Waste Connections (WCN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $2.371 billion, up 6.4% year-over-year and above expectations, driven by price increases, acquisitions, and higher E&P waste revenues, partially offset by lower recyclable commodity prices and volume losses in some segments.

• Adjusted EBITDA rose to $769.5 million, with margin improving to 32.5%, up 50–90 basis points year-over-year, reflecting strong operational performance and acquisition contributions.

• Net income for Q1 2026 was $219.3 million, down from $241.5 million in Q1 2025, primarily due to higher impairments and other operating items, including $80.4 million in landfill closure and post-closure cost adjustments.

• Adjusted net income per diluted share rose to $1.23 from $1.13 year-over-year.

• Share repurchases year-to-date totaled over $360 million, or about 1% of shares outstanding, with record safety performance and voluntary turnover below 10%.

Financial highlights

• Revenue was $2.371 billion in Q1 2026, up $143 million or 6.4% year-over-year.

• Adjusted EBITDA was $769.5 million, up 8% year-over-year, with a margin of 32.5%.

• Adjusted free cash flow for Q1 2026 was $245.9 million, representing 10.4% of revenues and in line with expectations.

• Operating income was $364.1 million, impacted by $80.4 million in landfill closure and post-closure cost adjustments.

• Cash flow from operations was $545.6 million, up $4.1 million year-over-year.

Outlook and guidance

• Full-year 2026 outlook remains unchanged, with high visibility for core pricing at the high end of the 5%-5.5% range and anticipated upside from commodity-related impacts, organic growth, and acquisitions.

• Management expects to offset inflationary pressures through price increases and cost controls.

• Expect to be largely insulated from higher fuel costs on an EBITDA basis due to hedges and surcharges, though Q2 will see the most margin headwind.

• Free cash flow impacts from Chiquita Canyon expected at $100-$150 million in 2026, declining in 2027 and beyond.

• Full-year 2026 capital expenditures are expected to be approximately $1.25 billion, funded by cash on hand, operations, and credit facilities.