Waste Connections Q2 Earnings & Revenues Surpass Estimates

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]