Waste Connections reported Q1 2026 revenue of $2.371 billion, up 6.4% year over year, with recycled commodity revenue posting its first sequential gain in seven quarters.
Q1 2026 highlights:
- Revenue: $2.371 billion (+6.4% YOY)
- Adjusted EBITDA: $769.5 million (+8% YOY), margin of 32.5%
- Core price: 6%
- Adjusted free cash flow: $246 million
Old corrugated cardboard (OCC) averaged $89 per ton in Q1 and exited the quarter at $94 per ton, in line with the 2025 full-year average, CFO Mary Anne Whitney told investors on the company’s Q1 2026 earnings call.
Landfill gas sales also ticked up sequentially, driven by contributions from a new RNG facility currently in start-up and a spike in natural gas prices.
“Against the volatile macroeconomic and geopolitical backdrop, our results reflect the durability of our model and consistency of execution as we continue to benefit from improved operating trends, along with recent increases in commodities and special waste activity,” said CEO Ron Mittelstaedt.
Total landfill tons were up 4% in the quarter, with MSW gaining 5% and special waste up 8%, the sixth consecutive quarter of growth in that category.
Mittelstaedt described the trend as a leading indicator, noting that special waste activity typically precedes infrastructure and construction activity by six to 12 months. C&D posted its 10th straight quarter of year-over-year decline, down 5%.
The company also flagged momentum from its AI-driven pricing tool, which Mittelstaedt said has delivered roughly 20% improvement in customer retention and pricing effectiveness. Waste Connections is targeting seven AI initiatives across pricing, routing and customer engagement through 2027.
“As we come out of 2027 and head into 2028, it is reasonable to expect somewhere approaching about 100 basis points of margin appreciation from all seven initiatives,” he said.
