We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WCN Benefits From Buyouts & Global Waste-Management Market Expansion
Read MoreHide Full Article
Key Takeaways
WCN expects 2026 revenues of $10.02-$10.05B, backed by acquisitions and strong pricing initiatives.
Buyouts added $387.9M to 2025 revenues, while 2026 deals contributed nearly $100M in annualized sales.
WCN's AI pricing tool delivers $20M in annualized EBITDA benefits, with broader AI gains targeted at $100M.
Waste Connections (WCN - Free Report) reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter. Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year.
How Is Waste Connections Faring?
Per a Grand View Research report, the global waste-management market is anticipated to see a 6% CAGR through 2033, fueled by rising waste generation, urbanization, stricter environmental regulations, and swifter adoption of recycling and waste-to-energy technologies. This backdrop supports the company’s growth strategy. In 2025, the company reported revenues of $9.5 billion and expects to generate $10.02-$10.05 billion in 2026, implying 5.8-6.1% growth.
WCN’s core price and yield increased 5.6% and 4.6%, respectively, in the second quarter of 2026, while fuel and material surcharges contributed 1.1%. Management anticipates 2026 core pricing of at least 5.5% and plans to recover higher fuel costs through additional surcharges. Its AI-backed pricing tool should enhance customer-level decisions and optimize yield.
Buyouts raised revenues by $387.9 million in 2025. Acquisitions net of divestitures accounted for $377.2 million in incremental revenues. In the first half of 2026, the company’s completed acquisitions contributed to nearly $100 million in annualized revenues. Management expects an above-average acquisition year, while its 2026 expectations exclude additional deals that may close, leaving room for incremental upside in its top line.
Waste Connections’ AI pricing tool has generated approximately $20 million in annualized EBITDA benefits, while management expects its broader AI program to ultimately deliver $100 million in EBITDA improvement. Employee retention has also improved, with voluntary turnover down 17% in 2025 and more than 50% cumulatively since 2022.
In the second quarter of 2026, management mentioned that it benefits from retention and safety, magnifying underlying margin expansion, with lower risk-management costs accounting for about half of the 70-basis-point improvement. These recurring efficiency levers support earnings growth even when volumes remain soft.
View the Zacks #1 Rank List
Image: Bigstock
WCN Benefits From Buyouts & Global Waste-Management Market Expansion
Key Takeaways
Waste Connections (WCN - Free Report) reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter. Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year.
How Is Waste Connections Faring?
Per a Grand View Research report, the global waste-management market is anticipated to see a 6% CAGR through 2033, fueled by rising waste generation, urbanization, stricter environmental regulations, and swifter adoption of recycling and waste-to-energy technologies. This backdrop supports the company’s growth strategy. In 2025, the company reported revenues of $9.5 billion and expects to generate $10.02-$10.05 billion in 2026, implying 5.8-6.1% growth.
Waste Connections, Inc. Revenue (TTM)
Waste Connections, Inc. revenue-ttm | Waste Connections, Inc. Quote
WCN’s core price and yield increased 5.6% and 4.6%, respectively, in the second quarter of 2026, while fuel and material surcharges contributed 1.1%. Management anticipates 2026 core pricing of at least 5.5% and plans to recover higher fuel costs through additional surcharges. Its AI-backed pricing tool should enhance customer-level decisions and optimize yield.
Buyouts raised revenues by $387.9 million in 2025. Acquisitions net of divestitures accounted for $377.2 million in incremental revenues. In the first half of 2026, the company’s completed acquisitions contributed to nearly $100 million in annualized revenues. Management expects an above-average acquisition year, while its 2026 expectations exclude additional deals that may close, leaving room for incremental upside in its top line.
Waste Connections’ AI pricing tool has generated approximately $20 million in annualized EBITDA benefits, while management expects its broader AI program to ultimately deliver $100 million in EBITDA improvement. Employee retention has also improved, with voluntary turnover down 17% in 2025 and more than 50% cumulatively since 2022.
In the second quarter of 2026, management mentioned that it benefits from retention and safety, magnifying underlying margin expansion, with lower risk-management costs accounting for about half of the 70-basis-point improvement. These recurring efficiency levers support earnings growth even when volumes remain soft.
Zacks Rank & Stocks to Consider
WCN currently has a Zacks Rank #2 (Buy).
Some better-ranked stocks from the broader Zacks Business Services sector are ScanSource (SCSC - Free Report) and Coherent Corp. (COHR - Free Report) . These two companies presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coherent Corp has a long-term earnings growth expectation of 52.5%. COHR delivered a trailing four-quarter earnings surprise of 6.2%, on average.
ScanSource has a long-term earnings growth expectation of 15%. SCSC delivered a trailing four-quarter earnings surprise of 7.8%, on average.