Waste Connections Reports Fourth Quarter 2025 Results and Provides 2026 Outlook

Fourth Quarter Highlights Strong finish to the year driving top-to-bottom beat, with momentum for continued outsized margin performance in 2026 Revenue of $2.373 billion Net income(a) of $258.5 million, and adjusted EBITDA(b) of $795.6 million, up 8.7% year over year Adjusted EBITDA(b) margin of 33.5% of revenue, up 110 basis points year over year, above expectations Full Year 2025 Highlights Full year 2025 revenue of $9.467 billion Net income(a) of $1.077 billion, and adjusted EBITDA(b) of $3.125 billion and 33.0% of revenue, up 50 basis points year over year Completed acquisitions with approximately $330 million in annualized revenue and returned record $839.3 million to shareholders Expectations for 2026 Revenue in the range of $9.90 billion to $9.95 billion Net income(a) in the range of $1.223 billion to $1.238 billion and adjusted EBITDA(b) in the range of $3.300 billion to $3.325 billion Net cash provided by operating activities in the range of $2.65 billion to $2.70 billion and double-digit growth in adjusted free cash flow(b) to a range of $1.40 billion to $1.45 billion Upside from additional acquisitions, improvement in commodity prices or increases in macroeconomic activity TORONTO -- (Business Wire) Waste Connections, Inc. (TSX/NYSE: WCN) (“Waste Connections” or the “Company”) today announced its results for the fourth quarter of 2025 and outlook for 2026. “Adjusted EBITDA(b) margin expansion of 110 basis points in the fourth quarter capped off a remarkable year for Waste Connections, driven by price-led organic growth in solid waste and strong execution from ongoing improvements in operating trends. For the full year 2025, we delivered industry-leading adjusted EBITDA(b) margin of 33.0%, up 100 basis points year over year, excluding the impact of lower commodities,” said Ronald J. Mittelstaedt, President and Chief Executive Officer. “We also completed another year of above-average acquisition activity, with approximately $330 million in acquired annualized revenue, plus returned a record amount to shareholders including through share repurchases of over $500 million." “For the third consecutive year, both employee turnover and safety incident rates declined, exiting 2025 at multi-year lows,” continued Mr. Mittelstaedt, “providing ongoing benefits through cost savings, increased productivity, heightened employee engagement and improved customer service. This operating momentum sets up 2026 for another year of outsized underlying solid waste margin expansion, along with upside from any improvement in the broader economy or commodities that are approaching historical cyclical lows.” Mr. Mittelstaedt concluded, “We are extremely pleased by our 2025 results and our positioning for double-digit growth in adjusted free cash flow in 2026. Further, with leverage at 2.75 times, our balance sheet strength continues to provide significant optionality to execute on our strong acquisition pipeline, along with further increases in return of capital to shareholders, while also pursuing technology-driven initiatives supporting continued growth." Q4 2025 Results Revenue in the fourth quarter totaled $2.373 billion, up from $2.260 billion in the year ago period. Operating income was $420.8 million, which included $39.1 million in impairments and other items primarily related to an environmental liability at an operating facility and $4.3 million primarily in transaction-related expenses. This compares to an operating loss of $199.2 million in the prior year period, which included $602.4 million primarily in impairments related to the early closure of a landfill and adjustments to landfill closure and post-closure costs. Net income in the fourth quarter was $258.5 million, or $1.01 per share on a diluted basis of 256.5 million shares. In the year ago period, the Company reported net loss of $196.0 million, or $0.76 per share on a diluted basis of 258.0 million shares. Adjusted net income(b) in the fourth quarter was $330.1 million, or $1.29 per diluted share, up from $300.6 million, or $1.16 per diluted share, in the prior year period. Adjusted EBITDA(b) in the fourth quarter was $795.6 million, as compared to $731.9 million in the prior year period. Adjusted net income, adjusted net income per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude impairments and transaction-related items, as reflected in the detailed reconciliations in the attached tables. Full Year 2025 Results For the year ended December 31, 2025, revenue was $9.467 billion, up from $8.920 billion in the year ago period. Operating income was $1.710 billion, which included $109.7 million in impairments and other operating items primarily related to an environmental liability at an operating facility and the write-down of a non-operating E&P waste facility permit, plus $24.2 million in transaction-related expenses and $0.4 million in fair value changes to certain equity awards. In the year ago period, operating income was $1.068 billion, which included $613.0 million in impairments primarily related to the early closure of a landfill and closure and post-closure costs, $26.1 million in transaction-related expenses and $1.6 million in fair value changes to certain equity awards. Net income for the year ended December 31, 2025 was $1.077 billion, or $4.17 per share on a diluted basis of 258.0 million shares. In the year ago period, the Company reported net income of $617.6 million, or $2.39 per share on a diluted basis of 258.7 million shares. Adjusted net income(b) for the year ended December 31, 2025 was $1.328 billion, or $5.15 per diluted share, up from $1.239 billion, or $4.79 per diluted share, in the year ago period. Adjusted EBITDA(b) for the year ended December 31, 2025 was $3.125 billion, up from $2.902 billion in the prior year period. 2026 Outlook Waste Connections also announced its outlook for 2026, which assumes no change in the current economic environment. The Company’s outlook excludes 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 U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Certain components of the outlook for 2026 are subject to quarterly fluctuations. See reconciliations in the attached tables. Revenue is estimated in the range of $9.90 billion to $9.95 billion; Net income is estimated in the range of $1.223 billion to $1.238 billion and adjusted EBITDA(b) is estimated in the range of $3.300 billion to $3.325 billion; Net cash provided by operating activities is estimated in the range of $2.65 billion to $2.70 billion; Capital expenditures are estimated to be approximately $1.25 billion; and Adjusted free cash flow(b) is estimated in the range of $1.40 billion to $1.45 billion, up 11.2% to 15.1% year over year.   (a) All references to "Net income" refer to the financial statement line item "Net income attributable to Waste Connections". (b) A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule. Q4 2025 Earnings Conference Call Waste Connections will be hosting a conference call related to fourth quarter earnings on February 12th 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 U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S. and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections views its Environmental, Social and Governance (“ESG”) efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement. Visit wasteconnections.com/sustainability for more information and updates on our progress towards targeted achievement. Safe Harbor and Forward-Looking Information This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events and operating performance. These forward-looking statements are often identified by the words "may," "might," "believes," "thinks," "expects," "estimate," "continue," "intends" or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about expected 2026 financial results, outlook and related assumptions, and potential acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company's filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws. – financial tables attached – CONTACT:   Mary Anne Whitney / (832) 442-2253 Joe Box / (832) 442-2153 [email protected] [email protected]       WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2024 AND 2025 (Unaudited) (in thousands of U.S. dollars, except share and per share amounts)     Three months ended December 31,   Twelve months ended December 31,         2024   2025   2024   2025                           Revenues   $ 2,260,283     $ 2,373,306     $ 8,919,591     $ 9,466,915       Operating expenses:                             Cost of operations     1,324,774       1,364,229       5,191,706       5,455,382       Selling, general and administrative     211,335       229,968       883,445       959,544       Depreciation     261,609       266,838       974,001       1,030,565       Amortization of intangibles     60,184       52,332       189,768       201,541       Impairments and other operating items     601,570       39,111       613,012       109,709       Operating income (loss)     (199,189 )     420,828       1,067,659       1,710,174                                     Interest expense     (82,419 )     (86,477 )     (326,804 )     (334,551 )     Interest income     2,215       2,965       11,607       12,139       Other income (expense), net     (2,256 )     3,691       10,471       30,154       Income (loss) before income tax provision     (281,649 )     341,007       762,933       1,417,916                                     Income tax (provision) benefit     85,645       (82,508 )     (146,363 )     (341,359 )     Net income (loss)     (196,004 )     258,499       616,570       1,076,557       Plus: Net loss attributable to noncontrolling interests     -       -       1,003       -       Net income (loss) attributable to Waste Connections   $ (196,004 )   $ 258,499     $ 617,573     $ 1,076,557                                     Earnings (loss) per common share attributable to Waste Connections’ common shareholders:                             Basic   $ (0.76 )   $ 1.01     $ 2.39     $ 4.18                                     Diluted   $ (0.76 )   $ 1.01     $ 2.39     $ 4.17                                     Shares used in the per share calculations:                             Basic     258,043,117       255,804,530       257,965,871       257,323,595       Diluted     258,043,117       256,469,561       258,662,190       257,976,741                                                                   Cash dividends per common share   $ 0.315     $ 0.350     $ 1.17     $ 1.295           WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of U.S. dollars, except share and per share amounts)                   December 31, 2024   December 31, 2025   ASSETS               Current assets:               Cash and equivalents   $ 62,366     $ 45,968     Accounts receivable, net of allowance for credit losses of $25,730 and $21,402 at December 31, 2024 and 2025, respectively     935,027       1,024,992     Prepaid expenses and other current assets     229,519       240,603     Total current assets     1,226,912       1,311,563                     Restricted cash     135,807       183,612     Restricted investments     78,126       80,757     Property and equipment, net     8,035,929       8,733,327     Operating lease right-of-use assets     308,198       312,508     Goodwill     7,950,406       8,392,249     Intangible assets, net     1,991,619       2,006,200     Other assets, net     90,812       109,147     Total assets   $ 19,817,809     $ 21,129,363       LIABILITIES AND EQUITY               Current liabilities:               Accounts payable   $ 637,371     $ 765,227     Book overdraft     14,628       14,674     Deferred revenue     382,501       416,025     Accrued liabilities     736,824       810,367     Current portion of operating lease liabilities     40,490       44,272     Current portion of contingent consideration     59,169       65,029     Current portion of long-term debt and notes payable     7,851       8,667     Total current liabilities     1,878,834       2,124,261                     Long-term portion of debt and notes payable     8,072,928       8,811,104     Long-term portion of operating lease liabilities     272,107       267,000     Long-term portion of contingent consideration     27,993       19,667     Deferred income taxes     958,340       1,085,613     Other long-term liabilities     747,253       576,337     Total liabilities     11,957,455       12,883,982     Commitments and contingencies               Equity:               Common shares: Unlimited shares authorized; 258,067,487 shares issued and 258,019,389 shares outstanding at December 31, 2024; 255,661,011 shares issued and 255,614,663 shares outstanding at December 31, 2025     3,283,161       2,783,431     Additional paid-in capital     325,928       373,239     Accumulated other comprehensive loss     (205,740 )     (111,044 )   Treasury shares: 48,098 and 46,348 shares at December 31, 2024 and 2025, respectively     -       -     Retained earnings     4,457,005       5,199,755     Total Waste Connections’ equity     7,860,354       8,245,381     Noncontrolling interest in subsidiaries     -       -     Total equity     7,860,354       8,245,381     Total liabilities and equity   $ 19,817,809     $ 21,129,363       WASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS TWELVE MONTHS ENDED DECEMBER 31, 2024 AND 2025 (Unaudited) (in thousands of U.S. dollars)                   Twelve months ended December 31,       2024   2025   Cash flows from operating activities:               Net income   $ 616,570     $ 1,076,557     Adjustments to reconcile net income to net cash provided by operating activities:               Loss from disposal of assets, impairments and other     122,641       113,555     Adjustment to closure and post-closure liabilities     480,786       -     Depreciation     974,001       1,030,565     Amortization of intangibles     189,768       201,541     Deferred income taxes, net of acquisitions     (57,285 )     116,654     Current period provision for expected credit losses     20,243       14,493     Amortization of debt issuance costs     10,007       8,383     Share-based compensation     77,885       79,448     Interest accretion     36,001       51,500     Payment of contingent consideration recorded in earnings     (35,035 )     (400 )   Adjustments to contingent consideration     (3 )     (6,215 )   Other     2,656       (7,845 )   Net change in operating assets and liabilities, net of acquisitions     (209,308 )     (264,167 )   Net cash provided by operating activities     2,228,927       2,414,069               Cash flows from investing activities:               Payments for acquisitions, net of cash acquired     (2,120,878 )     (817,577 )   Capital expenditures for property and equipment     (1,055,988 )     (1,179,228 )   Capital expenditures for undeveloped landfill property     -       (15,138 )   Proceeds from disposal of assets     7,903       10,125     Proceeds from sale of investment in noncontrolling interests     37,000       -     Other     (27,213 )     (21,425 )   Net cash used in investing activities     (3,159,176 )     (2,023,243 )             Cash flows from financing activities:               Proceeds from long-term debt     4,564,469       2,674,357     Principal payments on notes payable and long-term debt     (3,245,419 )     (2,129,965 )   Payment of contingent consideration recorded at acquisition date     (27,743 )     (34,269 )   Change in book overdraft     (227 )     46     Payments for repurchase of common shares     -       (505,517 )   Payments for cash dividends     (302,258 )     (333,807 )   Tax withholdings related to net share settlements of equity-based compensation     (32,928 )     (31,809 )   Debt issuance costs     (13,449 )     (4,864 )   Proceeds from issuance of shares under employee share purchase plan     4,486       5,464     Proceeds from sale of common shares held in trust     2,014       323     Other     (4,000 )     -     Net cash provided by (used in) financing activities     944,945       (360,041 )             Effect of exchange rate changes on cash, cash equivalents and restricted cash     (561 )     622               Net increase in cash, cash equivalents and restricted cash     14,135       31,407     Cash, cash equivalents and restricted cash at beginning of year     184,038       198,173     Cash, cash equivalents and restricted cash at end of year   $ 198,173     $ 229,580       ADDITIONAL STATISTICS (in thousands of U.S. dollars, except where noted)   Solid Waste Internal Growth: The following table reflects a breakdown of the components of our solid waste internal growth for the three and twelve month periods ended December 31, 2025:       Three months ended December 31, 2025   Twelve months ended December 31, 2025 Core Price     6.4 %     6.5 % Surcharges     (0.0 %)     (0.1 %) Volume     (2.7 %)     (2.8 %) Recycling     (0.6 %)     (0.5 %) Foreign Exchange Impact   0.0 %     (0.3 %) Closed Operation     (0.5 %)     (0.8 %) Total   2.6 %     2.0 % Revenue Breakdown: The following table reflects a breakdown of our revenue for the three month periods ended December 31, 2024 and 2025:               Three months ended December 31, 2024       Revenue   Inter-company Elimination   Reported Revenue   % Solid Waste Collection   $ 1,612,307   $ (4,513 )   $ 1,607,794   71.1 % Solid Waste Disposal and Transfer     718,525     (309,508 )     409,017   18.1 % Solid Waste Recycling     59,802     (2,102 )     57,700   2.6 % E&P Waste Treatment, Recovery and Disposal     146,328     (6,074 )     140,254   6.2 % Intermodal and Other     45,908     (390 )     45,518   2.0 % Total   $ 2,582,870   $ (322,587 )   $ 2,260,283   100.0 %     Three months ended December 31, 2025       Revenue   Inter-company Elimination   Reported Revenue   % Solid Waste Collection   $ 1,705,896   $ (6,202 )   $ 1,699,694   71.6 % Solid Waste Disposal and Transfer     757,060     (338,748 )     418,312   17.6 % Solid Waste Recycling     51,202     (2,022 )     49,180   2.1 % E&P Waste Treatment, Recovery and Disposal     171,066     (6,661 )     164,405   6.9 % Intermodal and Other     42,295     (580 )     41,715   1.8 % Total   $ 2,727,519   $ (354,213 )   $ 2,373,306   100.0 % Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three and twelve month periods ended December 31, 2024 and 2025:     Three months ended December 31,   Twelve months ended December 31,     2024   2025   2024   2025 Acquisitions, net   $ 169,467   $ 58,470   $ 529,183   $ 377,259 ADDITIONAL STATISTICS (continued) (in thousands of U.S. dollars, except where noted)   Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three and twelve month periods ended December 31, 2024 and 2025:             Three months ended December 31,   Twelve months ended December 31,     2024   2025   2024   2025 Cash Interest Paid   $ 75,738   $ 69,278   $ 298,934   $ 308,316 Cash Taxes Paid     51,382     79,488     215,997     221,022 Debt to Book Capitalization as of December 31, 2025: 52%   Internalization for the three months ended December 31, 2025: 59%   Days Sales Outstanding for the three months ended December 31, 2025: 40 (24 net of deferred revenue)   Share Information for the three months ended December 31, 2025:   Basic shares outstanding 255,804,530 Dilutive effect of equity-based awards   665,031 Diluted shares outstanding   256,469,561   NON-GAAP RECONCILIATION SCHEDULE (in thousands of U.S. dollars, except where noted)   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 attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, 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 December 31,   Twelve months ended December 31,     2024   2025   2024   2025 Net income (loss) attributable to Waste Connections   $ (196,004 )   $ 258,499     $ 617,573     $ 1,076,557   Less: Net loss attributable to noncontrolling interests     -       -       (1,003 )     -   Plus/(Less): Income tax provision (benefit)     (85,645 )     82,508       146,363       341,359   Plus: Interest expense     82,419       86,477       326,804       334,551   Less: Interest income     (2,215 )     (2,965 )     (11,607 )     (12,139 ) Plus: Depreciation and amortization     321,793       319,170       1,163,769       1,232,106   Plus: Closure and post-closure accretion     6,896       12,176       29,774       47,955   Plus: Impairments and other operating items     601,570       39,111       613,012       109,709   Plus/(Less): Other expense (income), net     2,256       (3,691 )     (10,471 )     (30,154 ) Adjustments:                         Plus: Transaction-related expenses(a)     890       4,400       26,059       24,178   Plus/(Less): Fair value changes to equity awards(b)     (11 )     (94 )     1,592       433   Adjusted EBITDA   $ 731,949     $ 795,591     $ 2,901,865     $ 3,124,555                             As % of revenues     32.4 %     33.5 %     32.5 %     33.0 % ____________________________ (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 U.S. dollars, except where noted)   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.           Twelve months ended December 31,       2024   2025 Net cash provided by operating activities     $ 2,228,927     $ 2,414,069   Plus/(Less): Change in book overdraft       (227 )     46   Plus: Proceeds from disposal of assets       7,903       10,125   Less: Capital expenditures for property and equipment       (1,055,988 )     (1,179,228 ) Adjustments:               Payment of contingent consideration recorded in earnings(a)       35,035       400   Transaction-related expenses(b)       11,408       15,142   Executive separation costs (c)       1,670       2,119   Pre-existing Progressive Waste share-based grants(d)       1,194       16   Tax effect(e)       (12,396 )     (3,396 ) Adjusted free cash flow     $ 1,217,526     $ 1,259,293                   As % of revenues       13.7 %     13.3 % __________________________ (a) 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. (b) Reflects the addback of acquisition-related transaction costs. (c) Reflects the cash component of severance expense associated with an executive departure. (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 U.S. dollars, except per share amounts)   Reconciliation of Adjusted Net Income attributable to Waste Connections and Adjusted Net Income per Diluted Share attributable to Waste Connections:   Adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections, both non-GAAP financial measures, are provided supplementally because they are widely used by investors as a valuation measure in the solid waste industry. Management uses adjusted net income attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections’ operations. Waste Connections provides adjusted net income attributable to Waste Connections to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income attributable to Waste Connections 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 attributable to Waste Connections and adjusted net income per diluted share attributable to Waste Connections 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 December 31,   Twelve months ended December 31,     2024   2025 2024 2025 Reported net income (loss) attributable to Waste Connections   $ (196,004 )   $ 258,499     $ 617,573     $ 1,076,557   Adjustments:                         Amortization of intangibles(a)     60,184       52,332       189,768       201,541   Impairments and other operating items(b)     601,570       39,111       613,012       109,709   Transaction-related expenses(c)     890       4,400       26,059       24,178   Fair value changes to equity awards(d)     (11 )     (94 )     1,592       433   Tax effect(e)     (166,051 )     (24,181 )     (208,711 )     (84,084 ) Adjusted net income attributable to Waste Connections   $ 300,578     $ 330,067     $ 1,239,293     $ 1,328,334   Diluted earnings per common share attributable to Waste Connections’ common shareholders:                         Reported net income (loss)   $ (0.76 )   $ 1.01     $ 2.39     $ 4.17   Adjusted net income   $ 1.16     $ 1.29     $ 4.79     $ 5.15   Shares used in the per share calculations: Reported diluted shares   258,043,117   256,469,561   258,662,190   257,976,741 Adjusted diluted shares(f)     258,842,751     256,469,561     258,662,190     257,976,741 ____________________________ (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. (f) Reflects reported diluted shares adjusted for shares that were excluded from the reported diluted shares calculation due to reporting a net loss during the three months ended December 31, 2024. 2026 OUTLOOK NON-GAAP RECONCILIATION SCHEDULE (in thousands of U.S. dollars, except where noted)   Reconciliation of Adjusted EBITDA:     2026 Outlook     Low Estimate     High Estimate     Observation Net income attributable to Waste Connections $ 1,223,000   $ 1,238,000       Plus: Income tax provision   397,000     402,000     Approximate 24.5% effective rate Plus: Interest expense, net   330,000     330,000       Plus: Depreciation and Depletion   1,105,000     1,110,000     Approximately 11.2% of revenue Plus: Amortization   195,000     195,000     Approximately 2.0% of revenue Plus: Closure and post-closure accretion   50,000     50,000       Adjusted EBITDA $ 3,300,000 $ 3,325,000 Approximately 33.3% - 33.4% of revenue Reconciliation of Adjusted Free Cash Flow:     2026 Outlook     Low Estimate     High Estimate Net cash provided by operating activities $ 2,650,000     $ 2,700,000   Less: Capital expenditures for property and equipment   (1,250,000 )     (1,250,000 ) Adjusted Free Cash Flow $ 1,400,000     $ 1,450,000     View source version on businesswire.com: https://www.businesswire.com/news/home/20260211869041/en/ Contacts: Mary Anne Whitney / (832) 442-2253 [email protected] Joe Box / (832) 442-2153 [email protected] Source: Waste Connections, Inc.