Waste Connections (WCN) Q2 2026 earnings summary

Executive summary

• Q2 revenue was $2.562B, up 6.4% YoY; adjusted EBITDA rose 6.8% to $840.1M, with a 32.8% margin.

• Strong operations, pricing, acquisitions and higher E&P waste revenue supported growth; lower collection volumes, impairments and operating costs weighed on results.

• FY26 revenue and adjusted EBITDA guidance increased following strong first-half performance and improving commodity trends.

Financial highlights

• Q2 net income was $296.4M, up 2.1% YoY; adjusted net income was $381.7M, or $1.50 per diluted share, versus $333.1M and $1.29 a year earlier.

• Q2 operating income declined 4.8% to $437.6M; operating margin was 17.1%, down from 19.1% YoY, reflecting impairments and higher operating costs.

• Six-month revenue was $4.932B and adjusted EBITDA was $1.610B, up from $4.635B and $1.499B, respectively.

• Six-month net income was $515.7M, down 3.0% YoY; adjusted net income was $696.6M, or $2.73 per share, versus $626.2M and $2.42.

• Cash from operations for six months was $1.28B, up 8.4% YoY; adjusted free cash flow was $703.4M, or 14.3% of revenue.

Outlook and guidance

• FY26 revenue outlook increased to $10.02B-$10.05B and adjusted EBITDA to $3.33B-$3.34B, implying a 33.2%-33.3% margin.

• FY26 adjusted free cash flow remains $1.40B-$1.45B; net cash from operating activities is projected at $2.63B-$2.68B.

• FY26 capital expenditures are expected to be $1.25B; guidance includes $100M-$150M of Chiquita Canyon closure cash outflows.

• H2 adjusted EBITDA margin expected to average ~33.7%; Q3 could exceed 34%, with a seasonal step-down expected in Q4.

• FY26 core price expected at or above 5.5%; underlying solid waste margin expansion remains guided at 50-70 bps, with fuel headwinds and improved commodities partly offsetting impact.