Waste Connections (TSE:WCN)
TSX:WCN
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Earnings Data
Report Date
Aug 05, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.87Last Year’s EPS
1.76Same Quarter Last Year
Strong Buy
Based on 20 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive operational and financial start to 2026: revenue, adjusted EBITDA and margin performance exceeded expectations, pricing retention and AI-driven tools materially improved retention and yield visibility, special waste and landfill tons grew, and the balance sheet and M&A pipeline remain strong. However, material near-term headwinds persist — notably a sharp diesel price spike with lagged surcharge recovery (impacting Q2), ongoing remediation and cash impact at Chiquita Canyon ($100–$150M in 2026), weather-driven volume weakness, and persistent C&D softness. Management provided mitigating actions (hedges, surcharges, AI benefits, and M&A discipline) and expects many headwinds to be largely insulated over time, which supports an overall constructive outlook.Company Guidance
Revenue Growth Above Expectations
Q1 revenue of $2.371 billion, up $143 million or +6.4% year-over-year; contributions from acquisitions net of divestitures totaled $55 million; organic growth in solid waste collection, transfer and disposal of +3.1%.
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $769.5 million, up +8% year-over-year. Adjusted EBITDA margin of 32.5% exceeded expectations; management noted ~90 basis points underlying margin expansion offset by ~40 basis points commodity drag (net ~+50 bps YoY).
Strong Pricing and Yield Visibility
Core price retention of ~6% in Q1 with total price ~5.9% and yield of 4.7%. Over 75% of price increases are already in place or contractually provided, supporting visibility to the high end of full-year core price guidance (~5.5%).
Improving Landfill and Special Waste Trends
Total landfill tons up +4% YoY (MSW +5%, special waste +8% — sixth consecutive quarter of special waste improvement). Central region special waste activity rose ~+20% YoY.
Human Capital and Retention Gains
14th consecutive quarter of improvement in employee retention; voluntary turnover dropped below 10%. Management cites improved safety, engagement and lower churn as drivers of cost benefits and customer retention.
AI and Digital Initiatives Driving Early Benefits
AI-driven pricing tool yielded ~20% improvement in customer retention and pricing effectiveness. Company targeting 7 AI initiatives through 2027, investing ~$25–30 million per year, and expects cumulative margin uplift approaching ~100 basis points by 2028 as initiatives fully roll out.
Balance Sheet and Capital Allocation Strength
Opportunistic $600 million note offering in March; total debt ~$9.1 billion with ~8+ year tenor, average interest ~4%, ~80% fixed; quarter-end net debt/EBITDA ~2.75x and liquidity ~$1 billion. YTD share repurchases ~1% of shares outstanding on ~$365 million outlays.
Free Cash Flow and CapEx
Adjusted free cash flow of $246 million in Q1, in line with expectations and consistent with full year guidance of $1.4–$1.45 billion. Q1 CapEx outpaced prior year due to faster fleet/equipment deliveries and progress on R&D and RNG projects.
M&A Pipeline and Deal Activity
Management expects an outsized M&A year with a robust pipeline; a handful of deals with aggregate annualized revenue of approximately $100 million expected to close by end of Q2 or early Q3; continued disciplined, bolt-on approach.
Progress on RNG and Landfill Gas
Recycled commodity values stepped up sequentially for the first time in seven quarters; landfill gas sales increased sequentially partly due to one new RNG facility in start-up. Company expects ~12 RNG projects (5 online by end of 2025, 1 came online in Q1 2026, ~6 more expected by year-end) with EBITDA contribution more meaningful in 2027 and beyond.
TSE:WCN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSE:WCN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 22, 2026 | C$213.71 | C$231.36 | +8.26% |
Feb 11, 2026 | C$232.52 | C$214.20 | -7.88% |
Oct 21, 2025 | C$242.22 | C$248.38 | +2.54% |
Jul 23, 2025 | C$249.11 | C$255.52 | +2.57% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Waste Connections (TSE:WCN) report earnings?
Waste Connections (TSE:WCN) is schdueled to report earning on Aug 05, 2026, After Close (Confirmed).
What is Waste Connections (TSE:WCN) earnings time?
Waste Connections (TSE:WCN) earnings time is at Aug 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TSE:WCN EPS forecast?
TSE:WCN EPS forecast for the fiscal quarter 2026 (Q2) is 1.87.
