Casella Waste Systems (CWST) risk factors, FY2025 10-K

Risks Related to Our Business and Industry

1. 01We are subject to general macroeconomic risks in the waste industry that are impacted by economic factors outside of our control, which, if realized, may adversely affect our business, operating results and financial performance
2. 02Significant shortages in diesel fuel supply or increases in diesel fuel prices could affect our operating expenses and results
3. 03We face substantial competition in the solid waste services industry, and if we cannot successfully compete in the marketplace, our business, financial condition and results of operations may be materially adversely affected
4. 04In addition, we may be impacted by the development and commercialization of disruptive technologies that may materially change how waste management services are provided. If we are unable to gain access to these technologies or to compete effectively against them, our financial results may suffer
5. 05The increasing focus on PFAS and other emerging contaminants may lead to increased compliance and remediation costs and litigation risks, which could adversely impact our financial condition and results of operations
6. 06We may be unable to obtain or maintain required permits or to expand existing permitted capacity of our landfills, which could decrease our revenue and increase our costs22% rewritten
7. 07Fluctuations in commodity prices and diminished markets for recyclable materials that we sell to customers may adversely affect our results of operations and cash flows
8. 08Our business is geographically concentrated and is therefore subject to regional economic downturns
9. 09Our results of operations and financial condition may be negatively affected if we inadequately accrue for final capping, closure and post-closure costs or by the timing of these costs for our waste disposal facilities
10. 10The business and assets we operate expose us to safety, operational and other risks, and our insurance coverage and self-insurance reserves may be inadequate to cover all significant risk exposures
11. 11We could be precluded from entering into contracts or obtaining or maintaining permits or certain contracts if we are unable to obtain third-party financial assurance to secure our contractual obligations
12. 12We may be required to write-off or impair capitalized costs or intangible assets in the future or we may incur restructuring costs or other charges, each of which could harm our earnings
13. 13Our revenues and our operating income experience seasonal fluctuations, which could adversely affect our operational results in certain quarters and cause our results to fluctuate
14. 14Adverse weather conditions, including those brought about by climate change, may limit our operations and increase the costs of collection and disposal
15. 15Efforts by labor unions to organize our employees could divert management attention and increase our operating expenses
16. 16Our enterprise risk management process may not be effective in mitigating the risks to which we are subject, or in reducing the potential for losses in connection with such risks
17. 17We may be adversely affected by market responses to our sustainability practices and may not be effective in mitigating the risks associated with sustainability expectations and related emerging regulations, or in reducing the potential for losses in connection with such risks
18. 18Alternatives to landfill disposal could reduce our disposal volumes and adversely affect our revenues and operating resultsNew

Risks Related to Technology and Information Security

1. 19We are upgrading our technology infrastructure and there can be no assurance that our efforts will be completed on the projected timetable or that our investment will result in the expected gains84% rewritten
2. 20Significant disruptions in our information technology systems or cybersecurity incidents could negatively impact our business and our relationships with customers, adversely affecting our financial results and exposing us to litigation risk
3. 21Inability to effectively adopt and manage artificial intelligence technologies could adversely affect our business, results of operations, and competitive positionNew

Risks Related to Our Indebtedness

1. 22We have substantial debt and have the ability to incur additional debt. The principal and interest payment obligations of such debt may restrict our future operations