there. then i just wanted to ask you know another you know question i get from investors a lot is you have this network of landfills in the northeast and then you make this platform acquisition into the mid-atlantic and then you're growing west or southeast from there You don't really have any landfills in this area. you don't really have any landfills in this area You know, you kind of have McKean in Pennsylvania. How should people think about your collection margins? What is the, sort of the ultimate goal? I mean, can you earn 30% margins without a landfill in Mid-Atlantic geography? Is it more like, should we be thinking more like 25%? I know that you guys have said it's closer to 20% right now. Let's think about 25%, I think, over the next couple of years. Longer term, is there upside to that 25% number? You know, you kind of have McKean in Pennsylvania. you know you kind of have mckean in pennsylvania How should people think about your collection margins? how should people think about your collection margins What is the, sort of the ultimate goal? what is the sort of the ultimate goal I mean, can you earn 30% margins without a landfill in Mid-Atlantic geography? i mean can you earn 30% margins without a landfill in mid-atlantic geography Is it more like, should we be thinking more like 25%? is it more like should we be thinking more like 25% I know that you guys have said it's closer to 20% right now. i know that you guys have said it's closer to 20% right now Let's think about 25%, I think, over the next couple of years. let's think about 25% i think over the next couple of years Longer term, is there upside to that 25% number? longer term is there upside to that 25% number

Speaker 6: Yeah. One of the things that's important to note is we use market-based pricing at all of our landfills, our recycling facilities, our transfer stations, so we charge ourselves market-based rates. If you look at our collection business, say, in the Northeast, where it's vertically integrated, the margins produced by that collection business are apples to apples to the Mid-Atlantic, 'cause we're charging intercompany market-based rates. We generally generate about 30% EBITDA margins on our collection line of business. In the Mid-Atlantic today, our margins are roughly 20%. Yeah. yeah One of the things that's important to note is we use market-based pricing at all of our landfills, our recycling facilities, our transfer stations, so we charge ourselves market-based rates. one of the things that's important to note is we use market-based pricing at all of our landfills our recycling facilities our transfer stations so we charge ourselves market-based rates If you look at our collection business, say, in the Northeast, where it's vertically integrated, the margins produced by that collection business are apples to apples to the Mid-Atlantic, 'cause we're charging intercompany market-based rates. if you look at our collection business say in the northeast where it's vertically integrated the margins produced by that collection business are apples to apples to the mid-atlantic 'cause we're charging intercompany market-based rates We generally generate about 30% EBITDA margins on our collection line of business. we generally generate about 30% ebitda margins on our collection line of business In the Mid-Atlantic today, our margins are roughly 20%. in the mid-atlantic today our margins are roughly 20% This is not because we don't have landfills. This is because we have work to do. This is a business that, you know, the quality of the truck fleet was lacking. There wasn't enough density in certain parts, quality of revenue. We've got strategies around each of these points, and we've laid out a plan for the next three years as we put more automated trucks in the fleet collapse routes to add about $15 million of EBITDA to that market, which will translate to, you know, mid-20% margins. This is not because we don't have landfills. this is not because we don't have landfills This is because we have work to do. this is because we have work to do This is a business that, you know, the quality of the truck fleet was lacking. this is a business that you know the quality of the truck fleet was lacking There wasn't enough density in certain parts, quality of revenue. there wasn't enough density in certain parts quality of revenue We've got strategies around each of these points, and we've laid out a plan for the next three years as we put more automated trucks in the fleet collapse routes to add about $15 million of EBITDA to that market, which will translate to, you know, mid-20% margins. we've got strategies around each of these points and we've laid out a plan for the next three years as we put more automated trucks in the fleet collapse routes to add about $15 million of ebitda to that market which will translate to you know mid-20% margins You know, having landfills is a great thing and having the vertical integration, but what also is important is having the right transfer assets so you can get your trucks off the road, consolidate waste, and then be able to look to multiple disposal options. Much of our focus right now in the Mid-Atlantic is either on buying or developing the right transfer assets in that marketplace that will allow us to successfully continue to grow. We've had some great progress here. We bought an excellent transfer station, last year in the third quarter. You know, having landfills is a great thing and having the vertical integration, but what also is important is having the right transfer assets so you can get your trucks off the road, consolidate waste, and then be able to look to multiple disposal options. you know having landfills is a great thing and having the vertical integration but what also is important is having the right transfer assets so you can get your trucks off the road consolidate waste and then be able to look to multiple disposal options Much of our focus right now in the Mid-Atlantic is either on buying or developing the right transfer assets in that marketplace that will allow us to successfully continue to grow. much of our focus right now in the mid-atlantic is either on buying or developing the right transfer assets in that marketplace that will allow us to successfully continue to grow We've had some great progress here. we've had some great progress here We bought an excellent transfer station, last year in the third quarter. we bought an excellent transfer station last year in the third quarter We're working on some additional opportunities. We have a new recycling facility we just bought on April 1st. We're working on developing another recycling facility ourselves. You'll look to see that margin progression come up, and we do look at over time as apples to apples and, you know, we'll be able to have a trajectory, hopefully over the number of years, to get to the same 30% margin level. We're working on some additional opportunities. we're working on some additional opportunities We have a new recycling facility we just bought on April 1st. we have a new recycling facility we just bought on april 1st We're working on developing another recycling facility ourselves. we're working on developing another recycling facility ourselves You'll look to see that margin progression come up, and we do look at over time as apples to apples and, you know, we'll be able to have a trajectory, hopefully over the number of years, to get to the same 30% margin level. you'll look to see that margin progression come up and we do look at over time as apples to apples and you know we'll be able to have a trajectory hopefully over the number of years to get to the same 30% margin level

Speaker 2: I would just add on to that is, I mean, not every market is created equal, of course, from a disposal perspective. Having the security of disposal capacity in our markets in New England, let's say upstate New York, is incredibly strategically valuable. You contrast that with the Mid-Atlantic, Eastern Pennsylvania would be a great example, there's plenty of landfill capacity down there. You know, we like the landfill business. It would help margins. We wouldn't turn down the opportunity to own landfill there, but it's not a strategic imperative. I think the focus, as Ned said, the focus down there is really gonna be building out our transfer station network so that we can most efficiently access the disposal sites that are down there. I would just add on to that is, I mean, not every market is created equal, of course, from a disposal perspective. i would just add on to that is i mean not every market is created equal of course from a disposal perspective Having the security of disposal capacity in our markets in New England, let's say upstate New York, is incredibly strategically valuable. having the security of disposal capacity in our markets in new england let's say upstate new york is incredibly strategically valuable You contrast that with the Mid-Atlantic, Eastern Pennsylvania would be a great example, there's plenty of landfill capacity down there. you contrast that with the mid-atlantic eastern pennsylvania would be a great example there's plenty of landfill capacity down there You know, we like the landfill business. you know we like the landfill business It would help margins. it would help margins We wouldn't turn down the opportunity to own landfill there, but it's not a strategic imperative. we wouldn't turn down the opportunity to own landfill there but it's not a strategic imperative I think the focus, as Ned said, the focus down there is really gonna be building out our transfer station network so that we can most efficiently access the disposal sites that are down there. i think the focus as ned said the focus down there is really gonna be building out our transfer station network so that we can most efficiently access the disposal sites that are down there

Speaker 4: Okay, great. Thanks for all the color, guys. Appreciate it. Okay, great. okay great Thanks for all the color, guys. thanks for all the color guys Appreciate it. appreciate it

Speaker 6: Thank you. Thank you. thank you

Speaker 7: Thank you. One moment for our next question. Our next question is Tami Zakaria of JPMorgan. Your line is now open. Thank you. thank you One moment for our next question. one moment for our next question Our next question is Tami Zakaria of JPMorgan. our next question is tami zakaria of jpmorgan Your line is now open. your line is now open

Speaker 9: Hi. Good morning. Congrats on the nice results. Hi. hi Good morning. good morning Congrats on the nice results. congrats on the nice results

Speaker 6: Hi. Hi. hi

Speaker 9: Hi, how are you? We've seen the CPI tick up lately, so can you remind us how any acceleration in the headline CPI impacts your pricing maybe on the entire parts of the portfolio, and is there a typical lag? Hi, how are you? hi how are you We've seen the CPI tick up lately, so can you remind us how any acceleration in the headline CPI impacts your pricing maybe on the entire parts of the portfolio, and is there a typical lag? we've seen the cpi tick up lately so can you remind us how any acceleration in the headline cpi impacts your pricing maybe on the entire parts of the portfolio and is there a typical lag

Speaker 2: Yeah. Hey, Tami, it's Brad. It does impact our pricing on some of our business, most notably municipal contracts, you know, where there's that direct relationship between the contract pricing and underlying inflation index. You know, as a reminder, 70%-75% of our collection business is open market, meaning we just have service agreements directly with customers where pricing is wherever we wanna set it and whatever the market will bear and whatever is appropriate given our underlying cost inflation. You know, I would say directionally it impacts us, but actually not necessarily directly because, you know, we have total flexibility to react to the circumstances. Yeah. yeah Hey, Tami, it's Brad. hey tami it's brad It does impact our pricing on some of our business, most notably municipal contracts, you know, where there's that direct relationship between the contract pricing and underlying inflation index. it does impact our pricing on some of our business most notably municipal contracts you know where there's that direct relationship between the contract pricing and underlying inflation index You know, as a reminder, 70%-75% of our collection business is open market, meaning we just have service agreements directly with customers where pricing is wherever we wanna set it and whatever the market will bear and whatever is appropriate given our underlying cost inflation. you know as a reminder 70%-75% of our collection business is open market meaning we just have service agreements directly with customers where pricing is wherever we wanna set it and whatever the market will bear and whatever is appropriate given our underlying cost inflation You know, I would say directionally it impacts us, but actually not necessarily directly because, you know, we have total flexibility to react to the circumstances. you know i would say directionally it impacts us but actually not necessarily directly because you know we have total flexibility to react to the circumstances

Speaker 6: I think higher CPI prints, you know, in a certain way do allow maybe a bit more pricing spread. You know, as Brad said, 70%-75% of our book of business we can price at will, and we've shown that amazing flexibility over time. Last year, we talked about this. We saw our price cost spread narrow more than we wanted to in the first half of the year, and we came out on a select group of customers with a second set of price increases in the last half of the year. I think higher CPI prints, you know, in a certain way do allow maybe a bit more pricing spread. i think higher cpi prints you know in a certain way do allow maybe a bit more pricing spread You know, as Brad said, 70%-75% of our book of business we can price at will, and we've shown that amazing flexibility over time. you know as brad said 70%-75% of our book of business we can price at will and we've shown that amazing flexibility over time Last year, we talked about this. last year we talked about this We saw our price cost spread narrow more than we wanted to in the first half of the year, and we came out on a select group of customers with a second set of price increases in the last half of the year. we saw our price cost spread narrow more than we wanted to in the first half of the year and we came out on a select group of customers with a second set of price increases in the last half of the year And we, you know, we thought that was the important thing to do to get that spread back to where we believe it should be. We're trying to be really dynamic, but of course, the CPI print is something we're always looking at, but we're also looking at our own cost profile and where we need to be. And we, you know, we thought that was the important thing to do to get that spread back to where we believe it should be. and we you know we thought that was the important thing to do to get that spread back to where we believe it should be We're trying to be really dynamic, but of course, the CPI print is something we're always looking at, but we're also looking at our own cost profile and where we need to be. we're trying to be really dynamic but of course the cpi print is something we're always looking at but we're also looking at our own cost profile and where we need to be

Speaker 9: That is good to know. Thank you. I'll pass it on. That is good to know. that is good to know Thank you. thank you I'll pass it on. i'll pass it on

Speaker 6: Thank you. Thank you. thank you

Speaker 7: Thank you. One moment for our next question. Our next question comes from the line of Shlomo Rosenbaum of Stifel. Your line is now open. Thank you. thank you One moment for our next question. one moment for our next question Our next question comes from the line of Shlomo Rosenbaum of Stifel. our next question comes from the line of shlomo rosenbaum of stifel Your line is now open. your line is now open

Speaker 8: Hi. Good morning. Thank you very much for taking my questions. Hey, Ned, it was just echoing that it was really good to see that third-party landfill pricing stepping back up. You talked about two factors, one of your own, just putting in more effort and ensuring appropriate pricing and getting good business, and the other one was rail. Just in terms of the impact over the last few quarters and then the turnaround, would you say that it was more a matter of turning around because the rail, you know, the competitor just kind of filled up already over there? Hi. hi Good morning. good morning Thank you very much for taking my questions. thank you very much for taking my questions Hey, Ned, it was just echoing that it was really good to see that third-party landfill pricing stepping back up. hey ned it was just echoing that it was really good to see that third-party landfill pricing stepping back up You talked about two factors, one of your own, just putting in more effort and ensuring appropriate pricing and getting good business, and the other one was rail. you talked about two factors one of your own just putting in more effort and ensuring appropriate pricing and getting good business and the other one was rail Just in terms of the impact over the last few quarters and then the turnaround, would you say that it was more a matter of turning around because the rail, you know, the competitor just kind of filled up already over there? just in terms of the impact over the last few quarters and then the turnaround would you say that it was more a matter of turning around because the rail you know the competitor just kind of filled up already over there The other aspect I want to just dig a little bit into is, do you have a sense in terms of the comparison between the rail pricing and what you're getting at your own kinda transfer stations and tipping at the landfills? Just, you know, at what point would it make more sense for someone else to add a lot more capital and just go ahead and add more capacity to rail? I guess what I'm trying to just get at is to understand, you know, the risk of something just popping up again, or is it, you know, something that is unlikely because, you know, the amount of capital would be very expensive and right now given, you know, the comparability cost is not worth it. The other aspect I want to just dig a little bit into is, do you have a sense in terms of the comparison between the rail pricing and what you're getting at your own kinda transfer stations and tipping at the landfills? the other aspect i want to just dig a little bit into is do you have a sense in terms of the comparison between the rail pricing and what you're getting at your own kinda transfer stations and tipping at the landfills Just, you know, at what point would it make more sense for someone else to add a lot more capital and just go ahead and add more capacity to rail? just you know at what point would it make more sense for someone else to add a lot more capital and just go ahead and add more capacity to rail I guess what I'm trying to just get at is to understand, you know, the risk of something just popping up again, or is it, you know, something that is unlikely because, you know, the amount of capital would be very expensive and right now given, you know, the comparability cost is not worth it. i guess what i'm trying to just get at is to understand you know the risk of something just popping up again or is it you know something that is unlikely because you know the amount of capital would be very expensive and right now given you know the comparability cost is not worth it

Speaker 6: Yeah. Great questions. So I'll start off with your first question around the pricing in the quarter and the pricing trajectory at our landfills. As I mentioned earlier, I think it was one part kind of pipeline management and quality of revenue we're seeking and managing the customer base, and one part, you know, looking at a certain rail move that was ramping up out of New Jersey over the last several years that they gave some negative pricing pressure to the overall marketplace. Yeah. yeah Great questions. great questions So I'll start off with your first question around the pricing in the quarter and the pricing trajectory at our landfills. so i'll start off with your first question around the pricing in the quarter and the pricing trajectory at our landfills As I mentioned earlier, I think it was one part kind of pipeline management and quality of revenue we're seeking and managing the customer base, and one part, you know, looking at a certain rail move that was ramping up out of New Jersey over the last several years that they gave some negative pricing pressure to the overall marketplace. as i mentioned earlier i think it was one part kind of pipeline management and quality of revenue we're seeking and managing the customer base and one part you know looking at a certain rail move that was ramping up out of new jersey over the last several years that they gave some negative pricing pressure to the overall marketplace There's only a few landfills that accept rail waste from the Northeast or just rail waste in general. A few of them have some excess capacity, but they're very expensive to get to, and they take a long time and a lot of rail exchanges. A few of them are a bit closer to the market and more reasonably costed. If we look at both sides of the equation, one, the capacity to actually move more rail cars each day out of certain transfer stations, and two, the actual capacity at these landfills against their daily permits. You're seeing both sides of that have constraint today. There's only a few landfills that accept rail waste from the Northeast or just rail waste in general. there's only a few landfills that accept rail waste from the northeast or just rail waste in general A few of them have some excess capacity, but they're very expensive to get to, and they take a long time and a lot of rail exchanges. a few of them have some excess capacity but they're very expensive to get to and they take a long time and a lot of rail exchanges A few of them are a bit closer to the market and more reasonably costed. a few of them are a bit closer to the market and more reasonably costed If we look at both sides of the equation, one, the capacity to actually move more rail cars each day out of certain transfer stations, and two, the actual capacity at these landfills against their daily permits. if we look at both sides of the equation one the capacity to actually move more rail cars each day out of certain transfer stations and two the actual capacity at these landfills against their daily permits You're seeing both sides of that have constraint today. you're seeing both sides of that have constraint today The last factor, and we heard about one of our competitors talk about this on their earnings call last week. You know, generally, I would say the major companies who have rail served landfills, including Casella, we're not looking at these as merchant sites where we're looking to get the lowest cost waste. We're looking at these as long-term defensive strategies to take care of our own customers. The last factor, and we heard about one of our competitors talk about this on their earnings call last week. the last factor and we heard about one of our competitors talk about this on their earnings call last week You know, generally, I would say the major companies who have rail served landfills, including Casella, we're not looking at these as merchant sites where we're looking to get the lowest cost waste. you know generally i would say the major companies who have rail served landfills including casella we're not looking at these as merchant sites where we're looking to get the lowest cost waste We're looking at these as long-term defensive strategies to take care of our own customers. we're looking at these as long-term defensive strategies to take care of our own customers We talked, we heard this one company talk about how the vast majority of their rail move was really tied to their own tons in New York state, in New York City, and looking to gain certainty there of costs and certainty of disposal. Casella looks at it through the same lens, and I know others do as well, where this isn't a merchant play to, you know, seek the bottom of the market. We talked, we heard this one company talk about how the vast majority of their rail move was really tied to their own tons in New York state, in New York City, and looking to gain certainty there of costs and certainty of disposal. we talked we heard this one company talk about how the vast majority of their rail move was really tied to their own tons in new york state in new york city and looking to gain certainty there of costs and certainty of disposal Casella looks at it through the same lens, and I know others do as well, where this isn't a merchant play to, you know, seek the bottom of the market. casella looks at it through the same lens and i know others do as well where this isn't a merchant play to you know seek the bottom of the market This is very capital-intensive, very costly to move the material. Coming back to your point, you know, this one competitor is ramping up capacity. They're at capacity today on the transfer side, forming the trains, and they're generally at capacity at the landfill site. You know, they're gonna look to returns and pricing quality. You know, they don't have room for a lot more tons. Yeah, I think through periods like this, what we do is we look at returns at our sites, and we're laser-focused on taking the right materials in at the right price and long-term return profiles because the scarcity is real, and you can't replicate many of these assets. This is very capital-intensive, very costly to move the material. this is very capital-intensive very costly to move the material Coming back to your point, you know, this one competitor is ramping up capacity. coming back to your point you know this one competitor is ramping up capacity They're at capacity today on the transfer side, forming the trains, and they're generally at capacity at the landfill site. they're at capacity today on the transfer side forming the trains and they're generally at capacity at the landfill site You know, they're gonna look to returns and pricing quality. you know they're gonna look to returns and pricing quality You know, they don't have room for a lot more tons. you know they don't have room for a lot more tons Yeah, I think through periods like this, what we do is we look at returns at our sites, and we're laser-focused on taking the right materials in at the right price and long-term return profiles because the scarcity is real, and you can't replicate many of these assets. yeah i think through periods like this what we do is we look at returns at our sites and we're laser-focused on taking the right materials in at the right price and long-term return profiles because the scarcity is real and you can't replicate many of these assets

Speaker 8: Okay, great. I just want to, a little bit more tactically, in the quarter, you know, you drove that margin, EBITDA margin outperformance, and even though in the beginning of the year, you were talking about there being more margin expansion in the second half of the year and really drove, you know, pretty good margin expansion this quarter. I was wondering, what went better than expected just from an operational perspective? Like, what really surprised you or where were you able to really execute better than you thought you would? Okay, great. okay great I just want to, a little bit more tactically, in the quarter, you know, you drove that margin, EBITDA margin outperformance, and even though in the beginning of the year, you were talking about there being more margin expansion in the second half of the year and really drove, you know, pretty good margin expansion this quarter. i just want to a little bit more tactically in the quarter you know you drove that margin ebitda margin outperformance and even though in the beginning of the year you were talking about there being more margin expansion in the second half of the year and really drove you know pretty good margin expansion this quarter I was wondering, what went better than expected just from an operational perspective? i was wondering what went better than expected just from an operational perspective Like, what really surprised you or where were you able to really execute better than you thought you would? like what really surprised you or where were you able to really execute better than you thought you would

Speaker 2: One example of where we did a little bit better than we expected and better year-over-year was on the maintenance side. You know, in the Mid-Atlantic, we're, as Ned was talking about, we're just on the cusp of completing our system integration and really being able- One example of where we did a little bit better than we expected and better year-over-year was on the maintenance side. one example of where we did a little bit better than we expected and better year-over-year was on the maintenance side You know, in the Mid-Atlantic, we're, as Ned was talking about, we're just on the cusp of completing our system integration and really being able- you know in the mid-atlantic we're as ned was talking about we're just on the cusp of completing our system integration and really being able-

Speaker 6: Next week, Brad. Next week. Next week, Brad. next week brad Next week. next week

Speaker 2: Next week. There you go. Next week. next week There you go. there you go

Speaker 6: Next week. Next week. next week

Speaker 2: You know, to be in a position to execute on our synergy plan. We've also, as we've been working on that, we've received delivery of a large number of trucks into that market. The ongoing maintenance costs, equipment rental for us to keep trucks on the road, to keep customer service, we no longer have a need for those. You know, that's just one example, not necessarily the whole story, but that's been a nice tailwind for us. You know, to be in a position to execute on our synergy plan. you know to be in a position to execute on our synergy plan We've also, as we've been working on that, we've received delivery of a large number of trucks into that market. we've also as we've been working on that we've received delivery of a large number of trucks into that market The ongoing maintenance costs, equipment rental for us to keep trucks on the road, to keep customer service, we no longer have a need for those. the ongoing maintenance costs equipment rental for us to keep trucks on the road to keep customer service we no longer have a need for those You know, that's just one example, not necessarily the whole story, but that's been a nice tailwind for us. you know that's just one example not necessarily the whole story but that's been a nice tailwind for us

Speaker 8: Okay. Thanks. If I could just squeeze one more in. Would you mind just going over, you know, the volumes in terms of year-over-year growth along the various lines that are kind of cyclical? The special waste to C&D, the temporary pulls, just things that people are looking at to see, you know, where things are going cyclically. Okay. okay Thanks. thanks If I could just squeeze one more in. if i could just squeeze one more in Would you mind just going over, you know, the volumes in terms of year-over-year growth along the various lines that are kind of cyclical? would you mind just going over you know the volumes in terms of year-over-year growth along the various lines that are kind of cyclical The special waste to C&D, the temporary pulls, just things that people are looking at to see, you know, where things are going cyclically. the special waste to c&d the temporary pulls just things that people are looking at to see you know where things are going cyclically

Speaker 2: Yeah. on the, you know, first off, on the collection side, the portion of our collection business that is most cyclically impacted is the roll-off business. The roll-off was down a little over 3% year-over-year. That's something that we look at and point to for, you know, where the economy might be impacting us. In our case, I think it was probably more weather than it was economy. You know, that's an area we look at. Yeah. on the, you know, first off, on the collection side, the portion of our collection business that is most cyclically impacted is the roll-off business. yeah on the you know first off on the collection side the portion of our collection business that is most cyclically impacted is the roll-off business The roll-off was down a little over 3% year-over-year. the roll-off was down a little over 3% year-over-year That's something that we look at and point to for, you know, where the economy might be impacting us. that's something that we look at and point to for you know where the economy might be impacting us In our case, I think it was probably more weather than it was economy. in our case i think it was probably more weather than it was economy You know, that's an area we look at. you know that's an area we look at At the landfills, you know, we saw MSW stronger, we saw C&D stronger. C&D would be a potentially economically cyclical volume stream. One area where we did see relative weakness year-over-year, which impacted us on mix, was special waste volumes. Again, that's another area where we don't have perfect knowledge on whether that's weather, whether that's uncertainty given the fact that we're at war, and projects not moving forward. Hard to know exactly, but that's another area where we may have seen it. At the landfills, you know, we saw MSW stronger, we saw C&D stronger. at the landfills you know we saw msw stronger we saw c&d stronger C&D would be a potentially economically cyclical volume stream. c&d would be a potentially economically cyclical volume stream One area where we did see relative weakness year-over-year, which impacted us on mix, was special waste volumes. one area where we did see relative weakness year-over-year which impacted us on mix was special waste volumes Again, that's another area where we don't have perfect knowledge on whether that's weather, whether that's uncertainty given the fact that we're at war, and projects not moving forward. again that's another area where we don't have perfect knowledge on whether that's weather whether that's uncertainty given the fact that we're at war and projects not moving forward Hard to know exactly, but that's another area where we may have seen it. hard to know exactly but that's another area where we may have seen it

Speaker 6: Yeah. You know, in a particularly cold winter, though, many of those jobs, whether they be infrastructure jobs or the start of major construction projects where you're digging out contaminated soils or even just industrial jobs where you're dredging out industrial lagoons and things like that, like, they're just not happening at the same pace in the winter. You know, not to blame the weather, but when it gets really cold, you're just not doing that work. Yeah. yeah You know, in a particularly cold winter, though, many of those jobs, whether they be infrastructure jobs or the start of major construction projects where you're digging out contaminated soils or even just industrial jobs where you're dredging out industrial lagoons and things like that, like, they're just not happening at the same pace in the winter. you know in a particularly cold winter though many of those jobs whether they be infrastructure jobs or the start of major construction projects where you're digging out contaminated soils or even just industrial jobs where you're dredging out industrial lagoons and things like that like they're just not happening at the same pace in the winter You know, not to blame the weather, but when it gets really cold, you're just not doing that work. you know not to blame the weather but when it gets really cold you're just not doing that work

Speaker 8: Got it. Okay, thank you. Got it. got it Okay, thank you. okay thank you

Speaker 6: Thank you. Thank you. thank you

Speaker 7: Thank you. One moment for our next question. Our next question comes from the line of Harold Lanto of Jefferies. Your line is now open. Thank you. thank you One moment for our next question. one moment for our next question Our next question comes from the line of Harold Lanto of Jefferies. our next question comes from the line of harold lanto of jefferies Your line is now open. your line is now open

Speaker 3: Good morning, guys. This is Harold on for Steph Moore. Just one for me. I guess just on the pricing front, you know, I think you did 5.1% in the quarter, the guidance at around 5%. I guess, typically, 1Q is a high-water mark. I guess, will we expect, you know, I guess this implies kind of consistent pricing at these levels for the rest of the year. I guess, you know, what's kind of driving that? Good morning, guys. good morning guys This is Harold on for Steph Moore. this is harold on for steph moore Just one for me. just one for me I guess just on the pricing front, you know, I think you did 5.1% in the quarter, the guidance at around 5%. i guess just on the pricing front you know i think you did 5.1% in the quarter the guidance at around 5% I guess, typically, 1Q is a high-water mark. i guess typically 1q is a high-water mark I guess, will we expect, you know, I guess this implies kind of consistent pricing at these levels for the rest of the year. i guess will we expect you know i guess this implies kind of consistent pricing at these levels for the rest of the year I guess, you know, what's kind of driving that? i guess you know what's kind of driving that Do you expect second half pricing to ramp just given improvement in the Mid-Atlantic? Anything, Dan, I guess just on, could you remind us how trends performed in the quarter. I think, you know, the industry has been seeing, you know, better trend metrics in the quarter. Just wanted to get a sense for, you know, the turnaround for you guys and how that, if you're making any investments on the tech side that's improving that. Thank you. Do you expect second half pricing to ramp just given improvement in the Mid-Atlantic? do you expect second half pricing to ramp just given improvement in the mid-atlantic Anything, Dan, I guess just on, could you remind us how trends performed in the quarter. anything dan i guess just on could you remind us how trends performed in the quarter I think, you know, the industry has been seeing, you know, better trend metrics in the quarter. i think you know the industry has been seeing you know better trend metrics in the quarter Just wanted to get a sense for, you know, the turnaround for you guys and how that, if you're making any investments on the tech side that's improving that. just wanted to get a sense for you know the turnaround for you guys and how that if you're making any investments on the tech side that's improving that Thank you. thank you

Speaker 2: Hey, Harold, it's Brad. We feel pretty good about the trend of pricing as we look forward to the end of the year. I guess a couple points to highlight. One, really this is a function of the price number that we report. You know, we're not reporting the price increases that we go out with and then see that number erode as prices are rolled back over the course of the year. I mean, that's a net number of rollbacks, it's not one that, all else being equal, should deteriorate over the course of the year. The other important point I think for us right now is the Mid-Atlantic. Hey, Harold, it's Brad. hey harold it's brad We feel pretty good about the trend of pricing as we look forward to the end of the year. we feel pretty good about the trend of pricing as we look forward to the end of the year I guess a couple points to highlight. i guess a couple points to highlight One, really this is a function of the price number that we report. one really this is a function of the price number that we report You know, we're not reporting the price increases that we go out with and then see that number erode as prices are rolled back over the course of the year. you know we're not reporting the price increases that we go out with and then see that number erode as prices are rolled back over the course of the year I mean, that's a net number of rollbacks, it's not one that, all else being equal, should deteriorate over the course of the year. i mean that's a net number of rollbacks it's not one that all else being equal should deteriorate over the course of the year The other important point I think for us right now is the Mid-Atlantic. the other important point i think for us right now is the mid-atlantic Given where we are with systems consolidation, we've had very limited ability to assess pricing across the customer base, assess profitability, and implement our pricing programs with the intelligence and specificity that we do in the rest of our business. You know, we would expect that to, you know, be a consistent tailwind over the course of the second half of this year and into next year on pricing. Given where we are with systems consolidation, we've had very limited ability to assess pricing across the customer base, assess profitability, and implement our pricing programs with the intelligence and specificity that we do in the rest of our business. given where we are with systems consolidation we've had very limited ability to assess pricing across the customer base assess profitability and implement our pricing programs with the intelligence and specificity that we do in the rest of our business You know, we would expect that to, you know, be a consistent tailwind over the course of the second half of this year and into next year on pricing. you know we would expect that to you know be a consistent tailwind over the course of the second half of this year and into next year on pricing As far as technology, and Ned hinted at this at his in his prepared remarks, we're actually on the cusp of rolling out an app, and really a different way of accessing the customer and meeting the customer where they wanna do business, where they can pick up an app and sign up for service rather than picking up the phone. As far as technology, and Ned hinted at this at his in his prepared remarks, we're actually on the cusp of rolling out an app, and really a different way of accessing the customer and meeting the customer where they wanna do business, where they can pick up an app and sign up for service rather than picking up the phone. as far as technology and ned hinted at this at his in his prepared remarks we're actually on the cusp of rolling out an app and really a different way of accessing the customer and meeting the customer where they wanna do business where they can pick up an app and sign up for service rather than picking up the phone

Speaker 6: Yeah. In our digital customer engagement, e-commerce activities are right now across about 60% of our markets, will be across 100% in the third quarter. This is actually our fastest growing sales channel, as you can imagine, and we're rejiggering our back office, our sales alignment to support this growth as well. Yeah. yeah In our digital customer engagement, e-commerce activities are right now across about 60% of our markets, will be across 100% in the third quarter. in our digital customer engagement e-commerce activities are right now across about 60% of our markets will be across 100% in the third quarter This is actually our fastest growing sales channel, as you can imagine, and we're rejiggering our back office, our sales alignment to support this growth as well. this is actually our fastest growing sales channel as you can imagine and we're rejiggering our back office our sales alignment to support this growth as well

Speaker 7: Thank you. One moment for our next question. Our next question comes to the line of William Grippin of Barclays. Your line is now open. Thank you. thank you One moment for our next question. one moment for our next question Our next question comes to the line of William Grippin of Barclays. our next question comes to the line of william grippin of barclays Your line is now open. your line is now open

Speaker 12: Great. I appreciate you squeezing me in and thanks for the opportunity. Just one quick one here. You know, given the Star Waste acquisition on April 1st, and that was kind of a chunkier deal, could you just elaborate a little bit on how you're thinking about maybe balancing leverage versus, you know, further tuck-in M&A over the balance of the year, and just your capacity to do that following Star Waste? Thank you. Great. great I appreciate you squeezing me in and thanks for the opportunity. i appreciate you squeezing me in and thanks for the opportunity Just one quick one here. just one quick one here You know, given the Star Waste acquisition on April 1st, and that was kind of a chunkier deal, could you just elaborate a little bit on how you're thinking about maybe balancing leverage versus, you know, further tuck-in M&A over the balance of the year, and just your capacity to do that following Star Waste? you know given the star waste acquisition on april 1st and that was kind of a chunkier deal could you just elaborate a little bit on how you're thinking about maybe balancing leverage versus you know further tuck-in m&a over the balance of the year and just your capacity to do that following star waste Thank you. thank you

Speaker 2: Yeah. I mentioned in the prepared remarks that pro forma for Star and the other two acquisitions that we closed on April 1st, were at about 2.75x leverage. That has room to grow. You know, we don't aspire to be highly levered. I think a key tenet of our capital allocation strategy and capital strategy generally has been to maintain moderate leverage to stay nimble and for risk management purposes. Yeah. yeah I mentioned in the prepared remarks that pro forma for Star and the other two acquisitions that we closed on April 1st, were at about 2.75x leverage. i mentioned in the prepared remarks that pro forma for star and the other two acquisitions that we closed on april 1st were at about 2.75x leverage That has room to grow. that has room to grow You know, we don't aspire to be highly levered. you know we don't aspire to be highly levered I think a key tenet of our capital allocation strategy and capital strategy generally has been to maintain moderate leverage to stay nimble and for risk management purposes. i think a key tenet of our capital allocation strategy and capital strategy generally has been to maintain moderate leverage to stay nimble and for risk management purposes That all being said, at 2.75x, you know, we do have capacity to move that a bit higher. For immediate, quickly emerging opportunities, we have about $500 million of available liquidity. You know, we're not done. You know, we're looking at a lot of attractive opportunities. Our pipeline is healthy. We'll see what we can cross over the course of the year. That all being said, at 2.75x, you know, we do have capacity to move that a bit higher. that all being said at 2.75x you know we do have capacity to move that a bit higher For immediate, quickly emerging opportunities, we have about $500 million of available liquidity. for immediate quickly emerging opportunities we have about $500 million of available liquidity You know, we're not done. you know we're not done You know, we're looking at a lot of attractive opportunities. you know we're looking at a lot of attractive opportunities Our pipeline is healthy. our pipeline is healthy We'll see what we can cross over the course of the year. we'll see what we can cross over the course of the year

Speaker 12: All right. Thank you very much. All right. all right Thank you very much. thank you very much

Speaker 6: Thank you. Thank you. thank you

Speaker 7: Thank you. I'm showing no further questions at this time. I'll now turn it back to Ned Coletta for closing remarks. Thank you. thank you I'm showing no further questions at this time. i'm showing no further questions at this time I'll now turn it back to Ned Coletta for closing remarks. i'll now turn it back to ned coletta for closing remarks

Speaker 6: Thank you everyone for joining us today. We look forward to speaking with you again in early August to discuss our second quarter results. Everyone have a wonderful day and weekend. Thank you. Thank you everyone for joining us today. thank you everyone for joining us today We look forward to speaking with you again in early August to discuss our second quarter results. we look forward to speaking with you again in early august to discuss our second quarter results Everyone have a wonderful day and weekend. everyone have a wonderful day and weekend Thank you. thank you

Speaker 7: Thank you for your participation in today's conference. This just concludes the program. You may now disconnect. Thank you for your participation in today's conference. thank you for your participation in today's conference This just concludes the program. this just concludes the program You may now disconnect. you may now disconnect