Core Viewpoint - Waste Connections reported strong second-quarter 2025 results, with earnings and revenues exceeding expectations, but the stock has underperformed the S&P 500 recently [1][2]. Financial Performance - Adjusted earnings per share were $1.29, surpassing the Zacks Consensus Estimate by 3.2% and increasing 4% year over year [2]. - Revenues reached $2.4 billion, slightly beating consensus estimates and growing 7.1% from the previous year [2]. Segment Performance - The Solid Waste Collection segment generated revenues of $1.6 billion, missing the estimate of $1.7 billion [3]. - The Solid Waste Disposal and Transfer segment saw revenues surge 71.1% year over year to $756 million, also missing projections [3]. - The E&P Waste Treatment, Recovery and Disposal segment's revenues increased 4.9% to $123.6 million, falling short of the estimate [4]. - The Solid Waste Recycling segment's revenues grew 3.5% to $63.3 million, missing the forecast [4]. - The Intermodal and Other segment's revenues gained marginally to $49.1 million, missing estimates as well [4]. Operating Results - Adjusted EBITDA was $731.8 million, down 6.9% from the previous year, with an adjusted EBITDA margin of 32.6% [5]. - Operating income totaled $424.7 million, compared to $459.5 million in the prior year [5]. Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q2 2025 were $62.4 million, down from $111.2 million in the previous quarter [6]. - Long-term debt decreased to $8.1 billion from $8.4 billion [6]. - Cash generated from operating activities was $611.4 million, with adjusted free cash flow at $402.6 million [7]. Future Outlook - For FY25, Waste Connections expects revenues of $9.45 billion, lower than the Zacks Consensus Estimate of $9.51 billion [8]. - Adjusted EBITDA is anticipated to be $3.12 billion, representing nearly 33% of total revenues [8]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates revisions for Waste Connections [9]. - The company currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [12]. Industry Comparison - Waste Connections operates within the Zacks Waste Removal Services industry, where competitor Pentair plc has shown a 1.6% gain over the past month [13]. - Pentair reported revenues of $1.12 billion, reflecting a year-over-year increase of 2.2% [13].

Core Insights - Waste Connections, Inc. (WCN) reported strong second-quarter 2025 results, with earnings and revenues exceeding Zacks Consensus Estimates [1][2] - Despite the earnings beat, the stock price has not experienced significant movement since the results were released on July 23 [1] Financial Performance - Adjusted earnings per share were $1.29, surpassing the Zacks Consensus Estimate by 3.2% and reflecting a 4% year-over-year increase [2][9] - Revenues reached $2.4 billion, slightly beating consensus estimates and growing 7.1% from the previous year [2][9] - Year-to-date, WCN shares have increased by 8.4%, compared to the industry's 10.7% and the Zacks S&P 500 Composite's 8.2% growth [2] Segment Performance - The Solid Waste Collection segment generated revenues of $1.6 billion, which was below the estimated $1.7 billion [3] - The Solid Waste Disposal and Transfer segment saw a significant revenue increase of 71.1% year-over-year to $756 million, also missing projections [3] - The E&P Waste Treatment, Recovery and Disposal segment's revenues rose 4.9% to $123.6 million, falling short of the estimate [4] - The Solid Waste Recycling segment's revenues grew 3.5% to $63.3 million, missing the forecast [4] - The Intermodal and Other segment's revenues increased slightly to $49.1 million, also below expectations [4] Operating Results - Adjusted EBITDA for the quarter was $731.8 million, a decrease of 6.9% from the previous year, with an adjusted EBITDA margin of 32.6% [5] - Operating income was reported at $424.7 million, down from $459.5 million year-over-year [5] Balance Sheet & Cash Flow - At the end of Q2 2025, cash and cash equivalents stood at $62.4 million, down from $111.2 million in the previous quarter [6] - Long-term debt decreased to $8.1 billion from $8.4 billion [6] - Cash generated from operating activities was $611.4 million, with adjusted free cash flow at $402.6 million [7] - Capital expenditures totaled $217.2 million, and dividends paid amounted to $73.7 million [7] FY25 Outlook - For the full year 2025, Waste Connections expects revenues of $9.45 billion, which is below the Zacks Consensus Estimate of $9.51 billion [8][9] - Adjusted EBITDA is anticipated to be $3.12 billion, representing nearly 33% of total revenues [8]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $2,407 million, reflecting a year-over-year increase of 7.1% or $159 million, exceeding the high end of the company's outlook [21] - Adjusted EBITDA for Q2 was $786.4 million, up 7.5% year-over-year, with an adjusted EBITDA margin of 32.7%, consistent with guidance and up 10 basis points year-over-year [26][27] - The company maintains a full-year 2025 revenue outlook of approximately $9,450 million, with adjusted EBITDA estimated at approximately $3,120 million, reflecting a 50 basis point increase in adjusted EBITDA margin [30][31] Business Line Data and Key Metrics Changes - Core solid waste pricing increased by 6.6%, exceeding inflation, contributing to a 70 basis point underlying adjusted EBITDA margin expansion in solid waste [12][21] - Reported volume declines of 2.6% were attributed to a purposeful price-volume trade-off and shedding of underperforming contracts [12][22] - Landfill revenue increased by about 4%, with tons up 1.5%, while construction and demolition (C&D) tons were down 9%, indicating limited construction activity [23] Market Data and Key Metrics Changes - U.S. EPA waste activity, correlated to crude prices, was down about 10% year-over-year, particularly in June, while Canadian operations showed growth in both price and volume [25] - The company experienced a decline in recycled commodity values by 10-15% during Q2, alongside a 15% drop in Renewable Energy Credits (RINs) [24] Company Strategy and Development Direction - The company is focused on maintaining a robust acquisition pipeline, having completed approximately $200 million in annualized revenue from acquisitions, with expectations for an additional $100 to $200 million in acquisitions by early 2026 [5][17] - Emphasis on leveraging technology for operational efficiency and margin expansion, including AI-driven applications for customer retention and pricing [15][16] - The company is committed to returning capital to shareholders through opportunistic share repurchases, having bought back 1.3 million shares to date [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic headwinds, maintaining a full-year 2025 outlook despite uncertainties in the macro environment [34] - The company highlighted improvements in employee retention and safety, which are expected to contribute positively to operational execution and margin expansion [11][13] - Management remains cautious about predicting volume recovery, citing ongoing economic challenges and the impact of M&A activity [64] Other Important Information - The company announced the retirement of COO Daryl Chambliss, effective August 8, 2025, acknowledging his significant contributions over nearly three decades [35][36] - Progress on remediation efforts at Chiquita Canyon Landfill is ongoing, with the U.S. EPA taking a more active role in regulatory oversight [19][89] Q&A Session Summary Question: Can you clarify capital allocation strategy regarding M&A and buybacks? - Management confirmed that the recent buyback activity is opportunistic and does not indicate a change in M&A strategy, emphasizing the capacity to pursue both [44][45] Question: What is the expected M&A impact in 2025? - The original guidance included $300 million from acquisitions, with $75 million already closed and an additional $125 million expected in the first half of the year [47] Question: How do you see E&P revenue trends given the rig count? - E&P revenue was approximately $180 million for the quarter, reflecting growth from acquisitions, with expectations to maintain a run rate between $160 million and $170 million [48][49] Question: What are the dynamics of volume shedding? - Management indicated that Q3 is expected to be the most negative quarter due to ongoing shedding impacts, with a return to more normal volumes anticipated in Q4 [56][57] Question: How does the EPA's involvement benefit remediation efforts? - The EPA's involvement is expected to streamline regulatory processes and improve coordination among various agencies, facilitating faster progress in remediation efforts [88][89]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $2,407 million, reflecting a year-over-year increase of 7.1% or $159 million, exceeding the high end of the company's outlook [20] - Adjusted EBITDA for Q2 was $786.4 million, up 7.5% year-over-year, with an adjusted EBITDA margin of 32.7%, which is consistent with the outlook and up 10 basis points year-over-year [24] - The company maintains its full-year 2025 outlook, estimating revenue at approximately $9,450 million and adjusted EBITDA at approximately $3,120 million, reflecting a 50 basis points increase in adjusted EBITDA margin to 33% [29][30] Business Line Data and Key Metrics Changes - Core solid waste pricing increased by 6.6%, exceeding inflation, contributing to a 70 basis points underlying adjusted EBITDA margin expansion in solid waste [11] - Reported volume declines of 2.6% were attributed to a purposeful price-volume trade-off and shedding of underperforming contracts [11] - Landfill revenue increased by about 4%, with tons up 1.5%, while construction and demolition (C&D) tons were down 9%, indicating limited construction activity [22] Market Data and Key Metrics Changes - In the U.S., waste activity correlated with crude prices was down about 10% year-over-year, particularly in June, while Canadian operations saw revenue growth in both price and volume [23] - The company experienced a decline in recycled commodity values by 10-15% during Q2, alongside a 15% drop in Renewable Energy Credits (RINs) [22] Company Strategy and Development Direction - The company is focused on maintaining a robust acquisition pipeline, having completed acquisitions contributing approximately $200 million in annualized revenue, with expectations for additional acquisitions later in the year [4][15] - There is an emphasis on leveraging technology for operational improvements and margin expansion, including AI-driven applications for customer retention and data analytics [14] - The company is also pursuing sustainability projects and reinvesting in existing operations while maintaining flexibility for capital returns to shareholders through share repurchases [4][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic headwinds, maintaining a full-year outlook despite challenges from lower commodity prices and economic sluggishness [4][32] - The company highlighted improvements in employee retention and safety, which are expected to contribute positively to operational performance and margin expansion [12][32] - Management remains cautious about predicting volume recovery, noting that economic conditions and M&A activity will influence future performance [60] Other Important Information - The company announced a new listing as a founding member of NYSE Texas, reflecting its growth and operational presence in Texas [16] - Management acknowledged the retirement of COO Daryl Chambliss, recognizing his significant contributions to the company over nearly three decades [34] Q&A Session Summary Question: Can you clarify the capital allocation strategy regarding M&A and buybacks? - Management confirmed that the recent buyback activity is opportunistic and does not indicate a change in M&A strategy, emphasizing the capacity to pursue both [40][42] Question: What is the expected M&A impact in 2025? - The original guidance included $300 million from acquisitions, with $75 million already closed and an additional $125 million expected in the first half of the year [44] Question: How do you see the E&P revenue trend given the rig count? - Management indicated that E&P revenue is expected to stabilize around $180 million per quarter, reflecting contributions from recent acquisitions despite a cautious rig count [46] Question: What are the expectations for volume shedding in the upcoming quarters? - Management anticipates Q3 to be the most negative quarter due to ongoing shedding impacts, with a return to more normalized volumes expected in Q4 [54] Question: How will the EPA's involvement at Chiquita benefit remediation efforts? - Management expressed optimism that the EPA's active role will streamline regulatory processes and improve remediation efforts at Chiquita Canyon Landfill [86]

Commission file number 1-34370 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to WASTE CONNECTIONS, INC. (Exact name of registrant as specified in its charter) Ontario, Canada (State or ot ...

Core Insights - Waste Connections reported Q2 2025 GAAP revenue of $2.41 billion, exceeding analyst expectations of $2.39 billion, and Non-GAAP EPS of $1.29, surpassing the forecast of $1.25, driven by solid waste pricing and acquisitions [1][2] Financial Performance - Non-GAAP EPS increased by 4.0% year-over-year from $1.24 to $1.29 [2] - Revenue rose by 7.1% from $2.25 billion in Q2 2024 to $2.41 billion in Q2 2025 [2] - Adjusted EBITDA reached $786 million, a 7.4% increase from $732 million in the previous year [2] - Adjusted EBITDA margin was stable at 32.7%, slightly up from 32.6% year-over-year [2] - Adjusted free cash flow decreased by 9.0% to $367 million compared to the prior year [2] Business Model and Strategy - Waste Connections focuses on waste collection, landfill, recycling, and special waste services, serving over nine million customers across 46 U.S. states and six Canadian provinces [3] - The company aims to grow through acquisitions and vertical integration, controlling the waste stream end-to-end [4] - Emphasis on secondary and rural markets helps reduce customer churn and improve financial returns [4] Operational Highlights - Core solid waste pricing increased by 6.6%, offsetting input cost inflation of 4% to 4.5%, leading to a margin expansion of approximately 70 basis points [5] - Total revenue growth was supported by $112.9 million from acquisitions, despite a 2.6% decline in volume due to shedding underperforming contracts [6] - Solid waste collection accounted for 70% of total revenue, with recycling revenues growing by 9.2% year-over-year [7] Employee and Safety Performance - The company achieved record employee retention and safety performance, with incident counts dropping by 40% [8] - Operational improvements are attributed to a focus on culture and better field execution, increasing internalization rates to 60% [9] Future Outlook - Waste Connections maintains its FY2025 guidance, targeting revenue of $9.45 billion and adjusted EBITDA of $3.12 billion [12] - Management expresses confidence in potential upside from acquisitions and stabilization in commodity-related income [12] - Areas for investor monitoring include pressures on volumes in cyclical sectors and margin sensitivity to commodity swings [13]

Core Insights - Waste Connections reported $2.41 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 7.1% and an EPS of $1.29, up from $1.24 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Revenue Breakdown - E&P Waste Treatment, Recovery and Disposal generated $169.84 million, surpassing the six-analyst average estimate of $140.55 million, with a year-over-year change of +37.4% [4] - Intermodal and Other revenue was $43.34 million, below the $51.51 million average estimate from four analysts, reflecting a year-over-year decline of -11.7% [4] - Solid Waste Disposal and Transfer revenue reached $441.62 million, slightly above the $433.42 million average estimate from two analysts, but showing a significant year-over-year decrease of -41.6% [4] - Solid Waste Collection revenue was $1.69 billion, matching the two-analyst average estimate, with a year-over-year increase of +6.5% [4] - Solid Waste Recycling revenue amounted to $66.81 million, exceeding the $65.33 million estimate by two analysts, representing a +5.5% change compared to the previous year [4] Stock Performance - Shares of Waste Connections have returned -1.8% over the past month, contrasting with the Zacks S&P 500 composite's +5.9% change, and the stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Core Insights - Waste Connections (WCN) reported quarterly earnings of $1.29 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, and showing an increase from $1.24 per share a year ago, resulting in an earnings surprise of +3.20% [1] - The company generated revenues of $2.41 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.74% and increasing from $2.25 billion year-over-year [2] - Waste Connections has outperformed the S&P 500, with shares rising about 7.7% since the beginning of the year compared to the S&P 500's gain of 7.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.44 on revenues of $2.49 billion, and for the current fiscal year, it is $5.18 on revenues of $9.52 billion [7] - The estimate revisions trend for Waste Connections was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Waste Removal Services industry, to which Waste Connections belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

[Company Announcement & CEO Commentary](index=1&type=section&id=1.%20Company%20Announcement%20%26%20CEO%20Commentary) [Second Quarter 2025 Results and Full Year Outlook Update](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Results%20and%20Full%20Year%20Outlook%20Update) Waste Connections reported Q2 2025 results and updated its full-year outlook, exceeding expectations driven by improved employee retention, record-low safety incidents, and 6.6% core solid waste pricing growth - Improved employee retention and record-low safety incidents, along with **6.6% core solid waste pricing growth**, drove a solid waste margin expansion of approximately **70 basis points** this period[3](index=3&type=chunk) - The company achieved better-than-expected results despite lower-than-anticipated contributions from commodity-related activities and headwinds from sustained economic sluggishness and tariff uncertainty[3](index=3&type=chunk) - Completed outsized acquisition activity of approximately **$200 million in annualized revenue** and maintains a strong acquisition pipeline[3](index=3&type=chunk) - The full-year 2025 outlook remains within the February range, projecting approximately **6% revenue growth** and a **50 basis point expansion in adjusted EBITDA margin to 33.0%**[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) CEO Ronald J. Mittelstaedt highlighted achievements in operational efficiency and strategic growth, noting strong financial health and free cash flow generation despite macroeconomic headwinds - The company continues to improve in employee retention and safety performance, with **6.6% core solid waste pricing growth** driving an approximate **70 basis point expansion** in underlying solid waste margins[3](index=3&type=chunk) - Completed outsized acquisition activity of approximately **$200 million in annualized revenue** with a strong ongoing pipeline, supported by a solid financial position and free cash flow generation, providing flexibility for additional acquisitions and increased shareholder capital returns, including share repurchases[3](index=3&type=chunk) - Despite increasing headwinds, the full-year 2025 outlook remains within the February range, with expected revenue growth of about **6%** and an adjusted EBITDA margin expansion of **50 basis points to 33.0%**[3](index=3&type=chunk) [Financial Performance Overview](index=1&type=section&id=2.%20Financial%20Performance%20Overview) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=2.1%20Second%20Quarter%202025%20Financial%20Highlights) Waste Connections delivered a stronger-than-expected financial performance in Q2 2025, with revenue up 7.1% year-over-year to $2.407 billion, adjusted EBITDA up 7.5% to $786.4 million, and adjusted diluted EPS of $1.29 [GAAP Results Summary](index=1&type=section&id=2.1.1%20GAAP%20Results%20Summary) | Metric | Q2 2025 (in millions USD) | Q2 2024 (in millions USD) | Y/Y Change | | :--- | :--- | :--- | :--- | | Revenue | $2,407.055 | $2,248.166 | +7.1% | | Operating Income | $459.5 | $424.7 | +8.2% | | Net Income | $290.3 | $275.5 | +5.4% | | Diluted EPS | $1.12 | $1.07 | +4.7% | [Non-GAAP Adjusted Results Summary](index=1&type=section&id=2.1.2%20Non-GAAP%20Adjusted%20Results%20Summary) | Metric | Q2 2025 (in millions USD) | Q2 2024 (in millions USD) | Y/Y Change | | :--- | :--- | :--- | :--- | | Adjusted Net Income | $333.1 | $320.0 | +4.1% | | Adjusted Diluted EPS | $1.29 | $1.24 | +4.0% | | Adjusted EBITDA | $786.4 | $731.8 | +7.5% | | Adjusted EBITDA Margin | 32.7% | 32.6% | +0.1 pp | [Six Months Year to Date Financial Highlights](index=3&type=section&id=2.2%20Six%20Months%20Year%20to%20Date%20Financial%20Highlights) For the six months ended June 30, 2025, Waste Connections' revenue reached $4.635 billion, a 7.3% year-over-year increase, with corresponding growth in operating and net income, and an adjusted diluted EPS of $2.42 [GAAP Results Summary](index=3&type=section&id=2.2.1%20GAAP%20Results%20Summary) | Metric | Six Months 2025 (in millions USD) | Six Months 2024 (in millions USD) | Y/Y Change | | :--- | :--- | :--- | :--- | | Revenue | $4,635.231 | $4,320.819 | +7.3% | | Operating Income | $849.8 | $791.5 | +7.4% | | Net Income | $531.8 | $505.5 | +5.2% | | Diluted EPS | $2.05 | $1.96 | +4.6% | [Non-GAAP Adjusted Results Summary](index=3&type=section&id=2.2.2%20Non-GAAP%20Adjusted%20Results%20Summary) | Metric | Six Months 2025 (in millions USD) | Six Months 2024 (in millions USD) | Y/Y Change | | :--- | :--- | :--- | :--- | | Adjusted Net Income | $626.2 | $588.7 | +6.4% | | Adjusted Diluted EPS | $2.42 | $2.28 | +6.1% | | Adjusted EBITDA | $1,499.0 | $1,382.0 | +8.5% | [Detailed Financial Statements](index=6&type=section&id=3.%20Detailed%20Financial%20Statements) [Condensed Consolidated Statements of Net Income](index=6&type=section&id=3.1%20Condensed%20Consolidated%20Statements%20of%20Net%20Income) This section provides detailed net income statements for the three and six months ended June 30, 2024 and 2025, showing revenue, operating expenses, interest expense, income tax expense, and net income | Metric | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Six Months 2025 (in thousands USD) | Six Months 2024 (in thousands USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,407,055 | 2,248,166 | 4,635,231 | 4,320,819 | | Operating Income | 459,545 | 424,705 | 849,755 | 791,505 | | Income before income taxes | 389,158 | 355,984 | 702,135 | 644,524 | | Net income attributable to Waste Connections | 290,276 | 275,477 | 531,787 | 505,531 | | Diluted EPS | 1.12 | 1.07 | 2.05 | 1.96 | | Cash dividends per common share | 0.315 | 0.285 | 0.630 | 0.570 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=3.2%20Condensed%20Consolidated%20Balance%20Sheets) This section presents condensed consolidated balance sheets as of December 31, 2024, and June 30, 2025, showing the detailed composition of the company's assets, liabilities, and equity | Metric | June 30, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | | :--- | :--- | :--- | | Total current assets | 1,349,739 | 1,226,912 | | Property and equipment, net | 8,380,628 | 8,035,929 | | Goodwill | 8,220,824 | 7,950,406 | | Total assets | 20,678,610 | 19,817,809 | | Total current liabilities | 2,001,199 | 1,878,834 | | Long-term debt and notes payable | 8,337,178 | 8,072,928 | | Total liabilities | 12,324,953 | 11,957,455 | | Total equity attributable to Waste Connections | 8,353,657 | 7,860,354 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=3.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the condensed consolidated statements of cash flows for the six months ended June 30, 2024 and 2025, specifying cash flows from operating, investing, and financing activities | Metric | Six Months 2025 (in thousands USD) | Six Months 2024 (in thousands USD) | | :--- | :--- | :--- | | Net cash provided by operating activities | 1,179,741 | 1,101,687 | | Net cash used in investing activities | (1,019,972) | (1,794,104) | | Net cash provided by (used in) financing activities | (92,478) | 701,881 | | Net increase in cash, cash equivalents, and restricted cash | 69,298 | 8,368 | | Cash, cash equivalents, and restricted cash at end of period | 267,471 | 192,406 | [Operational and Additional Statistics](index=9&type=section&id=4.%20Operational%20and%20Additional%20Statistics) [Solid Waste Internal Growth](index=9&type=section&id=4.1%20Solid%20Waste%20Internal%20Growth) Solid waste internal growth was 2.4% in Q2 2025, driven primarily by 6.6% core price growth, partially offset by volume declines and other factors | Component | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Core price | 6.6% | 6.7% | | Surcharges | (0.2%) | (0.2%) | | Volume | (2.6%) | (2.7%) | | Recycling | (0.3%) | (0.2%) | | Foreign exchange impact | (0.2%) | (0.5%) | | Closed operations | (0.9%) | (0.9%) | | Total | 2.4% | 2.2% | [Revenue Breakdown by Segment](index=9&type=section&id=4.2%20Revenue%20Breakdown%20by%20Segment) Solid waste collection remained the largest revenue source in Q2 2025, accounting for 70.0% of total reported revenue, while E&P waste treatment, recycling, and disposal showed significant growth | Segment | Q2 2025 Reported Revenue (in thousands USD) | Q2 2025 % of Total | Q2 2024 Reported Revenue (in thousands USD) | Q2 2024 % of Total | | :--- | :--- | :--- | :--- | :--- | | Solid Waste Collection | 1,685,454 | 70.0% | 1,578,499 | 70.2% | | Solid Waste Disposal and Transfer | 441,619 | 18.3% | 442,035 | 19.7% | | Solid Waste Recycling | 66,805 | 2.8% | 61,165 | 2.7% | | E&P Waste Treatment, Recovery and Disposal | 169,835 | 7.1% | 117,787 | 5.2% | | Intermodal and Other | 43,342 | 1.8% | 48,680 | 2.2% | | Total | 2,407,055 | 100.0% | 2,248,166 | 100.0% | [Contribution from Acquisitions](index=9&type=section&id=4.3%20Contribution%20from%20Acquisitions) Acquisition revenue, net of divestitures, contributed $112.87 million in Q2 2025 and $242.17 million for the six months ended June 30, 2025 | Period | Acquisition Revenue, Net of Divestitures (in thousands USD) | | :--- | :--- | | Three months ended June 30, 2025 | $112,870 | | Three months ended June 30, 2024 | $120,705 | | Six months ended June 30, 2025 | $242,168 | | Six months ended June 30, 2024 | $198,693 | [Other Financial Statistics](index=11&type=section&id=4.4%20Other%20Financial%20Statistics) As of June 30, 2025, the company's debt-to-book capitalization ratio was 50%, internalization was 60%, and Days Sales Outstanding was 39 days (23 days net of deferred revenue) | Metric | Q2 2025 Value | | :--- | :--- | | Debt to Book Capitalization Ratio | 50% | | Internalization Rate | 60% | | Days Sales Outstanding (DSO) | 39 (23 net of deferred revenue) | | Diluted Shares Outstanding | 258,982,647 | | Metric | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Six Months 2025 (in thousands USD) | Six Months 2024 (in thousands USD) | | :--- | :--- | :--- | :--- | :--- | | Cash Interest Paid | $71,092 | $71,642 | $155,246 | $138,026 | | Cash Taxes Paid | $68,965 | $54,974 | $91,140 | $83,381 | [Updated 2025 Outlook](index=3&type=section&id=5.%20Updated%202025%20Outlook) [Full Year 2025 Outlook Summary](index=3&type=section&id=5.1%20Full%20Year%202025%20Outlook%20Summary) Waste Connections maintains its full-year 2025 outlook, projecting revenue of approximately $9.45 billion, adjusted EBITDA of $3.12 billion (33.0% of revenue), and adjusted free cash flow of $1.30 billion - The outlook assumes no change in the current economic environment or underlying economic trends and excludes any impact from additional acquisitions[10](index=10&type=chunk) | Metric | Full Year 2025 Outlook (in millions USD) | | :--- | :--- | | Revenue | ~$9,450 | | Net Income | ~$1,140 | | Adjusted EBITDA | ~$3,120 (approx. 33.0% of revenue) | | Capital Expenditures | $1,200 - $1,250 | | Net Cash Provided by Operating Activities | $2,483 - $2,533 | | Adjusted Free Cash Flow | ~$1,300 | [Non-GAAP Reconciliation of Adjusted EBITDA Outlook](index=16&type=section&id=5.2%20Non-GAAP%20Reconciliation%20of%20Adjusted%20EBITDA%20Outlook) This section provides a reconciliation for the full-year 2025 adjusted EBITDA outlook, starting from net income attributable to Waste Connections and detailing adjustments to arrive at a projected $3.12 billion | Metric | 2025 Outlook Update (in thousands USD) | | :--- | :--- | | Net income attributable to Waste Connections | 1,140,000 | | Plus: Provision for income taxes | 367,472 (approx. 24.4% effective tax rate) | | Plus: Net interest expense | 322,000 | | Plus: Depreciation and depletion | 1,031,000 (approx. 10.9% of revenue) | | Plus: Amortization | 196,000 | | Plus: Closure and post-closure accretion | 48,000 | | Plus: Impairments and other operating items | 10,471 | | Less: Other income, net | (11,922) | | Plus: Transaction-related expenses | 15,943 | | Plus: Fair value changes in equity awards | 1,036 | | **Adjusted EBITDA** | **3,120,000 (approx. 33.0% of revenue)** | [Non-GAAP Reconciliation of Adjusted Free Cash Flow Outlook](index=16&type=section&id=5.3%20Non-GAAP%20Reconciliation%20of%20Adjusted%20Free%20Cash%20Flow%20Outlook) This section provides a reconciliation for the 2025 adjusted free cash flow outlook, projected at $1.30 billion, calculated from net cash provided by operating activities and various adjustments | Metric | 2025 Outlook Update (in thousands USD) | | :--- | :--- | | Net cash provided by operating activities | $2,482,888 - $2,532,888 | | Plus: Change in book overdraft | 397 | | Plus: Proceeds from disposal of assets | 5,417 | | Less: Capital expenditures for property and equipment | (1,200,000) - (1,250,000) | | Plus: Transaction-related expenses | 11,161 | | Plus: Executive severance | 2,119 | | Plus: Contingent consideration payments expensed | 400 | | Plus: Legacy Progressive Waste equity awards | 16 | | Less: Tax impact | (2,398) | | **Adjusted Free Cash Flow** | **$1,300,000** | [Non-GAAP Reconciliations (Historical)](index=12&type=section&id=6.%20Non-GAAP%20Reconciliations%20(Historical)) [Reconciliation of Adjusted EBITDA](index=12&type=section&id=6.1%20Reconciliation%20of%20Adjusted%20EBITDA) This section details the reconciliation of net income attributable to Waste Connections to adjusted EBITDA, a non-GAAP financial metric widely used to evaluate performance and valuation in the solid waste industry - Adjusted EBITDA is defined as net income attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, plus provision for income taxes, plus interest expense, less interest income, plus depreciation and amortization expense, plus closure and post-closure accretion, plus or minus any loss or gain on impairments and other operating items, plus other expense, less other income, and is further adjusted for other items that management believes are not indicative of its ongoing operating performance[23](index=23&type=chunk) | Metric | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Six Months 2025 (in thousands USD) | Six Months 2024 (in thousands USD) | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to Waste Connections | 290,276 | 275,477 | 531,787 | 505,531 | | Plus: Provision for income taxes | 98,882 | 80,584 | 170,348 | 139,996 | | Plus: Interest expense | 82,751 | 82,377 | 163,626 | 160,864 | | Plus: Depreciation and amortization | 307,657 | 285,353 | 597,606 | 548,334 | | Plus: Transaction-related expenses | 3,973 | 7,256 | 15,943 | 17,103 | | **Adjusted EBITDA** | **786,413** | **731,813** | **1,498,627** | **1,382,485** | | % of Revenue | 32.7% | 32.6% | 32.3% | 16.8% | [Reconciliation of Adjusted Free Cash Flow](index=13&type=section&id=6.2%20Reconciliation%20of%20Adjusted%20Free%20Cash%20Flow) This section details the reconciliation of net cash provided by operating activities to adjusted free cash flow, a non-GAAP liquidity measure widely used to assess liquidity in the solid waste industry - Adjusted free cash flow is calculated as net cash provided by operating activities, plus or minus changes in book overdraft, plus proceeds from disposal of assets, less capital expenditures for property and equipment, and is further adjusted for other items that management believes are not indicative of its ongoing liquidity performance[27](index=27&type=chunk) | Metric | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Six Months 2025 (in thousands USD) | Six Months 2024 (in thousands USD) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | 638,202 | 611,378 | 1,179,741 | 1,101,687 | | Less: Capital expenditures for property and equipment | (285,310) | (217,219) | (497,765) | (387,170) | | Plus: Transaction-related expenses | 8,769 | 3,704 | 11,161 | 8,680 | | **Adjusted Free Cash Flow** | **367,013** | **402,639** | **699,088** | **727,432** | | % of Revenue | 15.2% | 17.9% | 15.1% | 16.8% | [Reconciliation of Adjusted Net Income and EPS](index=14&type=section&id=6.3%20Reconciliation%20of%20Adjusted%20Net%20Income%20and%20EPS) This section reconciles GAAP net income attributable to Waste Connections and diluted EPS to their adjusted non-GAAP counterparts, aiming to exclude items management deems not indicative of operational comparability - Adjusted net income attributable to Waste Connections and adjusted diluted EPS are intended to exclude items that management believes are not indicative of the comparability of the company's operating performance between periods[30](index=30&type=chunk) | Metric | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Six Months 2025 (in thousands USD) | Six Months 2024 (in thousands USD) | | :--- | :--- | :--- | :--- | :--- | | Reported net income attributable to Waste Connections | 290,276 | 275,477 | 531,787 | 505,531 | | Plus: Amortization of intangibles | 50,236 | 44,124 | 97,878 | 84,414 | | Plus: Impairments and other operating items | 4,030 | 8,190 | 10,471 | 8,544 | | Plus: Transaction-related expenses | 3,973 | 7,256 | 15,943 | 17,103 | | Less: Tax impact | (14,687) | (15,222) | (30,898) | (28,385) | | **Adjusted net income attributable to Waste Connections** | **333,094** | **320,047** | **626,217** | **588,714** | | Reported diluted EPS | 1.12 | 1.07 | 2.05 | 1.96 | | **Adjusted diluted EPS** | **1.29** | **1.24** | **2.42** | **2.28** | [Corporate Information & Disclosures](index=5&type=section&id=7.%20Corporate%20Information%20%26%20Disclosures) [Q2 2025 Earnings Conference Call](index=5&type=section&id=7.1%20Q2%202025%20Earnings%20Conference%20Call) Waste Connections will host a conference call on July 24th at 8:30 A.M. Eastern Time to discuss Q2 earnings, with a live webcast and replay available to investors - A conference call to discuss second-quarter earnings will be held on July 24, 2025, at 8:30 A.M. Eastern Time[12](index=12&type=chunk) - A live audio webcast can be accessed through the "News & Events" section of the company's website at investors.wasteconnections.com[12](index=12&type=chunk) - A replay of the conference call will be available until July 31, 2025, by calling 877-344-7529 (within North America) or 412-317-0088 (international) and using passcode 4455366[12](index=12&type=chunk) [About Waste Connections](index=5&type=section&id=7.2%20About%20Waste%20Connections) Waste Connections is an integrated solid waste services company providing non-hazardous waste collection, transfer, and disposal services, along with resource recovery through recycling and renewable fuels production - Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation[13](index=13&type=chunk) - The company serves approximately nine million residential, commercial, and industrial customers in 46 states in the U.S. and six provinces in Canada, primarily in exclusive and secondary markets[13](index=13&type=chunk) - The company also views its environmental, social and governance (ESG) efforts as integral to its business, aiming to reduce emissions, increase resource recovery of recyclable commodities and clean energy fuels, reduce reliance on off-site disposal of landfill leachate, further improve safety and enhance employee engagement[13](index=13&type=chunk) [Safe Harbor and Forward-Looking Information](index=5&type=section&id=7.3%20Safe%20Harbor%20and%20Forward-Looking%20Information) This section contains standard safe harbor statements regarding forward-looking information, advising investors that actual results may differ materially due to risks and uncertainties detailed in regulatory filings - This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 (PSLRA) and "forward-looking information" within the meaning of applicable Canadian securities laws[14](index=14&type=chunk) - Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those shown in such statements[14](index=14&type=chunk) - Waste Connections undertakes no obligation to update the forward-looking statements in this press release unless required by applicable securities laws[14](index=14&type=chunk) [Contact Information](index=5&type=section&id=7.4%20Contact%20Information) Provides contact information for investor relations personnel - Contact: Mary Anne Whitney / (832) 442-2253 / maryannew@wasteconnections.com[15](index=15&type=chunk) - Contact: Joe Box / (832) 442-2153 / joe.box@wasteconnections.com[15](index=15&type=chunk)

Core Insights - Waste Connections reported strong second quarter results for 2025, with revenue of $2.407 billion, a 7.1% increase from $2.248 billion in the same period last year [2][6] - The company achieved a net income of $290.3 million, or $1.12 per diluted share, compared to $275.5 million, or $1.07 per diluted share, in the prior year [5][30] - Adjusted EBITDA for the quarter was $786.4 million, reflecting a 7.5% increase from $731.8 million in the previous year, with an adjusted EBITDA margin of 32.7% [3][6] Financial Performance - For the first half of 2025, revenue reached $4.635 billion, up from $4.321 billion in the same period last year [4][5] - Operating income for the first six months was $849.8 million, compared to $791.5 million in the prior year [4] - Adjusted net income for the first half was $626.2 million, or $2.42 per diluted share, compared to $588.7 million, or $2.28 per diluted share, in the previous year [7][30] Operational Highlights - The company experienced solid waste core pricing growth of 6.6%, contributing to margin expansion of approximately 70 basis points [1][6] - Employee retention and record low safety rates were noted as key factors driving performance [1][6] - Waste Connections completed approximately $200 million in annualized revenue from acquisitions, with a strong pipeline for further growth [1][6] Updated Outlook - The company maintains its full-year 2025 outlook, projecting approximately $9.45 billion in revenue and $3.12 billion in adjusted EBITDA, with an adjusted EBITDA margin of 33.0% [8][12] - Revenue growth is expected to be around 6%, with an adjusted EBITDA margin expansion of 50 basis points [1][8] - The outlook assumes no significant changes in the current economic environment or underlying trends [8][12]