Waste Connections raises 2026 outlook after quarterly beat

Overview

• US solid waste services firm's Q3 revenue rose and beat analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company raised dividend by 10% and repurchased over $1 bln in shares year to date

Outlook

• Waste Connections raises 2026 revenue outlook to about $10.09 bln

• Company sees 2026 net income at about $1.18 bln and adj EBITDA at $3.345 bln

• Company expects 2026 adj free cash flow of $1.4 bln to $1.45 bln

Result Drivers

• LANDFILL VOLUMES - Co said improved landfill volumes contributed to Q3 results

• EMPLOYEE RETENTION AND SAFETY - Co said elevated employee retention and record safety performance supported operating results

• MARGIN EXPANSION - Co said underlying margin expansion offset higher diesel prices

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the environmental services & equipment peer group is "buy"

• Wall Street's median 12-month price target for Waste Connections, Inc. is C$274.48, about 15.3% above its October 20 closing price of C$238.15

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 28 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)