Investor Presentation Q2 2024 SAFE HARBOR STATEMENT This document contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events and ...

Core Viewpoint - Waste Connections, Inc. has announced a public offering of $500 million in senior notes with a 5.25% interest rate, set to close on June 4, 2025, primarily to repay existing borrowings [1][2]. Group 1: Offering Details - The offering consists of $500 million aggregate principal amount of 5.25% Senior Notes due 2035, priced at 99.874% of their face value [1]. - Net proceeds from the offering are expected to be approximately $495 million after deducting underwriting fees and estimated expenses [1]. - The offering is being managed by BofA Securities, J.P. Morgan, PNC Capital Markets LLC, and Truist Securities [2]. Group 2: Company Overview - Waste Connections is an integrated solid waste services company providing non-hazardous waste collection, transfer, and disposal services, serving around nine million customers across 46 U.S. states and six Canadian provinces [4]. - The company also engages in resource recovery through recycling and renewable fuels generation, and offers non-hazardous oilfield waste treatment services [4]. - Waste Connections emphasizes its Environmental, Social, and Governance (ESG) initiatives as essential to its long-term value creation strategy [4].

Core Viewpoint - Waste Connections, Inc. plans to offer senior unsecured notes in a public offering to repay a portion of its revolving credit facility borrowings [1][2] Group 1: Offering Details - The offering will be conducted by BofA Securities, J.P. Morgan, PNC Capital Markets LLC, and Truist Securities as joint book-running managers and underwriters [2] - The offering is subject to market and other conditions and will be made under an effective shelf registration statement filed with the SEC on October 24, 2024 [2] Group 2: Company Overview - Waste Connections is an integrated solid waste services company providing non-hazardous waste collection, transfer, and disposal services, serving approximately nine million customers across 46 U.S. states and six Canadian provinces [4] - The company also engages in resource recovery through recycling and renewable fuels generation, and offers non-hazardous oilfield waste treatment and intermodal services [4] - Waste Connections emphasizes its Environmental, Social, and Governance (ESG) efforts as integral to its long-term value creation strategy [4]

Core Points - Waste Connections, Inc. held its Annual Meeting of Shareholders where all eight director nominees were elected [1] - The voting results showed high approval rates for the nominees, with the highest being 99.17% for Cherlyn Harley LeBon and Carl D. Sparks [2] - Shareholders approved the compensation of named executive officers on a non-binding advisory basis and appointed Grant Thornton LLP as the independent registered public accounting firm for 2025 [3] Company Overview - Waste Connections is an integrated solid waste services company providing non-hazardous waste collection, transfer, and disposal services, serving approximately nine million customers across 46 states in the U.S. and six provinces in Canada [5] - The company emphasizes its Environmental, Social, and Governance (ESG) efforts as integral to its business, focusing on long-term value creation, emissions reduction, and resource recovery [5]

Core Insights - Waste Connections, Inc. (WCN) reported strong first-quarter 2025 results, with earnings and revenues exceeding Zacks Consensus Estimates [1][2] - Despite the earnings beat, the stock price has not shown significant movement since the results were released on April 23 [1] Financial Performance - Adjusted earnings per share were $1.13, surpassing the Zacks Consensus Estimate by 5.6% and increasing 8.7% year over year [2] - Revenues reached $2.2 billion, slightly beating consensus estimates and growing 7.5% from the previous year [2] - The stock has appreciated 11.6% over the past six months, outperforming the industry’s 5.5% increase and the S&P 500’s 1.8% decline [2] Segment Performance - Solid Waste Collection segment revenues grew 7% year over year to $1.6 billion, exceeding estimates [3] - Solid Waste Disposal and Transfer segment revenues increased marginally to $658 million but fell short of projections [3] - Solid Waste Recycling segment revenues surged 25.1% year over year to $61.3 million, beating estimates [4] - Intermodal and Other segment revenues rose 54% to $150.9 million, significantly surpassing projections [4] - E&P Waste Treatment, Recovery and Disposal segment revenues declined 6% to $46.5 million, missing estimates [4] Operating Results - Adjusted EBITDA for the quarter was $712.2 million, up 9.5% year over year, with an adjusted EBITDA margin of 32%, an increase of 60 basis points [5] - Operating income was $390.2 million, compared to $366.8 million in the previous year [5] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of the quarter were $111.2 million, up from $62.4 million in the previous quarter [6] - Long-term debt increased to $8.4 billion from $6.7 billion [6] - Cash generated from operating activities was $541.5 million, with adjusted free cash flow of $332.1 million [7] - Capital expenditures totaled $212.5 million, and dividends paid amounted to $81.5 million [7] Outlook - For Q2 2025, Waste Connections anticipates revenues between $2.37 billion and $2.40 billion, with a consensus estimate of $2.40 billion [8] - Expected adjusted EBITDA for Q2 is between $777 million and $785 million, with an anticipated EBITDA margin of 32.7% [8]

Waste Connections (WCN) Q1 2025 Earnings Call April 24, 2025 08:34 PM ET Company Participants Ronald Mittelstaedt - Founder, CEO, President & DirectorMary Whitney - Executive VP & CFOTyler Brown - Financial AdvisorSabahat Khan - Managing Director Conference Call Participants None - AnalystAdam Bubes - AnalystTrevor Romeo - Research AnalystYehuda Silverman - Equity Research AnalystJames Schumm - AnalystNoah Kaye - Senior Research AnalystBryan Burgmeier - AnalystStephanie Moore - Analyst Operator Please note ...

Waste Connections, Inc. (NYSE:WCN) Q1 2025 Earnings Conference Call April 24, 2025 8:30 AM ET Company Participants Ronald Mittelstaedt - President and Chief Executive Officer Mary Anne Whitney - Chief Financial Officer Conference Call Participants Tyler Brown - Raymond James & Associates, Inc. Adam Bubes - Goldman Sachs Trevor Romeo - William Blair & Company Yehuda Silverman - Morgan Stanley James Schumm - TD Cowen Sabahat Khan - RBC Capital Markets Noah Kaye - Oppenheimer & Co. Inc. Bryan Burgmeier - Citig ...

Core Insights - Waste Connections reported revenue of $2.23 billion for the quarter ended March 2025, reflecting a 7.5% increase year-over-year and a surprise of +0.42% over the Zacks Consensus Estimate of $2.22 billion [1] - The company's EPS for the quarter was $1.13, up from $1.04 in the same quarter last year, with an EPS surprise of +5.61% compared to the consensus estimate of $1.07 [1] Revenue Performance - Geographic Revenues: - Canada: $302.73 million, +8% year-over-year, below the average estimate of $330.45 million [4] - Southern: $453.40 million, +8.2% year-over-year, slightly below the estimate of $457.70 million [4] - Central: $373.38 million, +3.5% year-over-year, below the estimate of $395.83 million [4] - Eastern: $403.27 million, +12% year-over-year, slightly below the estimate of $405.97 million [4] - Western: $438.40 million, +3.8% year-over-year, below the estimate of $454.36 million [4] - Revenue Breakdown: - E&P Waste Treatment, Recovery and Disposal: $144.53 million, +179.2% year-over-year, exceeding the estimate of $119.94 million [4] - Intermodal and Other: $46.11 million, +20.7% year-over-year, below the estimate of $54.46 million [4] - Revenues- E&P: $150.90 million, +54.9% year-over-year, exceeding the estimate of $116.93 million [4] - Revenues- Intermodal and Other: $46.55 million, -6% year-over-year, below the estimate of $55.14 million [4] - Revenues- Intercompany: -$309.71 million, +5.4% year-over-year, slightly better than the estimate of -$311.04 million [4] - Revenues- Total Collection: $1.62 billion, +7% year-over-year, exceeding the estimate of $1.60 billion [4] - Revenues- Recycling: $61.34 million, +25.1% year-over-year, exceeding the estimate of $46.25 million [4] Stock Performance - Shares of Waste Connections have returned +2.1% over the past month, outperforming the Zacks S&P 500 composite, which declined by -5.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Revenue and Income - Total revenues increased by $155.5 million, or 7.5%, to $2.228 billion for the three months ended March 31, 2025, compared to $2.073 billion for the same period in 2024[152]. - Acquisitions closed during or subsequent to the three months ended March 31, 2024, contributed an additional $131.0 million to revenues for the three months ended March 31, 2025[153]. - Operating income for the three months ended March 31, 2025, was $390.2 million, representing 17.5% of revenues, compared to $366.8 million, or 17.7% of revenues, for the same period in 2024[152]. - Net income attributable to Waste Connections was $241.5 million, or 10.9% of revenues, for the three months ended March 31, 2025, compared to $230.1 million, or 11.1% of revenues, for the same period in 2024[152]. - Total revenue for the three months ended March 31, 2025, was $2,228.2 million, an increase from $2,072.7 million in the same period of 2024[189]. - Adjusted net income attributable to Waste Connections for Q1 2025 was $293,120, up 9.1% from $268,669 in Q1 2024[250]. - Reported net income attributable to Waste Connections for Q1 2025 was $241,510, compared to $230,054 in Q1 2024, reflecting a growth of 5%[250]. Expenses and Costs - Cost of operations rose by $69.7 million, or 5.7%, to $1.291 billion for the three months ended March 31, 2025, from $1.222 billion for the same period in 2024[161]. - SG&A expenses increased by $29.4 million, or 13.3%, to $250.1 million for the three months ended March 31, 2025, from $220.7 million for the same period in 2024[164]. - Depreciation expense increased by $19.6 million, or 8.8%, to $242.3 million for the three months ended March 31, 2025, compared to $222.7 million for the same period in 2024[167]. - Amortization of intangibles expense rose by $7.3 million, or 18.2%, to $47.6 million for the three months ended March 31, 2025, from $40.3 million in the prior year[171]. - Interest expense increased by $2.4 million, or 3.0%, to $80.9 million for the three months ended March 31, 2025, from $78.5 million in the prior year[178]. - Segment expenses rose by $16.9 million to $326.1 million for the three months ended March 31, 2025, from $309.2 million in the prior year, due to increased labor and acquisition-related costs[202]. EBITDA and Margins - Operating income increased by $23.4 million, or 6.4%, to $390.2 million for the three months ended March 31, 2025, compared to $366.8 million for the same period in 2024[175]. - EBITDA decreased by $0.8 million to $112.3 million, resulting in a 25.6% EBITDA margin for the three months ended March 31, 2025, down from a 26.8% margin in the prior year[203]. - Adjusted EBITDA for Q1 2025 was $712,213, an increase of 9.5% from $650,673 in Q1 2024[248]. - Segment EBITDA for the Southern segment increased to $148.7 million, with a margin of 32.8% for the three months ended March 31, 2025, compared to $128.4 million and a margin of 30.7% in 2024[198]. - EBITDA for the Eastern segment increased by $8.1 million to $103.1 million, with a 25.6% EBITDA margin for the three months ended March 31, 2025, compared to 26.4% in the prior year[206]. - EBITDA for the Canada segment increased by $14.2 million to $135.6 million, achieving a 44.8% EBITDA margin for the three months ended March 31, 2025, up from 43.3% in the prior year[214]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $51.2 million to $541.5 million for the three months ended March 31, 2025, compared to $490.3 million in the prior year[221]. - Net cash used in investing activities decreased by $731.4 million to $603.2 million for the three months ended March 31, 2025, from $1.335 billion in the prior year[225]. - Capital expenditures for property and equipment totaled $212.5 million during the three months ended March 31, 2025, with total expected capital expenditures for 2025 projected between $1.200 billion and $1.225 billion[231]. - Adjusted free cash flow for the three months ended March 31, 2025, was $332.1 million, compared to $324.8 million for the same period in 2024, indicating a slight increase in liquidity[245]. Debt and Financing - The company had $2.480 billion outstanding under the revolving credit facility as of March 31, 2025, with a maturity date of February 27, 2029[232]. - The total long-term debt recorded was $8.465 billion, with significant principal payments due in the coming years, including $500 million due in 2028 and $500 million due in 2029[235]. - The company recorded $90.2 million in contingent consideration liabilities as of March 31, 2025[238]. - The company has $1.680 billion in unhedged floating rate debt as of March 31, 2025, with a one percentage point increase in interest rates potentially decreasing annual pre-tax income by $16.8 million[260]. - The company has four interest rate swap agreements to manage interest rate risks, effectively fixing rates on $800 million of variable rate debt[257]. Market and Operational Factors - During the three months ended March 31, 2025, the company recognized volume losses totaling $65.9 million due to a decrease in roll-off volumes and lower residential collection volumes[155]. - The average Canadian dollar to U.S. dollar exchange rate decreased, resulting in a revenue decrease of $16.8 million for the three months ended March 31, 2025[158]. - A $0.10 per gallon increase in diesel fuel prices would decrease pre-tax income by approximately $3.7 million during the remaining nine months of 2025[263]. - A 10% decrease in average recycled commodity prices would impact revenues by $5.9 million for Q1 2025[264]. - A $0.01 change in the CAD to USD exchange rate would affect annual revenue and EBITDA by approximately $19.0 million and $9.0 million, respectively[265]. - Inflationary pressures from higher fuel, materials, and labor costs are being managed through contracts that allow passing costs to customers[252]. Environmental and Social Governance (ESG) - The company committed $500 million to advance long-term ESG targets, focusing on reducing environmental impact and enhancing employee safety and engagement[143].

Core Viewpoint - Waste Connections reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and showing an increase from $1.04 per share a year ago, indicating a 5.61% earnings surprise [1][2] Financial Performance - The company achieved revenues of $2.23 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.42%, and up from $2.07 billion year-over-year [2] - Over the last four quarters, Waste Connections has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Waste Connections shares have increased approximately 15.3% since the beginning of the year, contrasting with a -10.1% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $2.41 billion, and for the current fiscal year, it is $5.26 on revenues of $9.52 billion [7] - The estimate revisions trend for Waste Connections is mixed, which may change following the recent earnings report [6] Industry Context - The Waste Removal Services industry, to which Waste Connections belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8]