Waste Connections, Inc.

Second quarter revenue was $2.562 billion, up $155 million or 6.4% year over year. Adjusted EBITDA was $840.1 million, up 6.8%, and adjusted EBITDA margin was 32.8%, up 10 basis points year over year. Organic solid waste total price was 6.7%, including 5.6% core pricing and 1.1% fuel/material surcharges; yield was 4.6% and volumes were down about 1.9%. Year-to-date adjusted free cash flow was $703 million, and year-to-date capital expenditures were approximately $600 million. For full-year 2026, revenue is now expected at $10.02 billion to $10.05 billion, adjusted EBITDA at $3.33 billion to $3.34 billion, and adjusted EBITDA margin at 33.2% to 33.3%. Free cash flow remains guided to $1.4 billion to $1.45 billion, including $100 million to $150 million of Chiquita Canyon closure impacts and $1.25 billion of capital expenditures. Management said second-half adjusted EBITDA margin should average about 33.7% and could exceed 34% in Q3 depending on fuel and commodities.

Ron Mittelstaedt struck an upbeat but measured tone, saying first-half performance was strong enough to justify an increased full-year outlook. He emphasized that improving commodity trends, ongoing acquisitions, employee retention, record safety performance, and AI-driven operational improvements are all contributing to the company’s results. He also highlighted that RNG projects are nearing completion, Chiquita Canyon impacts are expected to decline sequentially in 2027, and free cash flow conversion should improve meaningfully next year and beyond.

Mary Anne Whitney focused on the financial bridge from Q2 to the updated 2026 guide. She pointed to revenue of $2.562 billion, adjusted EBITDA of $840.1 million, 32.8% margin, and year-to-date adjusted free cash flow of $703 million, saying performance was in line with expectations and that CapEx of about $600 million was also as expected. On the full-year outlook, she reiterated revenue of $10.02 billion to $10.05 billion, adjusted EBITDA of $3.33 billion to $3.34 billion, free cash flow of $1.4 billion to $1.45 billion, Chiquita outlays of $100 million to $150 million, and CapEx of $1.25 billion. She also said the company expects core price at or above 5.5% for the year and that some of the fuel-driven cost pressure is being offset by better commodities and underlying margin execution.

Analysts focused on fuel-driven churn, the pace of the margin expansion, Chiquita Canyon accounting, 2027 cash flow conversion, AI initiatives, special waste/C&D trends, M&A cadence, rail opportunities, and the Seneca Meadows permit. Management said fuel-related churn was not materially different from history, though the rapid spike in diesel likely added 10 to 15 basis points of volume churn in the quarter. On Chiquita, they said the $58 million impairment was an accounting true-up, not indicative of Q2 cash spend, and reiterated the 2026 cash outlay range of $100 million to $150 million. They also outlined AI projects already deployed or coming over 2026-2028, said special waste and C&D have shown recent improvement but remain lumpy, and said 2027 should benefit from lower RNG spending and lower Chiquita outflows.