Waste Connections misses Q2 EPS despite revenue growth

Published 23/07/2025, 21:34
Waste Connections misses Q2 EPS despite revenue growth

Investing.com -- Waste Connections, Inc. (NYSE:WCN) reported second-quarter revenue above expectations at $2.41 billion, up 7.1% YoY, but missed earnings estimates with EPS of $1.12, falling short of the $1.25 analyst consensus.

The company delivered adjusted EPS of $1.29 and adjusted EBITDA of $786.4 million, representing a 7.5% increase from the prior year period. Solid waste core pricing growth of 6.6% helped drive underlying solid waste margin expansion of approximately 70 basis points. Waste Connections shares fell 1.9% following the earnings release, reflecting investor disappointment with the earnings miss.

"Continued improvement in employee retention and record low safety rates, along with solid waste core pricing growth of 6.6%, drove underlying solid waste margin expansion of approximately 70 basis points in the period," said Ronald J. Mittelstaedt, President and Chief Executive Officer.

The company maintained its full-year 2025 outlook, projecting approximately $9.45 billion in revenue, $3.12 billion in adjusted EBITDA (representing a 33.0% margin), and $1.30 billion in adjusted free cash flow. This guidance assumes no change in the current economic environment.

Mittelstaedt noted that the company faced "headwinds from lower-than-expected contributions from higher margin, commodity-related activities and continued sluggishness in the economy, along with tariff-induced uncertainties."

Year-to-date, Waste Connections has completed acquisitions representing approximately $200 million in annualized revenue, with management indicating a robust pipeline for additional acquisitions in the second half of the year.

For the first six months of 2025, the company reported revenue of $4.64 billion, up from $4.32 billion in the same period last year, with net income reaching $531.8 million, or $2.05 per diluted share.

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