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Renewi: From Trash to Treasure

A credible strategy for top-line growth and margin expansion with a mission to reduce waste and lead the transition to a lower-carbon economy.

LON:RWI
GBp868.000
Updated: May 02, 2025
Industrials
mediumuk

Executive Summary

A pure-play European recycler

Renewi is one of Europe’s leading waste-to-product companies turning waste into low-carbon secondary raw materials. Its activities span the collection, processing and resale of industrial, hazardous and municipal waste. They invest in cutting-edge technologies to improve recycling processes and efficiency. The company is deeply committed to sustainability, helping to reduce carbon footprints and promote environmental responsibility. Increasing regulations around waste management and recycling provide a favourable market environment for Renewi’s services. They have shown consistent revenue growth, supported by strong market demand for recycling.

Investor Relations

Investment Thesis

Overview of buy and sell case of the business.

Why Invest?

Key pieces of information about the business that you need to know about.

Industry Leader

Renewi has unmatched expertise in the sector and continues to set industry standards by extending it's own recycling targets (75%) and investing in innovation and advanced technology to produce high-quality, low carbon secondary materials from waste. It's strategy is intrinsically linked to sustainability which is attractive to new 'green' funds and investors.

Circular economy

Renewi is heavily involved in the circular economy, a sustainable economic framework that maximises resource utilisation and reduces waste. The circular economy is an alternative to the traditional linear economy (make, use, dispose). It emphasises maximising resource value extraction during use, extending the life of resources, and recovering and regenerating materials and products when their useful lives are coming to an end.

Renewi specialises in ending the waste product loop by converting waste into useful secondary raw materials. The organisation utilises cutting-edge technologies for waste sorting, cleaning, and processing, guaranteeing that materials may be recycled and reused effectively. This significantly lessens the environmental effect and promotes sustainable practices in a variety of businesses, cutting carbon emissions, and conserving natural resources.

Strategic Plan

Renewi has a clearly defined medium-term strategy to generate significant shareholder value. It has set ambitious but achievable financial targets, including increasing EBIT margins from 6% to 8-10%, driving consistent organic revenue growth of 5% + per annum, becoming cash generative and paying a shareholder dividend.

Catalysts

The key events that could drive investment opportunities and shift markets.

Near term

The recent sale of UK Municipal business will generate €15-20 million free cash flow.

This will stabilise cash flow generation annually, and improving margins from 6.5% to 7.2% with immediate impact. They can realign the strategic focus towards areas with higher growth potential and innovation in waste management and recycling technologies.

Medium term

The successful execution of strategic and financial targets, aiming for 8-10% EBIT margins, achieved by divesting UK Municipal operations, streamlining staff functions, enhancing operational efficiency through digitisation, focusing on core recycling markets, and improving cost management and financial strategies.

Long term

Investments in the advancement of technology and innovation will allow Renewi to keep its market-leading position and strengthen its competitive advantage.

Follow the Experts

Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.

Vojtech Vosecky profile

Vojtech Vosecky

Circular Economist

120k audience

Expert Insights

linkedin
The Circular economy is : 1. Using less resources 2. Using longer stuff for longer 3. Using everything again and again 4. Regenerating (by having a positive effect)
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The Ellen MacArthur Foundation profile

The Ellen MacArthur Foundation

Circular Economy NGO

80.5k audience

Expert Insights

x
The circular economy offers a new operating model for our economy: one that builds economic and environmental resilience and creates growth that benefits business, society, and the natural environment
See more
youtube
Our linear take, make, waste economy is one of the leading causes of climate change.
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World Resources Institute profile

World Resources Institute

Global Research NGO

204k audience

Expert Insights

article
The use of resources has tripled since 1970 and could double again by 2050 if business continues as usual. We would need 1.5 Earths to sustainably support our current resource use.
Read more
article
A circular economy isn’t just about fixing environmental wrongs, though: Evidence shows it can bring big opportunities and positive impacts across industries, sectors and lives.
Read more
article
Research shows that the circular economy offers a $4.5 trillion economic opportunity by reducing waste, stimulating innovation and creating employment.
Read more
Elin Bergman profile

Elin Bergman

Circular Economy Specialist

44.5k audience

Expert Insights

linkedin
Did you know that circular transformation of European cities could yield €733bn annually by 2035
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Investor Materials

Access the most recent investor updates published by the company.

Key Documents

HY 2025 Results

Article

Renewi plc ("Renewi" or the "Group") (LSE: RWI.L: Euronext Amsterdam: RWI.AS), a leading European waste-to-product company, is pleased to confirm that it has joined the FTSE 250.

Renewi Investor Introduction

PDF

Renewi plc ("Renewi" or the "Group") (LSE: RWI.L: Euronext Amsterdam: RWI.AS), a leading European waste-to-product company, is pleased to confirm that it has joined the FTSE 250.

Sustainability

Sustainability Report

PDF

Renewi is renewing Earth by giving new life to used materials. By enabling the circular economy, we hulp turn climate pledgesinto climate actions. By acting ...

Renewi CPD Climate Change questionnaire 2023

PDF

From trash to treasure - How Europe’s plans for waste are driving its circular revolution

Article

It’s a good time to talk about recycling. With Earth Overshoot Day currently projected for early July, the date when humanity surpasses its consumption of the planet’s resources allotted for that year, we are reminded of the importance of recycling and the role it will play in our green transition.

External Insights

A curated collection of third-party content relevant to the company and sector to help inform your investment decision.

Innovation & Recycling

Renewi wants to prevent valuable plastic from going to waste

Article

Burn it? Dump it? Neither, according to waste-to-product company Renewi. It’s all about getting value out of waste. EGEN undertook the grant application for this innovation project.

Circular Economy

The role of plastics in Europe's circular economy

Article

Plastics are essential in society. Yet value chains are unsustainable — generating emissions and increasing waste and pollution. Reducing such impacts demands moving towards a circular and sustainable plastics system. This briefing covers plastics production and consumption in Europe, the impacts on the environment and climate change, and how we can shift to a circular economy for plastics. Work from the Circularity Metrics Lab on plastics (EEA, 2024a) and a report on the Circularity Metrics Lab for Plastics from the European Topic Centre on Circular Economy and Resource Use inform this briefing.

Policy & Regulation

The European circular economy policy landscape overview

Article

Research

Renewi exits tricky UK waste business

The waste-to-product group is paying Biffa to take municipal contracts off its hands

Renewi plc Advances Circular Economy Goals - TipRanks.com

Renewi plc (GB:RWI) has released an update. Renewi plc, a leader in the waste-to-product industry, has confirmed its issued share capital at 80,554,970 ordinary sha...

Renewi rockets as Macquarie goes semi-hostile with £636m possible offer

Renewi PLC (LSE:RWI) shares rocketed 40% to 712p after Macquarie Asset Management said it is "considering" a possible £636 million cash offer for the waste...

Renewi rejects £636mn buyout offer from Macquarie

The Australian bank and infrastructure investor offered a 52-per-cent premium on Wednesday's closing price

Renewi urges governments to 'reduce incineration' - letsrecycle.com

Renewi has today (29 June) released its sustainability report which highlights its commitment to creating a "sustainable society".

Renewi plc Announces Change in Major Holdings - TipRanks.com

Renewi plc (GB:RWI) has released an update. Renewi plc has notified that Janus Henderson Group PLC has altered its voting rights in the company, crossing a threshol...

Renewi joins FTSE 250

Renewi plc ("Renewi" or the "Group") (LSE: RWI.L: Euronext Amsterdam: RWI.AS), a leading European waste-to-product company, is pleased to confirm that it has joined the FTSE 250.

Renewi unites expertise of Dutch and Belgian commercial waste divisions for optimal services

Waste-to-product company Renewi today announced changes to its organisation to accelerate growth in waste management, recycling and circular materials, while also pooling expertise in various fields to serve customers even better.

Renewi partners with Vattenfall for Netherlands green gas supply - Bioenergy Insight Magazine

Renewi, a leading waste-to-product company, and Swedish energy company Vattenfall have announced a new partnership. Vattenfall will purchase more than 7.5 million m3 of green gas annually from Renewi. The green gas, which is made from food waste, will be added to the Dutch gas grid, where it can combine with natural gas for enhanced…

Team

Meet the experienced professionals leading our organization

Mark Thys - undefined

Mark Thys

What the Pro's Are Asking

Here are the questions that professional investors are asking before making an investment decision.

How will Renewi benefit from legislative changes?

Renewi will benefit in the long run from new regulations in several ways. The European Union and National Government policies are increasingly pushing for circular economy practices. These include eliminating landfills and reducing incineration, which aligns with Renewi's goal of diverting waste from incineration to recycling. Renewi's expertise and infrastructure position them well to capitalise on these regulatory trends.
Additionally, Renewi has invested significantly in new technologies and facilities, such as advanced sorting lines and bio-LNG facilities. While these improve their operational efficiency, they also ensure compliance with evolving regulations, thereby future-proofing the business against stricter environmental standards.
The increased demand for recycled materials driven by legislative changes creates more market opportunities for Renewi. Regulations that mandate higher recycling rates and the use of secondary materials directly support Renewi's business model focused on producing high-quality recyclates. This alignment with regulatory requirements enhances Renewi's competitive advantage and long-term growth prospects.

What are the key challenges Renewi faces and how do they overcome them?

Renewi overcomes regulatory and compliance challenges by engaging with policymakers and hiring experienced strategists. They reduce market volatility by investing in cutting-edge technology and implementing dynamic pricing. Renewi also tackles legacy problems by selling off non-core operations and concentrating on high-quality secondary materials to increase financial stability margins.

How does Renewi contribute to sustainability?

Renewi is committed to sustainability and driving the transition to a circular economy, which emphasises waste reduction, material reuse, and recycling to create a sustainable loop. They use innovative automated sorting technologies to efficiently separate various forms of waste, as well as technology to optimise sorting and processing, decreasing human error and increasing speed.

They are aiming to achieve a recycling rate of 75%, known as Mission75, by incorporating energy-efficient practices to reduce the carbon footprint and operational costs, as well as embracing circular economy models to recycle and reuse materials, thereby reducing waste and improving resource efficiency. They are also actively investing in technologies and processes that enhance the sustainability of their operations.

Is consolidation and/or acquisition likely in the space?

Over the last year, Renewi has been recognised by major financial institutions and rejected a bid that fundamentally undervalued the business. The Board is open to all means of maximising shareholder value.

What are the benefits of the UK Municipal Business exit?

Following a strategic review of its UK Municipal operations, Renewi entered into a binding agreement to sell these assets to Biffa Limited. This sale is expected to enhance Renewi's free cash flow by €15-20 million annually, contributing to an EBIT margin expansion of at least 50 basis points. Moreover, the agreement significantly reduces the group's balance sheet risk by replacing unpredictable UK Municipal liabilities and onerous contract provisions with conventional, competitively priced debt financing. This transaction also frees up resources and management's time, allowing Renewi to concentrate on strategic initiatives aimed at driving stronger growth.