Waste Connections WCN reported second-quarter 2026 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.35 by 11.1%. Earnings increased 16.3% from $1.29 in the year-ago quarter. Revenues of $2.56 billion surpassed the consensus estimate of $2.53 billion by 1.1% and rose 6.4% year over year.
How Is Waste Connections Faring?
Per a Grand View Research report, the global waste-management market is anticipated to see a 6% CAGR through 2033, fueled by rising waste generation, urbanization, stricter environmental regulations, and swifter adoption of recycling and waste-to-energy technologies. This backdrop supports the company’s growth strategy. In 2025, the company reported revenues of $9.5 billion and expects to generate $10.02-$10.05 billion in 2026, implying 5.8-6.1% growth.
Waste Connections, Inc. Revenue (TTM)
Waste Connections, Inc. revenue-ttm | Waste Connections, Inc. Quote
WCN’s core price and yield increased 5.6% and 4.6%, respectively, in the second quarter of 2026, while fuel and material surcharges contributed 1.1%. Management anticipates 2026 core pricing of at least 5.5% and plans to recover higher fuel costs through additional surcharges. Its AI-backed pricing tool should enhance customer-level decisions and optimize yield.
Buyouts raised revenues by $387.9 million in 2025. Acquisitions net of divestitures accounted for $377.2 million in incremental revenues. In the first half of 2026, the company’s completed acquisitions contributed to nearly $100 million in annualized revenues. Management expects an above-average acquisition year, while its 2026 expectations exclude additional deals that may close, leaving room for incremental upside in its top line.
Waste Connections’ AI pricing tool has generated approximately $20 million in annualized EBITDA benefits, while management expects its broader AI program to ultimately deliver $100 million in EBITDA improvement. Employee retention has also improved, with voluntary turnover down 17% in 2025 and more than 50% cumulatively since 2022.
In the second quarter of 2026, management mentioned that it benefits from retention and safety, magnifying underlying margin expansion, with lower risk-management costs accounting for about half of the 70-basis-point improvement. These recurring efficiency levers support earnings growth even when volumes remain soft.
Zacks Rank & Stocks to Consider
WCN currently has a Zacks Rank #2 (Buy).
Some better-ranked stocks from the broader Zacks Business Services sector are ScanSource SCSC and Coherent Corp. COHR. These two companies presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coherent Corp has a long-term earnings growth expectation of 52.5%. COHR delivered a trailing four-quarter earnings surprise of 6.2%, on average.
ScanSource has a long-term earnings growth expectation of 15%. SCSC delivered a trailing four-quarter earnings surprise of 7.8%, on average.
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This article originally published on Zacks Investment Research (zacks.com).