Waste Connections (WCN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 6.4% year-over-year to $2.562 billion, surpassing expectations, with net income of $296.4 million and adjusted EBITDA of $840.1 million, up 6.8%.

• Margin expansion was driven by operational improvements, AI investments, and record safety performance, with adjusted EBITDA margin reaching 32.8%.

• Growth was supported by price increases, acquisitions, and higher E&P waste revenues, partially offset by lower collection volumes and higher operating costs.

• Share repurchases totaled $614.5 million to $692 million year-to-date, representing about 1.5% of shares outstanding.

• Full-year 2026 outlook was raised, citing strong operational execution, improving commodity trends, and robust M&A activity.

Financial highlights

• Q2 2026 revenue was $2.562 billion (+6.4% YoY), with $46 million from net acquisitions; adjusted EBITDA was $840.1 million (+6.8% YoY), margin 32.8%.

• Six-month 2026 revenue reached $4.932 billion, with adjusted EBITDA of $1.610 billion.

• Adjusted net income per diluted share was $1.50 in Q2 2026, up from $1.29 in Q2 2025.

• Year-to-date adjusted free cash flow was $703 million, supporting double-digit per-share growth outlook.

• Capital expenditures for the first six months were approximately $600 million.

Outlook and guidance

• Full-year 2026 revenue outlook raised to $10.02–$10.05 billion; adjusted EBITDA guidance increased to $3.33–$3.34 billion, with margins expected at 33.2%–33.3%.

• Adjusted free cash flow for 2026 projected at $1.4–$1.45 billion; net cash from operating activities expected at $2.63–$2.68 billion.

• Capital expenditures for 2026 estimated at $1.25 billion.

• H2 adjusted EBITDA margin expected to average 33.7%, possibly exceeding 34% in Q3.

• Additional acquisitions and commodity improvements could provide further upside.