WCN · WASTE CONNECTION Q2 FY2026 earnings call record财报电话会记录

“Q2 growth of over 6% in both revenue and EBITDA exceeded our expectations in spite of the macroeconomic effects related to ongoing uncertainty in the geopolitical environment.”

“Most notably, adjusted EBITDA margin expanded to 32.8% on a 70 basis points of underlying margin expansion, overcoming cost pressures primarily from rapidly spiking fuel and related costs, in addition to ongoing drags from lower commodity values compared to last year's Q2.”

“On average yield of 4.6%, volumes were down 1.9%, reflecting the ongoing macroeconomic uncertainty, which has limited growth in the solid waste activity.”

“In our busiest year ever, we've deployed approximately $692 million year to date and bought back over 1.5% of shares outstanding pursuant to our normal course issuer bid, which authorizes the repurchase of up to 5% of shares annually and which will be renewed in August.”

“As such, we retain flexibility for acquisitions and returning capital to shareholders through additional repurchases, as well as another increase to our dividend, which we will consider when we undertake our annual review in October.”

“Our outsides underlying solid waste margin expansion reflected favorable price-cost spread dynamics in spite of additional cost pressures indirectly related to fuel and was magnified by benefits from employee retention and safety, most notably savings in risk management costs, which accounted for about half of our underlying margin expansion.”

“Finally, year-to-date adjusted free cash flow of $703 million was in line with our expectations and consistent with our full-year 2026 outlook for double-digit growth in adjusted free cash flow per share.”

“Adjusted EBITDA for the full year is now estimated in the range of $3.33 billion-$3.34 billion, up from a range of $3.30 billion-$3.325 billion, putting full-year margin in the range of 33.2%-33.3%.”

“As Ron noted, there is no change to our expectations for adjusted free cash flow for 2026 in the range of $1.4 billion-$1.45 billion, including impacts related to closure at Chiquita Canyon Landfill in the range of $100 million-$150 million and capital expenditures of $1.25 billion.”

“Adjusted EBITDA margin in the second half of the year is expected to average about 33.7%, as implied by our full-year outlook, and could exceed 34% in Q3, depending on fuel and other commodities in the quarter.”

“It's not anything material, but it probably counted for an additional 10-15 basis points of volume churn in the quarter related to that.”

“If margins are moving up and volumes are nominally negative, you should be happy.”