Waste Management ( WM ) has long been one of my favorite companies. Having held the stock briefly, I sold out of my small position when I repositioned my portfolio.Formerly known as "The Dividend Collectuh." Top 1% of financial experts on TipRanks. Contributing analyst to the iREIT+Hoya Capital investment group. Dividend Collection Agency is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I e ...

Core Viewpoint - Republic Services Inc reported disappointing fourth-quarter sales results and provided FY26 guidance that fell short of market expectations [1][2] Financial Performance - The company reported quarterly earnings of $1.76 per share, exceeding the analyst consensus estimate of $1.62 per share [1] - Quarterly sales amounted to $4.136 billion, which was below the analyst consensus estimate of $4.207 billion [1] FY26 Guidance - Republic Services projected FY2026 adjusted EPS in the range of $7.20 to $7.28, compared to market estimates of $7.31 [2] - The company anticipates sales between $17.050 billion and $17.150 billion, while expectations were for $17.328 billion [2] Stock Market Reaction - Following the earnings announcement, Republic Services shares declined by 4.9%, trading at $210.30 [2] Analyst Ratings and Price Targets - BMO Capital analyst Devin Dodge maintained an Outperform rating but reduced the price target from $251 to $248 [3] - Morgan Stanley analyst Toni Kaplan kept an Equal-Weight rating and lowered the price target from $230 to $225 [3]

Core Insights - Republic Services, Inc. (RSG) reported mixed fourth-quarter 2025 results, with earnings exceeding estimates while revenues fell short [1][10] Financial Performance - RSG's earnings per share (EPS) for Q4 2025 was $1.76, beating the Zacks Consensus Estimate by 8.7% and reflecting an 11.4% increase year-over-year [1][10] - Total revenues for the quarter were $4.1 billion, missing the consensus estimate by 1.8% but showing a 2.2% year-over-year growth [1][10] Segment Performance - Collection segment revenues reached $2.8 billion, up 3.8% year-over-year but below the consensus estimate of $2.9 billion [3] - Environmental Solutions revenues were $422 million, down 12.4% year-over-year and missing the consensus projection of $438.2 million [3] - Transfer segment revenues were $214 million, increasing 5.4% year-over-year and surpassing the consensus estimate of $213.5 million [4] - Landfill segment revenues totaled $467 million, also up 5.4% year-over-year but falling short of the consensus projection of $484 million [4] - Other segment revenues were $200 million, rising 5.3% year-over-year but missing the consensus estimate of $208.6 million [4] Operating Results - Adjusted EBITDA for Q4 was $1.3 billion, reflecting a 3.4% increase from the previous year, with an adjusted EBITDA margin of 31.3%, up 30 basis points year-over-year [5][10] Balance Sheet and Cash Flow - At the end of Q4 2025, RSG had cash and cash equivalents of $76 million, down from $84 million at the end of Q3 2025 [6] - Long-term debt increased to $13 billion from $12.4 billion in the previous quarter [6] - Cash generated from operating activities was $981 million, with adjusted free cash flow at $242 million and capital expenditure of $577 million [6] 2026 Guidance - For 2026, RSG expects revenues between $17.05 billion and $17.15 billion, lower than the consensus mark of $17.33 billion [7] - The company anticipates adjusted EPS in the range of $7.20-$7.28, with the midpoint below the Zacks Consensus Estimate of $7.26 [7] - Adjusted EBITDA is projected to be between $5.475 billion and $5.525 billion, while adjusted free cash flow is expected to be $2.52 billion to $2.56 billion [7]

Core Insights - Republic Services reported Q4 revenue of $4.14 billion, a 2.2% increase year over year, and full-year revenue of $16.59 billion, up 3.5% year over year, although it fell short of its previous guidance by approximately $260 million [1][1][1] - The company achieved a Q4 net income of $545 million, reflecting a 6.4% year-over-year increase, and exceeded guidance for adjusted free cash flow [1][1][1] - Executives emphasized the company's focus on long-term growth, particularly in environmental services, through effective pricing and cost management strategies [1][1][1] Financial Performance - Q4 overall volumes decreased by 1% year over year, with a notable 14.8% decline in construction and demolition (C&D) waste and a 2.2% reduction in municipal solid waste (MSW), while special waste volumes increased by 15% [1][1][1] - Residential collection volumes fell by 3% due to the intentional shedding of low-performing contracts, alongside ongoing softness in manufacturing and construction markets impacting overall volumes [1][1][1] Technological Advancements - The company is implementing its Rise digital platform, which enhances routing capabilities through artificial intelligence, expected to yield significant cost improvements over time [1][1][1] - AI is being explored for pricing strategies to optimize returns while maintaining customer loyalty, and the company successfully utilized AI to send out 70 million customer notifications regarding service schedules and delays [1][1][1] Polymer Centers - Republic's polymer centers in Las Vegas and Indianapolis generated $45 million in revenue in 2025, with construction of a third center in Allentown, Pennsylvania, underway [1][1][1] - The average recycled commodity price per ton sold at recycling centers was $112, down $41 year over year [1][1][1] Environmental Services - Revenue from the environmental solutions segment decreased by 12.8% year over year in Q4 and 4.1% for the full year 2025 compared to 2024, attributed to challenging comparisons with the previous year [1][1][1] - A strong sales pipeline is anticipated to enhance performance in the second half of the current fiscal year [1][1][1] Future Guidance - For the current fiscal year, Republic Services projects revenue between $17.05 billion and $17.15 billion, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) expected between $5.475 billion and $5.525 billion [1][1][1] - The company plans to allocate $1 billion for acquisitions this year, having already spent approximately $400 million, compared to $1.1 billion spent on M&A last year [1][1][1]

Core Insights - Waste Connections, Inc. (WCN) reported fourth-quarter 2025 earnings that slightly exceeded the Zacks Consensus Estimate, with an 11.2% year-over-year increase in earnings and a 5% year-over-year growth in revenues [1][9] - Despite the earnings beat, the stock price fell by 6.6% following the results announcement on February 11, reflecting investor disappointment [1] - Over the past year, WCN shares have decreased by 14%, contrasting with a 3.5% decline in the industry and a 15.3% increase in the Zacks S&P 500 Composite [1] Segment Performance - The Solid Waste Collection segment generated $1.7 billion in revenues, marking a 5.8% year-over-year increase [2] - Revenues from the Solid Waste Disposal and Transfer segment rose by 5.4% year-over-year to $757.1 million, driven by solid core pricing [2] - The Solid Waste Recycling segment experienced a 14.3% decline in revenues, totaling $51.2 million [3] - The E&P Waste Treatment, Recovery and Disposal segment reported revenues of $171.1 million, reflecting a 16.9% year-over-year increase [3] - The Intermodal and Other segment saw revenues of $42.3 million, down 7.9% from the previous year [3] Operating Results - Adjusted EBITDA for the quarter was $731.9 million, an 8% decrease from the prior year, with an adjusted EBITDA margin of 32.4%, down 110 basis points year-over-year [4] - The company recorded an operating loss of $199.1 million, compared to an operating income of $420.8 million in the same quarter last year [4] Balance Sheet & Cash Flow - At the end of the fourth quarter of 2025, Waste Connections had cash and cash equivalents of $46 million, down from $117.6 million in the previous quarter [5] - The long-term debt and notes payable increased to $8.8 billion from $8 billion in the third quarter of 2025 [5] - The company generated $556.9 million in cash from operating activities, with adjusted free cash flow of $175.6 million and capital expenditures totaling $261.1 million [6] - During the quarter, Waste Connections paid out $89.9 million in dividends [6] FY26 Outlook - For the fiscal year 2026, Waste Connections anticipates revenues between $9.9 billion and $9.95 billion, with the Zacks Consensus Estimate at $9.95 billion [7] - Adjusted EBITDA is expected to be in the range of $3.3 billion to $3.325 billion [7] - Waste Connections currently holds a Zacks Rank of 4 (Sell) [7]

Core Insights - Waste Connections has received multiple upgrades to a "strong-buy" rating from various research firms, indicating strong market confidence in the company's stock performance [1][6]. Financial Performance - Waste Connections reported earnings per share (EPS) of C$1.77 for the last quarter, with a net margin of 10.81% and a return on equity of 11.86% [3]. - The company generated revenue of C$3.26 billion during the same quarter, and analysts expect an average EPS of approximately 9.98 for the current year [3]. Stock Performance - Waste Connections' stock opened at C$218.26, with a 12-month low of C$211.93 and a high of C$284.73. The market capitalization stands at C$55.79 billion [2]. - The stock has a P/E ratio of 52.34 and a P/E/G ratio of 2.22, with a beta of 0.33, indicating lower volatility compared to the market [2]. Company Overview - Waste Connections is the third-largest integrated provider of solid waste and recycling services in North America, operating 91 active landfills, 132 transfer stations, and 68 recycling operations [4]. - The company serves various markets, including residential, commercial, industrial, and energy sectors, and has a significant presence in Canada, contributing 13% of consolidated revenue in 2020 [4].

Core Viewpoint - GFL Environmental has transitioned from a high-growth startup in the municipal solid waste sector to a more established player, indicating a shift in its business model and growth strategy [1]. Group 1 - The company embodies the idea that what may be considered waste by one can be valuable to another, highlighting its focus on sustainability and resource recovery [1]. - The investment philosophy emphasizes optimism and adaptability in the face of market volatility, suggesting that the company is prepared for fluctuations while pursuing growth opportunities [1]. Group 2 - The article reflects a personal investment in GFL, indicating confidence in the company's future performance and potential for growth [2]. - There is a clear distinction made between personal opinions and professional advice, reinforcing the independent analysis of GFL's market position [2].

Core Viewpoint - GFL Environmental Inc reported strong fourth-quarter earnings, exceeding analyst expectations in both earnings per share and sales figures [1][2]. Financial Performance - The company posted quarterly earnings of 26 cents per share, surpassing the analyst consensus estimate of 14 cents per share [1]. - Quarterly sales reached $1.209 billion, exceeding the analyst consensus estimate of $1.190 billion [1]. Future Outlook - GFL Environmental projects FY2026 sales to be between $7.000 billion and $7.140 billion, compared to estimates of $7.070 billion [1]. Management Commentary - CEO Patrick Dovigi highlighted that the company's workforce of over 15,000 employees delivered results that exceeded expectations [2]. Stock Performance - Following the earnings announcement, GFL Environmental shares fell by 5.7%, trading at $41.51 [2]. Analyst Ratings and Price Targets - Barclays analyst William Grippin maintained an Overweight rating and raised the price target from $62 to $63 [3]. - Scotiabank analyst Konark Gupta maintained a Sector Outperform rating but lowered the price target from $57 to $56 [3]. - RBC Capital analyst Sabahat Khan maintained an Outperform rating and raised the price target from $59 to $60 [3].

Financial Performance - Q4 revenue reached $1.69 billion, reflecting a 7.3% year-over-year increase [1] - Full-year revenue for 2025 was $6.62 billion, up 7.8% year-over-year [1] - Q4 net income was $24.2 million, with full-year net income totaling $3.1 billion [1] - Core pricing increased by 6.4% in Q4 and 6.1% for the full year [1] Strategic Initiatives - The company announced a headquarters relocation to Miami Beach, Florida, while maintaining Canadian offices, aiming for inclusion in U.S. stock indices [1] - GFL's capital strategy involved selling stakes in its environmental services and infrastructure businesses, facilitating share buybacks and debt reduction [1] - The company plans to spend $1.5 billion to $2 billion on M&A in 2026, focusing on tuck-in acquisitions [1] Operational Insights - Overall volumes decreased by 2.3% in Q4 but increased by 0.5% for the full year [1] - The company expects C&D volumes to remain soft in the current year [1] - GFL anticipates growth in volumes in 2026 due to expansion into southern markets [1] Environmental Initiatives - GFL plans to invest $175 million in incremental growth capital for packaging extended producer responsibility policies, with over $100 million expected in Q1 [2] - The company is adjusting its guidance for renewable natural gas projects, lowering the adjusted EBITDA run rate from $175 million to a range of $125 million to $150 million [2] Future Projections - For 2026, GFL projects revenue to reach $7 billion, with adjusted EBITDA expected to be about $2.14 billion and adjusted free cash flow around $835 million [2] - The company aims to maintain net leverage in the low to mid 3x range [2]

Group 1: ClearBridge Investments Overview - ClearBridge Investments released its "ClearBridge Mid Cap Strategy" Q4 2025 investor letter, reporting underperformance compared to the Russell Midcap Index, which returned 0.16% during the period [1] - The underperformance was attributed to narrow market leadership and sentiment-driven trading, with weaknesses in information technology and real estate holdings impacting returns, while gains in select consumer discretionary stocks provided partial support [1] - The firm noted that elevated dispersion and uneven earnings reactions continued to shape mid-cap equity performance during the quarter [1] Group 2: Future Outlook - The portfolio management team expressed cautious optimism, indicating that improving clarity around policy, interest rates, and business investment could create a more favorable backdrop for active stock selection [1] - The widening valuation gaps and strengthening fundamentals across many mid-cap companies were highlighted as positive indicators for future performance [1] Group 3: Casella Waste Systems Inc. Insights - ClearBridge Investments initiated positions in Casella Waste Systems Inc. (NASDAQ:CWST), a residential waste services provider, following a transitory selloff related to minor acquisition integration issues [3] - The company has a high proportion of recurring revenue, which supports durable long-term growth, and limited exposure to near-term AI disruption [3] - Casella Waste Systems Inc. has a market capitalization of approximately $6.501 billion, with shares trading between $82.2 to $121.24 over the last 52 weeks [2] Group 4: Hedge Fund Interest - Casella Waste Systems Inc. was held by 26 hedge fund portfolios at the end of the third quarter, an increase from 24 in the previous quarter [4] - Despite the interest, the company is not among the 30 most popular stocks among hedge funds, with a belief that some AI stocks may offer greater promise for higher returns in a shorter time frame [4]