Cleanaway Waste Management (ASX:CWY) now expects fiscal 2026 earnings before interest and taxes of AU$460 million to AU$480 million, down from a previous range of AU$480 million to AU$500 million, due to the impact of the Middle East conflict, according to a Tuesday filing with the Australian bourse.

As a result of the conflict, actual and forecast direct fuel costs have spiked, and supplier and third-party logistics costs have also increased, while activity has waned in the contract resources business in the Middle East, the company said.

Cleanaway estimates a roughly AU$20 million adverse impact on fiscal 2026 earnings before interest and taxes due to the higher costs, per the filing.

The company said it has not experienced any fuel supply issues to date, and expects to recover a "substantial portion" of the fuel cost increases over time due to its pricing structures and recovery mechanisms.