CARE Executive Director Bob Peoples summarizes the Q2 results of the California Carpet Stewardship Program:
Results for Q2 were generally up, but weaker than expected given that Q2 and Q3 are typically the strongest quarters.
Q2 2025 gross collection was up by 400K pounds and Recycled Output was up by 1.4M pounds, resulting in an overall Recycling Rate of 41% and ahead of the 2025 target of 37%.
Overall, markets remain quite challenging. Again, in Q2 demand for nylons remains weak. Tariffs, low oil prices and economic uncertainties remain a key concern. Carpet pad markets, not covered by the carpet stewardship law, continue to be severely depressed. The reorganization of Aquafil’s recycling operations has created some unique challenges for the program to work through, including potentially reduced recycled output for a period of time.
Sales in Q2 were 12.7 million square yards, down 2% vs. Q2 2024. As a result, sales projections for the second half have been reduced by an additional 4%. Recycler Recycled Output projections for the second half of the year are significantly below forecasts at the start of 2025.
Overall, 81% of total expenses were paid out in the form of subsides and 80% of all those subsidies were paid to CA-based recyclers. Revenue exceeded expenses, resulting in a fund balance of $13.8M, up by $4.1M vs. Q1.
