Waste Connections reports Q2 adjusted EPS $1.29, consensus $1.25

Reports Q2 revenue $2.41B, consensus $2.39B. “Continued improvement in employee retention and record low safety rates, along with solid waste core pricing growth of 6.6%, drove underlying solid waste margin expansion of approximately 70 basis points in the period,” said CEO Ronald Mittelstaedt. “We delivered results above our outlook for the quarter in spite of headwinds from lower-than-expected contributions from higher margin, commodity-related activities and continued sluggishness in the economy, along with tariff-induced uncertainties. As anticipated, we have already completed an outsized year of acquisition activity, at approximately $200M in annualized revenue, with a robust pipeline and almost half of the year still ahead of us. The strength of our financial profile and free cash flow generation keeps us well-positioned for additional acquisitions, while maintaining the flexibility for increased return of capital to shareholders, including through opportunistic share repurchases already underway. In spite of incremental and growing headwinds, our full year 2025 outlook remains within the ranges from February, providing for approximately 6% revenue growth and 50 basis points of adjusted EBITDA margin expansion to 33.0%. We remain well-positioned for upside from contributions from additional acquisitions, improvements in commodity-related activity and solid waste volumes.”