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Waste Connections (WCN) Down 7.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Waste Connections (WCN - Free Report) . Shares have lost about 7.8% 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? Well, first let's take a quick look at the 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 Q1 Earnings
Waste Connections, Inc. reported impressive first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
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.
WCN’s Q1 Segmental Information
The company logged $1.7 billion in revenues from the Solid Waste Collection segment, which gained 5.4% year over year. In the Solid Waste Disposal and Transfer segment, revenues increased 6.7% from the year-ago quarter to $386.1 million. These segments improved, backed by solid core pricing.
The Solid Waste Recycling segment witnessed a 12.9% year-over-year decline in revenues to $51.6 million. For the E&P Waste Treatment, Recovery and Disposal segment, revenues totaled $179.5 million, marking a 24.2% year-over-year increase. The Intermodal and Other segment recorded $49 million in revenues, up 6.1% from the year-ago quarter.
WCN’s Operating Results
Adjusted EBITDA in the reported quarter was $769.5 million, up 8% from the year-ago quarter. The adjusted EBITDA margin was 32.5%, up 50 basis points from the first quarter of 2025.
The company recorded an operating income of $390.2 million, which rose 7.1% from the year-ago quarter’s recorded figure.
Key Balance Sheet & Cash Flow Metrics
Waste Connections exited the first quarter of 2026 with cash and cash equivalents of $112.4 million, up from $46 million in the preceding quarter. The long-term portion of debt and notes payable was $9 billion, compared with $8.8 billion in the fourth quarter of 2025.
In the reported quarter, WCN generated $546 million in cash from operating activities. The adjusted free cash flow was $245.9 million. Capital expenditure totaled $296.6 million. The company paid out $88.7 million in dividends during the quarter.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, 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 was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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. Interestingly, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Waste Connections (WCN) Down 7.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Waste Connections (WCN - Free Report) . Shares have lost about 7.8% 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? Well, first let's take a quick look at the 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 Q1 Earnings
Waste Connections, Inc. reported impressive first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
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.
WCN’s Q1 Segmental Information
The company logged $1.7 billion in revenues from the Solid Waste Collection segment, which gained 5.4% year over year. In the Solid Waste Disposal and Transfer segment, revenues increased 6.7% from the year-ago quarter to $386.1 million. These segments improved, backed by solid core pricing.
The Solid Waste Recycling segment witnessed a 12.9% year-over-year decline in revenues to $51.6 million. For the E&P Waste Treatment, Recovery and Disposal segment, revenues totaled $179.5 million, marking a 24.2% year-over-year increase. The Intermodal and Other segment recorded $49 million in revenues, up 6.1% from the year-ago quarter.
WCN’s Operating Results
Adjusted EBITDA in the reported quarter was $769.5 million, up 8% from the year-ago quarter. The adjusted EBITDA margin was 32.5%, up 50 basis points from the first quarter of 2025.
The company recorded an operating income of $390.2 million, which rose 7.1% from the year-ago quarter’s recorded figure.
Key Balance Sheet & Cash Flow Metrics
Waste Connections exited the first quarter of 2026 with cash and cash equivalents of $112.4 million, up from $46 million in the preceding quarter. The long-term portion of debt and notes payable was $9 billion, compared with $8.8 billion in the fourth quarter of 2025.
In the reported quarter, WCN generated $546 million in cash from operating activities. The adjusted free cash flow was $245.9 million. Capital expenditure totaled $296.6 million. The company paid out $88.7 million in dividends during the quarter.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, 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 was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. 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. Interestingly, Waste Connections has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.