Why did GAAP net income decline even though adjusted results improved?

Operating income included $80.4 million primarily in impairments related to adjustments to landfill closure and post-closure costs. The company's non-GAAP measures exclude impairments and transaction-related items, which is why adjusted net income rose to $314.9 million while reported net income fell to $219.3 million.

What drove the change in the company's pricing and volume performance?

For the quarter, solid waste yield was 4.7% and core price was 6.0%, while unit volume was negative 1.5%. Surcharges were negative 0.1%, recycling was negative 0.5%, and foreign exchange added 0.5%, for a total organic growth figure of 3.1%.

How did cash generation and capital spending change?

Net cash provided by operating activities was $545.6 million, versus $541.5 million a year earlier. Capital expenditures rose to $296.6 million from $212.5 million, and adjusted free cash flow was $245.9 million, or 10.4% of revenues, compared with $332.1 million, or 14.9%, in the prior year.

What did management say about the outlook and capital returns?

Management said it is well positioned for the full year, with potential upside from commodity-related impacts, solid waste organic growth and additional acquisitions. It also expects another outsized year of acquisition activity and increasing return of capital to shareholders, including year-to-date share repurchases of over $360 million.

WCN 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.

Waste Connections, Inc., a corporation organized under the laws of Ontario, Canada, furnished a press release announcing its first quarter 2026 results, filed under Items 2.02 and 7.01 of this Form 8-K.

Revenue was $2.371 billion^a, up from $2.228 billion in the prior-year period. Operating income was $364.1 million, including $80.4 million primarily in impairments related to adjustments to landfill closure and post-closure costs, compared with $390.2 million in the prior-year period. Net income was $219.3 million, or $0.86 per diluted share, versus $241.5 million, or $0.93 per diluted share, a year earlier.

On a non-GAAP basis, adjusted net income was $314.9 million^b, or $1.23 per diluted share, up from $293.1 million, or $1.13 per diluted share. Adjusted EBITDA was $769.5 million, up from $712.2 million, with an adjusted EBITDA margin of 32.5% compared with 32.0% a year earlier. Management said results were above its expectations and pointed to possible upside to its 2026 outlook from commodity-related impacts, solid waste organic growth and additional acquisitions.

The company also reported year-to-date share repurchases of over $360 million^c, or approximately 1% of shares outstanding, and cash dividends of $0.350 per share for the quarter versus $0.315 a year earlier. The filing's cash flow statement shows net cash provided by operating activities of $545.6 million, capital expenditures of $296.6 million, and payments for acquisitions of $63.1 million in the quarter.

Adjusted free cash flow was $245.9 million^d, or 10.4% of revenues, compared with $332.1 million, or 14.9% of revenues, in the prior-year period. Management expects another outsized year of acquisition activity.

02—Key points

Key Highlights

Revenue of $2.371 billion, up from $2.228 billion, and described by management as above expectations.
Adjusted EBITDA of $769.5 million, up from $712.2 million, with a 32.5% margin versus 32.0% a year earlier.
GAAP net income of $219.3 million ($0.86 per diluted share), down from $241.5 million ($0.93), reflecting $80.4 million of impairments tied to landfill closure and post-closure cost adjustments.
Adjusted net income of $314.9 million ($1.23 per diluted share), up from $1.13 per diluted share.
Solid waste yield of 4.7% and core price of 6.0% in the quarter; unit volume declined 1.5%.
Capital expenditures rose to $296.6 million from $212.5 million, and adjusted free cash flow fell to $245.9 million from $332.1 million.
Year-to-date share repurchases exceeded $360 million, or approximately 1% of shares outstanding, and management expects another outsized year of acquisitions.

03—Questions

Frequently Asked Questions

Why did GAAP net income decline even though adjusted results improved?
Operating income included $80.4 million primarily in impairments related to adjustments to landfill closure and post-closure costs. The company's non-GAAP measures exclude impairments and transaction-related items, which is why adjusted net income rose to $314.9 million while reported net income fell to $219.3 million.
What drove the change in the company's pricing and volume performance?
For the quarter, solid waste yield was 4.7% and core price was 6.0%, while unit volume was negative 1.5%. Surcharges were negative 0.1%, recycling was negative 0.5%, and foreign exchange added 0.5%, for a total organic growth figure of 3.1%.
How did cash generation and capital spending change?
Net cash provided by operating activities was $545.6 million, versus $541.5 million a year earlier. Capital expenditures rose to $296.6 million from $212.5 million, and adjusted free cash flow was $245.9 million, or 10.4% of revenues, compared with $332.1 million, or 14.9%, in the prior year.
What did management say about the outlook and capital returns?
Management said it is well positioned for the full year, with potential upside from commodity-related impacts, solid waste organic growth and additional acquisitions. It also expects another outsized year of acquisition activity and increasing return of capital to shareholders, including year-to-date share repurchases of over $360 million.

04—Continue

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