Core Insights - Waste Connections reported Q2 2025 GAAP revenue of $2.41 billion, exceeding analyst expectations of $2.39 billion, and Non-GAAP EPS of $1.29, surpassing the forecast of $1.25, driven by solid waste pricing and acquisitions [1][2] Financial Performance - Non-GAAP EPS increased by 4.0% year-over-year from $1.24 to $1.29 [2] - Revenue rose by 7.1% from $2.25 billion in Q2 2024 to $2.41 billion in Q2 2025 [2] - Adjusted EBITDA reached $786 million, a 7.4% increase from $732 million in the previous year [2] - Adjusted EBITDA margin was stable at 32.7%, slightly up from 32.6% year-over-year [2] - Adjusted free cash flow decreased by 9.0% to $367 million compared to the prior year [2] Business Model and Strategy - Waste Connections focuses on waste collection, landfill, recycling, and special waste services, serving over nine million customers across 46 U.S. states and six Canadian provinces [3] - The company aims to grow through acquisitions and vertical integration, controlling the waste stream end-to-end [4] - Emphasis on secondary and rural markets helps reduce customer churn and improve financial returns [4] Operational Highlights - Core solid waste pricing increased by 6.6%, offsetting input cost inflation of 4% to 4.5%, leading to a margin expansion of approximately 70 basis points [5] - Total revenue growth was supported by $112.9 million from acquisitions, despite a 2.6% decline in volume due to shedding underperforming contracts [6] - Solid waste collection accounted for 70% of total revenue, with recycling revenues growing by 9.2% year-over-year [7] Employee and Safety Performance - The company achieved record employee retention and safety performance, with incident counts dropping by 40% [8] - Operational improvements are attributed to a focus on culture and better field execution, increasing internalization rates to 60% [9] Future Outlook - Waste Connections maintains its FY2025 guidance, targeting revenue of $9.45 billion and adjusted EBITDA of $3.12 billion [12] - Management expresses confidence in potential upside from acquisitions and stabilization in commodity-related income [12] - Areas for investor monitoring include pressures on volumes in cyclical sectors and margin sensitivity to commodity swings [13]