Waste Connections, Inc. Q1 FY2025 earnings call

• Strong start to 2025 with price-led organic solid waste growth, 6.9% core price, and better-than-expected adjusted EBITDA margin of 32%. • Tenth consecutive quarter of improvement in employee retention, with voluntary turnover below 12%. • Record safety performance with historic low incident rates. • Acquisition activity with annualized revenues closed to date over $125 million, including a strategic recycling facility in New Jersey. • Received a rating upgrade from Moody's Ratings to A3.

The first quarter revenue was $2.228 billion, up 7.5% year-over-year. Solid waste organic growth was led by 6.9% core price, with volume down 2.8%. Contributions from acquisitions netted divest and operations closed since the year-ago period totaled $112 million in the quarter. Core solid waste price ranged from about 4.5% in the western region to over 8.5% in competitive markets. Total price was 6.7% due to lower fuel and material surcharges.

• Reiterated full-year 2025 outlook for revenue, adjusted EBITDA, and adjusted free cash flow. • Q2 revenue estimated in the range of $2.375 billion to $2.4 billion. • Adjusted EBITDA margin in Q2 estimated at approximately 32.7%. • Depreciation and amortization expense for Q2 estimated at about $50 million. • Interest expense net of interest income estimated at approximately $82 million. • Effective tax rate in Q2 estimated at about 24.5%.

• Potential impacts from tariffs and geopolitical elements not yet seen but monitored. • HSR process changes lengthening deal timelines for some acquisitions. • Insurance market lagging indicators with risk premiums being a lagging factor. • Macro-economic uncertainty affecting project timelines and economic activity.

Q: How do HSR changes affect M&A?

A: 99% of deals don't require HSR, so few delays expected.

Q: Any changes in RNG landscape?

A: RINs stable at $2.45, new facilities coming online in late 2026.

Q: Thoughts on price plans?

A: No change, price retention better than prior years.

Q: Details on NJ recycling facility?

A: Large, state-of-the-art facility in Hoboken area, strategic for NY City franchise.

Q: Volume progression and SG&A?

A: Volume normalized for weather and contract shedding, SG&A affected by acquisition-related expenses and incentive comp.