Waste Connections Reports 7.3% Revenue Growth in Q3 2026, Increases Dividend

Waste Connections, Inc. reported a notable increase in financial performance for the third quarter and the first nine months of 2026, as detailed in its latest 10-Q filing. For the three months ending September 30, 2026, the company generated revenues of $2.638 billion, a 7.3% increase from $2.458 billion in the same period of 2025. For the nine-month period, revenues rose by 6.7% to $7.570 billion from $7.094 billion. The growth was attributed to price increases, contributions from acquisitions, and a rise in E&P waste revenues, despite some volume losses in roll-off and commercial collection segments.

The company's operating income also saw significant growth, increasing by 23.2% to $541.7 million for the third quarter, compared to $439.6 million in the prior year. For the nine months, operating income rose by 4.2% to $1.343 billion. This improvement was driven by higher prices for solid waste services, lower impairments, and increased revenues from E&P waste, although it was partially offset by rising operating expenses, particularly in fuel and labor costs.

In terms of strategic developments, Waste Connections completed several acquisitions during the reporting period, which contributed $53.9 million and $158.4 million to revenues for the three and nine months ended September 30, 2026, respectively. The company acquired nine non-hazardous solid waste businesses and two E&P waste treatment businesses, with transaction-related expenses amounting to $12.9 million for the nine months. The company continues to focus on expanding its footprint in the solid waste industry, particularly in secondary and rural markets.

Operationally, Waste Connections reported a total of 108 owned operational landfills and landfills operated under life-of-site agreements, processing approximately 39.974 million tons of waste in the nine months ended September 30, 2026, compared to 38.667 million tons in the same period of 2025. The company also reported a working capital deficit of $717.8 million as of September 30, 2026, an improvement from $812.7 million at the end of 2025, primarily due to increased accounts receivable from higher revenues.

Looking ahead, Waste Connections anticipates continued growth driven by its strategic acquisitions and operational efficiencies. The company has also announced an increase in its quarterly cash dividend from $0.350 to $0.385 per share, reflecting its commitment to returning value to shareholders. The company remains focused on managing its capital expenditures, which are projected at approximately $1.250 billion for 2026, funded through cash on hand, internally generated funds, and borrowings under its revolving credit agreement.