WCN · Waste Connections, Inc.

Waste Connections delivered stronger-than-expected Q1 2026 results, with revenue rising 6.4% year-over-year to $2.371 billion, driven by solid waste internal growth of 3.1% including 4.7% yield growth partially offset by 1.5% lower unit volume and recycling impacts. Adjusted EBITDA increased 8.0% to $769.5 million, achieving a 32.5% margin expansion of 50 basis points despite weather disruptions and rising fuel costs, reflecting operational efficiencies, improved employee engagement with record safety and turnover below 10%, and pricing retention. GAAP operating income dipped to $364.1 million due to $80.4 million in impairments from landfill closure adjustments, compared to $390.2 million prior year which included transaction expenses. Net income fell to $219.3 million or $0.86 per share from $241.5 million or $0.93, but adjusted metrics showed strength with $1.23 per share versus $1.13. CEO Ronald J. Mittelstaedt highlighted positioning for full-year upside from commodity benefits, organic growth, acquisitions, special waste, and AI investments, amid a robust M&A pipeline. Capital returns advanced with $360+ million in share repurchases (1% of shares) and dividends raised to $0.350 per share. Operating cash flow remained robust at $545.6 million, supporting $296.6 million capex, $63.1 million acquisitions, and returns, with cash rising to $112.5 million and debt increasing to $9.1 billion as of March 31.