Waste Connections Reports 6.4% Revenue Growth to $2.371 Billion in Q1 2026

Waste Connections, Inc. reported a revenue increase of 6.4% for the first quarter of 2026, reaching $2.371 billion compared to $2.228 billion in the same period of 2025. The growth was driven by a $120 million rise in prices charged to customers, alongside contributions from acquisitions that added $57.4 million to revenues. However, the company faced volume losses totaling $57.9 million due to decreased roll-off and post-collection volumes in certain segments, which were partially offset by increased landfill volumes in others. Net income for the quarter was $219.3 million, down from $241.5 million a year earlier, resulting in diluted earnings per share of $0.86, compared to $0.93 in the prior year.

Operating expenses also rose, with total costs increasing by 5.4% to $1.361 billion. This rise was attributed to higher operating costs at existing operations, additional costs from acquisitions, and increased expenses related to labor and maintenance. The company's operating income decreased by 6.7% to $364.1 million, reflecting the impact of increased impairments and other operating items, which surged to $79.6 million from $6.4 million in the previous year. The operating income margin fell to 15.4% from 17.5%.

In terms of strategic developments, Waste Connections completed three immaterial acquisitions during the quarter, contributing to its growth strategy. The company also repurchased 1.7 million shares at a cost of $284 million under its normal course issuer bid, which is set to continue until August 2026. The quarterly cash dividend was increased to $0.350 per share, reflecting a commitment to returning value to shareholders.

Operationally, Waste Connections managed 107 owned operational landfills, processing a total of 12.1 million tons of waste in the first quarter, up from 11.7 million tons in the same period last year. The company reported a working capital deficit of $631.1 million, a decrease from $812.7 million at the end of 2025, primarily due to increased cash reserves and changes in accounts payable and receivable. The company anticipates continued growth through strategic acquisitions and operational efficiencies, while also navigating challenges such as inflation and regulatory compliance in the solid waste industry.