Waste Connections, Inc 10-Q for FY2026 Q1

Waste Connections, Inc. (WCN)

10-Q 2026-04-23 For: 2026-03-31

Added on April 23, 2026

About this 10-Q

Waste Connections, Inc filed this 10-Q on April 23, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.37B; up 6.4% from $2.23B a year earlier
Net income: $219.34M; down 9.2% from net income of $241.51M a year earlier
Diluted EPS: $0.86; down 7.5% from $0.93 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, 2026
	Or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to


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	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	55
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	56
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	56
Item 5.	Other Information	56
Item 6.	Exhibits	57
Signatures		58


		March 31,			December 31,
		2026			2025
ASSETS
Current assets:
Cash and equivalents		$	112,447		$	45,968
Accounts receivable, net of allowance for credit losses of $27,828 and $21,402 at March 31, 2026 and December 31, 2025, respectively			1,033,086			1,024,992
Prepaid expenses and other current assets			230,786			240,603
Total current assets			1,376,319			1,311,563

Restricted cash			210,199			183,612
Restricted investments			80,397			80,757
Property and equipment, net			8,714,069			8,733,327
Operating lease right-of-use assets			324,034			312,508
Goodwill			8,414,577			8,392,249
Intangible assets, net			1,959,957			2,006,200
Other assets, net			106,803			109,147
Total assets		$	21,186,355		$	21,129,363
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	712,423		$	765,227
Book overdraft			8,560			14,674
Deferred revenue			424,835			416,025
Accrued liabilities			745,013			810,367
Current portion of operating lease liabilities			46,335			44,272
Current portion of contingent consideration			61,945			65,029
Current portion of long-term debt and notes payable			8,355			8,667
Total current liabilities			2,007,466			2,124,261

Long-term portion of debt and notes payable			9,093,831			8,811,104
Long-term portion of operating lease liabilities			278,167			267,000
Long-term portion of contingent consideration			19,216			19,667
Deferred income taxes			1,113,470			1,085,613
Other long-term liabilities			616,586			576,337
Total liabilities			13,128,736			12,883,982

Commitments and contingencies (Note 17)

Shareholders' equity:
Common shares: Unlimited shares authorized; 254,260,257 shares issued and 254,213,909 shares outstanding at March 31, 2026; 255,661,011 shares issued and 255,614,663 shares outstanding at December 31, 2025			2,502,503			2,783,431
Additional paid-in capital			366,546			373,239
Accumulated other comprehensive loss			(141,783)			(111,044)
Treasury shares: 46,348 and 46,348 shares at March 31, 2026 and December 31, 2025, respectively			—			—
Retained earnings			5,330,353			5,199,755
Total shareholders' equity			8,057,619			8,245,381
Total liabilities and shareholders' equity		$	21,186,355		$	21,129,363


	Three Months Ended March 31,
	2026		2025
Revenues	$	2,370,631	$	2,228,176
Operating expenses:
Cost of operations		1,361,099		1,291,443
Selling, general and administrative		251,119		250,134
Depreciation		267,485		242,307
Amortization of intangibles		47,264		47,642
Impairments and other operating items		79,584		6,440
Operating income		364,080		390,210

Interest expense		(87,719)		(80,875)
Interest income		3,113		1,770
Other income, net		4,085		1,872
Income before income tax provision		283,559		312,977

Income tax provision		(64,215)		(71,467)
Net income	$	219,344	$	241,510

Earnings per common share:
Basic	$	0.86	$	0.94
Diluted	$	0.86	$	0.93

Shares used in the per share calculations:
Basic		255,347,786		258,193,975
Diluted		255,873,686		258,904,806

Cash dividends per common share	$	0.350	$	0.315


						ACCUMULATED
				ADDITIONAL		OTHER
	COMMON SHARES			PAID-IN		COMPREHENSIVE		TREASURY SHARES			RETAINED
	SHARES	AMOUNT		CAPITAL		INCOME (LOSS)		SHARES	AMOUNT		EARNINGS		TOTAL
Balances at December 31, 2025	255,614,663	$	2,783,431	$	373,239	$	(111,044)	46,348	$	—	$	5,199,755	$	8,245,381
Vesting of restricted share units	326,714		—		—		—	—		—		—		—
Vesting of performance-based restricted share units	100,737		—		—		—	—		—		—		—
Tax withholdings related to net share settlements of equity-based compensation	(154,211)		—		(24,515)		—	—		—		—		(24,515)
Equity-based compensation	—		—		17,822		—	—		—		—		17,822
Exercise of warrants	2,920		—		—		—	—		—		—		—
Issuance of shares under employee share purchase plan	18,135		3,031		—		—	—		—		—		3,031
Repurchase of common shares	(1,695,049)		(283,959)		—		—	—		—		—		(283,959)
Cash dividends on common shares	—		—		—		—	—		—		(88,746)		(88,746)
Amounts reclassified into earnings, net of taxes	—		—		—		(330)	—		—		—		(330)
Changes in fair value of cash flow hedges, net of taxes	—		—		—		719	—		—		—		719
Foreign currency translation adjustment	—		—		—		(31,128)	—		—		—		(31,128)
Net income	—		—		—		—	—		—		219,344		219,344
Balances at March 31, 2026	254,213,909	$	2,502,503	$	366,546	$	(141,783)	46,348	$	—	$	5,330,353	$	8,057,619


	Three Months Ended March 31, 2026
				Intercompany		Reported
	Revenue			Elimination		Revenue
Commercial	$	761,562		$	(1,207)	$	760,355
Residential		600,117			(39)		600,078
Industrial and construction roll off		347,949			(3,936)		344,013
Total collection		1,709,628			(5,182)		1,704,446
Landfill		360,448			(147,087)		213,361
Transfer		354,176			(181,428)		172,748
Recycling		53,649			(2,061)		51,588
E&P		187,572			(8,013)		179,559
Other		49,346			(417)		48,929
Total	$	2,714,819		$	(344,188)	$	2,370,631


	Three Months Ended March 31, 2025
				Intercompany		Reported
	Revenue			Elimination		Revenue
Commercial	$	712,460		$	(1,278)	$	711,182
Residential		571,619			(211)		571,408
Industrial and construction roll off		336,998			(3,047)		333,951
Total collection		1,621,077			(4,536)		1,616,541
Landfill		338,754			(136,591)		202,163
Transfer		319,269			(159,691)		159,578
Recycling		61,341			(2,084)		59,257
E&P		150,899			(6,374)		144,525
Other		46,549			(437)		46,112
Total	$	2,537,889		$	(309,713)	$	2,228,176


Final capping, closure and post-closure liability at December 31, 2025	$	651,586
Liability adjustments		106,659
Accretion expense		10,272
Closure payments		(65,990)
Foreign currency translation adjustment		(1,415)
Final capping, closure and post-closure liability at March 31, 2026	$	701,112


		Gross						Accumulated			Net
		Carrying			Accumulated			Impairment			Carrying
		Amount			Amortization			Loss			Amount
Finite-lived intangible assets:
Long-term franchise agreements and contracts		$	1,127,862		$	(473,286)		$	—		$	654,576
Customer lists			1,097,648			(817,926)			—			279,722
Permits and other			1,114,291			(204,057)			(66,188)			844,046
			3,339,801			(1,495,269)			(66,188)			1,778,344
Indefinite-lived intangible assets:
Solid waste collection and transportation permits			181,613			—			—			181,613

Intangible assets, exclusive of goodwill		$	3,521,414		$	(1,495,269)		$	(66,188)		$	1,959,957


For the year ending December 31, 2026	$	187,952
For the year ending December 31, 2027	$	142,946
For the year ending December 31, 2028	$	158,778
For the year ending December 31, 2029	$	144,685
For the year ending December 31, 2030	$	126,563


Three Months Ended
March 31, 2026		Southern			Western			Eastern			Central			Canada			MidSouth			Corporate ^{(a), (f)}			Consolidated
Revenue		$	555,348		$	526,632		$	490,039		$	446,095		$	377,612		$	319,093		$	—		$	2,714,819
Intercompany revenue ^(b)			(62,309)			(64,184)			(84,317)			(49,333)			(32,784)			(51,261)			—			(344,188)
Reported revenue			493,039			462,448			405,722			396,762			344,828			267,832			—			2,370,631

Segment expenses ^(c)			(332,530)			(339,061)			(297,714)			(251,685)			(195,881)			(194,522)			(825)			(1,612,218)

Segment EBITDA ^(d)			160,509			123,387			108,008			145,077			148,947			73,310			(825)			758,413
Segment EBITDA margin			32.6	%		26.7	%		26.6	%		36.6	%		43.2	%		27.4	%					32.0	%

Depreciation and amortization			(65,839)			(55,527)			(57,322)			(45,337)			(51,510)			(35,502)			(3,712)			(314,749)
Other segment items ^(e)			(2,933)			(64,077)			(4,965)			616			(1,200)			(101)			(87,445)			(160,105)

Income before income tax provision																							$	283,559

Capital expenditures		$	59,248		$	56,677		$	47,220		$	44,084		$	51,371		$	32,589		$	5,407		$	296,596
Total assets ^(g)		$	4,537,768		$	3,629,318		$	3,758,775		$	2,913,215		$	3,690,824		$	2,063,877		$	592,578		$	21,186,355


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


					Fixed		Variable
		Notional			Interest		Interest Rate
Date Entered		Amount			Rate Paid ^(a)		Received		Effective Date ^(b)		Expiration Date
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)		$	1,819		Accrued liabilities		$	—
		Other assets, net			429
Total derivatives designated as cash flow hedges				$	2,248				$	—


	Three Months Ended March 31,
	2026			2025
Beginning balance	$	21,402		$	25,730
Current period provision for expected credit losses		12,105			2,470
Write-offs charged against the allowance		(7,419)			(5,275)
Recoveries collected		1,769			2,353
Impact of changes in foreign currency		(29)			2
Ending balance	$	27,828		$	25,280


		March 31,			December 31,
		2026			2025
Revolving Credit Agreement, bearing interest ranging from 3.45% to 6.75% ^(a)		$	2,076,276		$	2,381,646
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			358,700			364,800
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
5.25% Senior Notes due 2035			500,000			500,000
4.80% Senior Notes due 2036			600,000			—
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)			25,302			26,420
Finance leases, bearing interest ranging from 1.89% to 5.35%, with lease expiration dates ranging from 2026 to 2035 ^(a)			14,693			15,973
			9,174,971			8,888,839
Less – current portion			(8,355)			(8,667)
Less – unamortized debt discount and issuance costs			(72,785)			(69,068)
Long-term portion of debt and notes payable		$	9,093,831		$	8,811,104


		March 31,			December 31,
		2026			2025
Revolver
Available		$	886,375		$	581,059
Letters of credit outstanding		$	37,349		$	37,295
Total amount drawn, as follows:		$	2,076,276		$	2,381,646
Amount drawn – U.S. term SOFR loan		$	500,000		$	965,000
Interest rate applicable – U.S. term SOFR loan			4.54	%		4.75	%
Amount drawn – U.S. term SOFR loan		$	120,000		$	150,000
Interest rate applicable – U.S. term SOFR loan			4.55	%		4.59	%
Amount drawn – U.S. term SOFR loan		$	75,000		$	—
Interest rate applicable – U.S. term SOFR loan			4.55	%		—	%
Amount drawn – U.S. base rate loan		$	133,000		$	38,000
Interest rate applicable – U.S. base rate loan			6.75	%		6.75	%
Amount drawn – Canadian term CORRA loan		$	1,180,123		$	1,163,712
Interest rate applicable - Canadian term CORRA loan			3.45	%		3.41	%
Amount drawn – Canadian term CORRA loan		$	—		$	51,072
Interest rate applicable - Canadian term CORRA loan			—	%		3.44	%
Amount drawn – Canadian prime rate loan		$	68,153		$	13,862
Interest rate applicable - Canadian prime rate loan			4.45	%		4.45	%
Commitment – rate applicable			0.08	%		0.08	%


	Southern			Western			Eastern			Central			Canada			MidSouth			Total
Balance as of December 31, 2024	$	1,577,114		$	864,602		$	1,735,584		$	1,010,574		$	1,913,091		$	849,441		$	7,950,406
Goodwill acquired		76,631			—			26,849			1,975			—			—			105,455
Goodwill acquisition adjustments		—			(1,199)			—			—			(10)			(325)			(1,534)
Impact of changes in foreign currency		—			—			—			—			1,652			—			1,652
Balance as of March 31, 2025	$	1,653,745		$	863,403		$	1,762,433		$	1,012,549		$	1,914,733		$	849,116		$	8,055,979


		Carrying Value at						Fair Value ^(a) at
		March 31,			December 31,			March 31,			December 31,
		2026			2025			2026			2025
4.25% Senior Notes due 2028		$	500,000		$	500,000		$	499,300		$	503,750
3.50% Senior Notes due 2029		$	500,000		$	500,000		$	490,450		$	491,900
4.50% Senior Notes due 2029		$	358,700		$	364,800		$	366,532		$	377,001
2.60% Senior Notes due 2030		$	600,000		$	600,000		$	564,660		$	566,100
2.20% Senior Notes due 2032		$	650,000		$	650,000		$	570,310		$	574,730
3.20% Senior Notes due 2032		$	500,000		$	500,000		$	461,950		$	465,900
4.20% Senior Notes due 2033		$	750,000		$	750,000		$	725,400		$	736,350
5.00% Senior Notes due 2034		$	750,000		$	750,000		$	736,575		$	767,175
5.25% Senior Notes due 2035		$	500,000		$	500,000		$	503,300		$	518,550
4.80% Senior Notes due 2036		$	600,000		$	—		$	589,260		$	—
3.05% Senior Notes due 2050		$	500,000		$	500,000		$	332,800		$	335,550
2.95% Senior Notes due 2052		$	850,000		$	850,000		$	541,960		$	551,650


		Fair Value Measurement at March 31, 2026 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		$	2,248		$	—		$	2,248		$	—
Restricted cash		$	210,199		$	210,199		$	—		$	—
Restricted investments		$	80,432		$	—		$	80,432		$	—
Contingent consideration		$	(81,161)		$	—		$	—		$	(81,161)


		Fair Value Measurement at December 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		$	1,718		$	—		$	1,718		$	—
Restricted cash		$	183,612		$	183,612		$	—		$	—
Restricted investments		$	80,533		$	—		$	80,533		$	—
Contingent consideration		$	(84,696)		$	—		$	—		$	(84,696)


					Foreign			Accumulated
					Currency			Other
		Interest			Translation			Comprehensive
		Rate Swaps			Adjustment			Income (Loss)
Balance at December 31, 2025		$	1,263		$	(112,307)		$	(111,044)
Amounts reclassified into earnings			(330)			—			(330)
Changes in fair value			719			—			719
Foreign currency translation adjustment			—			(31,128)			(31,128)
Balance at March 31, 2026		$	1,652		$	(143,435)		$	(141,783)


		Unvested Shares
Outstanding at December 31, 2025		871,272
Granted		433,961
Forfeited		(14,126)
Vested and issued		(326,714)
Outstanding at March 31, 2026		964,393


		Vested Shares
Outstanding at December 31, 2025		22,903
Granted		3,045
Outstanding at March 31, 2026		25,948


Outstanding at December 31, 2025		43,716
Cash settled		—
Outstanding at March 31, 2026		43,716


Three Months Ended			Segment				EBITDA
March 31, 2026	Revenue		Expenses		EBITDA ^(b)		Margin
Southern	$	493,039	$	332,530	$	160,509	32.6	%
Western		462,448		339,061		123,387	26.7	%
Eastern		405,722		297,714		108,008	26.6	%
Central		396,762		251,685		145,077	36.6	%
Canada		344,828		195,881		148,947	43.2	%
MidSouth		267,832		194,522		73,310	27.4	%
Corporate^(a)		—		825		(825)	—
	$	2,370,631	$	1,612,218	$	758,413	32.0	%


	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	$	9,174,971	$	8,355	$	513,621	$	3,544,428	$	5,108,567
Cash interest payments	$	2,781,576	$	343,981	$	696,591	$	422,838	$	1,318,166
Contingent consideration	$	95,631	$	61,945	$	3,224	$	3,224	$	27,238
Operating leases	$	412,002	$	45,621	$	104,832	$	78,779	$	182,770
Final capping, closure and post-closure	$	2,440,920	$	155,908	$	176,407	$	50,661	$	2,057,944


	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	$	145,282	$	112,493	$	31,159	$	1,630	$	—


					Total Number of		Maximum Number
					Shares Purchased		of Shares that
	Total Number	Average			as Part of Publicly		May Yet Be
	of Shares	Price Paid			Announced		Purchased Under
Period	Purchased	Per Share ⁽¹⁾			Program ⁽²⁾		the Program ⁽²⁾
1/1/26 - 1/31/26	—	$	—		—		11,396,255
2/1/26 - 2/28/26	730,278	$	166.31		730,278		10,665,977
3/1/26 - 3/31/26	964,771	$	168.44		964,771		9,701,206
	1,695,049	$	167.52		1,695,049

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)
4.1		Eleventh Supplemental Indenture, dated as of March 16, 2026, by and between Waste Connections, Inc. and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.2 of the Registrant’s Form 8-K filed on March 16, 2026)
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 23, 2026	BY:	/s/ Ronald J. Mittelstaedt
		Ronald J. Mittelstaedt
		President and Chief Executive Officer

Date: April 23, 2026	BY:	/s/ Mary Anne Whitney
		Mary Anne Whitney
		Executive Vice President and Chief Financial Officer