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Here's Why Investors Must Hold WCN Stock in Their Portfolios Now
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Key Takeaways
WCN raised its 2026 revenue outlook to $10.02-$10.05B after Q2 revenues increased 6.4% to $2.56B.
Waste Connections completed deals adding over $100M in annualized revenues, adjusted FCF was $703.4M.
WCN faces rising fuel costs, weaker commodity values & lower volumes, with 2026 capex seen near $1.25B.
Waste Connections, Inc. (WCN - Free Report) shares have declined 10.7% over the past year compared with the Business - Information Services industry, which plunged 11.5%. Meanwhile, the Zacks S&P 500 Composite has returned a 14.2% gain.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 top line is pegged at $10 billion, suggesting 6% year-over-year growth. The top line is further expected to move up 5.7% year over year in 2027. For 2026 earnings per share, the consensus mark is pinned at $5.62, indicating 9.1% year-over-year growth. The anticipated growth rate for 2027 is 10.8%.
Factors That Augur Well for WCN’s Success
WCN's commitment to sustainability is encouraging, as the company continues to make progress in emissions reduction, recycling, biogas recovery and employee safety. In 2024, WCN reduced Scope 1 and 2 emissions by 9% from the 2019 baseline, while emissions intensity declined to 875 MT CO2e per million dollars of revenue from 975 in 2023. The company also recycled 2.36 million tons of commodities, up from 2.21 million tons in 2023, and increased annual landfill gas collected for energy to 32.3 billion cubic feet.
Moreover, WCN's focus on sustainability extends to its operations and workforce. The company avoided more than 7.2 million MT CO2e through recycling in 2024 and collected landfill gas for beneficial use at 30 facilities. Its safety performance also improved, with the incident rate declining to 12.8 in 2024 from 15.0 in 2023, while voluntary employee turnover fell to 12.3% from 16.7%. These initiatives support WCN's broader sustainability targets and demonstrate continued progress toward its environmental and workforce goals.
Waste Connections’ strong second-quarter 2026 performance and raised 2026 outlook supportits growth prospects. Revenues increased 6.4% year over year to $2.56 billion, while adjusted EBITDA rose 6.8% to $840.1 million. The adjusted EBITDA margin expanded to 32.8%. Solid waste internal growth of 3.6% in the quarter, driven by a 5.6% core price increase, highlights the company’s ability to generate organic growth despite lower unit volumes.
The company’s prospects are further supported by acquisition activity, improving commodity trends and strong cash generation. Waste Connections completed acquisitions with more than $100 million in annualized revenues and remains positioned to pursue further acquisition opportunities. Six-month operating cash flow rose to $1.28 billion, while adjusted free cash flow stood at $703.4 million. Consequently, WCN raised its 2026 outlook for revenues to $10.02-$10.05 billion and $3.33-$3.34 billion in adjusted EBITDA, with adjusted free cash flow expected at $1.40-$1.45 billion.
WCN’s shareholder-friendly initiatives support long-term value creation for investors. Despite fluctuations in its cash position, the company has consistently rewarded shareholders through dividend payouts. In 2023, 2024 and 2025, Waste Connections paid $271 million, $302 million and $334 million in dividends, respectively. Consistent dividend payments provide a dependable source of income for income-seeking investors. In the third quarter, the company’s board of directors declared a regular quarterly cash dividend of $0.35 per U.S. common share, payable on Aug. 20, 2026, to shareholders of record as of Aug. 6, 2026. The board intends to review the quarterly dividend each October, with a long-term objective of increasing the dividend amount.
WCN’s Key Risks to Watch
Waste Connections’ prospects are facing pressure from rising costs and weaker commodity values. During the second quarter, rapidly increasing fuel and related costs weighed on profitability, while comparatively lower commodity values continued to create a drag. These pressures were reflected in operating income, which declined to $437.6 million from $459.5 million in the prior-year quarter, despite revenues increasing 6.4%.
WCN’s growth is also being affected by lower unit volumes and higher capital requirements. Solid waste unit volume declined 1.9% in the second quarter, while recycling contributed a negative 0.2% to internal growth. Moreover, capital expenditures increased to $598.9 million in the first six months of 2026 from $497.8 million a year ago, with full-year capital expenditures projected at approximately $1.25 billion. As of June 30, 2026, the company also reported debt at 54% of book capitalization, which could limit financial flexibility as it continues to invest in its operations and pursue acquisitions.
Waste Connections’ Zacks Rank & Stocks to Consider
Some better-ranked stocks for investors’ consideration are Gartner, Inc. (IT - Free Report) and MediaAlpha, Inc. (MAX - Free Report) .
IT currently sports a Zacks Rank of #1. The company has an expected earnings growth rate of 9.26% for 2026.
IT has an encouraging earnings surprise history, as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.51%.
MAX currently sports a Zacks Rank of 1. The company has an expected earnings growth rate of 18.5% for the year 2026.
The company has an encouraging earnings surprise history, as it has topped the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 79.33%.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Investors Must Hold WCN Stock in Their Portfolios Now
Key Takeaways
Waste Connections, Inc. (WCN - Free Report) shares have declined 10.7% over the past year compared with the Business - Information Services industry, which plunged 11.5%. Meanwhile, the Zacks S&P 500 Composite has returned a 14.2% gain.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 top line is pegged at $10 billion, suggesting 6% year-over-year growth. The top line is further expected to move up 5.7% year over year in 2027. For 2026 earnings per share, the consensus mark is pinned at $5.62, indicating 9.1% year-over-year growth. The anticipated growth rate for 2027 is 10.8%.
Factors That Augur Well for WCN’s Success
WCN's commitment to sustainability is encouraging, as the company continues to make progress in emissions reduction, recycling, biogas recovery and employee safety. In 2024, WCN reduced Scope 1 and 2 emissions by 9% from the 2019 baseline, while emissions intensity declined to 875 MT CO2e per million dollars of revenue from 975 in 2023. The company also recycled 2.36 million tons of commodities, up from 2.21 million tons in 2023, and increased annual landfill gas collected for energy to 32.3 billion cubic feet.
Moreover, WCN's focus on sustainability extends to its operations and workforce. The company avoided more than 7.2 million MT CO2e through recycling in 2024 and collected landfill gas for beneficial use at 30 facilities. Its safety performance also improved, with the incident rate declining to 12.8 in 2024 from 15.0 in 2023, while voluntary employee turnover fell to 12.3% from 16.7%. These initiatives support WCN's broader sustainability targets and demonstrate continued progress toward its environmental and workforce goals.
Waste Connections’ strong second-quarter 2026 performance and raised 2026 outlook supportits growth prospects. Revenues increased 6.4% year over year to $2.56 billion, while adjusted EBITDA rose 6.8% to $840.1 million. The adjusted EBITDA margin expanded to 32.8%. Solid waste internal growth of 3.6% in the quarter, driven by a 5.6% core price increase, highlights the company’s ability to generate organic growth despite lower unit volumes.
The company’s prospects are further supported by acquisition activity, improving commodity trends and strong cash generation. Waste Connections completed acquisitions with more than $100 million in annualized revenues and remains positioned to pursue further acquisition opportunities. Six-month operating cash flow rose to $1.28 billion, while adjusted free cash flow stood at $703.4 million. Consequently, WCN raised its 2026 outlook for revenues to $10.02-$10.05 billion and $3.33-$3.34 billion in adjusted EBITDA, with adjusted free cash flow expected at $1.40-$1.45 billion.
WCN’s shareholder-friendly initiatives support long-term value creation for investors. Despite fluctuations in its cash position, the company has consistently rewarded shareholders through dividend payouts. In 2023, 2024 and 2025, Waste Connections paid $271 million, $302 million and $334 million in dividends, respectively. Consistent dividend payments provide a dependable source of income for income-seeking investors. In the third quarter, the company’s board of directors declared a regular quarterly cash dividend of $0.35 per U.S. common share, payable on Aug. 20, 2026, to shareholders of record as of Aug. 6, 2026. The board intends to review the quarterly dividend each October, with a long-term objective of increasing the dividend amount.
WCN’s Key Risks to Watch
Waste Connections’ prospects are facing pressure from rising costs and weaker commodity values. During the second quarter, rapidly increasing fuel and related costs weighed on profitability, while comparatively lower commodity values continued to create a drag. These pressures were reflected in operating income, which declined to $437.6 million from $459.5 million in the prior-year quarter, despite revenues increasing 6.4%.
WCN’s growth is also being affected by lower unit volumes and higher capital requirements. Solid waste unit volume declined 1.9% in the second quarter, while recycling contributed a negative 0.2% to internal growth. Moreover, capital expenditures increased to $598.9 million in the first six months of 2026 from $497.8 million a year ago, with full-year capital expenditures projected at approximately $1.25 billion. As of June 30, 2026, the company also reported debt at 54% of book capitalization, which could limit financial flexibility as it continues to invest in its operations and pursue acquisitions.
Waste Connections’ Zacks Rank & Stocks to Consider
WCN currently carries a Zacks Rank of #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors’ consideration are Gartner, Inc. (IT - Free Report) and MediaAlpha, Inc. (MAX - Free Report) .
IT currently sports a Zacks Rank of #1. The company has an expected earnings growth rate of 9.26% for 2026.
IT has an encouraging earnings surprise history, as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.51%.
MAX currently sports a Zacks Rank of 1. The company has an expected earnings growth rate of 18.5% for the year 2026.
The company has an encouraging earnings surprise history, as it has topped the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 79.33%.