Company Reports

Cleanaway has concluded the first four-week period of due diligence with potential acquirer EQT Infrastructure. EQT says it wants to proceed with the potential transaction at no less than the indicative offer price of AUD 3.13 per share, less any dividends paid before completion.

Cleanaway's fiscal 2026 underlying EBIT increased 14%, driven by strong earnings growth in the solid waste business and contributions from newly acquired Contract Resources. Shares were flat after the company released early earnings and fiscal 2027 guidance last week.

Cleanaway has pledged to increase capital investment for approximately 10 years through to 2030 as it completes a variety of circular economy strategies to divert waste from landfills. To date, the Eastern Creek Food and Garden Organics is the largest active project, supporting the federal government’s goal to halve waste sent to landfills by 2030. Where possible, the company seeks to monetize output from these initiatives, such as selling energy and resins recovered in processing.

Cleanaway has pledged to increase capital investment for approximately 10 years through to 2030 as it completes a variety of circular economy strategies to divert waste from landfills. To date, the Eastern Creek Food and Garden Organics is the largest active project, supporting the federal government’s goal to halve waste sent to landfills by 2030. Where possible, the company seeks to monetize output from these initiatives, such as selling energy and resins recovered in processing.

Cleanaway has received a conditional, nonbinding indicative proposal from private equity firm EQT Infrastructure. The proposal is to acquire 100% of Cleanaway's shares via a scheme of arrangement for AUD 3.13 per share, less any dividends before completion. Shares rose 15%.

Cleanaway downgraded its fiscal 2026 earnings outlook, lowering its EBIT guidance by 4% to AUD 470 million at the midpoint. The firm has cited higher than expected costs because of the surge in fuel prices caused by the war in the Middle East.

Cleanaway has pledged to increase capital investment for approximately 10 years through to 2030 as it completes a variety of circular economy strategies to divert waste from landfills. To date, the Eastern Creek Food and Garden Organics is the largest active project, supporting the federal government’s goal to halve waste sent to landfills by 2030. Where possible, the company seeks to monetize output from these initiatives, such as selling energy and resins recovered in processing.

Cleanaway's first-half fiscal 2026 gross revenue rose 13% over the prior year, driven by strong price and volume growth in its solids business, including landfills, garbage collection, can collection, and recycling. Underlying EBIT was supported by ongoing operational improvements, up 17%.

Cleanaway provided a trading update, maintaining fiscal 2026 underlying EBIT guidance of between AUD 470 million and AUD 500 million, despite subdued trading in the first fiscal quarter.

Cleanaway has pledged to increase capital investment for approximately 10 years through to 2030 as it completes a variety of circular economy strategies to divert waste from landfills. To date, the Eastern Creek Food and Garden Organics is the largest active project, supporting the federal government’s goal to halve waste sent to landfills by 2030. Where possible, the company seeks to monetize output from these initiatives, such as selling energy and resins recovered in processing.

Cleanaway's fiscal 2025 underlying EBIT of AUD 412 million was 15% higher than last year, reflecting 3% higher revenue and a 130-basis-point margin improvement. The waste collection and oil and health disposal businesses reported double-digit EBIT growth.

Cleanaway has pledged to increase capital investment for approximately 10 years through to 2030 as it completes a variety of circular economy strategies to divert waste from landfills. To date, the Eastern Creek Food and Garden Organics is the largest active project, supporting the federal government’s goal to halve waste sent to landfills by 2030. Where possible, the company seeks to monetize output from these initiatives, such as selling energy and resins recovered in processing.

Cleanaway has wrapped up two acquisitions after they were unopposed by the Australian and Competition Consumer Commission. The acquisition of Citywide was completed on July 1, 2025 and Contract Resources is due to complete on July 31, 2025.

No-moat Cleanaway is acquiring Contract Resources for AUD 377 million. The move expands its industrial services portfolio, particularly in decommissioning, decontamination, and remediation for the oil and gas sector.

No-moat Cleanaway’s first-half fiscal 2025 underlying EBIT of AUD 195 million was 12% higher than the previous corresponding period, or PCP. Gross revenue of AUD 1.9 million was 4% higher, with most of the earnings uplift attributed to an 80-basis-point underlying operating margin increase to 11.8%.

Cleanaway has pledged to increase capital investment for approximately 10 years through to 2030 as it completes a variety of circular economy strategies to divert waste from landfills. To date, the Eastern Creek Food and Garden Organics is the largest active project, supporting the federal government’s goal to halve waste sent to landfills by 2030. Where possible, the company seeks to monetize output from these initiatives, such as selling energy and resins recovered in processing.

No-moat Cleanaway’s acquisition of Citywide Waste has been delayed by the Australian Competition and Consumer Commission. With the acquisition, Cleanaway is likely to dominate collection and disposal services in central and west Melbourne, which the regulator is concerned may lead to higher prices or lower-quality services. In the Statement of Issues, the ACCC has focused on Citywide’s primary asset, the Dynon Road waste transfer station. The facility is one of the largest in Victoria, and among the top five largest in Australia.

Cleanaway has pledged to increase capital investment for approximately 10 years through to 2030 as it completes a variety of circular economy strategies to divert waste from landfills. To date, the Eastern Creek Food and Garden Organics is the largest active project, supporting the federal government’s goal to halve waste sent to landfills by 2030. Where possible, the company seeks to monetize output from these initiatives, such as selling energy and resins recovered in processing.

We transfer coverage of no-moat Cleanaway and maintain our fair value estimate of AUD 2.30 per share. We have lifted revenue growth expectations for the group, but temper our margin expectations for the industrial, and liquid and health waste businesses. We still expect margin growth in these businesses, but at a slower pace, driven by operating efficiency initiatives and positive margin mix from higher-margin waste disposal earnings at landfill assets. We maintain our previous Standard Morningstar Capital Allocation Rating, Medium Morningstar Uncertainty Rating, and no-moat rating.

Cleanaway has pledged to increase capital investment for approximately 10 years through to 2030 as it completes a variety of circular economy strategies to divert waste from landfills. To date, the Eastern Creek Food and Garden Organics is the largest active project, supporting the federal government’s goal to halve waste sent to landfills by 2030. Where possible, the company seeks to monetize output from these initiatives, such as selling energy and resins recovered in processing.