01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Waste Connections, Inc. reported first-quarter 2026 revenues of $2.371 billiona, up from $2.228 billion a year earlier, with net income of $219.3 million, or $0.86 per diluted share, compared with $241.5 million, or $0.93, in the prior-year quarter.
Operating income fell to $364.1 millionb from $390.2 million, driven mainly by $79.6 million of impairments and other operating items, including $76.8 million of net losses to adjust closure and post-closure liabilities. Management attributed revenue growth largely to $120.0 million of net price increases and $57.4 million from acquisitions, partially offset by $57.9 million of volume losses. Adjusted EBITDA was $769.5 million versus $712.2 million, and the company reported segment EBITDA of $758.4 million, a 32.0% margin.
Cash flow and balance sheet activity were significant during the quarter. Net cash from operations was $545.6 millionc, while capital expenditures of $296.6 million and $283.96 million of share repurchases were funded alongside $600.0 million of 4.80% Senior Notes due 2036 issued in March 2026. Long-term debt rose to $9.09 billion from $8.81 billion, and the working capital deficit narrowed to $631.1 million from $812.7 million at year-end 2025.
Management expects 2026 capital expenditures of approximately $1.250 billiond. The filing also details extensive litigation tied to the Chiquita Canyon Landfill, where the company closed active disposal operations at the end of 2024.
Approximately 12,400 plaintiffs are named in civil suits, and the company says it cannot determine the likelihood or estimate the range of loss for those matters. The Los Angeles County lawsuit, a preliminary injunction granted in August 2025, and regulatory enforcement actions remain pending, and the company says potential penalties could be substantial.
02—Key points
Key Highlights
- Revenue rose to $2,370.6 million from $2,228.2 million, with $120.0 million from net price increases and $57.4 million from acquisitions.
- Operating income declined to $364.1 million from $390.2 million, mainly due to $79.6 million of impairments and other operating items.
- Net income was $219.3 million ($0.86 diluted EPS) versus $241.5 million ($0.93) a year earlier.
- Adjusted EBITDA increased to $769.5 million from $712.2 million; adjusted net income per diluted share was $1.23 versus $1.13.
- Operating cash flow was $545.6 million; capital expenditures were $296.6 million, and 2026 capex is expected to be about $1.250 billion.
- The company issued $600.0 million of 4.80% Senior Notes due 2036 and repurchased 1,695,049 shares for $284.0 million; the quarterly dividend increased to $0.350 per share.
- Chiquita Canyon Landfill litigation involves about 12,400 plaintiffs, and the company cannot estimate the possible loss or range of loss in these matters.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Waste Connections kept $0.09.
- Revenue$2.37B100.0%
- Cost of revenue−$1.36B57.4%
- Gross profit$1.01B42.6%
- Operating costs−$645.5M27.2%
- Operating income$364.1M15.4%
- Interest, other & tax−$144.7M6.1%
- Net income$219.3M9.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.37B$2.23B | +6.4% |
| Cost of Revenue | $1.36B$1.29B | +5.4% |
| Gross Profit | $1.01B$936.73M | +7.8% |
| SG&A Expenses | $251.12M$250.13M | +0.4% |
| Operating Income | $364.08M$390.21M | −6.7% |
| Net Income | $219.34M$241.51M | −9.2% |
| EPS (Basic) | $0.86$0.94 | −8.5% |
| EPS (Diluted) | $0.86$0.93 | −7.5% |
| Shares Outstanding (Basic) | 255.35M258.19M | −1.1% |
| Shares Outstanding (Diluted) | 255.87M258.90M | −1.2% |
05—Questions
Frequently Asked Questions
Why did operating income decline despite higher revenue?
Operating income fell to $364.1 million from $390.2 million. The filing attributes the decline mainly to $79.6 million of impairments and other operating items, including $76.8 million of net losses from adjusting closure and post-closure liabilities, along with higher depreciation, taxes on revenue, and labor and incentive compensation costs.
How did the company's cash position and debt change?
Cash and equivalents rose to $112.4 million from $46.0 million. Long-term debt and notes payable increased to $9.09 billion from $8.81 billion, reflecting the $600.0 million 2036 Senior Notes offering, partly offset by principal payments and revolver repayments. The revolver balance decreased to $2.08 billion from $2.38 billion.
What is the status of the Chiquita Canyon Landfill matters?
The company closed active waste disposal at the landfill as of December 31, 2024. It faces numerous civil lawsuits with about 12,400 plaintiffs, a Los Angeles County public nuisance suit in which a preliminary injunction was granted on August 29, 2025 and is under appeal with oral argument scheduled for May 22, 2026, and multiple regulatory enforcement actions. The company says it cannot determine the likelihood of outcomes or reasonably estimate possible losses.
What capital return actions did the company take?
During the quarter, the company repurchased 1,695,049 common shares for $283.96 million, and it paid $88.7 million in cash dividends. After quarter-end it repurchased an additional 478,294 shares for $78.7 million. The board approved a quarterly dividend of $0.350 per share payable May 21, 2026.
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