Waste Connections reports margin gains, acquisition growth in Q4, full 2025 earnings report

Waste Connections Inc. has reported higher revenue and profitability in its fourth-quarter and full-year 2025 earnings results, citing price-led growth in its solid waste business, ongoing acquisitions and improvements in operational performance.

The Toronto-based company recorded $2.373 billion in fourth-quarter revenue compared with $2.26 billion during the same period in 2024. For the full year, revenue totaled $9.467 billion, up from $8.92 billion the year prior.

Fourth-quarter operating income reached $420.8 million, which included $39.1 million in impairments and other items primarily related to an environmental liability at an operating facility and $4.3 million primarily in transaction-related expenses. This compares with an operating loss of $199.2 million in the prior-year period that included approximately $602.4 million in impairment charges.

Net income for the quarter was $258.5 million versus a reported net loss of $196 million in the period prior.

For the full year, operating income increased to $1.71 billion from $1.068 billion in 2024, while net income rose to $1.077 billion from $617.6 million.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter grew 8.7 percent year over year to $795.6 million, representing a margin of 33.5 percent of revenue. Full-year adjusted EBITDA totaled $3.125 billion, or 33 percent of revenue, reflecting continued margin expansion, the company says.

“Adjusted EBITDA margin expansion of 110 basis points in the fourth quarter capped off a remarkable year for Waste Connections, driven by price-led organic growth in solid waste and strong execution from ongoing improvements in operating trends,” Waste Connections President and CEO Ronald J. Mittelstaedt says. “We also completed another year of above-average acquisition activity, with approximately $330 million in acquired annualized revenue, plus returned a record amount to shareholders, including through share repurchases of over $500 million.”

The company also highlighted improvements in employee turnover and safety metrics, which Waste Connections says contributed to productivity gains and strengthened customer service. During 2025, Waste Connections completed acquisitions representing roughly $330 million in annualized revenue and returned a record $839.3 million to shareholders through dividends and share repurchases.

“We're extremely proud of our accomplishments in 2025 led by disciplined execution to deliver better than expected operating and financial results. For the third consecutive year, employee turnover and safety incidents rates declined, exiting 2025 at multiyear lows,” Mittelstaedt said during the company’s fourth-quarter 2025 earnings conference call Feb. 12. “In fact, building on a well-established track record for better than industry average performance in 2025, we reached historic, company-record levels of safety—our most important and impactful operating value.

“This operating momentum sets up 2026 for another year of outsized underlying solid waste margin expansion, along with upside from any improvement in the broader economy or commodities that are approaching historical cyclical lows.”

Looking ahead, the company expects continued growth in 2026, assuming no major changes in the macroeconomic environment. Waste Connections projects revenue between $9.90-$9.95 billion, with adjusted EBITDA expected to range from $3.30-$3.325 billion and net income projected between $1.223-$1.238 billion. Adjusted free cash flow is forecasted to be between $1.4-$1.45 billion.

“We are extremely pleased by our 2025 results and our positioning for double-digit growth in adjusted free cash flow in 2026,” Mittelstaedt says in the news release about the company's earnings. “Further, with leverage at 2.75 times, our balance sheet strength continues to provide significant optionality to execute on our strong acquisition pipeline, along with further increases in return of capital to shareholders, while also pursuing technology-driven initiatives supporting continued growth.”