Waste Connections Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 824.00 | Wrvm | Fwdcgcl |
Waste Connections Earnings: Pricing Power and Acquisitions Continue to Drive Strong Growth
Wide-moat-rated Waste Connections delivered a strong second-quarter financial performance, with revenue growing more than 11% year over year to $2.25 billion and adjusted EBITDA margin expanding 150 basis points to 32.6%. Revenue growth was driven by strong pricing gains (core price was up 7%) and acquisitions (adding more than 6 percentage points of growth), partially offset by a nearly 3-percentage-point sales growth headwind from lower volumes. Waste Connections continues to optimize its revenue quality by shedding contracts that are not generating appropriate profit margins.