Back to top

Image: Bigstock

Why Is Waste Connections (WCN) Down 2.1% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Waste Connections (WCN - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Waste Connections due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Waste Connections, Inc. before we dive into how investors and analysts have reacted as of late.

Waste Connections Beats on Q3 Earnings

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

Waste Connections’ adjusted earnings (excluding 33 cents from non-recurring items) of $1.44 per share surpassed the Zacks Consensus Estimate by 4.4% and increased 6.7% year over year. Revenues of $2.5 billion beat the consensus estimate marginally and grew 5.1% from the year-ago quarter.

WCN Q3 Segmental Information

The Solid Waste Collection segment’s revenues grew 6.6% year over year to $1.7 billion and met our estimate. The Solid Waste Disposal and Transfer segment’s revenues increased marginally from the year-ago quarter to $456.4 million and beat our projection of $440.6 million.

The Solid Waste Recycling segment’s revenues decreased 16.2% on a year-over-year basis to $56.2 million. The figure missed our estimate of $66.1 million. The Intermodal and Other segment’s revenues declined 10.4% from the year-ago quarter to $42 million, which missed our forecast of $49 million.

The E&P Waste Treatment, Recovery and Disposal segment’s revenues rose 21.6% from the year-ago quarter to $179.1 million, outpacing our estimate of $171.9 million.

Waste Connections' Operating Results

Adjusted EBITDA in the reported quarter was $787.4 million, down 5.4% from the year-ago quarter. The adjusted EBITDA margin was 33.7%, which decreased 10 basis points from the year-ago quarter.

Operating income totaled $439.6 million compared with the year-ago quarter’s $475.3 million.

Balance Sheet & Cash Flow of WCN

Waste Connections exited the third quarter of 2025 with cash and cash equivalents of $117.6 million compared with $110.2 million at the end of the preceding quarter. The long-term debt was $8.6 billion compared with the preceding quarter’s $8.3 billion.

In the reported quarter, WCN generated $677.4 million in cash from operating activities. The adjusted free cash flow was $384.6 million. Capital expenditure totaled $297.2 million. The company paid out $81 million worth of dividends in the quarter.

WCN's FY25 Outlook

For 2025, the company expected revenues of $9.45 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?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, Waste Connections has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Waste Connections, Inc. (WCN) - free report >>

Published in