Waste Connections Reports First Quarter 2026 Results

• Waste Connections reported Q1 2026 results with revenue of $2.371 billion, up 6.4% year-over-year.
• Adjusted EBITDA increased 8.0% to $769.5 million, achieving a margin of 32.5%.
• Net Income declined to $219.3 million ($0.86/share) from $241.5 million in the prior year period.
• Adjusted Net Income rose to $314.9 million ($1.23/share), up from $293.1 million previously.
• Operating income included $80.4 million primarily in impairments related to landfill closure and post-closure costs.
• The company repurchased over $360 million of outstanding shares year-to-date, representing approximately 1% of shares.
• Debt to Book Capitalization stands at 53% as of March 31, 2026.
• A separate financing event in March involved pricing a $600 million senior note offering at 4.800%, maturing in 2036, used to repay revolving credit facility borrowings.

• The earnings release shows top-line and EBITDA growth which exceeds management expectations ("above our expectations"), indicating operational strength in the solid waste sector.
• However, the decline in Net Income due to $80.4 million in impairments is a material negative factor that reduces reported profitability despite strong cash flow metrics (EBITDA).
• The share repurchase program of over $360 million signals management confidence and provides support for the stock price, though it represents only 1% of shares outstanding.
• The refinancing of debt via the $600 million senior note offering at 4.800% is a positive liquidity event that likely lowers interest costs compared to the revolving credit facility, but this was announced in March and priced recently, so much of the benefit may already be reflected in prior valuations.
• The combination of EBITDA growth and share buybacks supports a Routine - Positive rating, as it confirms business stability without transformative upside or significant downside surprises beyond the impairments.

• Waste Connections Inc. operates as a solid waste collection, transfer, disposal, and recycling company in North America.
• Flagship operations include Solid Waste Collection ($1,704.4 million revenue), Disposal and Transfer ($386.1 million), and E&P Waste Treatment ($179.6 million).
• The business model relies on long-term contracts with municipalities and private customers, providing stable cash flows.
• Recycling segment contributed $51.6 million (2.2% of total revenue) showing diversification beyond traditional landfill services.