Waste Connections Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

Waste Connections, Inc. WCN reported impressive first-quarter 2025 results, wherein earnings and revenues outpaced the Zacks Consensus Estimates.

The stock price has not witnessed any significant impact of the earnings beat since the company released results on April 23.

Waste Connections’ adjusted earnings (excluding 20 cents from non-recurring items) of $1.13 per share surpassed the Zacks Consensus Estimate by 5.6% and increased 8.7% year over year. Revenues of $2.2 billion beat the consensus estimate marginally and grew 7.5% from the year-ago quarter.

WCN shares have gained 11.6% over the past six months, outperforming the industry's 5.5% rally and the 1.8% decline of the Zacks S&P 500 Composite.

Waste Connections, Inc. Price, Consensus and EPS Surprise

Segmental Information for WCN

The Solid Waste Collection segment’s revenues grew 7% year over year to $1.6 billion and surpassed our estimate of $1.5 billion. The Solid Waste Disposal and Transfer segment’s revenues increased marginally from the year-ago quarter to $658 million and missed our projection of $713.7 million.

The Solid Waste Recycling segment’s revenues increased 25.1% on a year-over-year basis to $61.3 million. The figure beat our estimate of $58 million. The Intermodal and Other segment’s revenues gained 54% from the year-ago quarter to $150.9 million, which outpaced our projection of $63.5 million.

The E&P Waste Treatment, Recovery and Disposal segment’s revenues declined 6% from the year-ago quarter to $46.5 million, missing our estimate of $179.2 million.

Waste Connections’ Operating Results

Adjusted EBITDA in the reported quarter was $712.2 million, up 9.5% from the year-ago quarter. The adjusted EBITDA margin was 32%, which increased 60 basis points from the year-ago quarter.

Operating income totaled $390.2 million compared with the year-ago operating income of $366.8 million.

Balance Sheet & Cash Flow

Waste Connections exited the first quarter of 2025 with cash and cash equivalents of $111.2 million compared with $62.4 million at the end of the preceding quarter. The long-term debt was $8.4 billion compared with the preceding quarter’s $6.7 billion.

In the reported quarter, WCN generated $541.5 million in cash from operating activities. The adjusted free cash flow was $332.1 million. Capital expenditure totaled $212.5 million. The company paid out $81.5 million worth of dividends in the quarter.

WCN’s Q2’25 Outlook

For the second quarter of 2025, Waste Connections expects revenues of $2.37-$2.40 billion. The Zacks Consensus Estimate for revenues is pegged at $2.40 billion. The company expects adjusted EBITDA of $777-$785 million. The EBITDA margin is anticipated to be 32.7%.

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

Automatic Data Processing, Inc. ADP reported impressive third-quarter fiscal 2025 results.

ADP’s earnings per share of $3.06 beat the consensus estimate by 3.4% and increased 6.3% from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Total revenues of $5.6 billion surpassed the consensus estimate by 1.1% and grew 5.7% on a year-over-year basis.

The Interpublic Group of Companies, Inc. IPG has reported mixed first-quarter 2025 results.

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter.

Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 8.3% year over year.

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

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