Waste Connections beats Q2 2025 expectations, driven by employee retention and solid waste pricing
Record safety performance, solid waste core pricing growth, and ongoing acquisitions support revenue
Waste Connections saw revenue and earnings above expectations for the second quarter of 2025, driven by solid waste pricing and improved employee retention.
Revenue for the quarter ended June 30 reached $2.41 billion, a 7.1 percent increase from $2.25 billion in the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 7.5 percent to $786.4 million, with an adjusted EBITDA margin of 32.7 percent.
Net income for the quarter was $290.3 million, or $1.12 per diluted share, compared to $275.5 million, or $1.07 per share, in Q2 2024. Adjusted net income was $333.1 million, or $1.29 per share, up from $320 million, or $1.24 per share, the previous year.
Waste Connections said continued improvements in employee retention and record-low safety rates helped expand solid waste margins by approximately 70 basis points. The company noted headwinds from lower commodity-related contributions and ongoing economic challenges.
Year-to-date results
For the first six months of 2025, revenue increased 7.3 percent to $4.64 billion, compared to $4.32 billion in the same period of 2024. Adjusted EBITDA rose to $1.50 billion from $1.38 billion. Net income was $531.8 million, or $2.05 per diluted share, compared with $505.5 million, or $1.96 per share, a year earlier. Adjusted net income was $626.2 million, or $2.42 per share, compared with $588.7 million, or $2.28 per share.
2025 outlook
Waste Connections reaffirmed its full-year 2025 outlook, assuming no major changes in the current economic environment:
- Revenue of approximately $9.45 billion
- Adjusted EBITDA of approximately $3.12 billion, or about 33.0 percent of revenue
- Net income of approximately $1.14 billion
- Capital expenditures between $1.2 billion and $1.25 billion
- Net cash from operating activities between $2.48 billion and $2.53 billion
- Adjusted free cash flow of approximately $1.3 billion
The outlook excludes impacts from potential acquisitions and transaction-related expenses. Actual results may vary due to risks and uncertainties outlined in the company's regulatory filings.
