Waste Connections Shares Rise After In-Line Quarter, Largely Intact Guidance

By Robb M. Stewart

Waste Connections shares were higher Thursday after the waste management company's second-quarter results met expectations and its financial guidance for the year remained near its early targets despite what it said were growing headwinds.

In midday trading, the shares were 2.7% higher at C$257.37, widening its advance in 2025 to 4.4%. In New York, the shares were 2.1% stronger at $188.21

The company, which offers waste collection and disposal services in 46 U.S. states and six Canadian provinces, said it now expects revenue for the year of about $9.45 billion, the low end of its prior guidance range of up to $9.6 billion.

Net income is estimated at about $1.14 billion, where it had been previously targeting between $1.186 billion and $1.224 billion.

For the second quarter, Waste Connections recorded net income of $290.3 million, or $1.12 a share, against $275.5 million, or $1.07, a year earlier. The latest figure included $7.3 million in impairments and other operating items and transaction-related expenses.

On an adjusted basis, earnings before interest, taxes, depreciation and amortization increased 7.5% to $786.4 million. That narrowly beat the $785.4 million analysts polled by FactSet had expected.

Revenue was 7.1% higher for the three months at $2.41 billion, in line with the mean estimate of analysts.

Write to Robb M. Stewart at robb.stewart@wsj.com