Waste Connections raises 2026 outlook after strong Q2 results

Waste Connections raised its financial outlook for 2026 after reporting higher revenue, adjusted earnings, and adjusted EBITDA in the second quarter.

The waste management company now expects 2026 revenue of $10.02 billion to $10.05 billion and adjusted EBITDA of $3.33 billion to $3.34 billion, reflecting stronger first-half performance, contributions from acquisitions, and continued fuel cost recovery.

During the second quarter, revenue increased 6.4% year over year to $2.562 billion, while adjusted EBITDA rose to $840.1 million, up from $786.4 million in the same period last year.

Revenue and adjusted earnings increased in the second quarter

Waste Connections reported second-quarter revenue of $2.562 billion, compared with $2.407 billion a year earlier.

Net income increased to $296.4 million, or $1.17 per diluted share, from $290.3 million, or $1.12 per diluted share, in the second quarter of 2025.

Adjusted net income, which excludes certain one-time items such as impairments and acquisition-related expenses, increased to $381.7 million, or $1.50 per diluted share, compared with $333.1 million, or $1.29 per diluted share, a year earlier.

Adjusted EBITDA rose to $840.1 million, up from $786.4 million in the prior-year quarter.

Operating income declined because of one-time charges

Operating income was $437.6 million, compared with $459.5 million in the second quarter of 2025.

The decline was primarily due to:

• $58.5 million in charges related to landfill closure and post-closure cost adjustments.
• $7.9 million in transaction-related expenses.

First-half 2026 results

For the six months ended June 30, 2026, Waste Connections reported:

• Revenue: $4.932 billion, up from $4.635 billion.
• Net income: $515.7 million, or $2.02 per diluted share, compared with $531.8 million, or $2.05 per diluted share, last year.
• Adjusted net income: $696.6 million, up from $626.2 million.
• Adjusted EBITDA: $1.610 billion, up from $1.499 billion.

Operating income for the first half of the year was $801.6 million, compared with $849.8 million in the same period last year, primarily because of higher landfill closure and post-closure cost adjustments.

Waste Connections raises 2026 guidance

Following its first-half results, Waste Connections increased its full-year outlook.

The company now expects:

• Revenue: $10.02 billion to $10.05 billion
• Net income: $1.169 billion to $1.173 billion
• Adjusted EBITDA: $3.33 billion to $3.34 billion
• Capital expenditures: Approximately $1.25 billion
• Operating cash flow: $2.63 billion to $2.68 billion
• Adjusted free cash flow: $1.40 billion to $1.45 billion

The outlook assumes current economic conditions remain unchanged and does not include the impact of future acquisitions completed during the remainder of the year.

Acquisitions and share repurchases

Waste Connections said it completed acquisitions representing more than $100 million in annualized revenue during the year to date.

The company also reported a record level of share repurchases during the first half of 2026.