Financial Data and Key Metrics Changes - The company achieved consolidated revenue of $1,675,000,000 for the quarter, which is 9.5% ahead of the prior year pro forma for divestitures [14] - Adjusted EBITDA margin for the second quarter was 30.7%, reflecting a 230 basis point increase over the prior year and 60 basis points ahead of guidance [16] - Adjusted free cash flow was approximately $137,000,000, better than planned due to adjusted EBITDA outperformance [18] Business Line Data and Key Metrics Changes - The company completed three small tuck-in acquisitions during the quarter and anticipates closing three more soon, maintaining a robust M&A pipeline [12] - Volume growth was positive across both U.S. and Canadian geographies, with U.S. volume growth accelerating by over 200 basis points sequentially [15] - The company expects pricing to be between 5.5% and 5.75% for the full year, an increase of 25 basis points from the original guidance [19] Market Data and Key Metrics Changes - Canadian volume growth was reported at 6.3% for the quarter, with EPR-related activities contributing positively [47] - U.S. volume growth turned positive despite a slowdown in industrial and construction-oriented sectors, indicating resilience in the business model [46] - The company noted that exposure to cyclical end markets is low overall, positioning it well for potential recovery in the macroeconomic environment [11] Company Strategy and Development Direction - The company is focused on densifying existing markets where it has underutilized post-collection assets, aiming for the highest returns on invested capital [42] - The strategic growth investments in EPR and the positive underlying trends from market selection are expected to offset demand-side pressures [11] - The company is increasing its adjusted EBITDA target by $50,000,000 or 2.6% for the year, reflecting confidence in its operational resilience [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver industry-leading financial performance despite external headwinds [23] - The operational resiliency demonstrated in the quarter reinforces the belief that the company is uniquely positioned for value creation [23] - Management anticipates a modest working capital investment for the year, with net CapEx expected to be approximately $750,000,000 [21] Other Important Information - The company is experiencing a lower current year contribution from M&A activity but expects a larger rollover amount into 2026, setting up for exceptional growth [13] - The company is reaffirming its adjusted free cash flow expectation of $750,000,000 despite increased CapEx [21] Q&A Session Summary Question: Update on GIP business options - Management is in the final stages of concluding the process with two bidders and expects a favorable result, which will lead to a significant rebase of equity [28][29] Question: Margin improvements and self-help levers - Management highlighted improvements in pricing, labor turnover, and synergy realization as key contributors to margin expansion [31][35] Question: M&A pipeline visibility - The company is on track to achieve its M&A spending target of $700,000,000 to $900,000,000 for the year, with a focus on tuck-in acquisitions [40][41] Question: Volume performance specifics - EPR is contributing positively to volume growth, with Canadian volume growth reported at 6.3% for the quarter [46][55] Question: Impact of bonus depreciation on free cash flow - Bonus depreciation is expected to provide a $25,000,000 tailwind this year, with a potential increase in free cash flow conversion by 100 to 200 basis points [60][63] Question: Fleet conversion status - Approximately 20% to 25% of the fleet is currently CNG, with plans to increase this to 50% to 55% over the next few years [104]