Waste Connections (WCN) investor relations material

Executive summary

• Q3 revenue rose 7.3% YoY to $2.638B; adjusted EBITDA reached $895.8M at a 34.0% margin, and FY 2026 revenue and adjusted EBITDA outlook was raised for a second time.

• Improving landfill volumes, commodity-related revenue and operational execution supported 50 bps of underlying adjusted EBITDA margin expansion despite a late-quarter diesel surge.

Financial highlights

• Q3 operating income rose 23.2% to $541.7M from $439.6M; net income was $359.2M versus $286.3M.

• Q3 adjusted diluted EPS was $1.58 versus $1.44; diluted EPS was $1.43 versus $1.11.

• 9M revenue was $7.570B versus $7.094B; adjusted EBITDA was $2.505B versus $2.329B and adjusted diluted EPS was $4.32 versus $3.86.

• 9M operating cash flow was $1.971B and adjusted free cash flow was $1.090B, or 14.4% of revenue.

• Q3 pricing at existing operations added $153.4M, including $123.7M of core price increases and $29.7M of surcharges; volume losses were $54.8M.

Outlook and guidance

• FY 2026 outlook was raised to revenue of ~$10.09B, net income of ~$1.182B and adjusted EBITDA of ~$3.345B.

• FY 2026 operating cash flow is forecast at $2.64B–$2.69B and adjusted free cash flow at $1.40B–$1.45B; expected capex is ~$1.25B.

• Preliminary 2027 framework assumes unchanged economic conditions and points to mid- to high-single-digit revenue growth, normalized solid waste margin expansion and double-digit adjusted FCF/share growth.

• 2027 framework includes ~1%-2% normalized acquisition contribution; RNG facility rollover implies ~$40M of revenue contribution.

• Adjusted FCF conversion is ~42%, with a longer-term target of 48%-50%; RNG spending is substantially complete, and Chiquita spending is expected to decline further in 2027.