Waste Connections raises 2026 outlook after Q3 results

Revenue came in at $2.64 billion for the quarter, with earnings per share of $1.58

Waste Connections reported third-quarter earnings per share of $1.58 on revenue of $2.64 billion.

The company raised its full year 2026 outlook. It now expects revenue of about $10.09 billion, net income of about $1.18 billion and adjusted EBITDA of about $3.345 billion. Waste Connections also raised its quarterly dividend by 10%, the sixteenth straight annual increase, and has bought back more than $1 billion of shares so far this year, about 2.5% of shares outstanding.

President and CEO Ronald J. Mittelstaedt said the company absorbed a late quarter surge in diesel pricing while still delivering a 34% adjusted EBITDA margin, and said Waste Connections is on track to exceed its raised full year outlook.

The company expects 2026 capital expenditures of about $1.25 billion against operating cash flow of $2.64 billion to $2.69 billion, which implies free cash flow close to its adjusted range of $1.40 billion to $1.45 billion. That leaves room for the dividend increase and the buybacks already completed this year. The diesel cost spike management says it absorbed late in the quarter is the variable to watch against an outlook the company says it expects to beat.