Casella Waste Systems (CWST) Falls 5% as Q4 Profitability Decline Overshadows EPS Beat

Casella Waste Systems (CWST) shares fell 5% on Feb. 20, 2026, following a mixed fourth-quarter 2025 report where declining profitability overshadowed an earnings beat. Adjusted earnings per share reached $0.30, exceeding analyst estimates of $0.22. However, revenue of $469.1 million missed expectations despite a 9.7% year-over-year increase. Operating margin contracted to 2.5% from 4.3% in the prior-year quarter, while free cash flow margin fell to 8.4% from 13.9%.