Waste Connections shares jumped after the company raised its full-year outlook again on the back of better-than-expected third-quarter earnings, driven by a rebound in landfill activity and stronger pricing power.
Shares traded 8.7% higher in Toronto at 256.81 Canadian dollars ($182.83).
The company is leveraging resilient pricing and growth in construction waste to offset broader macroeconomic uncertainty and late-quarter diesel price surges. Waste Connections reported late Thursday that landfill volume growth turned positive across all three of its primary waste types for the first time in two years.
The improving trends led the company to increase its 2026 outlook for the second time this year. Waste Connections now expects revenue of $10.09 billion, with net income in the range of $1.18 billion. Previously, revenue was seen at $10.02 billion to $10.05 billion, and net income in the range of $1.169 billion to $1.173 billion.
For the third quarter revenue grew to $2.64 billion from $2.46 billion a year earlier, ahead of analyst expectations of $2.61 billion, according to FactSet. The company also benefited from an influx of infrastructure project waste, which helped lift earnings before interest, taxes, depreciation and amortization to $895.8 million, up from $830.3 million year ago.
Chief Executive Ron Mittelstaedt said on a call with analysts that the higher volumes were led by a 7% jump in special waste and a 5% rise in construction and demolition debris, fueled by large-scale infrastructure projects such as highways, data centers, and chip plants.
Net income rose to $359.2 million, or $1.43 a share, up from $286.3 million, or $1.11 a share in the same period a year ago.
Adjusted net income came to $1.58 a share, topping analyst forecasts of $1.53 a share.
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