Why Waste Connections Stock Is Up Today
Key Points
Acquisitions are helping to drive Waste Connections' profits higher.
The disposal services provider is passing much of this cash on to its stock owners.
- 10 stocks we like better than Waste Connections ›
Shares of Waste Connections (NYSE:WCN) surged on Thursday after the garbage hauler boosted its cash payouts to investors.
Image source: Getty Images.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Turning trash into cash
Waste Connections' third-quarter revenue rose 7% year over year to $2.6 billion.
The trash collector employs a growth-through-acquisition business model, enabling it to steadily expand its waste services network. The acquisitions it completed so far this year are projected to add roughly $130 million in annualized revenue.
Additionally, Waste Connections' focus on exclusive and secondary markets gives it strong pricing power, allowing it to increase its fees above the rate of inflation. These price hikes have helped to offset rising fuel costs as diesel prices have spiked.
All told, Waste Connections' adjusted net income increased 7% to $399 million. Its earnings per share, boosted by stock buybacks, climbed 10% to $1.58. That topped Wall Street's estimates, which had called for per-share profits of $1.52.
Rising profits mean larger dividends for shareowners
These solid results prompted Waste Connections to lift its full-year financial forecast. Management now expects revenue of $10.1 billion, net income of $1.2 billion, and adjusted free cash flow of more than $1.4 billion.
The landfill operator also raised its quarterly dividend by 10% to $0.385 per share.
"The strength of our operating performance, free cash flow generation, and balance sheet positioned us for another double-digit annual increase in our quarterly cash dividend, our sixteenth in a row," CEO Ronald Mittelstaedt said.
Should you buy stock in Waste Connections right now?
Before you buy stock in Waste Connections, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Waste Connections wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,363,905!*
Now, it’s worth noting Stock Advisor’s total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 22, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Waste Connections. The Motley Fool has a disclosure policy.
Recommended Articles
