Cleanaway Waste Management (CWY) – Waste world

Cleanaway Waste Management provides waste management, industrial, and environmental services in Australia. The company operates through three segments: Solid Waste Services, Industrial & Waste Services, and Liquid Waste & Health Services. It offers commercial and industrial, municipal, and residential collection services for various types of solid waste streams, including general waste, recyclables, construction, and demolition waste, as well as medical and washroom services. The company was incorporated in 2002 and is headquartered in Melbourne.

Ord Minnett has updated its Cleanaway (CWY) model to incorporate the earnings lift from the waste manager’s recent acquisitions –Citywide Waste for $110 million and Contract Resources for $377 million – and some adjustments to our operational forecasts. Overall, these changes lead us to upgrade our FY26 EPS forecast by 2.8% and our FY27 estimate by 7.6%. Our FY25 EPS forecast is unchanged.

Melbourne-based Citywide Waste services circa 1500 council, commercial and industrial customers, including Melbourne City Council, and also involves a 35-year lease on the Dynon Road transfer station in West Melbourne. The much larger Contract Resources acquisition, due to be completed by the end of July, is also a sound business move. The acquisition provides Cleanaway with exposure to the resources sector with its specialist operations in decommissioning and remediation work, often in remote locations.

We maintain our Accumulate recommendation on Cleanaway, while our target price rises to $3.10 from $3.00 to reflect our EPS upgrades.

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