Ukraine's waste market: UAH 48.8bn revenue at 0.4% profitability

Ukraine's waste management sector demonstrates a paradoxical situation: despite significant financial flows, the actual profit of market participants remains critically low. The YC.Market analytics team conducted a study of 6,529 legal entities operating in six main areas of activity related to waste. The aim was to determine where funds are concentrated and how effectively companies convert turnover into net earnings against the backdrop of the full-scale war, which has sharply increased the physical volume of waste.

High turnover, but near-zero profit

According to aggregated data from 5,000 companies, the sector's total revenue in 2025 was UAH 48.8bn. This is UAH 29.2bn (or almost 38%) less than in 2024, when the figure reached UAH 78bn. Meanwhile, the financial result improved significantly: if the sector incurred a loss of UAH 7bn in 2024, it turned a profit of UAH 178.3m in 2025. Aggregate profitability was only 0.4%, indicating not high profitability, but rather a move towards break-even. This aggregated indicator covers various segments — from municipal collection to processing and demining — and therefore does not reflect the economics of individual niches.

Market structure: collection versus recovery

In terms of the number of participants, the market is dominated by two directions. Collection of non-hazardous waste (NACE 38.11) accounts for 3,069 companies, representing 47% of the sample. Another 2,015 legal entities (31%) operate in the field of recovery of sorted waste. Together, these two segments account for almost 78% of all legal entities studied.

However, the picture is different in terms of revenue among the largest players. The top 5 companies whose main activity is the recovery of sorted waste earned a combined UAH 11.9bn in revenue in 2025, the highest figure among the five comparable types of activity. For comparison, the top 5 in the non-hazardous waste collection segment earned UAH 4.1bn, while in the treatment and disposal of non-hazardous waste, they earned UAH 1.7bn. It is worth noting that these figures reflect the total revenue of only the five largest companies in each segment, not the total market revenue.

Non-hazardous waste collection: leaders with varying efficiency

The non-hazardous waste collection segment (NACE 38.11) includes 3,069 legal entities. Among the leaders, municipal infrastructure enterprises prevail. The top 5 companies in this direction earned UAH 4.1bn in revenue and UAH 110m in net profit.

Profitability indicators vary sharply. The revenue leader, KP "ZHILSERVIS-5" of the DMR, had a profitability of only 0.1%. In contrast, at KP "KYIVKOMUNSERVIS" this indicator was 5.5%, and at PJSC "KYIVSPETSTRANS" — 7%. This spread is explained by different local conditions: tariffs, waste volumes, logistics, and the condition of equipment. Since tariffs for household waste are set at the local level, the same activity code does not guarantee the same business model.

Hazardous waste: a narrow market with licensing barriers

In the hazardous waste collection segment (NACE 38.12), only 232 legal entities operate. The small number of players is due to higher regulatory requirements: unlike ordinary collection, working with hazardous waste requires a licence and compliance with special conditions.

The revenues of the top 5 companies in this segment fall within a narrow range from UAH 28.1m to UAH 33.7m. However, profitability differs significantly: LLC "SP-KAPITAL" shows 30%, while other companies in the ranking have 1–5.3%.

Waste treatment: opposite financial results

In the non-hazardous waste treatment segment (NACE 38.21), 587 legal entities are registered. Data from the top five demonstrates how companies with similar revenue scales can have opposite results. KP "MUNICIPAL WASTE MANAGEMENT COMPANY" of the Kharkiv City Council incurred a loss of UAH 134.7m on revenue of UAH 310.3m. In contrast, LLC "BIO TRANS SERVICE" earned a profit of UAH 45.3m on revenue of UAH 270.5m. The difference in financial results is UAH 180m.

Today, the largest turnovers are concentrated in material recovery. In the future, demand for secondary raw materials may receive a regulatory stimulus: the Circular Economy Strategy provides that by 2035, at least 30% of public construction tenders must take into account criteria for the use of recycled and secondary materials.

Hazardous waste: scale does not always mean profit

The hazardous waste treatment segment (NACE 38.22) comprises 269 legal entities. The revenue leader is twice ahead of the second company but is not the most profitable.

LLC "NVK "UKREKOPROM", which tops the ranking by revenue, earned UAH 438.2m with a profitability of 6.6%. At LLC "EKORENSING", revenue is 8.4 times smaller (UAH 52m), but profitability is higher — 10.5%. DNT "Ob'yednanne "Radon" showed a nominal profit of UAH 2,000 on revenue of UAH 217.1m.

Recovery of sorted waste: record turnovers

The recovery of sorted waste segment (NACE 38.32) unites 2,015 legal entities. The combined revenue of the top 5 companies was UAH 11.9bn, the highest figure among all directions studied.

In this group, turnover and profitability do not always correlate. TZDV "GAL-KAT" earned UAH 4.6bn in revenue with a profitability of 0.8%. JSC "INTERPIPE DNIPROPETROVSKYI VTOREMET" showed UAH 4.2bn in revenue and a loss of UAH 2.8m. The highest profitability in the top 5 (14.3%) was demonstrated by LLC "DNIPRO MONTAZH", which earned UAH 148.8m in profit on revenue of UAH 1bn. Available data does not allow for a precise determination of which specific operations formed these results, as companies have different sets of services.

Demining and other waste management

NACE 39.00 ("Other waste management activities") covers 357 legal entities. The top of the ranking features international humanitarian structures, charitable foundations, and demining companies, so their indicators should not be compared with classic waste operators.

Among commercial players, LLC "HUMANITARY SECURITY" earned UAH 387.5m in revenue and UAH 86.8m in profit. LLC "UKRAINIAN DEMINING SERVICES" ended the year with a loss of UAH 139m on revenue of UAH 178.4m. Such heterogeneity reflects differences in business models, although the sample data is insufficient to determine specific causes.

Waste from destruction as a resource for reconstruction

According to UNDP research data, as of September 2025, 17.2 million tonnes of waste from destroyed and damaged residential buildings had been generated in areas under the control of the Ukrainian government. Of the 11.7 million tonnes that still need to be removed and treated, up to 8.2 million tonnes are potentially suitable for recycling and reuse.

From this raw material, 50 types of construction products can be produced, including cement, ready-mixed concrete, and precast concrete products. The most viable model is considered to be regional hubs near areas of major destruction and future construction. By the beginning of 2026, with UNDP support, 1 million tonnes of demolition waste had already been removed and sorted in eight regions of Ukraine.