The Cleanaway Waste Management Ltd (ASX: CWY) share price is in focus today as the company unveiled a refreshed 2026 strategy, aiming for margin expansion and stable cash flow, while highlighting a 60% lift in underlying EBIT since FY22.
Image source: Getty Images
What did Cleanaway Waste Management report?
- Underlying EBIT rose 60% between FY22 and FY25, with margin expanding 260 basis points to 12.5%
- Return on capital employed improved by 220 basis points to 9.1% from FY22 to FY25
- EBIT margin reached a record 12.5% in FY25
- Free cash flow is expected to strengthen from FY27 onwards as one-off costs wind down
- Dividend payout ratio maintained at 50–75% of underlying NPAT
What else do investors need to know?
Cleanaway's new "Blueprint 2030 2.0" strategy is built around three pillars: delivering customer value, optimising its branch network, and leveraging advanced ways of working through digital and data capabilities. Management outlined plans to focus on high-value revenue growth, tighter cost controls, and further investment in automation and analytics to drive efficiencies.
Key highlights include a major upgrade to sales processes, with a centralised "One Sales Engine" model designed to lift customer retention and cross-sell rates. The company also flagged its ongoing digitisation program, targeting improved fleet utilisation, real-time tracking, and safety enhancements.
Cleanaway is actively reshaping its hazardous waste business, streamlining its site network while expanding high-margin technical services and decommissioning work—sectors where industry growth is forecast to continue.
What's next for Cleanaway Waste Management?
Looking ahead, Cleanaway is targeting ongoing margin expansion of at least 260 basis points and 10–15% EPS growth in FY27 as cost-saving initiatives gain traction. The company expects to deliver stronger, more stable free cash flow through disciplined capital allocation and optimised asset utilisation.
Management is confident its integrated network and planned technology investments will continue to underpin Cleanaway's leadership in sustainable waste management, providing a pathway for profitable growth in critical sectors such as hazardous waste and technical services.
Cleanaway Waste Management share price snapshot
Over the past 12 months, Cleanaway shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.
