As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the waste management industry, including Casella Waste Systems (NASDAQ: CWST) and its peers.

Waste management companies can possess licenses permitting them to handle hazardous materials. Furthermore, many services are performed through contracts and statutorily mandated, non-discretionary, or recurring, leading to more predictable revenue streams. However, regulation can be a headwind, rendering existing services obsolete or forcing companies to invest precious capital to comply with new, more environmentally-friendly rules. Lastly, waste management companies are at the whim of economic cycles. Interest rates, for example, can greatly impact industrial production or commercial projects that create waste and byproducts.

The 9 waste management stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.7%.

In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results.

Casella Waste Systems (NASDAQ: CWST)

Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ: CWST) offers waste management services for businesses, residents, and the government.

Casella Waste Systems reported revenues of $465.3 million, up 23.4% year on year. This print exceeded analysts’ expectations by 2.4%. Despite the top-line beat, it was still a mixed quarter for the company with full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ adjusted operating income estimates.

“We delivered strong growth again in the second quarter across our key financial metrics, as we continue to execute on our operating plans and acquisition strategy, including six acquisitions completed in the first half of this year with over $90 million in annualized revenue,” said John W. Casella, Chairman and CEO of Casella Waste Systems,

Unsurprisingly, the stock is down 14.2% since reporting and currently trades at $93.24.

Read our full report on Casella Waste Systems here, it’s free.

Best Q2: Montrose (NYSE: MEG)

Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.

Montrose reported revenues of $234.5 million, up 35.3% year on year, outperforming analysts’ expectations by 24.4%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.

Montrose achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 31.2% since reporting. It currently trades at $29.67.

Is now the time to buy Montrose? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Enviri (NYSE: NVRI)

Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE: NVRI) offers steel and waste handling services.

Enviri reported revenues of $562.3 million, down 7.8% year on year, falling short of analysts’ expectations by 2.5%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 34.1% since the results and currently trades at $11.63.

Read our full analysis of Enviri’s results here.

Waste Connections (NYSE: WCN)

Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.

Waste Connections reported revenues of $2.41 billion, up 7.1% year on year. This print topped analysts’ expectations by 0.7%. It was a satisfactory quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates.

The stock is down 3.2% since reporting and currently trades at $178.39.

Read our full, actionable report on Waste Connections here, it’s free.

Waste Management (NYSE: WM)

Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.

Waste Management reported revenues of $6.43 billion, up 19% year on year. This result surpassed analysts’ expectations by 1.1%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a slight miss of analysts’ adjusted operating income estimates.

The stock is down 3.9% since reporting and currently trades at $219.25.

Read our full, actionable report on Waste Management here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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