Waste Connections reported second-quarter revenue of $2.56 billion, exceeding analyst estimates of $2.54 billion and marking a 6.4% year-on-year increase. Adjusted earnings per share came in at $1.50, a 10.7% beat over the $1.35 consensus, while adjusted EBITDA reached $840.1 million against expectations of $831.3 million. Operating margin declined to 17.1% from 19.1% a year earlier, pressured by higher fuel costs and lower commodity values. The company highlighted that its AI-enabled commercial pricing tool, fully deployed by late 2025, contributed approximately $20 million in annualized EBITDA improvement through 2026, and management projects up to $100 million in cumulative EBITDA improvement by 2029 from AI initiatives. Waste Connections also advanced its renewable natural gas portfolio, with all plants expected to be operational by early next year, shifting capital expenditures from a headwind to a cash flow contributor. Year-to-date acquisitions added about $100 million in annualized revenue, with another $30 million in exclusive franchise deals expected to close soon, and management anticipates 2026 will be an above-average year for M&A. The full-year revenue outlook stands at approximately $10.04 billion, near analyst estimates, though the company remains cautious about macroeconomic volatility and did not factor potential July activity improvements into its guidance.
Waste Connections IncRevenue and EPS beat estimates, with strong EBITDA and AI-driven EBITDA improvement projections.