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WCN posted Q1'26 EPS of $1.23, up 8.9% y/y, with revenues of $2.4B.
Waste Connections' steady buyouts (13 in 2023, 24 in 2024 and 19 in 2025) lifted the top line.
WCN's current ratio fell to 0.69 vs. the industry's 1, hinting at short-term payment pressure.
Waste Connections, Inc. (WCN - Free Report) reported impressive first-quarter 2026 results. WCN’s first-quarter earnings of $1.23 per share beat the Zacks Consensus Estimate by 3.4% and increased 8.9% year over year. Total revenues came in at $2.4 billion, marginally surpassing the consensus estimate and rising 6.4% from the year-ago quarter.
How Is Waste Connections Faring?
The global waste management market expansion provides WCN grounds for growth. Per Grand View Research, the market is expected to see a CAGR of 6% from 2026 to 2033 and reach $2.4 trillion. The company accounts for an estimated 35% of the total industry revenues, making it a powerhouse with a significant market share.
Waste Connections pursues buyouts consistently. In 2023, 2024 and 2025, the company completed 13, 24 and 19 such acquisitions, respectively. These acquisitions significantly contributed to its top line, with $410.9 million in 2023, $529 million in 2024 and $377 million in 2025. Some notable acquisitions made by Waste Connections include American Disposal Services, Groot Industries and Progressive Waste.
WCN is raising market penetration within existing and neighboring markets. It finds customers in the markets where waste collection services or additional services, including compaction or automated collection, are not exclusive. Furthermore, the company is leaning toward modifying its pricing strategies, wherein it will hike prices to offset increased costs to widen operating margins and generate sufficient returns on its deployed capital.
The company is committed to rewarding its shareholders despite the fluctuations in cash position, which underlines its dedication to creating long-term value for investors. In 2023, 2024 and 2025, Waste Connections paid out $271 million, $302 million and $334 million in dividends, respectively. Consistent dividends demonstrate the company’s commitment to return value to shareholders and support share prices.
Meanwhile, the regulated waste collection and disposal business is characterized by very low barriers to entry. Competitors are inclined to aggressive pricing to gain market share. This capital-intensive industry includes larger and better-capitalized companies, which affects its ability to invest in substantial labor and capital resources. All these factors strip away WCN’s profitability and weaken its margins.
Waste Connections’ current ratio (a measure of liquidity) at the end of the first quarter of 2026 was pegged at 0.69, lower than the industry average of 1. The 5% decline in the current ratio from the year-ago quarter due to a rise in accounts payable and a current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.
Earnings Snapshot
Waste Management, Inc. (WM - Free Report) reported first-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues fell short.
The company posted adjusted earnings of $1.81 per share, which beat the Zacks Consensus Estimate of $1.75 by 3.4%. The bottom line improved from the year-ago quarter’s adjusted figure of $1.67.
Revenues of $6.23 billion missed the Zacks Consensus Estimate of $6.29 billion by 1.1%. However, the top line increased 3.5% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) posted third-quarter fiscal 2026 adjusted earnings per share of $3.37, beating the Zacks Consensus Estimate of $3.28 by 2.7%. The metric increased 10.1% from the year-ago quarter.
Total revenues came in at $5.94 billion, topping the consensus mark of $5.86 billion by 1.4% and rising 7% year over year. Operationally, Employer Services client revenue retention and overall client satisfaction reached record highs for the third quarter.
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Analyzing WCN's Growth Drivers & Market Expansion Amid Liquidity Risks
Key Takeaways
Waste Connections, Inc. (WCN - Free Report) reported impressive first-quarter 2026 results. WCN’s first-quarter earnings of $1.23 per share beat the Zacks Consensus Estimate by 3.4% and increased 8.9% year over year. Total revenues came in at $2.4 billion, marginally surpassing the consensus estimate and rising 6.4% from the year-ago quarter.
How Is Waste Connections Faring?
The global waste management market expansion provides WCN grounds for growth. Per Grand View Research, the market is expected to see a CAGR of 6% from 2026 to 2033 and reach $2.4 trillion. The company accounts for an estimated 35% of the total industry revenues, making it a powerhouse with a significant market share.
Waste Connections pursues buyouts consistently. In 2023, 2024 and 2025, the company completed 13, 24 and 19 such acquisitions, respectively. These acquisitions significantly contributed to its top line, with $410.9 million in 2023, $529 million in 2024 and $377 million in 2025. Some notable acquisitions made by Waste Connections include American Disposal Services, Groot Industries and Progressive Waste.
WCN is raising market penetration within existing and neighboring markets. It finds customers in the markets where waste collection services or additional services, including compaction or automated collection, are not exclusive. Furthermore, the company is leaning toward modifying its pricing strategies, wherein it will hike prices to offset increased costs to widen operating margins and generate sufficient returns on its deployed capital.
The company is committed to rewarding its shareholders despite the fluctuations in cash position, which underlines its dedication to creating long-term value for investors. In 2023, 2024 and 2025, Waste Connections paid out $271 million, $302 million and $334 million in dividends, respectively. Consistent dividends demonstrate the company’s commitment to return value to shareholders and support share prices.
Meanwhile, the regulated waste collection and disposal business is characterized by very low barriers to entry. Competitors are inclined to aggressive pricing to gain market share. This capital-intensive industry includes larger and better-capitalized companies, which affects its ability to invest in substantial labor and capital resources. All these factors strip away WCN’s profitability and weaken its margins.
Waste Connections’ current ratio (a measure of liquidity) at the end of the first quarter of 2026 was pegged at 0.69, lower than the industry average of 1. The 5% decline in the current ratio from the year-ago quarter due to a rise in accounts payable and a current ratio of less than 1 indicates that the company may have problems paying off its short-term obligations.
Earnings Snapshot
Waste Management, Inc. (WM - Free Report) reported first-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues fell short.
The company posted adjusted earnings of $1.81 per share, which beat the Zacks Consensus Estimate of $1.75 by 3.4%. The bottom line improved from the year-ago quarter’s adjusted figure of $1.67.
Revenues of $6.23 billion missed the Zacks Consensus Estimate of $6.29 billion by 1.1%. However, the top line increased 3.5% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) posted third-quarter fiscal 2026 adjusted earnings per share of $3.37, beating the Zacks Consensus Estimate of $3.28 by 2.7%. The metric increased 10.1% from the year-ago quarter.
Total revenues came in at $5.94 billion, topping the consensus mark of $5.86 billion by 1.4% and rising 7% year over year. Operationally, Employer Services client revenue retention and overall client satisfaction reached record highs for the third quarter.