Waste Connections Q3 2025 results show lower profits despite higher revenue
The company reported a drop in operating income as costs and impairments impacted performance
Waste Connections, Inc. shared its results for the third quarter of 2025 with positive results despite reporting lower profits than expected. Aside from lower profits, the company has also reported higher revenue and plans to end the year on track with its previous outlook.
Q3 2025 results
Revenue in the third quarter totalled $2.46 billion, up from $2.34 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 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 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 $7.1 billion, up from $6.66 billion in the year ago period. Operating income was $1.29 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, Waste Connections reported net income of $813.6 million, or $3.15 per share on a diluted basis of 258.6 million shares.
Adjusted net income 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 for the nine months ended September 30, 2025 was $2.33 billion, as compared to $2.17 billion in the prior year period.
"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."
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 percent of shares outstanding. We remain well-positioned to fund our differentiated growth strategy, while also increasing return of capital to shareholders."
