01—Abstract
Summary
Summary of the 10-Q filed April 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Waste Connections, Inc. reported first-quarter 2025 revenues of $2.228 billiona, up from $2.073 billion a year earlier, with net income attributable to Waste Connections of $241.5 million, or $0.93 diluted earnings per share, compared with $230.1 million, or $0.89, in the prior-year period.
Operating income rose to $390.2 millionb from $366.8 million. The filing attributes revenue growth mainly to $129.5 million of net price increases and $131.0 million from acquisitions, partly offset by $65.9 million of volume losses. Net cash provided by operating activities was $541.5 million, and capital expenditures were $212.5 million.
The company expects 2025 capital expenditures of approximately $1.200 billion to $1.225 billionc. Balance sheet debt rose: long-term debt and notes payable totaled $8.39 billion at March 31, 2025, and the Revolving Credit Agreement balance increased to $2.48 billion from $2.16 billion at year-end. The company had a working capital deficit of $548.4 million.
Acquisitions consumed $380.4 milliond in cash during the quarter, and the board declared a regular quarterly dividend of $0.315 per share, paid on May 22, 2025. The most significant risk disclosure concerns the Chiquita Canyon Landfill in Los Angeles County. The company closed active waste disposal there as of December 31, 2024, after a tonnage restriction took effect.
The filing describes an elevated temperature landfill event, roughly 321 Rule 402 notices of violation from SCAQMD, a U.S. EPA finding of violation, and about 9,200 plaintiffs in civil lawsuits. The company says it cannot determine the likelihood or amount of potential penalties or outcomes. The Jefferson Parish, Louisiana landfill class certification was denied on March 27, 2025.
02—Key points
Key Highlights
- Revenue of $2.228 billion, up from $2.073 billion; price increases contributed $129.5 million and acquisitions $131.0 million, while volume losses totaled $65.9 million.
- Net income attributable to Waste Connections of $241.5 million ($0.93 diluted EPS) versus $230.1 million ($0.89) a year earlier.
- Operating income of $390.2 million, compared with $366.8 million; SG&A rose to $250.1 million from $220.7 million.
- Operating cash flow of $541.5 million; capital expenditures of $212.5 million, with full-year 2025 capex guidance of approximately $1.200 billion to $1.225 billion.
- Long-term debt rose to $8.39 billion; the Revolving Credit Agreement balance was $2.48 billion at March 31, 2025, up from $2.16 billion at December 31, 2024.
- Chiquita Canyon Landfill: active disposal closed as of December 31, 2024, with about 9,200 civil plaintiffs, numerous NOVs and EPA and DTSC violation notices, and an undetermined penalty exposure.
- Quarterly dividend raised to $0.315 per share from $0.285; Q1 2025 dividends paid totaled $81.5 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Waste Connections kept $0.11.
- Revenue$2.23B100.0%
- Cost of revenue−$1.29B58.0%
- Gross profit$936.7M42.0%
- Operating costs−$546.5M24.5%
- Operating income$390.2M17.5%
- Interest, other & tax−$148.7M6.7%
- Net income$241.5M10.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 24, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $2.23B$2.07B | +7.5% |
| Cost of Revenue | $1.29B$1.22B | +5.7% |
| Gross Profit | $936.73M$850.87M | +10.1% |
| SG&A Expenses | $250.13M$220.74M | +13.3% |
| Operating Income | $390.21M$366.80M | +6.4% |
| Net Income | $241.51M$229.13M | +5.4% |
| EPS (Basic) | $0.94$0.89 | +5.6% |
| EPS (Diluted) | $0.93$0.89 | +4.5% |
| Shares Outstanding (Basic) | 258.19M257.80M | +0.2% |
| Shares Outstanding (Diluted) | 258.90M258.48M | +0.2% |
05—Questions
Frequently Asked Questions
How did Waste Connections perform in the first quarter of 2025?
Revenue rose to $2.228 billion from $2.073 billion, and operating income increased to $390.2 million from $366.8 million. Net income attributable to Waste Connections was $241.5 million, or $0.93 per diluted share, compared with $230.1 million, or $0.89, a year earlier. The filing attributes growth primarily to price increases and acquisitions.
What is the main legal and environmental risk disclosed?
The Chiquita Canyon Landfill matter is the most significant. Following an elevated temperature landfill event, the company faces roughly 321 Rule 402 notices of violation from SCAQMD, 18 additional notices from SCAQMD, five Water Board notices, three DTSC summaries of violation, and an EPA finding of violation. About 9,200 plaintiffs are involved in civil suits, and Los Angeles County has filed its own lawsuit. The company states it cannot determine the likelihood or amount of penalties or outcomes.
How is the company's debt position changing?
Long-term debt and notes payable increased to $8.39 billion at March 31, 2025, from $8.07 billion at December 31, 2024. The Revolving Credit Agreement balance rose to $2.48 billion, and the company had $464.1 million available under that facility. The filing notes a working capital deficit of $548.4 million.
What did the company say about capital allocation and shareholder returns?
The company spent $380.4 million on acquisitions and $212.5 million on capital expenditures in the quarter. It paid $81.5 million in dividends and did not repurchase any shares under its normal course issuer bid during the quarter. The board declared a $0.315 quarterly dividend payable May 22, 2025.
What does the adjusted free cash flow figure show?
Adjusted free cash flow was $332.1 million for the quarter, compared with $324.8 million a year earlier, according to the company's non-GAAP reconciliation. Adjusted EBITDA was $712.2 million, compared with $650.7 million.
06—Continue