Companies/US/WCN

Waste Connections, Inc.

Last · —$156.80+3.14 (+2.04%)live · yahoo · 1h ago
Vol 3.72M ≈ 616.33M
Market cap$40.75B—
P/E · TTM38.4fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session

Issuer

Legal nameWaste Connections, Inc.
HQUnited States (US)
ListingUS WCN
ISINCA94106B1013
SectorIndustrials
IndustryEnvironmental Services & Equipment
SIC4953
CurrencyUSD
Entity registrylei:TPHWKPW6MRKN6NESLU52
CIK0001318220
Employees24,214
AddressWaste Connections, Inc. 6220 Highway 7 L4H 4G3, Woodbridge +905 532 7510
Headline financial metrics
Revenue$9.6B
Operating income$1.7B
Net income$1.1B
Free cash flow$1.2B
Operating margin17.5%
Net margin11.0%
Return on equity13.1%
PeriodTTM 2026-03-31
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OpenFilings analyst

Our analyst

Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.

Resilient core cash generation and pricing outweigh near-term volume uncertainty.

Latest call · Q2 2020

Buy. Waste Connections delivered a resilient Q2 despite COVID-19:

revenue was $1.306 billion, adjusted EBITDA was $394.3 million at a 30.2% margin, and solid-waste margins expanded 30 bps while absorbing more than $20 million of pandemic costs. The raised 2020 outlook calls for $5.325 billion of revenue, $1.61 billion of adjusted EBITDA and $805 million-$835 million of adjusted free cash flow, although the recovery is assumed to plateau and E&P weakness, uncertain reopenings and high M&A valuations remain the key risks.

Themes
  • Covid Recovery
  • Solid Waste Volumes
  • Pricing Power
  • E And P Exposure
  • Free Cash Flow
  • M And A
+1

Near term

Solid-waste volumes improved another 300 bps sequentially in July, but Q3 guidance still assumes volumes down 7%-7.5%; continued recovery could create upside, while renewed shutdowns or bankruptcies would pressure results.

Q3 guidance is approximately $1.37 billion of revenue and $420 million of adjusted EBITDA, with a 30.7% margin; management has embedded conservative assumptions and approximately 50 bps of additional COVID-related costs.

E&P revenue is expected to be below 2% of Q3 revenue, with the segment operating near a 20% margin; rig activity and the timing of a 2021 recovery remain difficult to forecast.

Second-half free cash flow conversion is guided lower after $494.6 million in the first half because of roughly $90 million of remaining cash taxes, higher interest expense and the normalization of working-capital benefits.

Longer term

Pricing remains structurally supportive: management expects roughly 4.5% full-year pricing and indicated 3.5%-4% pricing could be achievable in 2021, still representing a 200-plus-basis-point spread to CPI at the midpoint.

The differentiated footprint, market selection, decentralized operating model and disciplined cost management supported solid-waste margin expansion even during a sharp volume shock.

Acquisition growth remains a durable compounding avenue, with approximately $60 million of annualized revenue closed year-to-date and a signed deal representing roughly $40 million of annualized revenue, though timing and valuation discipline matter.

Technology investments in fleet connectivity, predictive maintenance, machine vision and electric trucks may improve safety, uptime and operating efficiency, but management deliberately did not quantify a specific financial payoff.

E&P remains a meaningful cyclical exposure rather than a structural growth driver; its historical cash contribution is attractive, but the 2020 impairment and current low activity demonstrate earnings volatility.

Red flags

The full-year outlook assumes the recovery has plateaued and excludes further volume improvement; management acknowledged that some businesses with the lights off may never return.

Management did not quantify the size or timing of the unrecovered customer cohort, leaving downside from prolonged closures, additional COVID waves or customer failures difficult to model.

M&A valuations remain elevated, with management acknowledging that sellers are benefiting from cheap capital; paying peak multiples could dilute the otherwise strong free-cash-flow thesis.

Reported Q2 included a $417 million noncash impairment for long-lived E&P assets, underscoring the risk that the energy portfolio can create large earnings and valuation swings.

The company carries approximately $4.7 billion of debt, although leverage was manageable at about 2.7x debt-to-EBITDA and nearly all debt was fixed-rate.

Forward outlook

revenue

5325 $million

FY 2020

official guidance

revenue growth

-1 pct

FY 2020

official guidance

ebitda

1610 $million

FY 2020

official guidance

revenue

1370 $million

Q3 2020

official guidance

ebitda

420 $million

Q3 2020

official guidance

Recommendation history

OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.

From latest 10-K · 2026-02-12

  • Pricing Power
  • Acquisition Growth
  • Leverage
  • Landfill Permitting
  • Contract Renewals
  • Volume Decline
  • Environmental Liabilities

Red flags

  • Debt of $8.889 billion was approximately 2.8x 2025 adjusted EBITDA of $3.125 billion before considering other obligations; revolver borrowings increased to $2.382 billion from $2.164 billion.
  • 2025 revenue growth excluding acquisitions was only 1.9%, while solid-waste volumes declined 2.8% and recycled-commodity revenue fell.
  • The company had $1.040 billion of surety bonds supporting landfill closure and retirement obligations and $1.117 billion supporting collection contracts and landfill operating agreements.
  • Remaining fixed-price fuel purchase commitments totaled $173.6 million for 56.2 million gallons through September 2029, limiting flexibility if fuel prices decline.
  • Current environmental remediation reserves increased to $42.2 million from $8.8 million year over year, while landfill closure and post-closure estimates remain exposed to the Chiquita Canyon event and other operating changes.

Upcoming earnings

1 event
10:00 PM UTC+2
Period
Sep 2026
Est. EPS
$1.52
Est. revenue
2.6B

Earnings transcripts

12 of 50 recent

Documents

FormReporting forFiledFlags
2026-08-192026-08-210
2026-08-182026-08-200
2026-08-132026-08-170
2026-08-072026-08-070