Waste Connections (WCN) Waste360/ Stifel Investor Summit summary

Industry trends and investor sentiment

• Recent stock underperformance is attributed to sector rotation toward AI and tech, not industry fundamentals.

• Investors and analysts often misunderstand margin potential, assuming all waste operations are equal.

• Market selection and asset positioning are key drivers of margin differences across companies.

• Industry consolidation has led to four public companies controlling over 90% of U.S. landfill airspace.

• Continued price-led growth and margin expansion are expected, with technology and AI as the next competitive moat.

Technology and AI initiatives

• Seven enterprise-level AI initiatives are being implemented from 2025 to 2027, with $100 million invested and expected $100 million in margin improvement by 2028-2029.

• AI-driven dynamic routing and pricing engines are being deployed, with routing expected to deliver the largest initial cost savings.

• AI pricing tools use 24-25 data feeds to personalize pricing, reducing churn by 20-25% and improving net price retention.

• Additional AI applications in treasury, payroll, and AP/AR are expected to provide incremental SG&A leverage.

• Over a five- to seven-year period, AI could yield 150-200 basis points in cost and pricing improvements.

Customer experience and retention

• Digitization and proactive communication are strengthening customer relationships and reducing churn.

• Enhanced customer retention is prioritized to avoid the higher costs of acquiring new customers.