01—Abstract
Summary
Summary of the 10-Q filed October 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Waste Connections, Inc. reported third-quarter 2025 revenues of $2.458 billiona, up from $2.338 billion a year earlier, and net income of $286.3 million, or $1.11 per diluted share, versus $308.0 million ($1.19 per diluted share) in the prior-year quarter.
Operating income declined to $439.6 millionb from $475.3 million, driven mainly by $60.1 million of impairments and other operating items, including a $30.4 million environmental liability at an operating facility. For the nine months, revenues rose to $7.094 billion and net income attributable to Waste Connections was $818.1 million, while net cash provided by operating activities reached $1.857 billion, compared with $1.660 billion a year earlier. Adjusted EBITDA for the nine months was $2.329 billion, and the company also reported adjusted net income per diluted share of $3.86 for the period.
Capital allocation was active during the period. The company spent $794.9 millionc on capital expenditures and $627.3 million on acquisitions, repurchased 2,393,351 common shares for $442.2 million under its normal course issuer bid, and paid $244.0 million in dividends. It issued $500.0 million of 5.25% Senior Notes due 2035 in June 2025.
Total long-term debt stood at $8.70 billiond at September 30, 2025, including $2.199 billion drawn on the revolving credit facility, and the company reported a working capital deficit of $684.0 million. Subsequent to quarter-end, the board raised the quarterly dividend from $0.315 to $0.350 per share. Litigation remains a significant overhang.
The Chiquita Canyon Landfill matter involves an elevated temperature landfill event, regulatory notices of violation, roughly 11,400 plaintiffs in civil lawsuits, and a County of Los Angeles suit in which a preliminary injunction was granted on August 29, 2025, with the company appealing. The company states it cannot determine the likelihood of outcomes or reasonably estimate possible losses in these matters, and that Chiquita Canyon closed active waste disposal as of December 31, 2024.
02—Key points
Key Highlights
- Revenues rose 5.1% to $2.458 billion in Q3 2025 and 6.5% to $7.094 billion for the nine months, with the filing attributing growth primarily to net price increases of $394.4 million in the nine months.
- Operating income fell 7.5% to $439.6 million in Q3 2025, as impairments and other operating items rose to $60.1 million from $2.9 million a year earlier.
- Net income attributable to Waste Connections was $286.3 million ($1.11 per diluted share) in Q3 2025, down from $308.0 million ($1.19) in Q3 2024.
- Net cash provided by operating activities increased to $1.857 billion for the nine months from $1.660 billion, while capital expenditures totaled $794.9 million.
- The company repurchased 2,393,351 common shares for $442.2 million under its NCIB during the nine months and expects 2025 capital expenditures of $1.200 to $1.250 billion.
- Long-term debt totaled $8.70 billion at September 30, 2025, including a $500.0 million 5.25% Senior Notes issuance in June 2025 and $2.199 billion outstanding on the revolving credit facility.
- Chiquita Canyon Landfill litigation and regulatory matters involve approximately 11,400 civil plaintiffs and a preliminary injunction granted to Los Angeles County, with the company unable to estimate possible losses.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Waste Connections kept $0.12.
- Revenue$2.46B100.0%
- Cost of revenue−$1.41B57.2%
- Gross profit$1.05B42.8%
- Operating costs−$611.9M24.9%
- Operating income$439.6M17.9%
- Interest, other & tax−$153.3M6.2%
- Net income$286.3M11.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 22, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.46B$2.34B | +5.1% |
| Cost of Revenue | $1.41B$1.34B | +4.7% |
| Gross Profit | $1.05B$994.41M | +5.7% |
| SG&A Expenses | $236.48M$222.53M | +6.3% |
| Operating Income | $439.59M$475.34M | −7.5% |
| Net Income | $286.27M$308.05M | −7.1% |
| EPS (Basic) | $1.11$1.19 | −6.7% |
| EPS (Diluted) | $1.11$1.19 | −6.7% |
| Shares Outstanding (Basic) | 256.95M258.02M | −0.4% |
| Shares Outstanding (Diluted) | 257.58M258.76M | −0.5% |
05—Questions
Frequently Asked Questions
How did Waste Connections perform in the third quarter of 2025?
Revenues increased 5.1% to $2.458 billion, while operating income decreased 7.5% to $439.6 million. Net income attributable to Waste Connections was $286.3 million, or $1.11 per diluted share, compared with $308.0 million, or $1.19 per diluted share, in the third quarter of 2024. The decline in operating income was attributed mainly to higher impairments and other operating items, labor and benefits costs, trucking costs and risk management costs.
What drove the increase in impairments and other operating items?
Impairments and other operating items totaled $60.1 million in Q3 2025, including $30.4 million for an environmental liability at an operating facility, $25.4 million for writing off the carrying cost of certain contracts and non-operating facility permits, and $4.3 million of losses on disposal of property and equipment.
What is the status of the Chiquita Canyon Landfill matters?
The company faces numerous civil lawsuits involving about 11,400 plaintiffs over an elevated temperature landfill event, along with notices of violation from regulators. Los Angeles County obtained a preliminary injunction on August 29, 2025, whose scope was not defined, and the company has appealed to the Ninth Circuit. The company states it cannot determine the likelihood of outcomes or reasonably estimate possible losses in these matters.
How much did the company return to shareholders?
During the nine months ended September 30, 2025, the company paid $243.95 million in cash dividends and repurchased 2,393,351 common shares for $442.2 million. Subsequent to quarter-end, the board increased the quarterly dividend to $0.350 per share from $0.315 and declared a dividend payable November 20, 2025.
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