Waste Connections, Inc. reported second quarter 2026 results that surpassed analyst expectations on both earnings and revenue, prompting the company to raise its full-year 2026 financial outlook. Adjusted earnings per share came in at $1.50, beating the analyst consensus estimate of $1.36 by 10.29% and representing a 16.28% increase over the prior year period's $1.29 per diluted share. Revenue for the quarter reached $2.562 billion, exceeding the analyst consensus estimate of $2.537 billion by 0.97% and marking a 6.4% increase from $2.407 billion in the same period last year.

Q2 2026 Financial Performance

The following table summarizes key financial metrics for the second quarter:

Operating income for the quarter was $437.6 million, which included $58.5 million primarily attributable to impairments related to adjustments to landfill closure and post-closure costs, and $7.9 million primarily in transaction-related expenses. This compares to operating income of $459.5 million in the second quarter of 2025, which included $7.3 million primarily in impairments and other operating items and transaction-related expenses.

CEO Commentary

Ronald J. Mittelstaedt, President and Chief Executive Officer, attributed the strong performance to operational execution. "We are extremely pleased to deliver results above expectations, led primarily by strong operational execution driving a top-to-bottom beat in the second quarter. Most notably, adjusted EBITDA margin expanded to 32.8% on 70 basis points of underlying margin expansion overcoming cost pressures primarily from rapidly spiking fuel and related costs, as well as ongoing drags from comparatively lower commodity values," said Mittelstaedt. "Our outperformance, in spite of ongoing geopolitical instability and the associated uncertainty, is a reflection of our differentiated strategy and a purposeful culture, both of which will continue to set us apart."

Mittelstaedt also highlighted the company's capital allocation activity: "Along with a record amount of share repurchases, we've completed acquisitions with over $100 million in annualized revenue and remain well-positioned for another outsized year of activity. The enduring strength of our balance sheet and free cash flow generation once again demonstrates our ability to fund our growth strategy while increasing our return of capital to shareholders."

Six-Month Year-to-Date Results

For the six months ended June 30, 2026, Waste Connections reported the following results:

Net cash provided by operating activities for the six-month period was $1.278 billion, compared to $1.179 billion in the prior year period. The company also reported record year-to-date share repurchases of $614.5 million, representing approximately 1.5% of shares outstanding.

Updated 2026 Full-Year Outlook

Following the strong first-half performance, Waste Connections raised its full-year 2026 financial outlook. The updated guidance is summarized below:

The company noted that its outlook excludes any impact from additional acquisitions that may close during the year and the expensing of transaction-related items. Mittelstaedt stated: "Our achievements in the first half of 2026, with recent commodity values and ongoing fuel cost recovery, plus contributions from acquisitions closed to date, position us to increase our full year outlook to revenue of $10.02 billion to $10.05 billion and adjusted EBITDA of $3.33 billion to $3.34 billion, with upside from improving trends in commodities and contributions from incremental acquisitions."

Revenue Breakdown and Solid Waste Internal Growth

For the three months ended June 30, 2026, solid waste collection accounted for the largest share of reported revenue at 69.6% ($1.783 billion), followed by solid waste disposal and transfer at 18.1% ($464.3 million), E&P waste treatment, recovery and disposal at 7.9% ($201.0 million), intermodal and other at 2.0% ($51.3 million), and solid waste recycling at 2.4% ($61.4 million). Solid waste internal growth for the quarter totaled 3.6%, driven by yield of 4.6% and surcharges of 1.1%, partially offset by unit volume of (1.9%) and recycling of (0.2%). Core price for the quarter was 5.6%.

Waste Connections announced that its Board of Directors has declared a regular quarterly cash dividend of $0.35 per common share. The dividend will be paid on August 20, 2026 to shareholders of record at the close of business on August 6, 2026. The Board stated it intends to review the quarterly dividend each October, with a long-term objective of increasing the dividend amount.

Payment currency depends on the shareholder's method of holding shares. Shareholders whose common shares are held by a bank or broker participating in the U.S. depositary DTC will receive payment in U.S. dollars. Those holding shares through a bank or broker participating in the Canadian depositary CDS will receive payment in Canadian dollars, calculated based on the Bank of Canada's daily average exchange rate on August 6, 2026.

Shareholders holding shares in direct registration with Computershare, the Company's transfer agent, will receive payment in Canadian dollars if they are residents of Canada as reflected in the shareholders register. Non-residents of Canada, including U.S. residents, will receive their dividend payments in U.S. dollars.

Key Dividend Details