Waste Connections Reports Second Quarter 2026 Results and Raises Full Year Outlook
- Better than expected results drive increase to full year 2026 outlook, with upside from improving commodities and ongoing acquisition activity
-
Revenue of
$2.562 billion 6.4% -
Net income of
$296.4 million $1.17 $381.7 million $1.50 -
Adjusted EBITDA* of
$840.1 million 6.8% -
Adjusted EBITDA* margin of
32.8% of revenue -
Record year-to-date share repurchases of
$614.5 million 1.5% of shares outstanding
“We are extremely pleased to deliver results above expectations, led primarily by strong operational execution driving a top-to-bottom beat in the second quarter. Most notably, adjusted EBITDA* margin expanded to
“Our achievements in the first half of 2026, with recent commodity values and ongoing fuel cost recovery, plus contributions from acquisitions closed to date, position us to increase our full year outlook to revenue of
Mr. Mittelstaedt added, “Along with a record amount of share repurchases, we’ve completed acquisitions with over
Q2 2026 Results
Revenue in the second quarter totaled
Adjusted net income* in the second quarter was
Six Months Year to Date Results
For the six months ended June 30, 2026, revenue was
Net income for the six months ended June 30, 2026 was
Adjusted net income* for the six months ended June 30, 2026 was
Updated 2026 Outlook
Waste Connections also updated its outlook for 2026, which assumes no change in the current economic environment or underlying economic trends. The Company’s outlook excludes any impact from additional acquisitions that may close during the year, and expensing of transaction-related items. The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic filings with the
-
Revenue is estimated to be between
$10.02 billion $10.05 billion -
Net income is estimated to be between
$1.169 billion $1.173 billion $3.33 billion $3.34 billion -
Capital expenditures are estimated to be approximately
$1.25 billion -
Net cash provided by operating activities is estimated to be between
$2.63 billion $2.68 billion $1.40 billion $1.45 billion
----------------------------------------------------------------------------------------------------------------------------------------------------
* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule
Q2 2026 Earnings Conference Call
Waste Connections will be hosting a conference call related to second quarter earnings on July 23rd 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
Safe Harbor and Forward-Looking Information
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the
– financial tables attached –
WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2026 (Unaudited)
(in thousands of |
|||||||||||||||||
|
|
|
|
||||||||||||||
|
|
Three months ended
|
|
Six months ended
|
|
||||||||||||
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
$ |
2,407,055 |
|
|
$ |
2,561,607 |
|
|
$ |
4,635,231 |
|
|
$ |
4,932,239 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of operations |
|
|
1,392,857 |
|
|
|
1,479,217 |
|
|
|
2,684,299 |
|
|
|
2,840,317 |
|
|
Selling, general and administrative |
|
|
242,966 |
|
|
|
260,493 |
|
|
|
493,100 |
|
|
|
511,612 |
|
|
Depreciation |
|
|
257,421 |
|
|
|
278,277 |
|
|
|
499,728 |
|
|
|
545,762 |
|
|
Amortization of intangibles |
|
|
50,236 |
|
|
|
47,600 |
|
|
|
97,878 |
|
|
|
94,864 |
|
|
Impairments and other operating items |
|
|
4,030 |
|
|
|
58,466 |
|
|
|
10,471 |
|
|
|
138,050 |
|
|
Operating income |
|
|
459,545 |
|
|
|
437,554 |
|
|
|
849,755 |
|
|
|
801,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(82,751 |
) |
|
|
(91,203 |
) |
|
|
(163,626 |
) |
|
|
(178,922 |
) |
|
Interest income |
|
|
2,314 |
|
|
|
4,126 |
|
|
|
4,084 |
|
|
|
7,239 |
|
|
Other income, net |
|
|
10,050 |
|
|
|
33,253 |
|
|
|
11,922 |
|
|
|
37,337 |
|
|
Income before income tax provision |
|
|
389,158 |
|
|
|
383,730 |
|
|
|
702,135 |
|
|
|
667,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax provision |
|
|
(98,882 |
) |
|
|
(87,331 |
) |
|
|
(170,348 |
) |
|
|
(151,546 |
) |
|
Net income |
|
$ |
290,276 |
|
|
$ |
296,399 |
|
|
$ |
531,787 |
|
|
$ |
515,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.12 |
|
|
$ |
1.17 |
|
|
$ |
2.06 |
|
|
$ |
2.03 |
|
|
Diluted |
|
$ |
1.12 |
|
|
$ |
1.17 |
|
|
$ |
2.05 |
|
|
$ |
2.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares used in the per share calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
258,377,345 |
|
|
|
253,457,489 |
|
|
|
258,286,168 |
|
|
|
254,398,232 |
|
|
Diluted |
|
|
258,982,647 |
|
|
|
253,856,582 |
|
|
|
258,944,234 |
|
|
|
254,860,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends per common share |
|
$ |
0.315 |
|
|
$ |
0.350 |
|
|
$ |
0.630 |
|
|
$ |
0.70 |
|
|
WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands of |
|||||||||
|
|
|
|
|
|
|
|||
|
|
December 31,
|
|
June 30,
|
|
||||
ASSETS |
|
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
|
||
Cash and equivalents |
|
$ |
45,968 |
|
|
$ |
98,180 |
|
|
Accounts receivable, net of allowance for credit losses of |
|
|
1,024,992 |
|
|
|
1,069,733 |
|
|
Prepaid expenses and other current assets |
|
|
240,603 |
|
|
|
231,225 |
|
|
Total current assets |
|
|
1,311,563 |
|
|
|
1,399,138 |
|
|
|
|
|
|
|
|
|
|
||
Restricted cash |
|
|
183,612 |
|
|
|
163,398 |
|
|
Restricted investments |
|
|
80,757 |
|
|
|
72,781 |
|
|
Property and equipment, net |
|
|
8,733,327 |
|
|
|
8,965,023 |
|
|
Operating lease right-of-use assets |
|
|
312,508 |
|
|
|
315,657 |
|
|
Goodwill |
|
|
8,392,249 |
|
|
|
8,388,109 |
|
|
Intangible assets, net |
|
|
2,006,200 |
|
|
|
1,973,464 |
|
|
Other assets, net |
|
|
109,147 |
|
|
|
121,882 |
|
|
Total assets |
|
$ |
21,129,363 |
|
|
$ |
21,399,452 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
|
||
Accounts payable |
|
$ |
765,227 |
|
|
$ |
771,781 |
|
|
Book overdraft |
|
|
14,674 |
|
|
|
28,918 |
|
|
Deferred revenue |
|
|
416,025 |
|
|
|
429,904 |
|
|
Accrued liabilities |
|
|
810,367 |
|
|
|
781,129 |
|
|
Current portion of operating lease liabilities |
|
|
44,272 |
|
|
|
46,878 |
|
|
Current portion of contingent consideration |
|
|
65,029 |
|
|
|
61,416 |
|
|
Current portion of long-term debt and notes payable |
|
|
8,667 |
|
|
|
8,094 |
|
|
Total current liabilities |
|
|
2,124,261 |
|
|
|
2,128,120 |
|
|
|
|
|
|
|
|
|
|
||
Long-term portion of debt and notes payable |
|
|
8,811,104 |
|
|
|
9,283,810 |
|
|
Long-term portion of operating lease liabilities |
|
|
267,000 |
|
|
|
270,860 |
|
|
Long-term portion of contingent consideration |
|
|
19,667 |
|
|
|
19,647 |
|
|
Deferred income taxes |
|
|
1,085,613 |
|
|
|
1,121,465 |
|
|
Other long-term liabilities |
|
|
576,337 |
|
|
|
654,332 |
|
|
Total liabilities |
|
|
12,883,982 |
|
|
|
13,478,234 |
|
|
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; 252,201,043 shares issued and 252,154,695 shares outstanding at June 30, 2026 |
|
|
2,783,431 |
|
|
|
2,171,955 |
|
|
Additional paid-in capital |
|
|
373,239 |
|
|
|
389,514 |
|
|
Accumulated other comprehensive loss |
|
|
(111,044 |
) |
|
|
(178,647 |
) |
|
Treasury shares: 46,348 and 46,348 shares at December 31, 2025 and June 30, 2026, respectively |
|
|
- |
|
|
|
- |
|
|
Retained earnings |
|
|
5,199,755 |
|
|
|
5,538,396 |
|
|
Total shareholders’ equity |
|
|
8,245,381 |
|
|
|
7,921,218 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
21,129,363 |
|
|
$ |
21,399,452 |
|
|
WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2025 AND 2026 (Unaudited)
(in thousands of |
|||||||||
|
|
|
|
|
|
|
|||
|
|
Six months ended June 30, |
|
||||||
|
|
2025 |
|
|
2026 |
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||
Net income |
|
$ |
531,787 |
|
|
$ |
515,742 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||
Loss from disposal of assets, impairments and other |
|
|
11,480 |
|
|
|
7,164 |
|
|
Adjustments to closure and post-closure liabilities |
|
|
- |
|
|
|
131,980 |
|
|
Depreciation |
|
|
499,728 |
|
|
|
545,762 |
|
|
Amortization of intangibles |
|
|
97,878 |
|
|
|
94,864 |
|
|
Deferred income taxes, net of acquisitions |
|
|
58,292 |
|
|
|
37,189 |
|
|
Current period provision for expected credit losses |
|
|
5,171 |
|
|
|
14,519 |
|
|
Amortization of debt issuance costs |
|
|
4,101 |
|
|
|
4,502 |
|
|
Share-based compensation |
|
|
41,956 |
|
|
|
41,539 |
|
|
Interest accretion |
|
|
25,556 |
|
|
|
22,156 |
|
|
Payment of contingent consideration recorded in earnings |
|
|
(400 |
) |
|
|
(1 |
) |
|
Adjustments to contingent consideration |
|
|
30,584 |
|
|
|
(1,315 |
) |
|
Other |
|
|
(2,661 |
) |
|
|
(3,778 |
) |
|
Net change in operating assets and liabilities, net of acquisitions |
|
|
(123,731 |
) |
|
|
(131,437 |
) |
|
Net cash provided by operating activities |
|
|
1,179,741 |
|
|
|
1,278,886 |
|
|
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
|
||
Payments for acquisitions, net of cash acquired |
|
|
(510,738 |
) |
|
|
(309,644 |
) |
|
Capital expenditures for property and equipment |
|
|
(497,765 |
) |
|
|
(598,949 |
) |
|
Capital expenditures for undeveloped land |
|
|
- |
|
|
|
(51,049 |
) |
|
Proceeds from disposal of assets |
|
|
5,417 |
|
|
|
2,922 |
|
|
Other |
|
|
(16,886 |
) |
|
|
(5,232 |
) |
|
Net cash used in investing activities |
|
|
(1,019,972 |
) |
|
|
(961,952 |
) |
|
|
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
|
||
Proceeds from long-term debt |
|
|
1,613,594 |
|
|
|
1,703,552 |
|
|
Principal payments on notes payable and long-term debt |
|
|
(1,488,785 |
) |
|
|
(1,176,382 |
) |
|
Payment of contingent consideration recorded at acquisition date |
|
|
(22,895 |
) |
|
|
(4,707 |
) |
|
Change in book overdraft |
|
|
397 |
|
|
|
14,244 |
|
|
Payments for repurchase of common shares |
|
|
(389 |
) |
|
|
(614,507 |
) |
|
Payments for cash dividends |
|
|
(162,950 |
) |
|
|
(177,101 |
) |
|
Tax withholdings related to net share settlements of equity-based compensation |
|
|
(30,934 |
) |
|
|
(24,985 |
) |
|
Debt issuance costs |
|
|
(3,433 |
) |
|
|
(5,676 |
) |
|
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 used in financing activities |
|
|
(92,478 |
) |
|
|
(282,531 |
) |
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
2,007 |
|
|
|
(2,405 |
) |
|
|
|
|
|
|
|
|
|
||
Net increase in cash, cash equivalents and restricted cash |
|
|
69,298 |
|
|
|
31,998 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
198,173 |
|
|
|
229,580 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
267,471 |
|
|
$ |
261,578 |
|
|
ADDITIONAL STATISTICS
(in thousands of
Solid Waste Internal Growth: The following table reflects a breakdown of the components of our solid waste internal growth for the three and six month periods ended June 30, 2026:
|
|
Three months ended
|
|
Six months ended
|
|
||||
Yield(a) |
|
|
4.6 |
% |
|
|
4.6 |
% |
|
Surcharges |
|
|
1.1 |
% |
|
|
0.5 |
% |
|
Unit Volume(a) |
|
|
(1.9 |
%) |
|
|
(1.7 |
%) |
|
Recycling |
|
|
(0.2 |
%) |
|
|
(0.3 |
%) |
|
Foreign Exchange Impact |
0.0 |
% |
|
|
0.2 |
% |
|
||
Total |
|
|
3.6 |
% |
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
||
Core Price(b) |
|
|
5.6 |
% |
|
|
5.8 |
% |
|
-----------------------------------------------------------------------------
(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 June 30, 2025 and 2026:
|
|
|
|
|
|
Three months ended June 30, 2025 |
||||||||||||
|
Revenue |
Inter-company
|
Reported
|
% |
|||||||||
Solid Waste Collection |
$ |
1,690,785 |
$ |
(5,331 |
) |
$ |
1,685,454 |
70.0 |
% |
||||
Solid Waste Disposal and Transfer |
|
784,015 |
|
(342,396 |
) |
|
441,619 |
18.3 |
% |
||||
Solid Waste Recycling |
|
69,163 |
|
(2,358 |
) |
|
66,805 |
2.8 |
% |
||||
E&P Waste Treatment, Recovery and Disposal |
|
178,117 |
|
(8,282 |
) |
|
169,835 |
7.1 |
% |
||||
Intermodal and Other |
|
43,934 |
|
(592 |
) |
|
43,342 |
1.8 |
% |
||||
Total |
$ |
2,766,014 |
$ |
(358,959 |
) |
$ |
2,407,055 |
100.0 |
% |
||||
|
|
Three months ended June 30, 2026 |
|||||||||||
|
|
Revenue |
|
Inter-company
|
|
Reported
|
|
% |
|||||
Solid Waste Collection |
|
$ |
1,789,235 |
|
$ |
(5,512 |
) |
|
$ |
1,783,723 |
|
69.6 |
% |
Solid Waste Disposal and Transfer |
|
|
829,536 |
|
|
(365,280 |
) |
|
|
464,256 |
|
18.1 |
% |
Solid Waste Recycling |
|
|
63,946 |
|
|
(2,549 |
) |
|
|
61,397 |
|
2.4 |
% |
E&P Waste Treatment, Recovery and Disposal |
|
|
211,153 |
|
|
(10,198 |
) |
|
|
200,955 |
|
7.9 |
% |
Intermodal and Other |
|
|
62,806 |
|
|
(11,530 |
) |
|
|
51,276 |
|
2.0 |
% |
Total |
|
$ |
2,956,676 |
|
$ |
(395,069 |
) |
|
$ |
2,561,607 |
|
100.0 |
% |
ADDITIONAL STATISTICS (continued)
(in thousands of
Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, closed during or subsequent to the prior periods:
|
|
Three months ended
|
|
Six months ended
|
||||||||
|
|
2025 |
|
2026 |
|
2025 |
|
2026 |
||||
Acquisitions, net |
|
$ |
112,870 |
|
$ |
45,758 |
|
$ |
242,168 |
|
$ |
101,011 |
Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three and six month periods ended June 30, 2025 and 2026:
|
|
Three months ended
|
|
Six months ended
|
||||||||
|
|
2025 |
|
2026 |
|
2025 |
|
2026 |
||||
Cash Interest Paid |
|
$ |
71,092 |
|
$ |
64,657 |
|
$ |
155,246 |
|
$ |
172,901 |
Cash Taxes Paid |
|
|
68,965 |
|
|
77,306 |
|
|
91,140 |
|
|
99,179 |
Debt to Book Capitalization as of June 30, 2026:
Internalization for the three months ended June 30, 2026:
Days Sales Outstanding for the three months ended June 30, 2026: 38 (23 net of deferred revenue)
Share Information for the three months ended June 30, 2026:
Basic shares outstanding |
253,457,489 |
|
Dilutive effect of equity-based awards |
|
399,093 |
Diluted shares outstanding |
|
253,856,582 |
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of
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
|
|
Six months ended
|
||||||||||||
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
||||
Net income |
|
$ |
290,276 |
|
|
$ |
296,399 |
|
|
$ |
531,787 |
|
|
$ |
515,742 |
|
Plus: Income tax provision |
|
|
98,882 |
|
|
|
87,331 |
|
|
|
170,348 |
|
|
|
151,546 |
|
Plus: Interest expense |
|
|
82,751 |
|
|
|
91,203 |
|
|
|
163,626 |
|
|
|
178,922 |
|
Less: Interest income |
|
|
(2,314 |
) |
|
|
(4,126 |
) |
|
|
(4,084 |
) |
|
|
(7,239 |
) |
Plus: Depreciation and amortization |
|
|
307,657 |
|
|
|
325,877 |
|
|
|
597,606 |
|
|
|
640,626 |
|
Plus: Closure and post-closure accretion |
|
|
11,942 |
|
|
|
10,328 |
|
|
|
23,816 |
|
|
|
20,619 |
|
Plus: Impairments and other operating items |
|
|
4,030 |
|
|
|
58,466 |
|
|
|
10,471 |
|
|
|
138,050 |
|
Less: Other income, net |
|
|
(10,050 |
) |
|
|
(33,253 |
) |
|
|
(11,922 |
) |
|
|
(37,337 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plus: Transaction-related expenses(a) |
|
|
3,973 |
|
|
|
7,588 |
|
|
|
15,943 |
|
|
|
9,948 |
|
Plus/(Less): Fair value changes to equity awards(b) |
|
|
(734 |
) |
|
|
267 |
|
|
|
1,036 |
|
|
|
(1,269 |
) |
Adjusted EBITDA |
|
$ |
786,413 |
|
|
$ |
840,080 |
|
|
$ |
1,498,627 |
|
|
$ |
1,609,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
As % of revenues |
|
|
32.7 |
% |
|
|
32.8 |
% |
|
|
32.3 |
% |
|
|
32.6 |
% |
____________________________
(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
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
|
|
Six months ended
|
||||||||||||
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
||||
Net cash provided by operating activities |
|
$ |
638,202 |
|
|
$ |
733,288 |
|
|
$ |
1,179,741 |
|
|
$ |
1,278,886 |
|
Plus: Change in book overdraft |
|
|
507 |
|
|
|
20,358 |
|
|
|
397 |
|
|
|
14,244 |
|
Plus: Proceeds from disposal of assets |
|
|
4,448 |
|
|
|
1,143 |
|
|
|
5,417 |
|
|
|
2,922 |
|
Less: Capital expenditures for property and equipment |
|
|
(285,310 |
) |
|
|
(302,354 |
) |
|
|
(497,765 |
) |
|
|
(598,949 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Transaction-related expenses(a) |
|
|
8,769 |
|
|
|
5,759 |
|
|
|
11,161 |
|
|
|
7,372 |
|
Executive separation costs(b) |
|
|
1,670 |
|
|
|
978 |
|
|
|
2,119 |
|
|
|
978 |
|
Payment of contingent consideration recorded in earnings(c) |
|
|
400 |
|
|
|
1 |
|
|
|
400 |
|
|
|
1 |
|
Pre-existing Progressive Waste share-based grants(d) |
|
|
- |
|
|
|
- |
|
|
|
16 |
|
|
|
- |
|
Tax effect(e) |
|
|
(1,673 |
) |
|
|
(1,684 |
) |
|
|
(2,398 |
) |
|
|
(2,088 |
) |
Adjusted free cash flow |
|
$ |
367,013 |
|
|
$ |
457,489 |
|
|
$ |
699,088 |
|
|
$ |
703,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
As % of revenues |
|
|
15.2 |
% |
|
|
17.9 |
% |
|
|
15.1 |
% |
|
|
14.3 |
% |
___________________________
(a) |
Reflects the addback of acquisition-related transaction costs. |
(b) |
Reflects the cash component of severance expense associated with an executive departure from 2023. |
(c) |
Reflects the addback of acquisition-related payments for contingent consideration that were recorded as expenses in earnings and as a component of cash flows from operating activities as the amounts paid exceeded the fair value of the contingent consideration recorded at the acquisition date. |
(d) |
Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period. |
(e) |
The aggregate tax effect of footnotes (a) through (d) is calculated based on the applied tax rates for the respective periods. |
NON-GAAP RECONCILIATION SCHEDULE (continued)
(in thousands of
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
|
|
Six months ended
|
||||||||||||
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
||||
Reported net income |
|
$ |
290,276 |
|
|
$ |
296,399 |
|
|
$ |
531,787 |
|
|
$ |
515,742 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of intangibles(a) |
|
|
50,236 |
|
|
|
47,600 |
|
|
|
97,878 |
|
|
|
94,864 |
|
Impairments and other operating items(b) |
|
|
4,030 |
|
|
|
58,466 |
|
|
|
10,471 |
|
|
|
138,050 |
|
Transaction-related expenses(c) |
|
|
3,973 |
|
|
|
7,588 |
|
|
|
15,943 |
|
|
|
9,948 |
|
Fair value changes to equity awards(d) |
|
|
(734 |
) |
|
|
267 |
|
|
|
1,036 |
|
|
|
(1,269 |
) |
Tax effect(e) |
|
|
(14,687 |
) |
|
|
(28,629 |
) |
|
|
(30,898 |
) |
|
|
(60,765 |
) |
Adjusted net income |
|
$ |
333,094 |
|
|
$ |
381,691 |
|
|
$ |
626,217 |
|
|
$ |
696,570 |
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reported net income |
|
$ |
1.12 |
|
|
$ |
1.17 |
|
|
$ |
2.05 |
|
|
$ |
2.02 |
|
Adjusted net income |
|
$ |
1.29 |
|
|
$ |
1.50 |
|
|
$ |
2.42 |
|
|
$ |
2.73 |
|
_________________________
(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. |
UPDATED 2026 OUTLOOK
NON-GAAP RECONCILIATION SCHEDULE
(in thousands of
Reconciliation of Adjusted EBITDA:
|
Updated 2026 Outlook |
||||||
|
|
Low
|
|
|
High
|
||
Net income |
$ |
1,169,000 |
|
|
$ |
1,173,000 |
|
Plus: Income tax provision(a) |
|
351,000 |
|
|
|
353,000 |
|
Plus: Interest expense, net |
|
358,000 |
|
|
|
358,000 |
|
Plus: Depreciation and Depletion |
|
1,110,000 |
|
|
|
1,114,000 |
|
Plus: Amortization |
|
192,000 |
|
|
|
192,000 |
|
Plus: Closure and post-closure accretion |
|
40,608 |
|
|
|
40,608 |
|
Plus: Impairments and other operating items(b) |
|
138,050 |
|
|
|
138,050 |
|
Less: Other income, net(b) |
|
(37,337 |
) |
|
|
(37,337 |
) |
Adjustments(b) |
|
|
|
|
|
||
Plus: Transaction-related expenses |
|
9,948 |
|
|
|
9,948 |
|
Plus: Fair value changes to equity awards |
|
(1,269 |
) |
|
|
(1,269 |
) |
Adjusted EBITDA |
$ |
3,330,000 |
|
|
$ |
3,340,000 |
|
____________________________
(a) |
Approximately |
(b) |
Reflects amounts reported for the six month period ended June 30, 2026, as shown on page 9. |
Reconciliation of Adjusted Free Cash Flow:
|
Updated 2026 Outlook |
||||||
|
|
Low
|
|
|
High
|
||
Net cash provided by operating activities |
$ |
2,626,571 |
|
|
$ |
2,676,571 |
|
Plus: Change in book overdraft(a) |
|
14,244 |
|
|
|
14,244 |
|
Plus: Proceeds from disposal of assets(a) |
|
2,922 |
|
|
|
2,922 |
|
Less: Capital expenditures for property and equipment |
|
(1,250,000 |
) |
|
|
(1,250,000 |
) |
Adjustments:(a) |
|
|
|
|
|
||
Transaction-related expenses |
|
7,372 |
|
|
|
7,372 |
|
Executive separation costs |
|
978 |
|
|
|
978 |
|
Payment of contingent consideration recorded in earnings |
|
1 |
|
|
|
1 |
|
Tax effect |
|
(2,088 |
) |
|
|
(2,088 |
) |
Adjusted Free Cash Flow |
$ |
1,400,000 |
|
|
$ |
1,450,000 |
|
____________________________
(a) |
Reflects amounts reported for the six month period ended June 30, 2026, as shown on page 10. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260722547867/en/
Mary Anne Whitney / (832) 442-2253
maryannew@wasteconnections.com
Joe Box / (832) 442-2153
joe.box@wasteconnections.com
Source: Waste Connections, Inc.