Earnings Growth and Dividend Hike Could Be a Game Changer for Cleanaway (ASX:CWY)

• On August 19, 2025, Cleanaway Waste Management Limited reported full-year earnings growth with sales reaching A$3.85 billion and net income of A$196.4 million, alongside the announcement of a 20% increase in total dividends for the year.
• The company also provided earnings guidance for 2026, highlighting a positive business outlook with expected EBIT between A$470 million and A$500 million, including contributions from recent acquisitions.
• With the upgraded dividend as a highlight, we will explore how these updates influence the company's investment narrative and expectations for future performance.

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Cleanaway Waste Management Investment Narrative Recap

To be a Cleanaway shareholder, you need to believe in the company’s ability to deliver steady earnings growth by leveraging operational improvements and expansion in waste management services. The recent earnings announcement, stronger sales, and dividend increase support confidence but don't materially shift the biggest short-term catalyst: realizing margin improvements through operational restructuring. The most important risk remains the lingering uncertainty around net operating cash flow and pressures in the Industrial & Waste Services segment.

Of the recent announcements, the 20% increase in total dividends stands out as most relevant, highlighting management’s confidence in future profitability. This dividend boost complements Cleanaway’s focus on operational excellence but comes at a time when competitive pressures and rising costs, especially in Metro C&I, continue to challenge sustainable net margin expansion.

However, investors should be aware that while earnings outlook remains positive, the drop in net operating cash flow points to cash management challenges that could impact future returns if...

Read the full narrative on Cleanaway Waste Management (it's free!)

Cleanaway Waste Management's narrative projects A$4.8 billion revenue and A$298.1 million earnings by 2028. This requires 8.2% yearly revenue growth and a A$141.4 million earnings increase from A$156.7 million today.

Uncover how Cleanaway Waste Management's forecasts yield a A$3.14 fair value, a 15% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s fair value estimates for Cleanaway range from A$2.00 to A$4.56 across four member perspectives. While opinions vary, the recent dividend increase underscores ongoing debate about the significance of cash flow risks on future performance.

Explore 4 other fair value estimates on Cleanaway Waste Management - why the stock might be worth 27% less than the current price!

Build Your Own Cleanaway Waste Management Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cleanaway Waste Management research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Cleanaway Waste Management research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cleanaway Waste Management's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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