0001104659-26-047074
SEC filingRevenue and gross profit grew year-over-year, reflecting pricing strength and favorable volume shifts across segments, while operating and net income declined due to higher impairments and depreciation — not underlying operational weakness, as EBITDA margin improved.
Gross profit rose 7.8% to $1.0 billion, yielding a gross margin of 42.6%. This improvement stemmed from multiple structural cost efficiencies: lower labor and benefits costs as a percentage of revenue, a decrease in allocated corporate overhead, reduced risk management costs, and lower fuel expenses. These gains were partially offset by higher fees paid for the processing of recyclable materials — a known industry headwind tied to evolving commodity markets and processing economics.
Net income decreased 9.2% to $219.3 million, and diluted EPS declined 7.5% to $0.86. These results align with the reduction in operating income and reflect additional non-operating factors, including higher depreciation and interest-related expenses. No forward-looking guidance or operational weakness is implied; management affirms that internally generated funds, cash and equivalents, and the Revolving Credit Agreement provide adequate liquidity for working capital and other foreseeable needs.
Net cash provided by operating activities totaled $545.6 million, up modestly from $541.5 million in the prior year. Capital expenditures increased to $296.6 million, resulting in free cash flow of $249.0 million. This level of investment supports long-term capacity in landfill development and environmental infrastructure — consistent with the company’s disciplined capital allocation framework and its emphasis on durable, regulated assets.