SEATTLE (Scrap Monster): According to leading industry analysts, Casella Waste Systems may need to extract greater value from recent acquisitions and improve operational efficiency to meet an ambitious profitability target proposed by activist investor Jana Partners.

Jana recently disclosed a stake in the waste management company and urged management to target an adjusted EBITDA margin of 27% by 2029. The investor also called for the appointment of a performance improvement consultant.

Casella’s profitability has remained relatively stable despite substantial earnings growth. William Blair analyst Trevor Romeo noted that adjusted EBITDA margins have hovered around 23% per annum since 2021. The company reported a margin of 22.7% in the second quarter of 2026. This is significantly below the 30%-plus levels achieved by several major competitors.

Analysts noted that Casella’s higher transportation expenses in the Northeast, uncertainty surrounding landfill capacity, and a substantial low-margin brokerage business have impacted its profitability. Its relatively smaller scale also presents disadvantages compared with larger waste management operators.

Expanding margins will likely depend on integrating acquisitions more effectively and capturing additional cost savings. Romeo estimates that realizing at least $30 million in synergies from Casella’s Mid-Atlantic operations is essential for the company to narrow the gap with Jana’s target.

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