The S&P/ASX 200 Index (ASX: XJO) stock Cleanaway Waste Management Ltd (ASX: CWY) recently reported its result and there are a number of experts that are bullish about the business.
In-fact, according to a Commsec collation of expert opinions, there are nine analysts that rate the business as a buy.
When one broker rates a business as a buy, that's interesting. When numerous experts rate a business as a buy, that could suggest there is a significant opportunity there.
Cleanaway describes itself as Australia's leading sustainable waste management, industrial and environmental services company. It has more than 350 locations in Australia, New Zealand and the Middle East.
It claims to have Australia's largest waste and industrial services fleet, with more than 6,400 vehicles, with an extensive network of recycling facilities, transfer stations, engineering landfills, liquid treatment plants and refineries.
Let's take a look at why analysts may think it's an appealing idea.
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Ongoing growth in FY25 result
The business reported in its result for the 12 months to 30 June 2025, net revenue grew 3.4% to $3.3 billion, operating profit (EBITDA) climbed 8.6% to $791.3 million, earnings before interest tax (EBIT) increased 14.6% to $411.8 million and net profit after tax (NPAT) increased 16.1% to $198 million.
The ASX 200 stock pointed out that that the solid waste services performed well, driven by earnings growth in its collections and post collections business lines. Cleanaway said it highlighted the strength of its solid waste recurring revenue and diversified customer base, supported by "the delivery of operational excellence benefits and strategic growth initiatives."
During FY25, it expanded its resource recovery capacity with the commissioning of its new Western Sydney material recovery facility and launched Tasmania's container deposit scheme.
Cleanaway also noted it acquired highly complementary and strategically aligned assets, including Citywide Waste, which strengthens the Melbourne post-collections network, and Contract Resources, which advances its decommissioning, decontamination and remediation strategy through the addition of a market leading, production critical services provider.
Pleasing FY26 guidance
The company guided for another year of double-digit growth in the 2026 financial year, with underlying operating profit (EBIT) expected to be between $470 million to $500 million. This would represent growth (compared to the underlying EBIT of FY25) of between 14% to 21%.
That EBIT guidance includes an approximate $30 million EBIT contribution from acquisitions.
Cleanaway also said it expects sustainable margin expansion through "operational excellence initiatives".
Broker commentary on the ASX 200 stock
UBS said that the FY26 EBIT guidance was consistent with its expectations, with the low end of the guidance reflecting a "conservative view". The broker said it was positive that Citywide and Contract Resources acquisitions are "tracking strongly with EBIT contributions ahead of expectations."
UBS is expecting Cleanaway to generate $489 million of EBIT in FY26, as well as $3.85 billion of revenue and net profit of $249 million.
The broker has a buy rating on the business, with a price target of $3.20. That means UBS is suggesting the Cleanaway share price could rise by 15% over the next year.
