Waste Connections’ strong start to 2025 driven by solid waste growth and acquisitions
The company notes better than expected results with an increase of 7.5% from last year
Waste Connections, Inc. shared its financial results for the first quarter of 2025. So far, the year has produced positive results based on a durable and unique approach to the market.
Q1 2025 Results
Revenue in the first quarter totaled $2.228 billion, up from $2.073 billion last year. Operating income was $390.2 million, which included $20.2 million from transaction-related expenses, impairments, and other operating items and fair value accounting changes associated with certain equity awards. This figure compares to operating income of $366.8 million in the first quarter of 2024, which included $11.5 million primarily related to transaction-related expenses and fair value accounting changes associated with certain equity awards. Net income in the first quarter was $241.5 million, or $0.93 per share on a diluted basis of 258.9 million shares. In the same period last year, Waste Connections reported net income of $230.1 million, or $0.89 per share on a diluted basis of 258.5 million shares.
Adjusted net income in the first quarter was $293.1 million, or $1.13 per diluted share, up from $268.7 million, or $1.04 per diluted share, in the prior year period. Adjusted EBITDA in the first quarter was $712.2 million, as compared to $650.7 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.
"We're extremely pleased by the strong start to 2025 as price-led organic solid waste growth and continued acquisition activity drove a top-to-bottom beat in the quarter, positioning us well for the full year. Exemplary operational execution supported core solid waste pricing of 6.9 percent and drove better than expected results as we overcame incremental volume weakness from protracted weather events across many markets to exceed our outlook and deliver adjusted EBITDA(b) margin of 32.0 percent," said Ronald J. Mittelstaedt, president and chief executive officer.
Mr. Mittelstaedt added, "We achieved all of these accomplishments while also continuing acquisition activity at outsized levels, with annualized revenues closed to date already over $125 million, including a state-of-the-art recycling facility in New Jersey to complement our growth in the Northeast. The strength of our financial position and free cash flow generation provides optionality for continued above-average acquisition activity during 2025, along with increasing return of capital to shareholders."
