Waste Connections Q2 revenue beats estimates, co raises FY guidance

Overview

• North America solid waste firm's Q2 revenue rose 6.4%, beating analyst expectations

• Adjusted net income and adjusted EBITDA increased year-over-year

• Company raised full-year 2026 outlook for revenue and adjusted EBITDA

Outlook

• Waste Connections raises 2026 revenue outlook to $10.02 bln-$10.05 bln

• Company sees 2026 adjusted EBITDA of $3.33 bln-$3.34 bln

• Company expects 2026 net income of $1.169 bln-$1.173 bln and capex of about $1.25 bln

Result Drivers

• OPERATIONAL EXECUTION - Co said strong operational execution led to margin expansion despite cost pressures from higher fuel costs and lower commodity values

• PRICING INITIATIVES - Revenue growth was driven by price increases, with solid waste yield up 4.6% and surcharges contributing 1.1%

• ACQUISITIONS - Acquisitions closed during or after the prior period contributed $45.8 mln in Q2 revenue

Company press release: ID:nBw9Y6SkCa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the environmental services equipment peer group is "buy"

• Wall Street's median 12-month price target for Waste Connections, Inc is C$273.80, about 15.4% above its July 21 closing price of C$237.25

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 29 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)