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Waste Connections, Inc.

WCN
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Business Summary

Waste Connections, Inc. is the third largest solid waste services company in North America, providing non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation, in 46 states in the U.S. and six provinces in Canada. The company also provides non-hazardous oil and natural gas exploration and production, or E&P, waste treatment, recovery and disposal services in several basins across the U.S and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. The North America solid waste services industry is highly competitive and requires substantial labor and capital resources, and the industry has experienced continued consolidation over the past several years. The company generally targets markets where it can establish a substantial presence and operate efficiently and profitably through exclusive contracts, vertical integration or asset positioning, and also targets niche markets, like non-hazardous E&P waste treatment, recovery and disposal services, with similar characteristics.

The company's competition includes three publicly-held solid waste companies—Waste Management, Inc., Republic Services, Inc. and GFL Environmental, Inc., several regional, publicly held and privately owned companies, and several thousand small, local, privately owned companies. For E&P waste, competition comes primarily from smaller regional companies and also includes publicly held and privately owned companies such as Waste Management, Inc., Republic Services, Inc., Clean Harbors, Inc., Secure Waste Infrastructure Corp., Select Water Solutions, Inc., Ecoserv, LLC, Oilfield Water Logistics LLC, Albright Flush Systems Ltd., Plains Environmental and others. The company believes its experienced management, decentralized operating strategy, financial strength, size and public company status make it an attractive buyer to certain waste collection and disposal acquisition candidates. The company believes that its decentralized structure provides a strategic competitive advantage, given the relatively rural nature of many of the markets in which it operates.

The company generates revenue primarily from fees charged to customers for collection, transfer, recycling and disposal of non-hazardous solid waste and treatment, recovery and disposal of non-hazardous E&P waste. Solid waste collection services include both recurring and temporary customer relationships, performed under service agreements, municipal contracts or franchise agreements with governmental entities. Revenue at landfills is primarily generated by charging tipping fees on a per ton and/or per yard basis to third parties. Revenue at transfer stations is primarily generated by charging tipping or disposal fees on a per ton and/or per yard basis. Revenues from E&P waste services are primarily generated through the treatment, recovery and disposal of non-hazardous exploration and production waste. Revenues from recycling services result from the sale of recycled commodities. Other revenues consist primarily of the sale of methane gas and renewable energy credits generated from MSW landfills and revenues from intermodal services. No single contract or customer accounted for more than 10% of total revenues at the consolidated or reportable segment level during the periods presented.

For the year ended December 31, 2025, total collection revenue was $6.748 billion , comprising commercial revenue of $2.944 billion , residential revenue of $2.365 billion , and industrial and construction roll off revenue of $1.439 billion . Landfill revenue was $1.542 billion , transfer revenue was $1.462 billion , recycling revenue was $240.1 million , E&P revenue was $688.8 million , and intermodal and other revenue was $175.5 million , with intercompany eliminations of $1.389 billion . As of December 31, 2025, the company owned or operated 77 MSW landfills , 20 E&P waste landfills and caverns , and 17 non-MSW landfills . The company also owned 371 solid waste collection operations , 164 transfer stations , 90 recycling operations , four intermodal operations , 88 E&P liquid waste injection wells and 36 E&P waste treatment and oil recovery facilities , and operated, but did not own, an additional 60 transfer stations and 12 MSW landfills . As of December 31, 2025, the company had gas recovery systems at 61 of its landfills to collect methane, with 15 beneficial reuse projects using processed gas to fuel electricity generators and 17 projects processing landfill gas to pipeline quality natural gas .

During the year ended December 31, 2025, the company completed 19 acquisitions for consideration having a net fair value of $966.8 million . During the year ended December 31, 2024, the company completed 24 acquisitions for consideration having a net fair value of $2.228 billion . During the year ended December 31, 2025, the company repurchased 2.8 million of its common shares pursuant to the NCIB at an aggregate cost of $505.5 million , or an average price of $183.24 per share . On August 8, 2025, the company announced the annual renewal of its normal course issuer bid to purchase up to 12,855,691 of its common shares during the period of August 12, 2025 to August 11, 2026. On June 4, 2025, the company completed an underwritten public offering of $500.0 million aggregate principal amount of 5.25% Senior Notes due September 1, 2035. In 2025, the company distributed $839.3 million to shareholders through a combination of cash dividends and share repurchases, paying $333.8 million through cash dividends declared by the Board of Directors, which also increased the quarterly cash dividend by 11.1% , from $0.315 to $0.350 per common share in October 2025.

Revenues in 2025 increased 6.1% to $9.467 billion from $8.920 billion in 2024. Net income attributable to Waste Connections increased 74% to $1.077 billion in 2025, from $617.6 million in 2024. Adjusted EBITDA, a non-GAAP financial measure, increased 7.7% to $3.125 billion , from $2.902 billion in 2024. As a percentage of revenue, adjusted EBITDA increased from 32.5% in 2024, to 33.0% in 2025. Adjusted net income attributable to Waste Connections, a non-GAAP financial measure, in 2025 increased 7.2% to $1.328 billion from $1.239 billion in 2024. Operating income increased 60.2% to $1.710 billion for 2025, from $1.068 billion for 2024. Net cash provided by operating activities increased to $2.414 billion in 2025, from $2.229 billion in 2024.

Business Outlook

The company expects to make total capital expenditures for property and equipment in 2026 of approximately $1.250 billion . The company may opportunistically make other capital expenditures for undeveloped landfill property in 2026. The company intends to fund its planned 2026 capital expenditures principally through cash on hand, internally generated funds and borrowings under its Revolving Credit Agreement.

The company anticipates that a part of its future growth will come from acquiring additional waste businesses and, therefore, expects that additional acquisitions could continue to affect period-to-period comparisons of its operating results. The company intends to continue to focus its efforts on both internal and acquisition-based growth. The company believes that many suitable 'tuck-in' acquisition opportunities exist within its current and targeted market areas that may provide opportunities to bolster its position and route density. The company currently has over a dozen renewable natural gas projects in development, some of which are conversions of electrical generating units to renewable natural gas units and others are greenfield projects on landfills where no current beneficial reuse system exists today, and it expects these renewable natural gas projects to come online over the next few years.

The company seeks price increases necessary to offset increased costs, to improve operating margins and to obtain adequate returns on its deployed capital. The company believes that, over time, it should be able to increase prices to offset many cost increases that result from inflation and any potential impact from changes in trade policies or tariffs within the ordinary course of business. The company's Board of Directors intends to review the quarterly dividend during the fourth quarter of each year, with a long-term objective of increasing the amount of the dividend.

The company expects the amount of capital it returns to shareholders through share repurchases to vary depending on its financial condition and results of operations, capital structure, the amount of cash it deploys on acquisitions, expectations regarding the timing and size of acquisitions, the market price of its common shares, and overall market conditions. The company targets a Leverage Ratio, as defined in its Revolving Credit Agreement, of approximately 2.5x – 3.0x total debt to EBITDA. The company's Leverage Ratio increased from 2.67x at December 31, 2024 to 2.75x at December 31, 2025.

The company has committed $500 million to the advancement of long-term, aspirational ESG targets, which it evaluates continuously and has expanded as it makes progress towards their achievement. The company's ESG targets include reduced absolute Scope 1 and 2 emissions and emissions intensity, expanded resource recovery processing, increased landfill gas recovery and beneficial reuse, increased on-site leachate treatment at its landfills, and improved metrics for safety and employee engagement.

The company's ability to achieve its aspirational sustainability targets will depend significantly on, among other things, the success of its investments and projects and its ability to meet its financial and operating objectives, which can be impacted by numerous risks and uncertainties. There is a risk that some or all of the expected benefits of these investments and projects may fail to materialize, may cost more to achieve or may not occur within the anticipated time periods, including as a result of limitations on technology, permitting requirements, labor constraints or supply chain disruptions.

In the current environment, the company has seen inflationary pressures resulting from higher materials or labor costs in certain markets and higher resulting third-party costs in areas such as brokerage, repairs and construction. Additionally, significant changes in trade policies, including tariffs in the U.S. or retaliatory policies in other countries, including Canada, may increase the cost of certain equipment the company purchases in the U.S. and Canada. Competitive pressures or delays in the timing of rate increases under certain of the company's contracts may require it to absorb at least part of these cost increases, especially if cost increases exceed the average rate of inflation.

The company's operations in Canada expose it to exchange rate fluctuations. A $0.01 change in the Canadian dollar to U.S. dollar exchange rate would impact the company's annual revenue and EBITDA by approximately $19.0 million and $9.0 million , respectively.

Risk Factors

The company's industry is highly competitive and includes companies with lower prices, return expectations or other advantages, and governmental service providers, which could adversely affect its ability to compete and its operating results. Price increases may not be adequate to offset the impact of increased costs, or may cause the company to lose customers. Competition for acquisition candidates, consolidation within the waste industry and economic and market conditions may limit the company's ability to grow through acquisitions. The company may lose contracts through competitive bidding, early termination or governmental action, as it has approximately 454 contracts , representing approximately 4.0% of its annual revenues, which are set for expiration or automatic renewal on or before December 31, 2026. The company's financial and operating performance may be affected by restrictions associated with renewals or the inability to renew landfill operating permits, obtain new landfills and expand existing ones. The level of exploration, development and production activity of E&P companies will impact the demand for the company's E&P waste services. The company's results will be affected by changes in recycled commodity prices and quantities, as a 10% decrease in average recycled commodity prices would have had a $23.1 million impact on revenues for the year ended December 31, 2025. The company's results will be affected by changes in the value of renewable fuels and quantities of gas generated and beneficially reused, as the price of RINs has been extremely volatile. The company's accruals for its landfill site closure and post-closure costs may be inadequate, as evidenced by the $480.8 million charge recorded in 2024 at the Chiquita Canyon Landfill. The potential increased regulation of per- and polyfluoroalkyl substances (PFAS) could result in greater expenditures for closure and post-closure costs.

Management Priorities

Management's message emphasizes the company's position as the third largest solid waste services company in North America and its focus on both internal and acquisition-based growth. The company's operating strategy seeks to improve financial returns and deliver superior shareholder value creation within the solid waste industry by targeting markets where it can operate efficiently, including secondary and rural markets, and niche markets like non-hazardous E&P waste treatment, recovery and disposal services. Key strategic priorities include controlling the waste stream, optimizing asset positioning, providing vertically integrated services, managing on a decentralized basis through six geographic operating segments, and implementing operating standards. Management also emphasizes the company's growth strategy of obtaining additional exclusive arrangements, generating internal growth through price increases and market penetration, and expanding through acquisitions. The company's senior management team has extensive experience in operating, acquiring and integrating non-hazardous waste services businesses.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 7, MD&A — Results of Operations
  2. [2] Item 7, MD&A — Results of Operations
  3. [3] Item 7, MD&A — Results of Operations
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  8. [8] Item 7, MD&A — Results of Operations
  9. [9] Item 7, MD&A — Results of Operations
  10. [10] Item 7, MD&A — Results of Operations
  11. [11] Item 1, Business — Landfill Disposal Services
  12. [12] Item 1, Business — Landfill Disposal Services
  13. [13] Item 1, Business — Landfill Disposal Services
  14. [14] Item 2, Properties
  15. [15] Item 2, Properties
  16. [16] Item 2, Properties
  17. [17] Item 2, Properties
  18. [18] Item 2, Properties
  19. [19] Item 2, Properties
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  21. [21] Item 2, Properties
  22. [22] Item 1, Business — Beneficial Reuse of Landfill Gas
  23. [23] Item 1, Business — Beneficial Reuse of Landfill Gas
  24. [24] Item 1, Business — Beneficial Reuse of Landfill Gas
  25. [25] Item 1, Business — Expand Through Acquisitions
  26. [26] Item 1, Business — Expand Through Acquisitions
  27. [27] Item 1, Business — Expand Through Acquisitions
  28. [28] Item 1, Business — Expand Through Acquisitions
  29. [29] Item 5, Market for Registrant's Common Equity
  30. [30] Item 5, Market for Registrant's Common Equity
  31. [31] Item 5, Market for Registrant's Common Equity
  32. [32] Item 5, Market for Registrant's Common Equity
  33. [33] Item 7, MD&A — Liquidity and Capital Resources
  34. [34] Item 7, MD&A — Executive Overview
  35. [35] Item 7, MD&A — Executive Overview
  36. [36] Item 7, MD&A — Executive Overview
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  45. [45] Item 7, MD&A — Executive Overview
  46. [46] Item 7, MD&A — Non-GAAP Financial Measures
  47. [47] Item 7, MD&A — Non-GAAP Financial Measures
  48. [48] Item 7, MD&A — Executive Overview
  49. [49] Item 7, MD&A — Executive Overview
  50. [50] Item 7, MD&A — Executive Overview
  51. [51] Item 7, MD&A — Non-GAAP Financial Measures
  52. [52] Item 7, MD&A — Non-GAAP Financial Measures
  53. [53] Item 7, MD&A — Results of Operations
  54. [54] Item 7, MD&A — Results of Operations
  55. [55] Item 7, MD&A — Results of Operations
  56. [56] Item 7, MD&A — Liquidity and Capital Resources
  57. [57] Item 7, MD&A — Liquidity and Capital Resources
  58. [58] Item 7, MD&A — Liquidity and Capital Resources
  59. [59] Item 7, MD&A — Executive Overview
  60. [60] Item 7, MD&A — Executive Overview
  61. [61] Item 1, Business — Sustainability/Environmental, Social and Governance
  62. [62] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
  63. [63] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
  64. [64] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
  65. [65] Item 1A, Risk Factors
  66. [66] Item 1A, Risk Factors
  67. [67] Item 7A, Quantitative and Qualitative Disclosures About Market Risk
  68. [68] Item 7, MD&A — Results of Operations
  69. [69] Item 8, Consolidated Statements of Net Income
  70. [70] Item 8, Consolidated Statements of Net Income
  71. [71] Item 8, Consolidated Statements of Net Income
  72. [72] Item 8, Consolidated Statements of Net Income
  73. [73] Item 8, Consolidated Statements of Net Income
  74. [74] Item 8, Consolidated Statements of Net Income
  75. [75] Item 8, Consolidated Statements of Net Income
  76. [76] Item 8, Consolidated Statements of Net Income
  77. [77] Item 7, MD&A — Results of Operations
  78. [78] Item 7, MD&A — Results of Operations
  79. [79] Item 7, MD&A — Liquidity and Capital Resources
  80. [80] Item 7, MD&A — Liquidity and Capital Resources
  81. [81] Item 8, Consolidated Balance Sheets
  82. [82] Item 8, Consolidated Balance Sheets
  83. [83] Item 1A, Risk Factors
  84. [84] Item 7, MD&A — Results of Operations
  85. [85] Item 7, MD&A — Results of Operations
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  92. [92] Item 7, MD&A — Segment Reporting
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  94. [94] Item 7, MD&A — Segment Reporting
  95. [95] Item 7, MD&A — Segment Reporting
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  103. [103] Item 7, MD&A — Segment Reporting

Analysis on 6/11/2026