01—Abstract
Summary
Summary of the 8-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Waste Connections, Inc. furnished this Form 8-K under Item 7.01 (Regulation FD Disclosure) to restate outlook highlighted on its February 13, 2025 earnings conference call.
For the first quarter of 2025, the company estimates revenue of $2.200 billion to $2.225 billiona, net income attributable to Waste Connections of $241.0 million to $246.0 million, and Adjusted EBITDA of $700 million to $710 million, or 31.8% to 31.9% of revenue. The filing's reconciliation schedule shows the components bridging net income to Adjusted EBITDA for the quarter, including an income tax provision of $72.0 million to $74.0 million (approximately a 23% effective rate), interest expense net of interest income of $80.0 million, depreciation and depletion of $247.0 million to $250.0 million (approximately 11.2% of revenue), amortization of $48.0 million (approximately 2.2% of revenue, or $0.13 per diluted share net of taxes), and closure and post-closure accretion of $12.0 million.
For the full year, in addition to the outlook provided in a separate Form 8-K filed February 12, 2025, the company expects solid waste price plus volume growth of 4%b to 5%, excluding about a half-point volume impact from the closing of its Chiquita Canyon Landfill, on pricing of about 6.0%. The estimates assume no change in the current economic environment and include contributions from acquisitions signed under definitive agreements and expected to close in the second quarter, but exclude additional acquisitions closing later in the year and transaction-related expensing.
02—Key points
Key Highlights
- Q1 2025 revenue outlook of $2.200 billion to $2.225 billion
- Q1 2025 net income attributable to Waste Connections estimated at $241.0 million to $246.0 million
- Q1 2025 Adjusted EBITDA estimated at $700 million to $710 million, or 31.8% to 31.9% of revenue
- Q1 depreciation and depletion estimated at $247.0 million to $250.0 million, approximately 11.2% of revenue
- Full-year solid waste price plus volume growth expected at 4% to 5%, excluding about a half-point volume impact from Chiquita Canyon Landfill closure
- Full-year solid waste pricing expected to be about 6.0%
- Outlook includes acquisitions signed and expected to close in Q2 2025 but excludes further acquisitions closing later in the year
03—Questions
Frequently Asked Questions
What revenue and profitability does Waste Connections expect for the first quarter of 2025?
The company estimates first-quarter 2025 revenue of $2.200 billion to $2.225 billion, net income attributable to Waste Connections of $241.0 million to $246.0 million, and Adjusted EBITDA of $700 million to $710 million, or 31.8% to 31.9% of revenue.
How is Adjusted EBITDA defined and reconciled to net income in this filing?
Adjusted EBITDA is defined as net income attributable to Waste Connections, adjusted for noncontrolling interests, income tax provision, net interest expense, depreciation and amortization, closure and post-closure accretion, impairments and other operating items, and other income or expense, with further adjustments for items management believes affect operating performance. The filing's first-quarter reconciliation adds back an income tax provision of $72.0 million to $74.0 million, interest expense net of interest income of $80.0 million, depreciation and depletion of $247.0 million to $250.0 million, amortization of $48.0 million, and closure and post-closure accretion of $12.0 million.
What full-year 2025 solid waste growth and pricing does the company expect?
For the full year, the company expects solid waste price plus volume growth of 4% to 5%, excluding about a half-point volume impact from the closing of its Chiquita Canyon Landfill, on pricing of about 6.0%. This is in addition to the outlook provided in a separate Form 8-K filed February 12, 2025.
What assumptions underlie the outlook?
The estimates assume no change in the current economic environment. They include contributions from acquisitions signed under definitive agreements and expected to close during the second quarter, but exclude impacts from additional acquisitions that may close during the rest of the year and the expensing of transaction-related items.
Is the information in Item 7.01 considered filed for securities liability purposes?
No. The filing states that the information furnished under Item 7.01 is not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, is not subject to the liabilities of that section, and is not deemed incorporated by reference in any Securities Act of 1933 filing.
04—Continue