CARE CEO/Executive Director Bob Peoples reports on California program results for Q4 2025:
Results for Q4 reflect a continued decline in activity since Q2 and continuing a major pullback across many plastic recycling sectors both in the U.S. and in Europe. CARE recyclers saw drops in Gross Collections, Recycled Output, Manufacturing Output and resulting in an Q4 Recycling Rate of 34% which is up slightly from the 30% rate in Q3. CARE did hit the full year target of 37%.
All markets continue to be challenging. Economic uncertainties, cheap virgin nylons, tariffs, low oil prices, and the continued decline in carpet sales remain major factors. Carpet pad markets, not covered by the carpet stewardship law, remain depressed and put additional pressure on recyclers. CARE is working with recyclers to provide support where possible, keeping in mind our industry has no influence on these massive market dynamics.
Sales in Q4 were 11.1 million square yards eclipsing the prior lowest level set in Q1 of this year. Overall sales in 2025 are 7.6% below those in 2024 and down >50% since peak year of 2013. Sales in California continue to fall at a rate much higher than the rest of the U.S.
Overall, 64% of total expenses were paid out in the form of subsides and 89% of all subsidies were paid to CA-based recyclers. Revenue exceeded expenses, resulting in a fund balance of $22.9 million, up $3.2 million vs. Q3. The new end of Q4 6-month reserve target was $19.1M and CARE met this requirement.
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