How did Waste Connections perform against its prior outlook?

The release states that revenue, net income, adjusted EBITDA and adjusted EBITDA margin were all above outlook for the first quarter of 2025.

What drove pricing and volume in the quarter?

Core solid waste price contributed 6.9%, while volume was a 2.8% decrease. Management attributed the volume weakness to protracted weather events across many markets. Surcharges, recycling, foreign exchange and closed operations were also negative factors in the internal growth breakdown, bringing total solid waste internal growth to 2.2%.

How much did the company spend on acquisitions and capital expenditures?

Payments for acquisitions, net of cash acquired, were $380.4 million, and capital expenditures for property and equipment were $212.5 million in the first quarter of 2025. Acquisitions contributed $129.3 million of revenue in the period, compared with $78.0 million a year earlier.

What are the adjustments behind the non-GAAP figures?

Adjusted EBITDA adds back items including $11.97 million of transaction-related expenses, $1.77 million of fair value changes to equity awards, $6.44 million of impairments and other operating items, and depreciation and amortization of $289.9 million. Adjusted net income adds back amortization of intangibles of $47.6 million and other items, net of a tax effect of $16.2 million.

WCN 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 23, 2025. Cited figures are marked; the original filing is the authoritative source.

Waste Connections, Inc. reported first quarter 2025 results in a press release furnished as Exhibit 99.1 to this Form 8-K, dated April 23, 2025.

Revenue was $2.228 billion^a, up from $2.073 billion in the year-ago period. Operating income was $390.2 million, compared with $366.8 million in the first quarter of 2024. Net income attributable to Waste Connections was $241.5 million, or $0.93 per diluted share, versus $230.1 million, or $0.89 per diluted share, a year earlier.

Adjusted EBITDA, a non-GAAP measure, was $712.2 million^b, a 32.0% margin of revenues, compared with $650.7 million (31.4%) in the prior-year period. Adjusted net income was $293.1 million, or $1.13 per diluted share, up from $1.04. Core solid waste price was 6.9%, which management credited with driving results.

Volume was a 2.8% headwind, which the company attributed to protracted weather events across many markets. Net cash provided by operating activities was $541.5 million^c and adjusted free cash flow was $332.1 million. Capital expenditures were $212.5 million and payments for acquisitions were $380.4 million.

Year-to-date acquired annualized revenue exceeded $125 million^d, including a recycling facility in New Jersey. Management said the balance sheet and free cash flow provide room for above-average acquisition activity in 2025 and increased shareholder returns. Cash dividends were $0.315 per share, up from $0.285.

The company stated it would file a separate Form 8-K before market open on April 24, 2025, providing its second-quarter 2025 outlook for revenue and adjusted EBITDA. A conference call was scheduled for April 24, 2025 at 8:30 A.M. Eastern Time.

02—Key points

Key Highlights

Revenue of $2.228 billion, up from $2.073 billion, a year-over-year increase the release describes as 7.5%.
Net income attributable to Waste Connections of $241.5 million, or $0.93 per diluted share, versus $0.89 a year earlier.
Adjusted EBITDA of $712.2 million, a 32.0% margin, compared with $650.7 million (31.4%) in the prior-year period.
Adjusted net income of $1.13 per diluted share, up from $1.04; adjusted free cash flow of $332.1 million.
Core solid waste price of 6.9%, offset by a 2.8% volume decline that management attributed to weather events.
Year-to-date acquired annualized revenue of over $125 million, including a New Jersey recycling facility.
Quarterly cash dividend increased to $0.315 per share from $0.285.

03—Questions

Frequently Asked Questions

How did Waste Connections perform against its prior outlook?
The release states that revenue, net income, adjusted EBITDA and adjusted EBITDA margin were all above outlook for the first quarter of 2025.
What drove pricing and volume in the quarter?
Core solid waste price contributed 6.9%, while volume was a 2.8% decrease. Management attributed the volume weakness to protracted weather events across many markets. Surcharges, recycling, foreign exchange and closed operations were also negative factors in the internal growth breakdown, bringing total solid waste internal growth to 2.2%.
How much did the company spend on acquisitions and capital expenditures?
Payments for acquisitions, net of cash acquired, were $380.4 million, and capital expenditures for property and equipment were $212.5 million in the first quarter of 2025. Acquisitions contributed $129.3 million of revenue in the period, compared with $78.0 million a year earlier.
What is the company's outlook going forward?
The release does not include the full-year outlook. It says the company will file a separate Form 8-K before market open on April 24, 2025, with its second-quarter 2025 outlook for revenue and adjusted EBITDA. Management said the company expects to continue above-average acquisition activity during 2025 and increase capital returned to shareholders.
What are the adjustments behind the non-GAAP figures?
Adjusted EBITDA adds back items including $11.97 million of transaction-related expenses, $1.77 million of fair value changes to equity awards, $6.44 million of impairments and other operating items, and depreciation and amortization of $289.9 million. Adjusted net income adds back amortization of intangibles of $47.6 million and other items, net of a tax effect of $16.2 million.

04—Continue

← View all 8-K filings