Waste Connections Stock Slides 7% Since Q4 Earnings Beat Estimates

Waste Connections, Inc.’s WCN fourth-quarter 2025 earnings beat the Zacks Consensus Estimate by a slight margin and increased 11.2% year over year. The top line met the consensus estimate and grew 5% year over year. 

The earnings beat failed to impress investors as the stock dipped 6.6% since the company released results on Feb. 11.

Over the past year, WCN shares have plummeted 14% compared with the industry's 3.5% dipand the 15.3% rally of the Zacks S&P 500 Composite.

WCN’s Q4 Segmental Information

The company logged $1.7 billion in revenues from the Solid Waste Collection segment, which gained 5.8% year over year. For the Solid Waste Disposal and Transfer segment, revenues increased 5.4% from the year-ago quarter to $757.1 million. These segments improved on the back of solid core pricing.

The Solid Waste Recycling segment witnessed a 14.3% year-over-year decline in revenues. The figure came in at $51.2 million. For the E&P Waste Treatment, Recovery and Disposal segment, $171.1 million in revenues was recorded, marking a 16.9% year-over-year hike. The Intermodal and Other segment recorded $42.3 million in revenues, sliding 7.9% from the year-ago quarter.

Waste Connections’ Operating Results

Adjusted EBITDA in the reported quarter was $731.9 million, sinking 8% from the year-ago quarter. The adjusted EBITDA margin was 32.4%, declining 110 basis points from the fourth quarter of 2024.

The company recorded an operating loss of $199.1 million against an operating income of $420.8 million in the year-ago quarter.

Balance Sheet & Cash Flow

Waste Connections exited the fourth quarter of 2025 with cash and cash equivalents of $46 million, down from $117.6 million in the preceding quarter. The long-term portion of debt and notes payable stood at $8.8 billion compared with $8 billion in the third quarter of 2025.

In the reported quarter, WCN generated $556.9 million in cash from operating activities. The adjusted free cash flow was $175.6 million. Capital expenditure totaled $261.1 million. The company paid out $89.9 million in dividends during the quarter.

WCN’s FY26 Outlook

For 2026, the company expected revenues of $9.9-$9.95 billion. The Zacks Consensus Estimate is $9.95 billion. Adjusted EBITDA is anticipated to be $3.3-$3.325 billion.

Waste Connections carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. FISV reported mixed fourth-quarter 2025 results.

FISV’s adjusted earnings per share of $1.99 surpassed the consensus mark by 4.7% but declined 20.7% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by 1% and dipped 6.7% on a year-over-year basis.

IQVIA Holdings Analytics Inc. IQV posted impressive fourth-quarter 2025 results.

Adjusted earnings were $3.42 per share, surpassing the Zacks Consensus Estimate by a slight margin and gaining 9.6% on a year-over-year basis. Total revenues of $4.4 billion beat the consensus estimate by 2.8% and rose 10.1% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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