Waste Connections Reports First Quarter 2026 Results
- Better than expected Q1 results, with improving trends positioning for upside to 2026 outlook
- Revenue of $2.371 billion, above expectations and up 6.4% year over year
- Net income of $219.3 million and adjusted EBITDA(a) of $769.5 million, above expectations and up 8.0% year over year
- Adjusted EBITDA margin(a) of 32.5%, above expectations and up 50 basis points year over year
- Net income and adjusted net income(a) per share of $0.86 and $1.23, respectively
- Year-to-date share repurchases of 1% of outstanding shares
TORONTO–(BUSINESS WIRE)–
Waste Connections, Inc. (TSX/NYSE: WCN) (“Waste Connections” or the “Company”) today announced its results for the first quarter of 2026.
“We’re extremely pleased by the strong start to 2026 and remain well-positioned for the full year, with upside potential from commodity-related impacts, solid waste organic growth and additional acquisitions. On revenue and adjusted EBITDA above our expectations, we delivered adjusted EBITDA(a) margin of 32.5% in spite of outsized weather events and in advance of recovering higher fuel costs,” said Ronald J. Mittelstaedt, President and Chief Executive Officer.
“In spite of geopolitical instability, our results reflect consistency of execution as we continue to benefit from operating momentum from improved employee engagement, with safety performance at record levels and voluntary turnover now below 10%,” continued Mr. Mittelstaedt. “Moreover, we should be well-positioned for incremental benefits from higher fuel and other commodities, as well as strong pricing retention and increased special waste activity, and also longer term as a result of our expanding use of A.I. through technology-related investments.”
Mr. Mittelstaedt concluded, “Finally, we continue to anticipate another outsized year of acquisition activity, given a robust pipeline, along with increasing return of capital to shareholders, including year-to-date share repurchases of over $360 million or approximately 1% of shares outstanding.”
Q1 2026 Results
Revenue in the first quarter totaled $2.371 billion, up from $2.228 billion in the prior year period. Operating income was $364.1 million, which included $80.4 million primarily in impairments related to adjustments to landfill closure and post closure costs. This compares to operating income of $390.2 million in the prior year period, which included $20.2 million primarily in transaction-related expenses, impairments and other operating items and fair value accounting changes associated with certain equity awards. Net income in the first quarter was $219.3 million, or $0.86 per share on a diluted basis of 255.9 million shares. In the prior year period, the Company reported net income of $241.5 million, or $0.93 per share on a diluted basis of 258.9 million shares.
Adjusted net income(a) in the first quarter was $314.9 million, or $1.23 per diluted share, up from $293.1 million, or $1.13 per diluted share, in the prior year period. Adjusted EBITDA(a) in the first quarter was $769.5 million, up from $712.2 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.
Q1 2026 Earnings Conference Call
Waste Connections will be hosting a conference call related to first quarter earnings on April 23rd at 8:30 A.M. Eastern Time. A live audio webcast of the conference call can be accessed by visiting investors.wasteconnections.com and selecting “Events & Presentations” from the website menu. Alternatively, conference call participants can preregister by clicking here. Registered participants will receive dial-in instructions and a personalized code for entry to the conference call. Shortly after the conclusion of the conference call, a webcast replay will be available on the Waste Connections investor website or by clicking here.
About Waste Connections
Waste Connections (wasteconnections.com) is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 46 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S. and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections views its Environmental, Social and Governance (“ESG”) efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement. Visit wasteconnections.com/sustainability for more information and updates on our progress towards targeted achievement.
Safe Harbor and Forward-Looking Information
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 (“PSLRA”), including “forward-looking information” within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections’ current beliefs and expectations regarding future events and operating performance. These forward-looking statements are often identified by the words “may,” “might,” “believes,” “thinks,” “expects,” “estimate,” “continue,” “intends” or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about expected 2026 financial results, outlook and related assumptions, and potential acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company’s filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.
– financial tables attached –
|
(a) Non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule. |
|
WASTE CONNECTIONS, INC. |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME |
||||||||
|
THREE MONTHS ENDED MARCH 31, 2025 AND 2026 |
||||||||
|
(Unaudited) |
||||||||
|
(in thousands of U.S. dollars, except share and per share amounts) |
||||||||
|
|
|
|||||||
|
|
|
Three months ended |
||||||
|
|
|
2025 |
|
2026 |
||||
|
|
|
|
|
|
||||
|
Revenues |
|
$ |
2,228,176 |
|
|
$ |
2,370,631 |
|
|
Operating expenses: |
|
|
|
|
|
|
||
|
Cost of operations |
|
|
1,291,443 |
|
|
|
1,361,099 |
|
|
Selling, general and administrative |
|
|
250,134 |
|
|
|
251,119 |
|
|
Depreciation |
|
|
242,307 |
|
|
|
267,485 |
|
|
Amortization of intangibles |
|
|
47,642 |
|
|
|
47,264 |
|
|
Impairments and other operating items |
|
|
6,440 |
|
|
|
79,584 |
|
|
Operating income |
|
|
390,210 |
|
|
|
364,080 |
|
|
|
|
|
|
|
|
|
||
|
Interest expense |
|
|
(80,875 |
) |
|
|
(87,719 |
) |
|
Interest income |
|
|
1,770 |
|
|
|
3,113 |
|
|
Other income, net |
|
|
1,872 |
|
|
|
4,085 |
|
|
Income before income tax provision |
|
|
312,977 |
|
|
|
283,559 |
|
|
|
|
|
|
|
|
|
||
|
Income tax provision |
|
|
(71,467 |
) |
|
|
(64,215 |
) |
|
Net income |
|
$ |
241,510 |
|
|
$ |
219,344 |
|
|
|
|
|
|
|
|
|
||
|
Earnings per common share: |
|
|
|
|
|
|
||
|
Basic |
|
$ |
0.94 |
|
|
$ |
0.86 |
|
|
Diluted |
|
$ |
0.93 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
||
|
Shares used in the per share calculations: |
|
|
|
|
|
|
||
|
Basic |
|
|
258,193,975 |
|
|
|
255,347,786 |
|
|
Diluted |
|
|
258,904,806 |
|
|
|
255,873,686 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
Cash dividends per common share |
|
$ |
0.315 |
|
|
$ |
0.350 |
|
|
WASTE CONNECTIONS, INC. |
|||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||||
|
(Unaudited) |
|||||||||
|
(in thousands of U.S. dollars, except share and per share amounts) |
|||||||||
|
|
|
|
|
|
|
|
|||
|
|
|
December 31, |
|
March 31, |
|
||||
|
ASSETS |
|
|
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
|
|
||
|
Cash and equivalents |
|
$ |
45,968 |
|
|
$ |
112,447 |
|
|
|
Accounts receivable, net of allowance for credit losses of $21,402 and $27,828 at December 31, 2025 and March 31, 2026, respectively |
|
|
1,024,992 |
|
|
|
1,033,086 |
|
|
|
Prepaid expenses and other current assets |
|
|
240,603 |
|
|
|
230,786 |
|
|
|
Total current assets |
|
|
1,311,563 |
|
|
|
1,376,319 |
|
|
|
|
|
|
|
|
|
|
|
||
|
Restricted cash |
|
|
183,612 |
|
|
|
210,199 |
|
|
|
Restricted investments |
|
|
80,757 |
|
|
|
80,397 |
|
|
|
Property and equipment, net |
|
|
8,733,327 |
|
|
|
8,714,069 |
|
|
|
Operating lease right-of-use assets |
|
|
312,508 |
|
|
|
324,034 |
|
|
|
Goodwill |
|
|
8,392,249 |
|
|
|
8,414,577 |
|
|
|
Intangible assets, net |
|
|
2,006,200 |
|
|
|
1,959,957 |
|
|
|
Other assets, net |
|
|
109,147 |
|
|
|
106,803 |
|
|
|
Total assets |
|
$ |
21,129,363 |
|
|
$ |
21,186,355 |
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
|
|
||
|
Accounts payable |
|
$ |
765,227 |
|
|
$ |
712,423 |
|
|
|
Book overdraft |
|
|
14,674 |
|
|
|
8,560 |
|
|
|
Deferred revenue |
|
|
416,025 |
|
|
|
424,835 |
|
|
|
Accrued liabilities |
|
|
810,367 |
|
|
|
745,013 |
|
|
|
Current portion of operating lease liabilities |
|
|
44,272 |
|
|
|
46,335 |
|
|
|
Current portion of contingent consideration |
|
|
65,029 |
|
|
|
61,945 |
|
|
|
Current portion of long-term debt and notes payable |
|
|
8,667 |
|
|
|
8,355 |
|
|
|
Total current liabilities |
|
|
2,124,261 |
|
|
|
2,007,466 |
|
|
|
|
|
|
|
|
|
|
|
||
|
Long-term portion of debt and notes payable |
|
|
8,811,104 |
|
|
|
9,093,831 |
|
|
|
Long-term portion of operating lease liabilities |
|
|
267,000 |
|
|
|
278,167 |
|
|
|
Long-term portion of contingent consideration |
|
|
19,667 |
|
|
|
19,216 |
|
|
|
Deferred income taxes |
|
|
1,085,613 |
|
|
|
1,113,470 |
|
|
|
Other long-term liabilities |
|
|
576,337 |
|
|
|
616,586 |
|
|
|
Total liabilities |
|
|
12,883,982 |
|
|
|
13,128,736 |
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
||
|
Shareholders’ equity: |
|
|
|
|
|
|
|
||
|
Common shares: Unlimited shares authorized; 255,661,011 shares issued and 255,614,663 shares outstanding at December 31, 2025; 254,260,257 shares issued and 254,213,909 shares outstanding at March 31, 2026 |
|
|
2,783,431 |
|
|
|
2,502,503 |
|
|
|
Additional paid-in capital |
|
|
373,239 |
|
|
|
366,546 |
|
|
|
Accumulated other comprehensive loss |
|
|
(111,044 |
) |
|
|
(141,783 |
) |
|
|
Treasury shares: 46,348 and 46,348 shares at December 31, 2025 and March 31, 2026, respectively |
|
|
– |
|
|
|
– |
|
|
|
Retained earnings |
|
|
5,199,755 |
|
|
|
5,330,353 |
|
|
|
Total shareholders’ equity |
|
|
8,245,381 |
|
|
|
8,057,619 |
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
21,129,363 |
|
|
$ |
21,186,355 |
|
|
|
WASTE CONNECTIONS, INC. |
|||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
|
THREE MONTHS ENDED MARCH 31, 2025 AND 2026 |
|||||||||
|
(Unaudited) |
|||||||||
|
(in thousands of U.S. dollars) |
|||||||||
|
|
|
|
|
|
|
|
|||
|
|
|
Three months ended March 31, |
|
||||||
|
|
|
2025 |
|
2026 |
|
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
||
|
Net income |
|
$ |
241,510 |
|
|
$ |
219,344 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||
|
Loss from disposal of assets, impairments and other |
|
|
7,778 |
|
|
|
2,519 |
|
|
|
Adjustments to closure and post-closure liabilities |
|
|
– |
|
|
|
76,845 |
|
|
|
Depreciation |
|
|
242,307 |
|
|
|
267,485 |
|
|
|
Amortization of intangibles |
|
|
47,642 |
|
|
|
47,264 |
|
|
|
Deferred income taxes, net of acquisitions |
|
|
36,165 |
|
|
|
28,537 |
|
|
|
Current period provision for expected credit losses |
|
|
2,470 |
|
|
|
12,105 |
|
|
|
Amortization of debt issuance costs |
|
|
2,034 |
|
|
|
2,163 |
|
|
|
Share-based compensation |
|
|
23,438 |
|
|
|
17,587 |
|
|
|
Interest accretion |
|
|
12,737 |
|
|
|
11,200 |
|
|
|
Adjustments to contingent consideration |
|
|
(1,500 |
) |
|
|
– |
|
|
|
Other |
|
|
(1,013 |
) |
|
|
127 |
|
|
|
Net change in operating assets and liabilities, net of acquisitions |
|
|
(72,029 |
) |
|
|
(139,578 |
) |
|
|
Net cash provided by operating activities |
|
|
541,539 |
|
|
|
545,598 |
|
|
|
|
|
|
|
|
|||||
|
Cash flows from investing activities: |
|
|
|
|
|
||||
|
Payments for acquisitions, net of cash acquired |
|
|
(380,417 |
) |
|
|
(63,087 |
) |
|
|
Capital expenditures for property and equipment |
|
|
(212,455 |
) |
|
|
(296,596 |
) |
|
|
Proceeds from disposal of assets |
|
|
969 |
|
|
|
1,779 |
|
|
|
Other |
|
|
(11,308 |
) |
|
|
2,203 |
|
|
|
Net cash used in investing activities |
|
|
(603,211 |
) |
|
|
(355,701 |
) |
|
|
|
|
|
|
|
|||||
|
Cash flows from financing activities: |
|
|
|
|
|
|
|||
|
Proceeds from long-term debt |
|
|
782,904 |
|
|
|
1,156,176 |
|
|
|
Principal payments on notes payable and long-term debt |
|
|
(541,737 |
) |
|
|
(843,898 |
) |
|
|
Payment of contingent consideration recorded at acquisition date |
|
|
(20,137 |
) |
|
|
(4,108 |
) |
|
|
Change in book overdraft |
|
|
(110 |
) |
|
|
(6,114 |
) |
|
|
Payments for repurchase of common shares |
|
|
– |
|
|
|
(283,959 |
) |
|
|
Payments for cash dividends |
|
|
(81,477 |
) |
|
|
(88,746 |
) |
|
|
Tax withholdings related to net share settlements of equity-based compensation |
|
|
(28,981 |
) |
|
|
(24,515 |
) |
|
|
Debt issuance costs |
|
|
– |
|
|
|
(4,008 |
) |
|
|
Proceeds from issuance of shares under employee share purchase plan |
|
|
2,593 |
|
|
|
3,031 |
|
|
|
Proceeds from sale of common shares held in trust |
|
|
324 |
|
|
|
– |
|
|
|
Net cash provided by (used in) financing activities |
|
|
113,379 |
|
|
|
(96,141 |
) |
|
|
|
|
|
|
|
|
|
|
||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(434 |
) |
|
|
(690 |
) |
|
|
|
|
|
|
|
|||||
|
Net increase in cash, cash equivalents and restricted cash |
|
|
51,273 |
|
|
|
93,066 |
|
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
198,173 |
|
|
|
229,580 |
|
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
249,446 |
|
|
$ |
322,646 |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
||
|
ADDITIONAL STATISTICS |
||||
|
|
||||
|
Solid Waste Internal Growth: The following table reflects a breakdown of the components of our solid waste internal growth for the three months ended March 31, 2026: |
||||
|
|
|
Three months ended March 31, 2026 |
||
|
Yield(a) |
|
|
4.7 |
% |
|
Surcharges |
|
|
(0.1 |
%) |
|
Unit Volume(a) |
|
|
(1.5 |
%) |
|
Recycling |
|
|
(0.5 |
%) |
|
Foreign Exchange Impact |
|
|
0.5 |
% |
|
Total |
|
|
3.1 |
% |
|
|
|
|
|
|
|
Core Price(b) |
|
|
6.0 |
% |
|
____________________________ |
|
(a) In the first quarter of 2026, WCN began providing a breakdown of organic growth in solid waste collection, transfer and disposal to include Yield and Unit Volume, which are performance metrics used by management to evaluate the effectiveness of our pricing and organic growth strategies. Yield, or change in average price per unit of service, reflects the impacts of customer churn and new business activity and the resulting mix by line of business and by geographic segment; Unit Volume reflects estimated change in units of activity. |
|
(b) Core Price is defined as the revenue growth attributable to price increases, net of rollbacks, on solid waste collection, transfer and disposal customers. This definition is consistent with Core Price references provided in prior periods. |
|
Revenue Breakdown: The following table reflects a breakdown of our revenue for the three-month periods ended March 31, 2025 and 2026: |
|||||||||||||
|
|
|
|
|
|
|||||||||
|
|
|
Three months ended March 31, 2025 |
|
||||||||||
|
|
|
Revenue |
|
Inter-company |
|
Reported |
|
% |
|||||
|
Solid Waste Collection |
|
$ |
1,621,077 |
|
$ |
(4,536 |
) |
|
$ |
1,616,541 |
|
72.5 |
% |
|
Solid Waste Disposal and Transfer |
|
|
658,023 |
|
|
(296,282 |
) |
|
|
361,741 |
|
16.2 |
% |
|
Solid Waste Recycling |
|
|
61,341 |
|
|
(2,084 |
) |
|
|
59,257 |
|
2.7 |
% |
|
E&P Waste Treatment, Recovery and Disposal |
|
|
150,899 |
|
|
(6,374 |
) |
|
|
144,525 |
|
6.5 |
% |
|
Intermodal and Other |
|
|
46,549 |
|
|
(437 |
) |
|
|
46,112 |
|
2.1 |
% |
|
Total |
|
$ |
2,537,889 |
|
$ |
(309,713 |
) |
|
$ |
2,228,176 |
|
100.0 |
% |
|
|
|
Three months ended March 31, 2026 |
|
||||||||||
|
|
|
Revenue |
|
Inter-company |
|
Reported |
|
% |
|||||
|
Solid Waste Collection |
|
$ |
1,709,628 |
|
$ |
(5,182 |
) |
|
$ |
1,704,446 |
|
71.9 |
% |
|
Solid Waste Disposal and Transfer |
|
|
714,624 |
|
|
(328,515 |
) |
|
|
386,109 |
|
16.3 |
% |
|
Solid Waste Recycling |
|
|
53,649 |
|
|
(2,061 |
) |
|
|
51,588 |
|
2.2 |
% |
|
E&P Waste Treatment, Recovery and Disposal |
|
|
187,572 |
|
|
(8,013 |
) |
|
|
179,559 |
|
7.6 |
% |
|
Intermodal and Other |
|
|
49,346 |
|
|
(417 |
) |
|
|
48,929 |
|
2.0 |
% |
|
Total |
|
$ |
2,714,819 |
|
$ |
(344,188 |
) |
|
$ |
2,370,631 |
|
100.0 |
% |
|
ADDITIONAL STATISTICS (continued) (in thousands of U.S. dollars, except where noted) |
||||||
|
|
||||||
|
Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, for the three- month periods ended March 31, 2025 and 2026: |
||||||
|
|
|
|||||
|
|
|
Three months ended |
||||
|
|
|
2025 |
|
2026 |
||
|
Acquisitions, net |
|
$ |
129,298 |
|
$ |
55,253 |
|
Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three-month periods ended March 31, 2025 and 2026: |
||||||
|
|
|
|||||
|
|
|
Three months ended |
||||
|
|
|
2025 |
|
2026 |
||
|
Cash Interest Paid |
|
$ |
84,154 |
|
$ |
108,244 |
|
Cash Taxes Paid |
|
|
22,176 |
|
|
21,873 |
|
Debt to Book Capitalization at March 31, 2026: 53% |
||
|
Internalization for the three months ended March 31, 2026: 60% |
||
|
Days Sales Outstanding for the three months ended March 31, 2026: 39 (23 net of deferred revenue) |
||
|
Share Information for the three months ended March 31, 2026: |
||
|
Basic shares outstanding |
255,347,786 |
|
|
Dilutive effect of equity-based awards |
|
525,900 |
|
Diluted shares outstanding |
|
255,873,686 |
|
NON-GAAP RECONCILIATION SCHEDULE |
||||||
|
|
||||||
|
Reconciliation of Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a performance and valuation measure in the solid waste industry. Management uses adjusted EBITDA as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections’ operations. Waste Connections defines adjusted EBITDA as net income, plus income tax provision, plus interest expense, less interest income, plus depreciation and amortization expense, plus closure and post-closure accretion expense, plus or minus any loss or gain on impairments and other operating items, plus other expense, less other income. Waste Connections further adjusts this calculation to exclude the effects of other items management believes impact the ability to assess the operating performance of its business. This measure is not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate adjusted EBITDA differently. |
||||||
|
|
|
Three months ended |
||||
|
|
|
2025 |
|
2026 |
||
|
Net income |
|
$ |
241,510 |
|
$ |
219,344 |
|
Plus: Income tax provision |
|
|
71,467 |
|
|
64,215 |
|
Plus: Interest expense |
|
|
80,875 |
|
|
87,719 |
|
Less: Interest income |
|
|
(1,770) |
|
|
(3,113) |
|
Plus: Depreciation and amortization |
|
|
289,949 |
|
|
314,749 |
|
Plus: Closure and post-closure accretion |
|
|
11,874 |
|
|
10,291 |
|
Plus: Impairments and other operating items |
|
|
6,440 |
|
|
79,584 |
|
Less: Other income, net |
|
|
(1,872) |
|
|
(4,085) |
|
Adjustments: |
|
|
|
|
|
|
|
Plus: Transaction-related expenses(a) |
|
|
11,970 |
|
|
2,360 |
|
Plus/(Less): Fair value changes to equity awards(b) |
|
|
1,770 |
|
|
(1,536) |
|
Adjusted EBITDA |
|
$ |
712,213 |
|
$ |
769,528 |
|
|
|
|
|
|
|
|
|
As % of revenues |
|
|
32.0% |
|
|
32.5% |
| ____________________________ | |
| (a) |
Reflects the addback of acquisition-related transaction costs. |
| (b) |
Reflects fair value accounting changes associated with certain equity awards. |
|
NON-GAAP RECONCILIATION SCHEDULE (continued) |
||||||||
|
|
||||||||
|
Reconciliation of Adjusted Free Cash Flow: Adjusted free cash flow, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a liquidity measure in the solid waste industry. Waste Connections calculates adjusted free cash flow as net cash provided by operating activities, plus or minus change in book overdraft, plus proceeds from disposal of assets, less capital expenditures for property and equipment. Waste Connections further adjusts this calculation to exclude the effects of items management believes impact the ability to evaluate the liquidity of its business operations. This measure is not a substitute for, and should be used in conjunction with, GAAP liquidity or financial measures. Other companies may calculate adjusted free cash flow differently. |
||||||||
|
|
|
Three months ended |
||||||
|
|
|
2025 |
|
2026 |
||||
|
Net cash provided by operating activities |
|
$ |
541,539 |
|
|
$ |
545,598 |
|
|
Less: Change in book overdraft |
|
|
(110 |
) |
|
|
(6,114 |
) |
|
Plus: Proceeds from disposal of assets |
|
|
969 |
|
|
|
1,779 |
|
|
Less: Capital expenditures for property and equipment |
|
|
(212,455 |
) |
|
|
(296,596 |
) |
|
Adjustments: |
|
|
|
|
||||
|
Transaction-related expenses(a) |
|
|
2,392 |
|
|
|
1,614 |
|
|
Pre-existing Progressive Waste share-based grants(b) |
|
|
16 |
|
|
|
– |
|
|
Executive separation costs(c) |
|
|
449 |
|
|
|
– |
|
|
Tax effect(d) |
|
|
(725 |
) |
|
|
(404 |
) |
|
Adjusted free cash flow |
|
$ |
332,075 |
|
|
$ |
245,877 |
|
|
|
|
|
||||||
|
As % of revenues |
|
|
14.9 |
% |
|
|
10.4 |
% |
| (a) |
Reflects the addback of acquisition-related transaction costs. |
| (b) |
Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period. |
| (c) |
Reflects the cash component of severance expense associated with an executive departure from 2023. |
| (d) |
The aggregate tax effect of footnotes (a) through (c) is calculated based on the applied tax rates for the respective periods. |
|
NON-GAAP RECONCILIATION SCHEDULE (continued) (in thousands of U.S. dollars, except per share amounts) |
||||||||
|
|
||||||||
|
Reconciliation of Adjusted Net Income and Adjusted Net Income per Diluted Share: Adjusted net income and adjusted net income per diluted share, both non-GAAP financial measures, are provided supplementally because they are widely used by investors as valuation measures in the solid waste industry. Management uses adjusted net income and adjusted net income per diluted share as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections’ operations. Waste Connections provides adjusted net income to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income has limitations due to the fact that it excludes items that have an impact on the Company’s financial condition and results of operations. Adjusted net income and adjusted net income per diluted share are not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate these non-GAAP financial measures differently. |
||||||||
|
|
|
|||||||
|
|
|
Three months ended |
||||||
|
|
2025 |
|
2026 |
|||||
|
Reported net income |
|
$ |
241,510 |
|
|
$ |
219,344 |
|
|
Adjustments: |
|
|
|
|
|
|
||
|
Amortization of intangibles(a) |
|
|
47,642 |
|
|
|
47,264 |
|
|
Impairments and other operating items(b) |
|
|
6,440 |
|
|
|
79,584 |
|
|
Transaction-related expenses(c) |
|
|
11,970 |
|
|
|
2,360 |
|
|
Fair value changes to equity awards(d) |
|
|
1,770 |
|
|
|
(1,536 |
) |
|
Tax effect(e) |
|
|
(16,212 |
) |
|
|
(32,136 |
) |
|
Adjusted net income |
|
$ |
293,120 |
|
|
$ |
314,880 |
|
|
Diluted earnings per common share: |
|
|
|
|
|
|
||
|
Reported net income |
|
$ |
0.93 |
|
|
$ |
0.86 |
|
|
Adjusted net income |
|
$ |
1.13 |
|
|
$ |
1.23 |
|
| (a) |
Reflects the elimination of the non-cash amortization of acquisition-related intangible assets. |
| (b) |
Reflects the addback of impairments and other operating items. |
| (c) |
Reflects the addback of acquisition-related transaction costs. |
| (d) |
Reflects fair value accounting changes associated with certain equity awards. |
| (e) |
The aggregate tax effect of the adjustments in footnotes (a) through (d) is calculated based on the applied tax rates for the respective periods. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260422005378/en/
Mary Anne Whitney / (832) 442-2253 Joe Box / (832) 442-2153
[email protected][email protected]
KEYWORDS: United States North America Canada
INDUSTRY KEYWORDS: Other Professional Services Professional Services Recycling Environment
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