Waste Connections (WCN) investor relations material

Executive summary

• Q2 2025 revenue rose 7.1% year-over-year to $2.41B, with net income up 5.4% to $290.3M, exceeding expectations and driven by acquisitions, price increases, and strong core operations.

• Adjusted EBITDA for Q2 was $786.4M, up 7.5% year-over-year, with a margin of 32.7%.

• Employee retention and safety metrics reached historic highs, supporting operational execution and margin expansion.

• Acquisition activity remains robust, with $200M in annualized revenue closed and a strong pipeline for further deals.

• Opportunistic share repurchases totaling $240M YTD, with continued flexibility for further buybacks and dividend increases.

Financial highlights

• Q2 revenue was $2.41B, up 7.1% year-over-year, with $113M from acquisitions net of divestitures.

• Adjusted EBITDA reached $786.4M, margin 32.7%; adjusted net income per diluted share was $1.29.

• Adjusted free cash flow YTD was $699M, with full-year guidance of $1.3B.

• Capital expenditures for H1 2025 totaled $497.8M, with full-year forecast of $1.2–$1.25B.

• Net interest expense was $80.4M; effective tax rate was 25.4%.

Outlook and guidance

• Full-year 2025 revenue guidance maintained at $9.45B, with adjusted EBITDA of $3.12B (33% margin).

• Adjusted EBITDA margin expected to average 33.6% in H2, up 60 bps year-over-year.

• Capital expenditures for 2025 forecasted between $1.2B and $1.25B, including $100–$150M for renewable natural gas facilities.

• Guidance excludes impact from future acquisitions and assumes no material changes in economic trends.

• Incremental bonus depreciation from recent tax bill to be reinvested in fleet and growth CapEx.