Waste Connections delivered second quarter results that exceeded Wall Street’s revenue and non-GAAP earnings expectations, supported by disciplined pricing and contributions from recent acquisitions. Management pointed to sustained benefits from multiyear investments in employee retention, safety performance, and AI-enabled pricing tools. However, operating margin declined year-over-year, as sharply higher fuel costs and lower commodity values weighed on profitability. CEO Ronald Mittelstaedt emphasized the company’s ability to navigate macroeconomic uncertainty, noting, “Our results reflect continued benefits from both multiyear improvements in employee retention and record safety performance and more recent investments in AI technology, all underpinned by disciplined operational execution.”
Is now the time to buy WCN? Find out in our full research report (it’s free for active Edge members).
Waste Connections (WCN) Q2 CY2026 Highlights:
- Revenue: $2.56 billion vs analyst estimates of $2.54 billion (6.4% year-on-year growth, 0.9% beat)
- Adjusted EPS: $1.50 vs analyst estimates of $1.35 (10.7% beat)
- Adjusted EBITDA: $840.1 million vs analyst estimates of $831.3 million (32.8% margin, 1.1% beat)
- Operating Margin: 17.1%, down from 19.1% in the same quarter last year
- Market Capitalization: $42.65 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Waste Connections’s Q2 Earnings Call
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Patrick Brown (Raymond James) asked about increased customer churn from rapid fuel price hikes. CEO Ronald Mittelstaedt noted a nominal uptick in churn due to smaller competitors lagging on surcharge implementation, but described the impact as minimal and temporary.
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Kevin Chiang (CIBC) questioned the benefit of Canadian energy infrastructure projects for Waste Connections’ R360 Canada operations. Mittelstaedt responded that while the company is well-positioned, no material volume increases have been realized yet, with idle facilities ready to reactivate if activity picks up.
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Faiza Alwy (Deutsche Bank) probed the apparent July uptick in construction-related waste. Mittelstaedt described the improvement as encouraging but cautioned against overgeneralization, emphasizing that no acceleration has been included in guidance for the remainder of the year.
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Bryan Burgmeier (Citi) sought clarity on cost inflation expectations versus initial guidance. CFO Mary Anne Whitney confirmed that cost pressures, especially from fuel, are higher than anticipated, but wage increases have moderated and underlying margin expansion is still expected.
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Andrew Azzi (Wells Fargo) requested an update on the AI initiative rollout and its profit impact. Mittelstaedt highlighted full deployment of AI-driven pricing, initial routing pilots, and projected $100 million in cumulative EBITDA benefit by 2029 from AI investments.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be tracking (1) the pace of ramp-up and operational contribution from new RNG facilities, (2) execution on AI-driven operational initiatives and their impact on margin trajectory, and (3) the volume response to potential improvements in construction and industrial activity. We will also monitor the cadence of M&A deal closures and the realization of anticipated free cash flow growth as capital outlays for major projects wind down.
Waste Connections currently trades at $169.20, in line with $167.90 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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