Waste Connections Tops Second-Quarter Earnings and Revenue Estimates

Waste Connections, Inc. (TSX:WCN) reported second-quarter 2026 adjusted earnings of $1.50 per share, surpassing expectations of $1.35 and growing 16.3% from $1.29 per share a year earlier. Total quarterly revenue reached $2.56 billion, representing a 6.4% year-over-year increase and exceeding projections of $2.53 billion. Shares traded at 218.2 CAD, down 0.84% on the day.

The company achieved revenue expansion through core pricing increases of 5.6% and yield growth of 4.6%, along with a 1.1% contribution from fuel and material surcharges. Operational efficiency also played a significant role, supported by artificial intelligence tools that provided roughly $20 million in annualized earnings benefits before interest, taxes, depreciation, and amortization. Acquisitions completed in the first half of 2026 contributed nearly $100 million in annualized revenue, following $387.9 million added by buyouts in 2025. Lower risk-management costs and improved workforce retention further boosted operating margins.

Looking ahead, full-year 2026 revenues are projected to fall between $10.02 billion and $10.05 billion, representing annual growth of 5.8% to 6.1%. Management expects core pricing to remain at or above 5.5% for the full year and anticipates broader AI initiatives could ultimately yield $100 million in total earnings enhancements. Investors will be observing whether additional acquisitions materialize, as current full-year guidance excludes unclosed transactions that could offer further revenue gains.