It has been about a month since the last earnings report for Waste Connections (WCN Quick QuoteWCN - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Waste Connections due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Waste Connections Beats on Q2 Earnings

Waste Connections, Inc. reported impressive second-quarter 2025 results, wherein earnings and revenues outpaced the Zacks Consensus Estimates.

Waste Connections’ adjusted earnings (excluding 17 cents from non-recurring items) of $1.29 per share surpassed the Zacks Consensus Estimate by 3.2% and increased 4% year over year. Revenues of $2.4 billion beat the consensus estimate marginally and grew 7.1% from the year-ago quarter.

Segmental Information for WCN

The Solid Waste Collection segment’s revenues moved up marginally year over year to $1.6 billion and missed our estimate of $1.7 billion. The Solid Waste Disposal and Transfer segment’s revenues surged 71.1% from the year-ago quarter to $756 million and missed our projection of $730.1 million.

The E&P Waste Treatment, Recovery and Disposal segment’s revenues increased 4.9% from the same quarter last year to $123.6 million, missing our estimate of $168.4 million. The Solid Waste Recycling segment’s revenues grew 3.5% year over year to $63.3 million. The figure fell short of our forecast of $65.7 million.

The Intermodal and Other segment’s revenues gained marginally from the year-ago quarter to $49.1 million, which missed our estimate of $60.7 million.

Waste Connections' Operating Results

Adjusted EBITDA in the reported quarter was $731.8 million, dropping 6.9% from the year-ago quarter. The adjusted EBITDA margin was 32.6%, which decreased 10 basis points from the year-ago quarter.

Operating income totaled $424.7 million compared with the year-ago operating income of $459.5 million.

Balance Sheet & Cash Flow of WCN

Waste Connections exited the second quarter of 2025 with cash and cash equivalents of $62.4 million compared with $111.2 million at the end of the preceding quarter. The long-term debt was $8.1 billion compared with the preceding quarter’s $8.4 billion.

In the reported quarter, WCN generated $611.4 million in cash from operating activities. The adjusted free cash flow was $402.6 million. Capital expenditure totaled $217.2 million. The company paid out $73.7 million worth of dividends in the quarter.

WCN's FY25 Outlook

For 2025, the company expected revenues of $9.45 billion, lower than the Zacks Consensus Estimate of $9.51 billion. Adjusted EBITDA is anticipated to be $3.12 billion, which is nearly 33% of the top line.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Waste Connections has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Waste Connections has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Waste Connections belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Pentair plc (PNR Quick QuotePNR - Free Report) , has gained 1.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Pentair reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +2.2%. EPS of $1.39 for the same period compares with $1.22 a year ago.

Pentair is expected to post earnings of $1.18 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pentair. Also, the stock has a VGM Score of A.