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Waste Connections Inc

WASTE CONNECTIONS REPORTS THIRD QUARTER 2025 RESULTS

  • Better than expected results highlight superior execution on improving operating trends and cost management
  • Revenue of $2.458 billion, above expectations
  • Net income(a) of $286.3 million, or $1.11 per share, adjusted net income attributable to Waste Connections(b) of $372.0 million, or $1.44 per share
  • Adjusted EBITDA(b) of $830.3 million, above expectations
  • Adjusted EBITDA(b) margin of 33.8% of revenue, above expectations
  • Increased regular quarterly dividend by 11.1% and completed share repurchases of approximately 1% of shares outstanding
  • Acquisitions year to date of approximately $300 million in annualized revenue closed or under definitive agreement
  • No change to full year 2025 outlook as provided in July

TORONTO , Oct. 21, 2025 /CNW/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced its results for the third quarter of 2025.  

"Superior execution drove better than expected financial results in the third quarter, bolstered by continued improvement in operating trends.  Another quarterly step down in employee turnover and new record low safety incident rates, together with strong pricing retention, provided for underlying solid waste margin expansion of approximately 80 basis points in the period," said Ronald J. Mittelstaedt, President and Chief Executive Officer. "Given our team's effectiveness in overcoming incremental commodity headwinds during the quarter, we are on track to deliver full year 2025 results in line with our outlook as provided in July."

Mr. Mittelstaedt concluded, "As anticipated, the strength of our operating performance, free cash flow generation and balance sheet positioned us for another double-digit increase to our quarterly cash dividend, along with another year of outsized acquisition activity and share repurchases of approximately 1% of shares outstanding.  We remain well-positioned to fund our differentiated growth strategy, while also increasing return of capital to shareholders."

Q3 2025 Results

Revenue in the third quarter totaled $2.458 billion, up from $2.338 billion in the year ago period.  Operating income was $439.6 million, which included $60.1 million in impairments and other operating items, primarily the write-down of contracts and a non-operating E&P waste facility permit, and an environmental liability at an operating facility.  The third quarter also included $3.3 million primarily from transaction-related expenses and fair value changes to equity awards.  This compares to operating income of $475.3 million in the third quarter of 2024 that included $11.1 million primarily in transaction-related expenses and impairments and other operating items.  Net income in the third quarter was $286.3 million, or $1.11 per share on a diluted basis of 257.6 million shares.  In the year ago period, the Company reported net income of $308.0 million, or $1.19 per share on a diluted basis of 258.8 million shares. 

Adjusted net income(b) in the third quarter was $372.0 million, or $1.44 per diluted share, versus $350.0 million, or $1.35 per diluted share, in the prior year period.  Adjusted EBITDA(b) in the third quarter was $830.3 million, as compared to $787.4 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 acquisition-related items, as reflected in the detailed reconciliations in the attached tables.

Nine Months Year to Date Results

For the nine months ended September 30, 2025, revenue was $7.094 billion, up from $6.659 billion in the year ago period.  Operating income was $1.289 billion, which included $70.6 million from impairments and other operating items and $20.3 million primarily attributable to transaction-related expenses and fair value changes to equity awards.  This compares to operating income in the prior year period of $1.267 billion, which included $38.2 million primarily attributable to transaction-related expenses, impairments and other operating items and fair value changes to equity awards.   

Net income for the nine months ended September 30, 2025 was $818.1 million, or $3.16 per share on a diluted basis of 258.5 million shares.  In the year ago period, the Company reported net income of $813.6 million, or $3.15 per share on a diluted basis of 258.6 million shares. 

Adjusted net income(b) for the nine months ended September 30, 2025 was $998.3 million, or $3.86 per diluted share, compared to $938.7 million, or $3.63 per diluted share, in the year ago period. Adjusted EBITDA(b) for the nine months ended September 30, 2025 was $2.329 billion, as compared to $2.170 billion in the prior year period. 

----------------------------------------------------------------------------------------------------------------------------------------------------

 (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

Q3 2025 Earnings Conference Call

Waste Connections will be hosting a conference call related to third quarter earnings on October 22nd 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 "News & Events" 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.  A replay of the conference call will be available until October 29, 2025, by calling 877-344-7529 (within North America) or 412-317-0088 (international) and entering Passcode #6407087.   

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 2025 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

maryannew@wasteconnections.com                                                                                            

joe.box@wasteconnections.com          

 

WASTE CONNECTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2025

(Unaudited)

(in thousands of U.S. dollars, except share and per share amounts)




Three months ended
September 30,


Nine months ended
September 30,




2024


2025


2024


2025












Revenues


$

2,338,488


$

2,458,378


$

6,659,308


$

7,093,609


Operating expenses:














Cost of operations



1,344,079



1,406,854



3,866,932



4,091,153


Selling, general and administrative



222,526



236,476



672,110



729,576


Depreciation



248,473



263,999



712,392



763,727


Amortization of intangibles



45,170



51,331



129,584



149,209


Impairments and other operating items



2,897



60,127



11,441



70,598


Operating income



475,343



439,591



1,266,849



1,289,346
















Interest expense



(83,520)



(84,449)



(244,385)



(248,074)


Interest income



3,331



5,090



9,391



9,174


Other income, net



4,904



14,542



12,727



26,463


Income before income tax provision



400,058



374,774



1,044,582



1,076,909
















Income tax provision



(92,012)



(88,503)



(232,008)



(258,852)


Net income



308,046



286,271



812,574



818,057


Plus: Net loss attributable to noncontrolling interests



-



-



1,003



-


Net income attributable to Waste Connections


$

308,046


$

286,271


$

813,577


$

818,057
















Earnings per common share attributable to Waste Connections' common shareholders:














Basic


$

1.19


$

1.11


$

3.15


$

3.17
















Diluted


$

1.19


$

1.11


$

3.15


$

3.16
















Shares used in the per share calculations:














Basic



258,023,661



256,948,902



257,939,935



257,835,515


Diluted



258,756,528



257,580,321



258,601,815



258,484,698






























Cash dividends per common share


$

0.285


$

0.315


$

0.855


$

0.945


 

WASTE CONNECTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands of U.S. dollars, except share and per share amounts)

 



December 31,
2024


September 30,
2025


ASSETS








Current assets:








Cash and equivalents


$

62,366


$

117,596


Accounts receivable, net of allowance for credit losses of $25,730 and $22,843 at
December 31, 2024 and September 30, 2025, respectively



935,027



1,069,645


Prepaid expenses and other current assets



229,519



216,399


Total current assets



1,226,912



1,403,640










Restricted cash



135,807



172,989


Restricted investments



78,126



80,002


Property and equipment, net



8,035,929



8,422,847


Operating lease right-of-use assets



308,198



316,106


Goodwill



7,950,406



8,275,386


Intangible assets, net



1,991,619



2,003,600


Other assets, net



90,812



107,925


Total assets


$

19,817,809


$

20,782,495


LIABILITIES AND EQUITY








Current liabilities:








Accounts payable


$

637,371


$

759,271


Book overdraft



14,628



14,292


Deferred revenue



382,501



411,579


Accrued liabilities



736,824



762,137


Current portion of operating lease liabilities



40,490



42,681


Current portion of contingent consideration



59,169



89,044


Current portion of long-term debt and notes payable



7,851



8,619


Total current liabilities



1,878,834



2,087,623










Long-term portion of debt and notes payable



8,072,928



8,621,371


Long-term portion of operating lease liabilities



272,107



270,414


Long-term portion of contingent consideration



27,993



20,080


Deferred income taxes



958,340



1,067,840


Other long-term liabilities



747,253



621,799


Total liabilities



11,957,455



12,689,127


Commitments and contingencies








Equity:








Common shares: Unlimited shares authorized; 258,067,487 shares issued and
258,019,389 shares outstanding at December 31, 2024; 256,022,442 shares issued
and 255,976,094 shares outstanding at September 30, 2025



3,283,161



2,846,773


Additional paid-in capital



325,928



354,567


Accumulated other comprehensive loss



(205,740)



(139,084)


Treasury shares: 48,098 and 46,348 shares at December 31, 2024 and September 30,
2025, respectively



-



-


Retained earnings



4,457,005



5,031,112


Total Waste Connections' equity



7,860,354



8,093,368










Total equity



7,860,354



8,093,368


Total liabilities and equity


$

19,817,809


$

20,782,495


 

WASTE CONNECTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2025

(Unaudited)

(in thousands of U.S. dollars)











Nine months ended
September 30,




2024


2025


Cash flows from operating activities:








Net income


$

812,574


$

818,057


Adjustments to reconcile net income to net cash provided by operating activities:








Loss from disposal of assets, impairments and other



934



71,614


Depreciation



712,392



763,727


Amortization of intangibles



129,584



149,209


Deferred income taxes, net of acquisitions



81,270



93,839


Current period provision for expected credit losses



12,681



9,321


Amortization of debt issuance costs



7,974



6,271


Share-based compensation



61,229



60,432


Interest accretion



27,733



38,411


Payment of contingent consideration recorded in earnings



(35,035)



(400)


Adjustments to contingent consideration



-



30,874


Other



(1,505)



(7,046)


Net change in operating assets and liabilities, net of acquisitions



(149,833)



(177,119)


Net cash provided by operating activities



1,659,998



1,857,190










Cash flows from investing activities:








Payments for acquisitions, net of cash acquired



(2,010,274)



(627,310)


Capital expenditures for property and equipment



(659,302)



(794,937)


Proceeds from disposal of assets



5,633



9,153


Proceeds from sale of investment in noncontrolling interests



37,000



-


Other



(18,867)



(20,819)


Net cash used in investing activities



(2,645,810)



(1,433,913)










Cash flows from financing activities:








Proceeds from long-term debt



4,092,166



2,222,235


Principal payments on notes payable and long-term debt



(2,759,676)



(1,808,598)


Payment of contingent consideration recorded at acquisition date



(26,625)



(28,324)


Change in book overdraft



(287)



(336)


Payments for repurchase of common shares



-



(442,176)


Payments for cash dividends



(221,253)



(243,950)


Tax withholdings related to net share settlements of equity-based compensation



(32,203)



(31,306)


Debt issuance costs



(13,449)



(4,825)


Proceeds from issuance of shares under employee share purchase plan



4,486



5,464


Proceeds from sale of common shares held in trust



1,198



324


Other



(4,000)



-


Net cash provided by (used in) financing activities



1,040,357



(331,492)










Effect of exchange rate changes on cash, cash equivalents and restricted cash



(75)



627










Net increase in cash, cash equivalents and restricted cash



54,470



92,412


Cash, cash equivalents and restricted cash at beginning of period



184,038



198,173


Cash, cash equivalents and restricted cash at end of period


$

238,508


$

290,585


 

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 nine month periods ended September 30, 2025:

Three months ended

September 30, 2025


Nine months ended

September 30, 2025


Core Price



6.3 %



6.6 %


Surcharges



(0.1 %)



(0.2 %)


Volume



(2.7 %)



(2.7 %)


Recycling



(0.8 %)



(0.4 %)


Foreign Exchange Impact



(0.1 %)



(0.4 %)


Closed Operation



(0.8 %)



(0.9 %)


Total



1.8 %



2.0 %


 

Revenue Breakdown: The following table reflects a breakdown of our revenue for the three month periods ended September 30, 2024 and 2025:

 Three months ended September 30, 2024


Revenue


Inter-company
Elimination


Reported
Revenue


%

Solid Waste Collection

$

1,622,308


$

(4,898)


$

1,617,410


69.2

%

Solid Waste Disposal and Transfer


776,928



(317,142)



459,786


19.6

%

Solid Waste Recycling


69,748



(2,611)



67,137


2.9

%

E&P Waste Treatment, Recovery and Disposal


154,202



(6,923)



147,279


6.3

%

Intermodal and Other


47,341



(465)



46,876


2.0

%

Total

$

2,670,527


$

(332,039)


$

2,338,488


100.0

%

 

 Three months ended September 30, 2025


Revenue


Inter-company
Elimination


Reported
Revenue


%

Solid Waste Collection

$

1,730,339


$

(5,733)


$

1,724,606


70.1

%

Solid Waste Disposal and Transfer


804,442



(348,040)



456,402


18.6

%

Solid Waste Recycling


58,351



(2,110)



56,241


2.3

%

E&P Waste Treatment, Recovery and Disposal


188,679



(9,542)



179,137


7.3

%

Intermodal and Other


42,686



(694)



41,992


1.7

%

Total

$

2,824,497


$

(366,119)


$

2,458,378


100.0

%

 

Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three and nine month periods ended September 30, 2024 and 2025:













Three months ended
September 30,


Nine months ended
September 30,



2024


2025


2024


2025

Acquisitions, net


$

161,024


$

76,621


$

359,716


$

318,789

 

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 nine month periods ended September 30, 2024 and 2025:













Three months ended
September 30,


Nine months ended
September 30,



2024


2025


2024


2025

Cash Interest Paid


$

85,170


$

83,792


$

223,196


$

239,038

Cash Taxes Paid



81,235



50,394



164,615



141,535

Debt to Book Capitalization as of September 30, 2025:  52%

Internalization for the three months ended September 30, 2025:  60%

Days Sales Outstanding for the three months ended September 30, 2025:  40 (25 net of deferred revenue)

Share Information for the three months ended September 30, 2025:




Basic shares outstanding


256,948,902

Dilutive effect of equity-based awards 


631,419

Diluted shares outstanding


257,580,321

 

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
September 30,


Nine months ended
September 30,



2024


2025


2024


2025

Net income attributable to Waste Connections


$

308,046


$

286,271


$

813,577


$

818,057

Less: Net loss attributable to noncontrolling interests



-



-



(1,003)



-

Plus: Income tax provision



92,012



88,503



232,008



258,852

Plus: Interest expense



83,520



84,449



244,385



248,074

Less: Interest income



(3,331)



(5,090)



(9,391)



(9,174)

Plus: Depreciation and amortization



293,643



315,330



841,976



912,936

Plus: Closure and post-closure accretion



7,387



11,963



22,879



35,779

Plus: Impairments and other operating items



2,897



60,127



11,441



70,598

Less: Other income, net



(4,904)



(14,542)



(12,727)



(26,463)

Adjustments:













Plus: Transaction-related expenses(a)



8,067



3,835



25,169



19,778

Plus/(Less): Fair value changes to equity awards(b)



99



(509)



1,602



527

Adjusted EBITDA


$

787,436


$

830,337


$

2,169,916


$

2,328,964














As % of revenues



33.7 %



33.8 %



32.6 %



32.8 %

____________________________

(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.  This measure is not meant to represent residual cash available for strategic acquisitions, stock repurchases, dividends or other discretionary expenditures since it does not adjust for mandatory debt service requirements and other non-discretionary expenditures. Other companies may calculate adjusted free cash flow differently.

Three months ended
September 30,


Nine months ended
September 30,



2024


2025


2024


2025

Net cash provided by operating activities


$

558,310


$

677,449


$

1,659,998


$

1,857,190

Less: Change in book overdraft



(1,637)



(733)



(287)



(336)

Plus: Proceeds from disposal of assets



2,636



3,736



5,633



9,153

Less: Capital expenditures for property and equipment



(272,132)



(297,172)



(659,302)



(794,937)

Adjustments:













Transaction-related expenses(a)



3,668



1,734



12,348



12,895

Executive separation costs(b)



-



-



1,670



2,119

Payment of contingent consideration recorded in earnings(c)



35,035



-



35,035



400

Pre-existing Progressive Waste share-based grants(d)



39



-



1,170



16

Tax effect(e)



(9,643)



(434)



(12,556)



(2,832)

Adjusted free cash flow


$

316,276


$

384,580


$

1,043,709


$

1,083,668














As % of revenues



13.5 %



15.6 %



15.7 %



15.3 %

___________________________

(a) 

Reflects the addback of acquisition-related transaction costs. 

(b) 

Reflects the cash component of severance expense associated with an executive departure from 2021. 

(c) 

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.

(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 valuation measures 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
September 30,


Nine months ended
September 30,



2024


2025


2024


2025

Reported net income attributable to Waste Connections


$

308,046


$

286,271


$

813,577


$

818,057

Adjustments:













Amortization of intangibles(a)



45,170



51,331



129,584



149,209

Impairments and other operating items(b)



2,897



60,127



11,441



70,598

Transaction-related expenses(c) 



8,067



3,835



25,169



19,778

Fair value changes to equity awards(d)



99



(509)



1,602



527

Tax effect(e)



(14,275)



(29,005)



(42,655)



(59,903)

Adjusted net income attributable to Waste Connections


$

350,004


$

372,050


$

938,718


$

998,266

Diluted earnings per common share attributable to Waste Connections' common shareholders:













Reported net income


$

1.19


$

1.11


$

3.15


$

3.16

Adjusted net income


$

1.35


$

1.44


$

3.63


$

3.86














____________________________

(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.

 

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SOURCE Waste Connections, Inc.