Waste Connections announces Q2 results

Waste Connections Inc., Toronto, has announced its results for the second quarter of 2025.

President and CEO Ron Mittelstaedt says, “continued improvement in employee retention and record low safety rates, along with solid waste core pricing growth of 6.6 percent,” drove underlying solid waste margin expansion of approximately 70 basis points in the period.

"We delivered results above our outlook for the quarter in spite of headwinds from lower-than-expected contributions from higher margin, commodity-related activities and continued sluggishness in the economy, along with tariff-induced uncertainties,” he adds.

With an outsized year of acquisition activity, at approximately $200 million in annualized revenue, and a robust pipeline, Mittelstaedt describes the company as “well-positioned for additional acquisitions, while maintaining the flexibility for increased return of capital to shareholders, including through opportunistic share repurchases already underway.”

Despite incremental and growing headwinds, Waste Connections’ full-year 2025 outlook remains within the ranges from February, providing for approximately 6 percent revenue growth and 50 basis points of adjusted EBITDA margin expansion to 33 percent.

“We remain well-positioned for upside from contributions from additional acquisitions, improvements in commodity-related activity and solid waste volumes,” Mittelstaedt says.

Revenue in the second quarter totaled $2.4 billion, up from $2.2 billion in the year-ago period.  Operating income was $459.5 million, which included $7.3 million primarily in impairments and other operating items and transaction-related expenses. This compares to operating income of $424.7 million in the second quarter of 2024, which included $15.7 million primarily in impairments and other operating items and transaction-related expenses.

Net income in the second quarter was $290.3 million, or $1.12 per share on a diluted basis of 259.0 million shares. In the year-ago period, the company reported a net income of $275.5 million, or $1.07 per share on a diluted basis of 258.6 million shares. 

Adjusted net income in the second quarter was $333.1 million, or $1.29 per diluted share, versus $320.0 million, or $1.24 per diluted share, in the prior year period.  Adjusted EBITDA in the second quarter was $786.4 million, compared to $731.8 million in the prior year period. 

For the six months ending June 30, revenue was $4.6 billion, up from $4.3 billion in the year-ago period.  Operating income, which included $27.5 million primarily attributable to transaction-related expenses and impairments and other operating items, was $849.8 million, as compared to operating income of $791.5 million in the prior year period, which included $27.2 million primarily attributable to transaction-related expenses and impairments and other operating items.

Net income for the six months was $531.8 million, or $2.05 per share on a diluted basis of 258.9 million shares. In the year-ago period, the company reported net income of $505.5 million, or $1.96 per share on a diluted basis of 258.5 million shares. 

Adjusted net income for the six months was $626.2 million, or $2.42 per diluted share, compared to $588.7 million, or $2.28 per diluted share, in the year-ago period. Adjusted EBITDA was $1.4 billion, as compared to $1.3 billion in the prior year period. 

Waste Connections also updated its outlook for 2025, 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 the expensing of transaction-related items. This outlook foresees that:

• revenue is estimated to be approximately $9.4 billion;
• net income is estimated to be approximately $1.1 billion, and adjusted EBITDA is estimated to be approximately $3.1 billion, or about 33 percent of revenue;
• capital expenditures are estimated to be roughly $1.2 billion; and
• net cash provided by operating activities is estimated to be between $2.4 billion and $2.5 billion, and adjusted free cash flow is estimated to be approximately $1.3 billion.