Waste Connections, Inc 10-Q for FY2025 Q1

Waste Connections, Inc. (WCN)

10-Q 2025-04-24 For: 2025-03-31

Added on April 07, 2026

About this 10-Q

Waste Connections, Inc filed this 10-Q on April 24, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.23B; up 7.5% from $2.07B a year earlier
Net income: $241.51M; up 5.0% from net income of $230.05M a year earlier
Diluted EPS: $0.93; up 4.5% from $0.89 a year earlier

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☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2025
	Or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, no par value	WCN	New York Stock Exchange (“NYSE”) Toronto Stock Exchange (“TSX”)


þ Large Accelerated Filer	◻ Accelerated Filer	◻ Non-accelerated Filer	☐ Smaller Reporting Company	☐ Emerging Growth Company


		Page
PART I – FINANCIAL INFORMATION (unaudited)
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Net Income	2
	Condensed Consolidated Statements of Comprehensive Income	3
	Condensed Consolidated Statements of Equity	4
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	54
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	55
Item 6.	Exhibits	55
Signatures		56


	March 31,		December 31,
	2025		2024
ASSETS
Current assets:
Cash and equivalents	$	111,226	$	62,366
Accounts receivable, net of allowance for credit losses of $25,280 and $25,730 at March 31, 2025 and December 31, 2024, respectively		952,010		935,027
Prepaid expenses and other current assets		217,802		229,519
Total current assets		1,281,038		1,226,912

Restricted cash		138,220		135,807
Restricted investments		74,160		78,126
Property and equipment, net		8,222,980		8,035,929
Operating lease right-of-use assets		311,563		308,198
Goodwill		8,055,979		7,950,406
Intangible assets, net		2,067,264		1,991,619
Other assets, net		103,293		90,812
Total assets	$	20,254,497	$	19,817,809
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	625,582	$	637,371
Book overdraft		14,518		14,628
Deferred revenue		404,382		382,501
Accrued liabilities		690,222		736,824
Current portion of operating lease liabilities		39,857		40,490
Current portion of contingent consideration		47,261		59,169
Current portion of long-term debt and notes payable		7,657		7,851
Total current liabilities		1,829,479		1,878,834

Long-term portion of debt and notes payable		8,388,364		8,072,928
Long-term portion of operating lease liabilities		266,675		272,107
Long-term portion of contingent consideration		28,001		27,993
Deferred income taxes		1,011,613		958,340
Other long-term liabilities		716,185		747,253
Total liabilities		12,240,317		11,957,455

Commitments and contingencies (Note 17)

Equity:
Common shares: 258,364,361 shares issued and 258,318,013 shares outstanding at March 31, 2025; 258,067,487 shares issued and 258,019,389 shares outstanding at December 31, 2024		3,286,078		3,283,161
Additional paid-in capital		318,350		325,928
Accumulated other comprehensive loss		(207,286)		(205,740)
Treasury shares: 46,348 and 48,098 shares at March 31, 2025 and December 31, 2024, respectively		—		—
Retained earnings		4,617,038		4,457,005
Total Waste Connections' equity		8,014,180		7,860,354
Noncontrolling interest in subsidiaries		—		—
Total equity		8,014,180		7,860,354
Total liabilities and equity	$	20,254,497	$	19,817,809


	Three Months Ended March 31,
	2025		2024
Revenues	$	2,228,176	$	2,072,653
Operating expenses:
Cost of operations		1,291,443		1,221,783
Selling, general and administrative		250,134		220,735
Depreciation		242,307		222,691
Amortization of intangibles		47,642		40,290
Impairments and other operating items		6,440		354
Operating income		390,210		366,800

Interest expense		(80,875)		(78,488)
Interest income		1,770		2,051
Other income (expense), net		1,872		(1,823)
Income before income tax provision		312,977		288,540

Income tax provision		(71,467)		(59,413)
Net income		241,510		229,127
Plus: Net loss attributable to noncontrolling interests		—		927
Net income attributable to Waste Connections	$	241,510	$	230,054

Earnings per common share attributable to Waste Connections’ common shareholders:
Basic	$	0.94	$	0.89
Diluted	$	0.93	$	0.89

Shares used in the per share calculations:
Basic		258,193,975		257,801,116
Diluted		258,904,806		258,482,473

Cash dividends per common share	$	0.315	$	0.285


	WASTE CONNECTIONS' EQUITY
						ACCUMULATED
				ADDITIONAL		OTHER
	COMMON SHARES			PAID-IN		COMPREHENSIVE		TREASURY SHARES			RETAINED		NONCONTROLLING
	SHARES	AMOUNT		CAPITAL		INCOME (LOSS)		SHARES	AMOUNT		EARNINGS		INTERESTS		TOTAL
Balances at December 31, 2024	258,019,389	$	3,283,161	$	325,928	$	(205,740)	48,098	$	—	$	4,457,005	$	—	$	7,860,354
Sale of common shares held in trust	1,750		324		—		—	(1,750)		—		—		—		324
Vesting of restricted share units	343,415		—		—		—	—		—		—		—		—
Vesting of performance-based restricted share units	87,964		—		—		—	—		—		—		—		—
Restricted share units released from deferred compensation plan	888		—		—		—	—		—		—		—		—
Tax withholdings related to net share settlements of equity-based compensation	(170,975)		—		(28,981)		—	—		—		—		—		(28,981)
Equity-based compensation	—		—		21,403		—	—		—		—		—		21,403
Exercise of warrants	19,660		—		—		—	—		—		—		—		—
Issuance of shares under employee share purchase plan	15,922		2,593		—		—	—		—		—		—		2,593
Cash dividends on common shares	—		—		—		—	—		—		(81,477)		—		(81,477)
Amounts reclassified into earnings, net of taxes	—		—		—		(2,443)	—		—		—		—		(2,443)
Changes in fair value of cash flow hedges, net of taxes	—		—		—		(843)	—		—		—		—		(843)
Foreign currency translation adjustment	—		—		—		1,740	—		—		—		—		1,740
Net income	—		—		—		—	—		—		241,510		—		241,510
Balances at March 31, 2025	258,318,013	$	3,286,078	$	318,350	$	(207,286)	46,348	$	—	$	4,617,038	$	—	$	8,014,180


Final capping, closure and post-closure liability at December 31, 2024	$	860,123
Liability adjustments		14,587
Accretion expense		11,872
Closure payments		(71,937)
Foreign currency translation adjustment		75
Final capping, closure and post-closure liability at March 31, 2025	$	814,720


	2025		2024
	Acquisitions		Acquisitions
Fair value of consideration transferred:
Cash	$	380,417	$	1,156,422
Debt assumed		71,557		64,450
		451,974		1,220,872

Recognized amounts of identifiable assets acquired and liabilities assumed associated with businesses acquired:
Accounts receivable		16,920		51,852
Prepaid expenses and other current assets		3,055		9,951
Operating lease right-of-use assets		9,805		2,317
Property and equipment		231,167		688,906
Long-term franchise agreements and contracts		28,076		77,384
Customer lists		18,611		102,418
Permits and other intangibles		78,256		136,868
Other assets		—		1,617
Accounts payable and accrued liabilities		(9,846)		(4,727)
Current portion of operating lease liabilities		(105)		(1,515)
Deferred revenue		(207)		(11,886)
Contingent consideration		(8,864)		(12,012)
Long-term portion of operating lease liabilities		(560)		(3,857)
Other long-term liabilities		—		(51,187)
Deferred income taxes		(18,255)		—
Total identifiable net assets		348,053		986,129
Goodwill	$	103,921	$	234,743


	Gross				Accumulated		Net
	Carrying		Accumulated		Impairment		Carrying
	Amount		Amortization		Loss		Amount
Finite-lived intangible assets:
Long-term franchise agreements and contracts	$	1,127,530	$	(414,406)	$	—	$	713,124
Customer lists		1,024,163		(716,336)		—		307,827
Permits and other		1,077,247		(171,763)		(40,784)		864,700
		3,228,940		(1,302,505)		(40,784)		1,885,651
Indefinite-lived intangible assets:
Solid waste collection and transportation permits		181,613		—		—		181,613

Intangible assets, exclusive of goodwill	$	3,410,553	$	(1,302,505)	$	(40,784)	$	2,067,264


For the year ending December 31, 2025	$	194,886
For the year ending December 31, 2026	$	172,070
For the year ending December 31, 2027	$	150,608
For the year ending December 31, 2028	$	133,744
For the year ending December 31, 2029	$	120,860


Three Months Ended
March 31, 2025	Southern			Western			Eastern			Central			Canada			MidSouth			Corporate ^{(a), (f)}		Consolidated
Revenue	$	507,668		$	499,701		$	480,532		$	414,986		$	332,532		$	302,470		$	—	$	2,537,889
Intercompany revenue ^(b)		(54,265)			(61,300)			(77,262)			(41,603)			(29,801)			(45,482)			—		(309,713)
Reported revenue		453,403			438,401			403,270			373,383			302,731			256,988			—		2,228,176

Segment expenses ^(c)		(304,703)			(326,056)			(300,175)			(241,674)			(167,159)			(188,070)			(13,740)		(1,541,577)

Segment EBITDA ^(d)		148,700			112,345			103,095			131,709			135,572			68,918			(13,740)		686,599
Segment EBITDA margin		32.8	%		25.6	%		25.6	%		35.3	%		44.8	%		26.8	%				30.8	%

Depreciation and amortization		(55,860)			(51,998)			(56,202)			(42,427)			(45,825)			(35,171)			(2,466)		(289,949)
Other segment items ^(e)		(5,252)			191			(1,842)			(142)			99			(400)			(76,327)		(83,673)

Income before income tax provision																					$	312,977

Capital expenditures	$	32,453		$	34,294		$	39,718		$	45,972		$	31,750		$	20,156		$	8,112	$	212,455
Total assets ^(g)	$	4,214,215		$	3,485,974		$	3,678,666		$	2,835,804		$	3,547,500		$	2,009,776		$	482,562	$	20,254,497


Three Months Ended
March 31, 2024	Southern			Western			Eastern			Central			Canada			MidSouth			Corporate ^{(a), (f)}		Consolidated
Revenue	$	473,953		$	476,703		$	431,969		$	403,086		$	307,346		$	273,337		$	—	$	2,366,394
Intercompany revenue ^(b)		(55,007)			(54,454)			(71,906)			(42,159)			(26,984)			(43,231)			—		(293,741)
Reported revenue		418,946			422,249			360,063			360,927			280,362			230,106			—		2,072,653

Segment expenses ^(c)		(290,534)			(309,199)			(265,047)			(235,005)			(159,001)			(172,599)			(11,133)		(1,442,518)

Segment EBITDA ^(d)		128,412			113,050			95,016			125,922			121,361			57,507			(11,133)		630,135
Segment EBITDA margin		30.7	%		26.8	%		26.4	%		34.9	%		43.3	%		25.0	%				30.4	%

Depreciation and amortization		(44,707)			(51,221)			(53,548)			(40,787)			(39,109)			(29,889)			(3,720)		(262,981)
Other segment items ^(e)		(538)			(1,413)			(362)			803			44			59			(77,207)		(78,614)

Income before income tax provision																					$	288,540

Capital expenditures	$	25,966		$	37,043		$	39,042		$	29,442		$	18,667		$	16,727		$	3,064	$	169,951
Total assets ^(g)	$	3,500,113		$	3,434,367		$	3,281,517		$	2,793,648		$	3,625,769		$	1,991,424		$	455,822	$	19,082,660


			Fixed		Variable
	Notional		Interest		Interest Rate
Date Entered	Amount		Rate Paid ^(a)		Received	Effective Date ^(b)	Expiration Date
August 2017	$	200,000	2.1230	%	1-month Term SOFR	November 2022	October 2025
June 2018	$	200,000	2.8480	%	1-month Term SOFR	November 2022	October 2025
June 2018	$	200,000	2.8284	%	1-month Term SOFR	November 2022	October 2025
December 2018	$	200,000	2.7715	%	1-month Term SOFR	November 2022	July 2027


Derivatives Designated as Cash	Asset Derivatives			Liability Derivatives
Flow Hedges	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Interest rate swaps	Prepaid expenses and other current assets^(a)	$	7,766	Accrued liabilities	$	—
	Other assets, net		1,692
Total derivatives designated as cash flow hedges		$	9,458		$	—


	Three Months Ended March 31,
	2025		2024
Commercial	$	712,460	$	642,859
Residential		571,619		546,211
Industrial and construction roll off		336,998		325,990
Total collection		1,621,077		1,515,060
Landfill		338,754		353,478
Transfer		319,269		301,882
Recycling		61,341		49,025
E&P		150,899		97,408
Intermodal and other		46,549		49,541
Intercompany		(309,713)		(293,741)
Total	$	2,228,176	$	2,072,653


	Three Months Ended March 31,
	2025		2024
Beginning balance	$	25,730	$	23,553
Current period provision for expected credit losses		2,470		3,730
Write-offs charged against the allowance		(5,275)		(5,728)
Recoveries collected		2,353		1,356
Impact of changes in foreign currency		2		(53)
Ending balance	$	25,280	$	22,858


	March 31,		December 31,
	2025		2024
Revolving Credit Agreement, bearing interest ranging from 4.02% to 7.50% ^(a)	$	2,479,726	$	2,164,325
4.25% Senior Notes due 2028		500,000		500,000
3.50% Senior Notes due 2029		500,000		500,000
4.50% Senior Notes due 2029		347,800		347,500
2.60% Senior Notes due 2030		600,000		600,000
2.20% Senior Notes due 2032		650,000		650,000
3.20% Senior Notes due 2032		500,000		500,000
4.20% Senior Notes due 2033		750,000		750,000
5.00% Senior Notes due 2034		750,000		750,000
3.05% Senior Notes due 2050		500,000		500,000
2.95% Senior Notes due 2052		850,000		850,000
Notes payable to sellers and other third parties, bearing interest ranging from 2.42% to 10.35%, principal and interest payments due periodically with due dates ranging from 2028 to 2044 ^(a)		29,316		30,641
Finance leases, bearing interest ranging from 1.89% to 5.07%, with lease expiration dates ranging from 2026 to 2029 ^(a)		8,344		9,247
		8,465,186		8,151,713
Less – current portion		(7,657)		(7,851)
Less – unamortized debt discount and issuance costs		(69,165)		(70,934)
Long-term portion of debt and notes payable	$	8,388,364	$	8,072,928


	March 31,			December 31,
	2025			2024
Revolver
Available	$	464,124		$	778,374
Letters of credit outstanding	$	56,150		$	57,301
Total amount drawn, as follows:	$	2,479,726		$	2,164,325
Amount drawn – U.S. Term SOFR rate loan	$	1,225,000		$	800,000
Interest rate applicable – U.S. Term SOFR rate loan		5.42	%		5.65	%
Amount drawn – U.S. Term SOFR rate loan	$	320,000		$	500,000
Interest rate applicable – U.S. Term SOFR rate loan		5.43	%		5.69	%
Amount drawn – U.S. Term SOFR rate loan	$	160,000		$	50,000
Interest rate applicable – U.S. Term SOFR rate loan		5.42	%		5.46	%
Amount drawn – U.S. base rate loan	$	20,000		$	95,000
Interest rate applicable – U.S. base rate loan		7.50	%		7.50	%
Amount drawn – Canadian Term CORRA loan	$	678,210		$	590,750
Interest rate applicable - Canadian term CORRA loan		4.21	%		5.24	%
Amount drawn – Canadian Term CORRA loan	$	66,082		$	86,875
Interest rate applicable - Canadian term CORRA loan		4.02	%		4.59	%
Amount drawn – Canadian prime rate loan	$	10,434		$	41,700
Interest rate applicable - Canadian prime rate loan		4.95	%		5.45	%
Commitment – rate applicable		0.09	%		0.09	%


	Carrying Value at				Fair Value ^(a) at
	March 31,		December 31,		March 31,		December 31,
	2025		2024		2025		2024
4.25% Senior Notes due 2028	$	500,000	$	500,000	$	495,200	$	488,500
3.50% Senior Notes due 2029	$	500,000	$	500,000	$	480,650	$	471,450
4.50% Senior Notes due 2029	$	347,800	$	347,500	$	362,846	$	359,168
2.60% Senior Notes due 2030	$	600,000	$	600,000	$	546,420	$	536,220
2.20% Senior Notes due 2032	$	650,000	$	650,000	$	548,340	$	535,275
3.20% Senior Notes due 2032	$	500,000	$	500,000	$	446,950	$	437,150
4.20% Senior Notes due 2033	$	750,000	$	750,000	$	711,075	$	696,300
5.00% Senior Notes due 2034	$	750,000	$	750,000	$	745,050	$	731,625
3.05% Senior Notes due 2050	$	500,000	$	500,000	$	327,550	$	321,700
2.95% Senior Notes due 2052	$	850,000	$	850,000	$	535,840	$	528,955


	Fair Value Measurement at March 31, 2025 Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Interest rate swap derivative instruments – net asset position	$	9,458	$	—	$	9,458	$	—
Restricted cash	$	138,220	$	138,220	$	—	$	—
Restricted investments	$	73,973	$	—	$	73,973	$	—
Contingent consideration	$	(75,262)	$	—	$	—	$	(75,262)


	Fair Value Measurement at December 31, 2024 Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Interest rate swap derivative instruments – net asset position	$	13,929	$	—	$	13,929	$	—
Restricted cash	$	135,807	$	135,807	$	—	$	—
Restricted investments	$	77,900	$	—	$	77,900	$	—
Contingent consideration	$	(87,162)	$	—	$	—	$	(87,162)


	Three Months Ended March 31, 2025
	Gross		Tax Effect		Net of Tax
Interest rate swap amounts reclassified into interest expense	$	(3,324)	$	881	$	(2,443)
Changes in fair value of interest rate swaps		(1,147)		304		(843)
Foreign currency translation adjustment		1,740		—		1,740
	$	(2,731)	$	1,185	$	(1,546)


	Three Months Ended March 31, 2024
	Gross		Tax Effect		Net of Tax
Interest rate swap amounts reclassified into interest expense	$	(5,385)	$	1,427	$	(3,958)
Changes in fair value of interest rate swaps		9,972		(2,643)		7,329
Foreign currency translation adjustment		(56,381)		—		(56,381)
	$	(51,794)	$	(1,216)	$	(53,010)


			Foreign		Accumulated
			Currency		Other
	Interest		Translation		Comprehensive
	Rate Swaps		Adjustment		Income (Loss)
Balance at December 31, 2024	$	10,237	$	(215,977)	$	(205,740)
Amounts reclassified into earnings		(2,443)		—		(2,443)
Changes in fair value		(843)		—		(843)
Foreign currency translation adjustment		—		1,740		1,740
Balance at March 31, 2025	$	6,951	$	(214,237)	$	(207,286)


		Unvested Shares
Outstanding at December 31, 2024		912,560
Granted		353,840
Forfeited		(12,749)
Vested and issued		(343,415)
Outstanding at March 31, 2025		910,236


		Unvested Shares
Outstanding at December 31, 2024		219,143
Granted		80,104
Vested and issued		(87,964)
Outstanding at March 31, 2025		211,283


		Vested Shares
Outstanding at December 31, 2024		20,418
Granted		2,485
Outstanding at March 31, 2025		22,903


Outstanding at December 31, 2024		45,466
Cash settled		(1,750)
Outstanding at March 31, 2025		43,716


Three Months Ended			Segment				EBITDA
March 31, 2025	Revenue		Expenses		EBITDA ^(b)		Margin
Southern	$	453,403	$	304,703	$	148,700	32.8	%
Western		438,401		326,056		112,345	25.6	%
Eastern		403,270		300,175		103,095	25.6	%
Central		373,383		241,674		131,709	35.3	%
Canada		302,731		167,159		135,572	44.8	%
MidSouth		256,988		188,070		68,918	26.8	%
Corporate^(a)		—		13,740		(13,740)	—
	$	2,228,176	$	1,541,577	$	686,599	30.8	%


	Payments Due by Period
	(amounts in thousands of U.S. dollars)
			Less Than		1 to 3				Over 5
Recorded Obligations	Total		1 Year		Years		3 to 5 Years		Years
Long-term debt	$	8,465,186	$	7,657	$	12,642	$	4,436,703	$	4,008,184
Cash interest payments	$	2,693,806	$	330,685	$	674,521	$	506,920	$	1,181,680
Contingent consideration	$	90,201	$	47,261	$	10,974	$	3,224	$	28,742
Operating leases	$	387,949	$	40,025	$	99,214	$	74,363	$	174,347
Final capping, closure and post-closure	$	2,608,423	$	185,118	$	247,201	$	77,555	$	2,098,549


	Amount of Commitment Expiration Per Period
	(amounts in thousands of U.S. dollars)
			Less Than		1 to 3		3 to 5		Over 5
Unrecorded Obligations⁽¹⁾	Total		1 Year		Years		Years		Years
Unconditional purchase obligations	$	177,960	$	125,057	$	51,971	$	932	$	—

Exhibit Number		Description of Exhibits
3.1		Articles of Amendment (incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K filed on May 26, 2017)
3.2		Articles of Amalgamation (incorporated by reference to Exhibit 3.2 of the Registrant’s Form 8-K filed on June 7, 2016)
3.3		Articles of Amendment (incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K filed on June 7, 2016)
3.4		By-law No. 1 of the Registrant (incorporated by reference to Exhibit 3.3 of the Registrant’s Form 8-K filed on June 7, 2016)
31.1		Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a)
31.2		Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a)
32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. §1350
32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. §1350
101.INS		The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		XBRL Taxonomy Extension Labels Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
104		Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.


	WASTE CONNECTIONS, INC.

Date: April 24, 2025	BY:	/s/ Ronald J. Mittelstaedt
		Ronald J. Mittelstaedt
		President and Chief Executive Officer

Date: April 24, 2025	BY:	/s/ Mary Anne Whitney
		Mary Anne Whitney
		Executive Vice President and Chief Financial Officer