Description

Waste Connections’ $100 Million AI Opportunity — Can Technology Redefine The Margin Story?

Waste Connections, Inc. reported second-quarter 2026 revenue of $2.562 billion, up 6.4% year-over-year. Adjusted EBITDA increased 6.8% to $840.1 million, while margin expanded to 32.8%, including 70 basis points of underlying improvement. Margin growth reflected favorable price-cost spreads, improved employee retention, safety performance, and AI-driven efficiencies. The company’s commercial pricing tool has generated approximately $20 million of annualized EBITDA benefits. Core solid waste pricing increased 5.6%, while total pricing rose 6.7%, including 1.1% from fuel and material surcharges, helping offset higher fuel expenses. Solid waste volumes declined 1.9% because of macroeconomic uncertainty and customer sensitivity to higher pricing, particularly in construction-related activity. Customer churn remained within historical ranges. Special waste volumes declined year-over-year but improved in July. Construction and demolition volumes posted their first positive growth in ten quarters, particularly in the Central region. Recycled commodity revenue and landfill gas sales improved sequentially, helped by higher Renewable Identification Number values.