Waste Connections (WCN) Announces Results for Q2 2025

Waste Connections, Inc. (NYSE:WCN) is one of the Best Stocks to Buy According to Brasada Capital Management. On July 23, the company announced its results for Q2 2025 and updated its outlook for FY 2025.  The strength of its financial profile and FCF generation places it well for additional acquisitions, while maintaining the flexibility for higher return of capital to shareholders, including via opportunistic share repurchases already underway. Despite incremental and growing headwinds, Waste Connections, Inc. (NYSE:WCN)’s FY 2025 outlook is within the ranges from February, providing ~6% revenue growth and 50 bps of adjusted EBITDA margin expansion to 33.0%.

Waste Connections, Inc. (NYSE:WCN) is well-placed for upside stemming from contributions from additional acquisitions, improvements in commodity-related activity, and solid waste volumes. For FY 2025, the company expects revenue to be ~$9.450 billion and net income of ~$1.140 billion. Waste Connections, Inc. (NYSE:WCN) expects capital expenditures to be between $1.200 billion – $1.250 billion. The company highlighted that its acquisition activity continues at an above-average pace, resulting in ~$200 million in annualized revenues already closed to date.

Waste Connections, Inc. (NYSE:WCN)’s balance sheet strength, together with a strong acquisition pipeline stemming from long-term relationships and a consistent, disciplined approach to market selection, places it well for the additional activity. TimesSquare Capital Management, an equity investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“Many of our Industrials positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Case in point was Waste Connections, Inc. (NYSE:WCN), which collects, transfers, recycles, and disposes of waste for municipalities and businesses in the U.S. and Canada. Revenues exceeded expectations though earnings fell shy of them given the impacts of foreign exchange and lower prices for recycled cardboard. The resilience of Waste Connections’ business within the current economic landscape contributed to a 14% increase in its stock price.”

While we acknowledge the potential of WCN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.