-- Better than expected Q1 results, with improving trends positioning for
upside to 2026 outlook
-- Revenue of $2.371 billion, above expectations and up 6.4% year over
year
-- Net income of $219.3 million and adjusted EBITDA(a) of $769.5 million,
above expectations and up 8.0% year over year
-- Adjusted EBITDA margin(a) of 32.5%, above expectations and up 50 basis
points year over year
-- Net income and adjusted net income(a) per share of $0.86 and $1.23,
respectively
-- Year-to-date share repurchases of 1% of outstanding shares
TORONTO--(BUSINESS WIRE)--April 22, 2026--
Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced its results for the first quarter of 2026.
"We're extremely pleased by the strong start to 2026 and remain well-positioned for the full year, with upside potential from commodity-related impacts, solid waste organic growth and additional acquisitions. On revenue and adjusted EBITDA above our expectations, we delivered adjusted EBITDA(a) margin of 32.5% in spite of outsized weather events and in advance of recovering higher fuel costs," said Ronald J. Mittelstaedt, President and Chief Executive Officer.
"In spite of geopolitical instability, our results reflect consistency of execution as we continue to benefit from operating momentum from improved employee engagement, with safety performance at record levels and voluntary turnover now below 10%," continued Mr. Mittelstaedt. "Moreover, we should be well-positioned for incremental benefits from higher fuel and other commodities, as well as strong pricing retention and increased special waste activity, and also longer term as a result of our expanding use of A.I. through technology-related investments."
Mr. Mittelstaedt concluded, "Finally, we continue to anticipate another outsized year of acquisition activity, given a robust pipeline, along with increasing return of capital to shareholders, including year-to-date share repurchases of over $360 million or approximately 1% of shares outstanding."
Q1 2026 Results
Revenue in the first quarter totaled $2.371 billion, up from $2.228 billion in the prior year period. Operating income was $364.1 million, which included $80.4 million primarily in impairments related to adjustments to landfill closure and post closure costs. This compares to operating income of $390.2 million in the prior year period, which included $20.2 million primarily in transaction-related expenses, impairments and other operating items and fair value accounting changes associated with certain equity awards. Net income in the first quarter was $219.3 million, or $0.86 per share on a diluted basis of 255.9 million shares. In the prior year period, the Company reported net income of $241.5 million, or $0.93 per share on a diluted basis of 258.9 million shares.
Adjusted net income(a) in the first quarter was $314.9 million, or $1.23 per diluted share, up from $293.1 million, or $1.13 per diluted share, in the prior year period. Adjusted EBITDA(a) in the first quarter was $769.5 million, up from $712.2 million in the prior year period. Adjusted net income, adjusted net income per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude impairments and transaction-related items, as reflected in the detailed reconciliations in the attached tables.
Q1 2026 Earnings Conference Call
Waste Connections will be hosting a conference call related to first quarter earnings on April 23(rd) at 8:30 A.M. Eastern Time. A live audio webcast of the conference call can be accessed by visiting investors.wasteconnections.com and selecting "Events & Presentations" from the website menu. Alternatively, conference call participants can preregister by clicking here. Registered participants will receive dial-in instructions and a personalized code for entry to the conference call. Shortly after the conclusion of the conference call, a webcast replay will be available on the Waste Connections investor website or by clicking here.
About Waste Connections
Waste Connections (wasteconnections.com) is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 46 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S. and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections views its Environmental, Social and Governance ("ESG") efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement. Visit wasteconnections.com/sustainability for more information and updates on our progress towards targeted achievement.
Safe Harbor and Forward-Looking Information
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events and operating performance. These forward-looking statements are often identified by the words "may," "might," "believes," "thinks," "expects," "estimate," "continue," "intends" or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about expected 2026 financial results, outlook and related assumptions, and potential acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company's filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.
-- financial tables attached --
(a) Non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule.
WASTE CONNECTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME
THREE MONTHS ENDED MARCH 31, 2025 AND 2026
(Unaudited)
(in thousands of U.S. dollars, except share and per share amounts)
Three months ended
March 31,
------------------------------
2025 2026
------------- ---------------
Revenues $ 2,228,176 $ 2,370,631
Operating expenses:
Cost of operations 1,291,443 1,361,099
Selling, general and
administrative 250,134 251,119
Depreciation 242,307 267,485
Amortization of intangibles 47,642 47,264
Impairments and other operating
items 6,440 79,584
----------- -----------
Operating income 390,210 364,080
Interest expense (80,875) (87,719)
Interest income 1,770 3,113
Other income, net 1,872 4,085
----------- -----------
Income before income tax provision 312,977 283,559
Income tax provision (71,467) (64,215)
----------- -----------
Net income $ 241,510 $ 219,344
=========== ===========
Earnings per common share:
Basic $ 0.94 $ 0.86
=========== ===========
Diluted $ 0.93 $ 0.86
=========== ===========
Shares used in the per share
calculations:
Basic 258,193,975 255,347,786
=========== ===========
Diluted 258,904,806 255,873,686
=========== ===========
Cash dividends per common share $ 0.315 $ 0.350
=========== ===========
WASTE CONNECTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands of U.S. dollars, except share and per share amounts)
December 31, March 31,
2025 2026
------------ ------------
ASSETS
Current assets:
Cash and equivalents $ 45,968 $ 112,447
Accounts receivable, net of
allowance for credit losses of
$21,402 and $27,828 at December
31, 2025 and March 31, 2026,
respectively 1,024,992 1,033,086
Prepaid expenses and other
current assets 240,603 230,786
---------- ----------
Total current assets 1,311,563 1,376,319
Restricted cash 183,612 210,199
Restricted investments 80,757 80,397
Property and equipment, net 8,733,327 8,714,069
Operating lease right-of-use assets 312,508 324,034
Goodwill 8,392,249 8,414,577
Intangible assets, net 2,006,200 1,959,957
Other assets, net 109,147 106,803
---------- ----------
Total assets $21,129,363 $21,186,355
========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 765,227 $ 712,423
Book overdraft 14,674 8,560
Deferred revenue 416,025 424,835
Accrued liabilities 810,367 745,013
Current portion of operating
lease liabilities 44,272 46,335
Current portion of contingent
consideration 65,029 61,945
Current portion of long-term debt
and notes payable 8,667 8,355
---------- ----------
Total current liabilities 2,124,261 2,007,466
Long-term portion of debt and notes
payable 8,811,104 9,093,831
Long-term portion of operating lease
liabilities 267,000 278,167
Long-term portion of contingent
consideration 19,667 19,216
Deferred income taxes 1,085,613 1,113,470
Other long-term liabilities 576,337 616,586
---------- ----------
Total liabilities 12,883,982 13,128,736
Commitments and contingencies
Shareholders' equity:
Common shares: Unlimited shares
authorized; 255,661,011 shares
issued and 255,614,663 shares
outstanding at December 31, 2025;
254,260,257 shares issued and
254,213,909 shares outstanding at
March 31, 2026 2,783,431 2,502,503
Additional paid-in capital 373,239 366,546
Accumulated other comprehensive loss (111,044) (141,783)
Treasury shares: 46,348 and 46,348
shares at December 31, 2025 and
March 31, 2026, respectively - -
Retained earnings 5,199,755 5,330,353
---------- ----------
Total shareholders' equity 8,245,381 8,057,619
---------- ----------
Total liabilities and
shareholders' equity $21,129,363 $21,186,355
========== ==========
WASTE CONNECTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2025 AND 2026
(Unaudited)
(in thousands of U.S. dollars)
Three months ended March 31,
--------------------------------
2025 2026
---------------- --------------
Cash flows from operating
activities:
Net income $ 241,510 $ 219,344
Adjustments to reconcile net
income to net cash provided by
operating activities:
Loss from disposal of assets,
impairments and other 7,778 2,519
Adjustments to closure and
post-closure liabilities - 76,845
Depreciation 242,307 267,485
Amortization of intangibles 47,642 47,264
Deferred income taxes, net of
acquisitions 36,165 28,537
Current period provision for
expected credit losses 2,470 12,105
Amortization of debt issuance
costs 2,034 2,163
Share-based compensation 23,438 17,587
Interest accretion 12,737 11,200
Adjustments to contingent
consideration (1,500) -
Other (1,013) 127
Net change in operating
assets and liabilities, net
of acquisitions (72,029) (139,578)
----------- ------------
Net cash provided by operating
activities 541,539 545,598
----------- ------------
Cash flows from investing
activities:
Payments for acquisitions,
net of cash acquired (380,417) (63,087)
Capital expenditures for
property and equipment (212,455) (296,596)
Proceeds from disposal of
assets 969 1,779
Other (11,308) 2,203
----------- ------------
Net cash used in investing
activities (603,211) (355,701)
----------- ------------
Cash flows from financing
activities:
Proceeds from long-term debt 782,904 1,156,176
Principal payments on notes
payable and long-term debt (541,737) (843,898)
Payment of contingent
consideration recorded at
acquisition date (20,137) (4,108)
Change in book overdraft (110) (6,114)
Payments for repurchase of
common shares - (283,959)
Payments for cash dividends (81,477) (88,746)
Tax withholdings related to
net share settlements of
equity-based compensation (28,981) (24,515)
Debt issuance costs - (4,008)
Proceeds from issuance of
shares under employee share
purchase plan 2,593 3,031
Proceeds from sale of common
shares held in trust 324 -
----------- ------------
Net cash provided by (used in)
financing activities 113,379 (96,141)
----------- ------------
Effect of exchange rate
changes on cash, cash
equivalents and restricted
cash (434) (690)
----------- ------------
Net increase in cash, cash
equivalents and restricted
cash 51,273 93,066
Cash, cash equivalents and
restricted cash at beginning of
period 198,173 229,580
----------- ------------
Cash, cash equivalents and
restricted cash at end of
period $ 249,446 $ 322,646
=========== ============
ADDITIONAL STATISTICS
(in thousands of U.S. dollars, except where noted)
Solid Waste Internal Growth: The following table reflects a breakdown of
the components of our solid waste internal growth for the three months
ended March 31, 2026:
Three months ended
March 31, 2026
---------------------
Yield(a) 4.7%
Surcharges (0.1%)
Unit Volume(a) (1.5%)
Recycling (0.5%)
Foreign Exchange Impact 0.5%
------------- ----
Total 3.1%
------------- ----
Core Price(b) 6.0%
____________________________
(a) In the first quarter of 2026, WCN began providing a breakdown of organic
growth in solid waste collection, transfer and disposal to include Yield and
Unit Volume, which are performance metrics used by management to evaluate the
effectiveness of our pricing and organic growth strategies. Yield, or change
in average price per unit of service, reflects the impacts of customer churn
and new business activity and the resulting mix by line of business and by
geographic segment; Unit Volume reflects estimated change in units of
activity.
(b) Core Price is defined as the revenue growth attributable to price
increases, net of rollbacks, on solid waste collection, transfer and disposal
customers. This definition is consistent with Core Price references provided
in prior periods.
Revenue Breakdown: The following table reflects a breakdown of
our revenue for the three-month periods ended March 31, 2025 and
2026:
Three months ended March 31, 2025
----------------------------------------------
Inter-company Reported
Revenue Elimination Revenue %
---------- --------------- ---------- ---------
Solid Waste
Collection $1,621,077 $ (4,536) $1,616,541 72.5%
Solid Waste
Disposal
and
Transfer 658,023 (296,282) 361,741 16.2%
Solid Waste
Recycling 61,341 (2,084) 59,257 2.7%
E&P Waste
Treatment,
Recovery
and
Disposal 150,899 (6,374) 144,525 6.5%
Intermodal
and Other 46,549 (437) 46,112 2.1%
--------- ---------- --------- -----
Total $2,537,889 $ (309,713) $2,228,176 100.0%
========= ========== ========= =====
Three months ended March 31, 2026
----------------------------------------------
Inter-company Reported
Revenue Elimination Revenue %
---------- --------------- ---------- ---------
Solid Waste
Collection $1,709,628 $ (5,182) $1,704,446 71.9%
Solid Waste
Disposal
and
Transfer 714,624 (328,515) 386,109 16.3%
Solid Waste
Recycling 53,649 (2,061) 51,588 2.2%
E&P Waste
Treatment,
Recovery
and
Disposal 187,572 (8,013) 179,559 7.6%
Intermodal
and Other 49,346 (417) 48,929 2.0%
--------- ---------- --------- -----
Total $2,714,819 $ (344,188) $2,370,631 100.0%
========= ========== ========= =====
ADDITIONAL STATISTICS (continued)
(in thousands of U.S. dollars, except where noted)
Contribution from Acquisitions: The following table reflects revenues from
acquisitions, net of divestitures, for the three- month periods ended
March 31, 2025 and 2026:
Three months ended
March 31,
-------------------------------------------
2025 2026
---------------------- -------------------
Acquisitions, net $ 129,298 $ 55,253
Other Cash Flow Items: The following table
reflects cash interest and cash taxes for the
three-month periods ended March 31, 2025 and
2026:
Three months ended
March 31,
----------------------
2025 2026
----------- ---------
Cash Interest Paid $ 84,154 $ 108,244
Cash Taxes Paid 22,176 21,873
Debt to Book Capitalization at March 31, 2026: 53%
Internalization for the three months ended March 31, 2026: 60%
Days Sales Outstanding for the three months ended March 31, 2026: 39 (23 net
of deferred revenue)
Share Information for the three months ended March 31, 2026:
Basic shares outstanding 255,347,786
Dilutive effect of equity-based awards 525,900
-----------------
Diluted shares outstanding 255,873,686
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of U.S. dollars, except where noted)
Reconciliation of Adjusted EBITDA: Adjusted EBITDA, a non-GAAP
financial measure, is provided supplementally because it is widely
used by investors as a performance and valuation measure in the solid
waste industry. Management uses adjusted EBITDA as one of the
principal measures to evaluate and monitor the ongoing financial
performance of Waste Connections' operations. Waste Connections
defines adjusted EBITDA as net income, plus income tax provision, plus
interest expense, less interest income, plus depreciation and
amortization expense, plus closure and post-closure accretion expense,
plus or minus any loss or gain on impairments and other operating
items, plus other expense, less other income. Waste Connections
further adjusts this calculation to exclude the effects of other items
management believes impact the ability to assess the operating
performance of its business. This measure is not a substitute for, and
should be used in conjunction with, GAAP financial measures. Other
companies may calculate adjusted EBITDA differently.
----------------------------------------------------------------------
Three months ended
March 31,
--------------------
2025 2026
--------- ---------
Net income $ 241,510 $ 219,344
Plus: Income tax provision 71,467 64,215
Plus: Interest expense 80,875 87,719
Less: Interest income (1,770) (3,113)
Plus: Depreciation and amortization 289,949 314,749
Plus: Closure and post-closure accretion 11,874 10,291
Plus: Impairments and other operating items 6,440 79,584
Less: Other income, net (1,872) (4,085)
Adjustments:
Plus: Transaction-related expenses(a) 11,970 2,360
Plus/(Less): Fair value changes to equity
awards(b) 1,770 (1,536)
-------- --------
Adjusted EBITDA $ 712,213 $ 769,528
======== ========
As % of revenues 32.0% 32.5%
____________________________
(a) Reflects the addback of acquisition-related transaction costs.
(b) Reflects fair value accounting changes associated with certain equity
awards.
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of U.S. dollars, except where noted)
Reconciliation of Adjusted Free Cash Flow: Adjusted free cash flow, a
non-GAAP financial measure, is provided supplementally because it is
widely used by investors as a liquidity measure in the solid waste
industry. Waste Connections calculates adjusted free cash flow as net
cash provided by operating activities, plus or minus change in book
overdraft, plus proceeds from disposal of assets, less capital
expenditures for property and equipment. Waste Connections further
adjusts this calculation to exclude the effects of items management
believes impact the ability to evaluate the liquidity of its business
operations. This measure is not a substitute for, and should be used
in conjunction with, GAAP liquidity or financial measures. Other
companies may calculate adjusted free cash flow differently.
----------------------------------------------------------------------
Three months ended
March 31,
----------------------------
2025 2026
------------- -------------
Net cash provided by operating
activities $ 541,539 $ 545,598
Less: Change in book overdraft (110) (6,114)
Plus: Proceeds from disposal of assets 969 1,779
Less: Capital expenditures for property
and equipment (212,455) (296,596)
Adjustments:
Transaction-related expenses(a) 2,392 1,614
Pre-existing Progressive Waste
share-based grants(b) 16 -
Executive separation costs(c) 449 -
Tax effect(d) (725) (404)
-------- --------
Adjusted free cash flow $ 332,075 $ 245,877
======== ========
As % of revenues 14.9% 10.4%
(a) Reflects the addback of acquisition-related transaction costs.
(b) Reflects the cash settlement of pre-existing Progressive Waste
share-based awards during the period.
(c) Reflects the cash component of severance expense associated with an
executive departure from 2023.
(d) The aggregate tax effect of footnotes (a) through (c) is calculated based
on the applied tax rates for the respective periods.
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of U.S. dollars, except per share amounts)
Reconciliation of Adjusted Net Income and Adjusted Net Income per
Diluted Share: Adjusted net income and adjusted net income per diluted
share, both non-GAAP financial measures, are provided supplementally
because they are widely used by investors as valuation measures in the
solid waste industry. Management uses adjusted net income and adjusted
net income per diluted share as one of the principal measures to
evaluate and monitor the ongoing financial performance of Waste
Connections' operations. Waste Connections provides adjusted net
income to exclude the effects of items management believes impact the
comparability of operating results between periods. Adjusted net
income has limitations due to the fact that it excludes items that
have an impact on the Company's financial condition and results of
operations. Adjusted net income and adjusted net income per diluted
share are not a substitute for, and should be used in conjunction
with, GAAP financial measures. Other companies may calculate these
non-GAAP financial measures differently.
----------------------------------------------------------------------
Three months ended
March 31,
-----------------------------
2025 2026
-------------- -------------
Reported net income $ 241,510 $ 219,344
Adjustments:
Amortization of intangibles(a) 47,642 47,264
Impairments and other operating
items(b) 6,440 79,584
Transaction-related expenses(c) 11,970 2,360
Fair value changes to equity
awards(d) 1,770 (1,536)
Tax effect(e) (16,212) (32,136)
--------- ---------
Adjusted net income $ 293,120 $ 314,880
========= =========
Diluted earnings per common share:
Reported net income $ 0.93 $ 0.86
========= =========
Adjusted net income $ 1.13 $ 1.23
========= =========
(a) Reflects the elimination of the non-cash amortization of
acquisition-related intangible assets.
(b) Reflects the addback of impairments and other operating items.
(c) Reflects the addback of acquisition-related transaction costs.
(d) Reflects fair value accounting changes associated with certain equity
awards.
(e) The aggregate tax effect of the adjustments in footnotes (a) through (d)
is calculated based on the applied tax rates for the respective periods.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260422005378/en/
CONTACT: Mary Anne Whitney / (832) 442-2253 Joe Box / (832) 442-2153
maryannew@wasteconnections.com joe.box@wasteconnections.com
(END) Dow Jones Newswires
April 22, 2026 16:05 ET (20:05 GMT)