-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Waste Connections Inc. (WCN) delivered a strong start to 2026, with Q1 results exceeding expectations as revenue increased to $2.4B (+6.4% Y/Y) supported by solid waste core pricing of 6%, while adjusted EBITDA margin expanded 50 bps to 32.5%, reaching $769.5M (+8% Y/Y). Despite volume declines of 1.5% as the company shed lower-margin accounts, we believe consistent margin gains reflect WCN's market pricing power and solid execution on cost management. Management highlighted upside potential from improvements in commodity prices, accretive M&A deals, and ramping AI investments for longer-term operational benefits. E&P waste treatment achieved stellar 24.3% growth reflecting increased special waste activity, while solid waste collection grew 5.4% to $1.7B with strong pricing realization, though recycling revenue declined 12.9% due to commodity headwinds. We view Q1 results as aligning well with our Buy thesis, as WCN appears well-positioned with favorable pricing trends and rising E&P waste service demand.