Waste Connections Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

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$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$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]