Waste Connections beats Q1 expectations despite weather disruptions
Adjusted EBITDA rose 8% to $769.5 million as the company flagged tailwinds from fuel and commodities
Waste Connections posted its first-quarter revenue of $2.37 billion, up from $2.23 billion a year ago, beating its own expectations on both revenue and adjusted EBITDA.
Adjusted EBITDA rose to $769.5 million from $712.2 million in the prior year, with margins coming in at 32.5% despite what the company described as outsized weather events during the quarter.
Adjusted earnings per share rose to $1.23 from $1.13 a year ago. Reported net income, however, fell to $219.3 million from $241.5 million, primarily due to $80.4 million in landfill closure and post-closure cost adjustments that weighed on reported operating income.
On the operational side, the company highlighted record safety performance and voluntary employee turnover now below 10%, which it credits as a meaningful driver of its improving execution. The company is also expanding its use of AI through technology investments it expects to benefit results over the longer term.
Looking ahead, Waste Connections flagged several potential tailwinds, including higher fuel and commodity prices, strong pricing retention, and increased special waste activity.
The company also signaled another active year of dealmaking, pointing to a robust acquisition pipeline and noting it has already repurchased over $360 million in shares year-to-date, roughly 1% of shares outstanding.
