Verbio, CHAR Technologies, and Waste Management - These 3 stocks together are turning waste into billions!

Verbio – Regulatory tailwind catapults Verbio out of crisis

The turnaround at Verbio is primarily the result of a fundamental shift in sentiment in the market for GHG quotas. The driving force is the ongoing implementation of the EU's RED III directive into German law. Political measures to combat fraud and the planned elimination of double counting for certain biofuels have caused demand for actually produced volumes to explode. Prices per ton of CO2 have doubled as a result. For Verbio, as a producer of conventional biofuels, this means a massive boost in margins, which is already reflected in its financial results.

The figures for the first half of the year show an impressive recovery. Revenue climbed by just under 19% to EUR 893.7 million, while EBITDA almost quadrupled to EUR 45.5 million. In the second quarter, Verbio returned to profitability with positive free cash flow and earnings of EUR 0.05 per share. The driver is the bioethanol and biomethane segment, which returned to positive earnings for the first time in five quarters, thanks to quota prices. At the same time, the ramp-up of US plants is proceeding steadily, with production records being achieved. The traditional biodiesel segment, on the other hand, remains under pressure but is showing initial signs of stabilization.

Management has refined its annual forecast following a strong first half and is now targeting the upper end of the EBITDA range. Investors should keep an eye on three factors: the sustainability of GHG quota prices depending on political decisions, the ability of the bioethanol segment to build on its positive performance, and the quality of cash flow. The key question is whether the positive free cash flow from the second quarter will continue. Only then can Verbio sustainably reduce its debt and secure its operational recovery in the long term. The stock is currently trading at EUR 23.88.

CHAR Technologies – From developer to producer

For CHAR Technologies, 2026 begins with a long-awaited step forward. The Thorold Renewable Energy Facility in Ontario has officially begun operations, the cleantech company's first commercial project. The plant is expected to reach an annual production rate of 5,000 tons of biochar in the first quarter. What makes this special is that the biochar can be used directly as a substitute for metallurgical coal in steel production. ArcelorMittal is already lined up as a buyer. This marks CHAR Technologies' transition from a pure development phase to a manufacturing company with recurring revenues.

The business model relies on partnerships to finance growth without overburdening its own balance sheet. The BMI Group has already invested CAD 8 million in Thorold, and committed a further CAD 10 million to a second, significantly larger project in Española. The capacity there is expected to be five times greater. A new addition in February is a license agreement with French developer GazoTech, which will now bring the technology to Europe. In return, CHAR will receive one-time license fees plus ongoing shares in biochar production without having to tie up its own capital.

In addition to its core business, a second business area is being developed. In Baltimore, CHAR has successfully operated a plant for the destruction of so-called forever chemicals (PFAS) in sewage sludge. The evaluation of the six-month test phase is underway, and the results will form the basis for follow-up commercial projects. Here, too, the company is relying on a licensing model to conserve resources. Demand for such solutions is likely to increase as the disposal of PFAS-contaminated waste is becoming an increasing problem for municipalities. With two clear business areas and its first operational plant, CHAR Technologies is well-positioned for 2026. The share is currently trading at CAD 0.275.

Waste Management – Stability with growth potential

Waste Management's latest quarterly figures paint a mixed picture. Although the waste disposal giant slightly missed expectations with revenue of USD 6.31 billion, its operating performance gives cause for optimism. The adjusted EBITDA margin climbed to an impressive 31.3%, an increase of 2.4%. The Healthcare Solutions business grew by 53%, demonstrating that the acquisition of Stericycle is bearing fruit. Free cash flow rose by almost 27% to just under USD 3 billion, while the company also significantly improved its cost base.

The company is investing heavily in future growth areas. Seven new renewable natural gas plants were completed in 2025, and nine recycling projects were automated. The partnership with Reactivate to build solar plants on decommissioned landfills is particularly astute, as it turns unused land into sources of cash flow. Added to this is the ongoing integration of the healthcare division, where the operating cost ratio was significantly reduced within a year. Industrial demand is also showing initial signs of recovery, and management remains disciplined in its pricing.

Waste Management plans to invest around USD 3.5 billion in 2026, which is about 90% of the expected free cash flow. The dividend is expected to increase by 14.5% to USD 3.78, and a USD 3 billion buyback program has also been launched. With a P/E ratio of around 28 for the current year, the valuation is below the historical average and below that of its competitors. The strong balance sheet with a debt ratio of 3.1x continues to allow for strategic flexibility. Waste Management currently appears to be an attractive option for long-term investors. The share price is currently trading at USD 234.52.

Waste management is becoming a billion-dollar business. Verbio has turned the corner and is benefiting greatly from rising GHG quotas. CHAR Technologies is entering the commercial phase with its first biochar plant and securing licensing partners. Waste Management is shining with strong margins and investing in solar and gas projects. All three companies are leveraging different aspects of the circular economy.