01—Abstract
Summary
Summary of the 10-Q filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Waste Connections, Inc. (WCN) reported second-quarter 2026 revenues of $2.562 billiona, up from $2.407 billion in the prior-year quarter, and net income of $296.4 million, or $1.17 per diluted share, compared with $290.3 million, or $1.12, a year earlier.
Operating income declined to $437.6 millionb from $459.5 million, driven primarily by $58.5 million of impairments and other operating items, which included net losses of $55.8 million to adjust closure and post-closure liabilities. For the six months, revenues rose to $4.932 billion and net income fell to $515.7 million from $531.8 million. Adjusted EBITDA for the quarter was $840.1 million, compared with $786.4 million a year earlier, as stated in the filing's non-GAAP reconciliation.
Cash flow and capital allocation remained substantial. Net cash provided by operating activities was $1.279 billionc for the six months, while capital expenditures for property and equipment were $598.9 million and the company repurchased common shares for $614.5 million. Long-term debt increased to $9.28 billion, including $600.0 million of 4.80% Senior Notes due 2036 issued in March 2026.
The company had a working capital deficit of $729.0 milliond at June 30, 2026, and the quarterly dividend was $0.350 per share. The filing also discloses significant litigation tied to the Chiquita Canyon Landfill, including the Elevated Temperature Landfill event, roughly 12,730 plaintiffs in civil suits as of July 21, 2026, and a Los Angeles County lawsuit. The company states it cannot determine the likelihood of outcome or reasonably estimate the possible loss in these matters, and it has not recorded an estimate for them.
02—Key points
Key Highlights
- Revenues of $2.562 billion for Q2 2026, up $154.6 million, or 6.4%, from $2.407 billion; six-month revenues of $4.932 billion, up 6.4%.
- Net income of $296.4 million ($1.17 per diluted share) for Q2 2026, versus $290.3 million ($1.12) a year earlier; six-month net income of $515.7 million versus $531.8 million.
- Operating income fell to $437.6 million from $459.5 million, mainly due to $58.5 million of impairments and other operating items, including $55.8 million of closure and post-closure liability adjustments.
- Adjusted EBITDA of $840.1 million for Q2 2026, compared with $786.4 million in Q2 2025, per the company's non-GAAP reconciliation.
- Share repurchases of $614.5 million in the first half of 2026 and cash dividends of $177.1 million; quarterly dividend of $0.350 per share declared for August 2026.
- Long-term debt rose to $9.28 billion, including $600.0 million of 4.80% Senior Notes due 2036 issued in March 2026; the revolver had $2.275 billion drawn.
- Chiquita Canyon Landfill litigation and regulatory matters remain unresolved, with roughly 12,730 civil plaintiffs and a Los Angeles County lawsuit; the company cannot estimate the possible loss.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Waste Connections kept $0.12.
- Revenue$2.56B100.0%
- Cost of revenue−$1.48B57.7%
- Gross profit$1.08B42.3%
- Operating costs−$644.8M25.2%
- Operating income$437.6M17.1%
- Interest, other & tax−$141.2M5.5%
- Net income$296.4M11.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 23, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.56B$2.41B | +6.4% |
| Cost of Revenue | $1.48B$1.39B | +6.2% |
| Gross Profit | $1.08B$1.01B | +6.7% |
| SG&A Expenses | $260.49M$242.97M | +7.2% |
| Operating Income | $437.55M$459.55M | −4.8% |
| Net Income | $296.40M$290.28M | +2.1% |
| EPS (Basic) | $1.17$1.12 | +4.5% |
| EPS (Diluted) | $1.17$1.12 | +4.5% |
| Shares Outstanding (Basic) | 253.46M258.38M | −1.9% |
| Shares Outstanding (Diluted) | 253.86M258.98M | −2.0% |
05—Questions
Frequently Asked Questions
How did Waste Connections perform in the second quarter of 2026?
Revenues rose 6.4% to $2.562 billion, and net income was $296.4 million, or $1.17 per diluted share, up from $290.3 million, or $1.12, a year earlier. Operating income declined to $437.6 million from $459.5 million, largely due to higher impairments and other operating items.
What drove the decline in operating income?
The filing attributes the decrease primarily to increased impairments and other operating items of $58.5 million in the quarter, along with acquisition-related operating expenses, higher taxes on revenue, increased depreciation, labor and incentive compensation, and higher trucking costs, partially offset by price increases.
How is the company returning capital to shareholders?
In the first six months of 2026 the company repurchased common shares for $614.5 million and paid $177.1 million in cash dividends. After June 30, 2026, it repurchased 452,498 shares for $77.5 million, and its board approved a $0.350 quarterly dividend payable August 20, 2026.
What are the main legal risks disclosed in the filing?
The most significant risks relate to the Chiquita Canyon Landfill, including an Elevated Temperature Landfill event, regulatory notices of violation and orders, roughly 12,730 plaintiffs in civil lawsuits, and a Los Angeles County public nuisance suit seeking an injunction. The company says it cannot determine the likelihood of outcome or reasonably estimate the possible loss or range of loss.
How did debt and liquidity change?
Long-term debt increased to $9.28 billion at June 30, 2026, from $8.81 billion at December 31, 2025, after issuing $600.0 million of 4.80% Senior Notes due 2036. The company reported a working capital deficit of $729.0 million and cash and equivalents of $98.2 million, and its revolving credit agreement matures February 27, 2029.
06—Continue