Waste Connections, Inc. Common Shares (WCN) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Feb 10, 2027 — estimated from last year’s reporting date.

Consensus is $1.40 EPS for Dec 2026 across 10 estimates, ranging $1.20 to $1.62.

WCN Sep 2026

Reported Oct 21, 2026 · after the close

: 3.95%
: +9.86%

: $1.52
: $1.58
: —
: $2.64B

Reported results

: $2.64B; from $2.46B
: 43.10%; from 42.77%
: $541.75M; from $439.59M
: 20.54%; from 17.88%
: $359.22M; from $286.27M
: $1.43; from $1.11

Highlights

Adjusted EPS beat: Adjusted diluted EPS was $1.58, 3.95% above the $1.52 consensus; GAAP diluted EPS was $1.43, up from $1.11 a year earlier and $1.17 in Q2.
Revenue and earnings growth: Revenue rose 7.3% year over year to $2.638 billion, while net income increased 25.5% to $359.2 million and adjusted EBITDA grew 7.9% to $895.8 million.
Margin execution: Adjusted EBITDA margin reached 34.0%, versus 33.8% a year ago; management cited 50 basis points of underlying margin expansion despite a late-quarter diesel-price surge.
Pricing and volumes: Solid waste internal growth was 4.5%, including 5.5% core price and 1.3% surcharges, offset by a 1.2% unit-volume decline. Unit volumes improved 70 basis points sequentially, led by landfill activity.
Outlook raised again: The company increased its 2026 revenue outlook to approximately $10.09 billion and adjusted EBITDA outlook to $3.345 billion; adjusted free cash flow is forecast at $1.40–$1.45 billion.
Cash generation and investment: Nine-month operating cash flow rose 6.1% to $1.971 billion, while adjusted free cash flow was $1.090 billion versus $1.084 billion a year earlier. Full-year capital expenditure is projected at $1.25 billion.
Shareholder returns: Repurchases totaled $944.4 million through September, with a further $102.9 million spent afterward; the quarterly dividend was raised 10% to $0.385 per share.
Chiquita Canyon exposure: The filing reports approximately 14,000 plaintiffs in related civil lawsuits and a separate County of Los Angeles claim seeking more than $825 million; the company says it cannot estimate possible losses.

Analysis

Waste Connections delivered a stronger-than-expected Q3, with adjusted diluted EPS of $1.58 beating the $1.52 consensus by 3.95%. Revenue of $2.638 billion increased 7.3% year over year and 3.0% sequentially; GAAP operating income rose 23.2% year over year to $541.7 million, and net income grew 25.5% to $359.2 million. Sequentially, operating income increased from $437.6 million and net income from $296.4 million in Q2. GAAP EPS was $1.43, compared with $1.11 a year ago and $1.17 in Q2; adjusted EPS was $1.58 versus $1.44 a year ago.

The defining feature was operating leverage alongside improving landfill volumes: adjusted EBITDA reached $895.8 million at a 34.0% margin, with management citing 50 basis points of underlying expansion despite higher diesel costs. Solid waste internal growth combined 5.5% core price with a still-negative 1.2% unit-volume contribution, which improved 70 basis points sequentially. Strength in E&P waste and commodity-related revenues added support. The company raised its 2026 revenue and adjusted EBITDA outlook for a second time, to approximately $10.09 billion and $3.345 billion, respectively, and reaffirmed adjusted free cash flow expectations of $1.40–$1.45 billion. The print also featured substantial repurchases and a dividend increase, against continuing, unquantifiable Chiquita Canyon litigation exposure.

Operating performance

Top line: Q3 revenue was $2.638 billion, up $179.7 million, or 7.3%, from a year earlier and 3.0% from Q2’s $2.56 billion. Nine-month revenue increased 6.7% to $7.570 billion.
Profitability: Adjusted EBITDA grew 7.9% to $895.8 million, with margin at 34.0% versus 33.8% in Q3 2025. GAAP operating income rose 23.2% to $541.7 million and operating margin expanded to 20.5% from 17.9%; the year-ago quarter included $60.1 million of impairments and other operating items, compared with $1.9 million this quarter.
Per-share results: GAAP net income was $359.2 million, or $1.43 per diluted share, versus $286.3 million and $1.11 a year ago. Adjusted net income reached $398.9 million, or $1.58 per diluted share, compared with $372.1 million and $1.44 a year earlier.
Cost pressures: Diesel expense increased $21.6 million year over year, while labor and incentive costs rose $15.3 million and trucking costs $10.5 million. Price-led growth and lower risk-management expense helped offset those pressures.

Pricing and volumes

Solid waste internal growth: The 4.5% Q3 rate comprised 4.3% yield, 1.3% surcharges, negative 1.2% unit volume, 0.3% recycling and negative 0.2% foreign exchange. Core price was 5.5%.
Volume trend: Solid waste unit volumes remained down year over year, but improved 70 basis points sequentially, with the change led by higher landfill volumes. Collection volume weakness continued in some commercial, residential and roll-off markets.
E&P and commodities: E&P waste revenue increased to $212.9 million from $179.1 million, supported by increased disposal capacity and activity. Recycling revenue rose to $64.7 million from $56.2 million, with higher old corrugated cardboard prices contributing to the quarterly improvement.
Acquisitions: Acquisitions contributed $53.4 million of Q3 revenue, net of divestitures. The company said it had closed acquisitions representing approximately $130 million in annualized revenue year to date.

2026 outlook

Raised targets: The company raised its full-year 2026 revenue outlook to approximately $10.09 billion and adjusted EBITDA to approximately $3.345 billion, its second increase to both measures this year.
Cash and capital: The outlook calls for net income of approximately $1.182 billion, capital expenditures of approximately $1.25 billion, operating cash flow of $2.637–$2.687 billion and adjusted free cash flow of $1.40–$1.45 billion.
Management’s view: The company said Q3 performance puts it on track to exceed the outlook it increased in July. Additional acquisitions or further improvement in E&P activity and other commodity-related revenue could add to results; the outlook excludes acquisitions that may close during the year.

Cash and shareholder returns

Cash generation: Nine-month operating cash flow rose to $1.971 billion from $1.857 billion. Adjusted free cash flow was $1.090 billion, slightly above $1.084 billion a year earlier, as capital expenditure for property and equipment increased to $893.7 million from $794.9 million.
Repurchases: The company spent $944.4 million repurchasing 5.73 million shares through September. It subsequently repurchased another 640,033 shares for $102.9 million, bringing year-to-date outlays above $1 billion.
Dividend: On October 21 the board raised the regular quarterly dividend from $0.350 to $0.385 per share, a 10% increase and the company’s sixteenth consecutive annual increase.
Funding position: Long-term debt and notes payable stood at $9.427 billion at September 30. The company issued CAD $300 million of 4.20% notes due 2033 and CAD $400 million of 4.55% notes due 2036 in August.

Chiquita Canyon litigation

Civil claims: The filing reported approximately 14,000 plaintiffs in lawsuits tied to the elevated-temperature landfill event as of October 13, 2026. Claims include alleged odors, exposure and other harms; the company is defending the cases and says it cannot estimate a possible loss or range.
County lawsuit: A June 2026 complaint against Los Angeles County and a regional water board seeks compensation exceeding $825 million, alleging that the County’s failure to implement a landfill permit settlement contributed to the site’s closure. Discovery is open, and the company cannot determine the likely outcome.
Regulatory matters: The filing describes ongoing air- and water-quality notices and other alleged violations related to the event. The company says potential penalties could be substantial but that their likelihood and amount cannot presently be estimated.

Waste Connections, Inc. Common Shares

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