Waste Connections Reports Third Quarter 2026 Results and Raises Full Year Outlook

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Postmedia has not reviewed the content. by Business Wire Waste Connections Reports Third Quarter 2026 Results and Raises Full Year OutlookAuthor of the article:Strong execution, improving solid waste landfill volumes and further strength in commodity-related revenues drive outsized results and another increase to full year outlookRevenue of $2.638 billion, exceeding expectationsNet income of $359.2 million, and adjusted EBITDA* of $895.8 million, or 34.0% of revenue, above expectationsNet income and adjusted net income* of $1.43 and $1.58 per share, respectivelyYear to date closed acquisitions of approximately $130 million in annualized revenuesIncreases regular quarterly dividend by 10% and completes year to date share repurchases of over $1 billionSecond increase to full year 2026 outlook for revenue and adjusted EBITDA*THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThis advertisement has not loaded yet, but your article continues below.THE WOODLANDS, Texas — Waste Connections, Inc. (TSX/NYSE: WCN) (“Waste Connections” or the “Company”) today announced its results for the third quarter of 2026.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Another top to bottom beat in the period was driven by continued strength in operational execution along with improving trends in landfill activity and commodity-driven revenue. Sequential improvement of 70 basis points in solid waste unit volumes was led by an uptick in landfill volumes, with operating results continuing to reflect the benefits of elevated employee retention and record safety performance,” said Ronald J. Mittelstaedt, President and Chief Executive Officer.“Most importantly, we overcame a late quarter surge in diesel pricing to deliver adjusted EBITDA margin* of 34% on underlying margin expansion of 50 basis points,” continued Mr. Mittelstaedt. “Our performance puts us firmly on track to exceed the increased full year 2026 outlook we provided in July for revenue and adjusted EBITDA*, and we remain positioned to deliver double-digit growth in adjusted free cash flow* of at least $1.4 billion. Additional acquisitions completed later this year, and further improvement in E&P waste activity or other commodity-driven revenues, would provide incremental benefit.”Mr. Mittelstaedt continued, “As anticipated, the strength of our operating performance, free cash flow generation and balance sheet positioned us for another double-digit annual increase in our quarterly cash dividend, our sixteenth in a row. Additionally, we continued our opportunistic share repurchases, bringing year to date outlays to over $1 billion for 2.5% of outstanding shares, demonstrating once again our ability to fund our differentiated growth strategy and acquisition activity, along with record return of capital to shareholders.”Revenue in the third quarter totaled $2.638 billion, up from $2.458 billion in the year ago period. Operating income was $541.7 million, which included $3.0 million in transaction-related expenses and $1.9 million in impairments and other operating items, partially offset by $0.6 million associated with fair value changes to equity awards. This compares to operating income of $439.6 million in the third quarter of 2025 that included $63.5 million primarily from the write-down of contracts and a non-operating E&P waste facility permit, an environmental liability at an operating facility and transaction-related expenses. Net income in the third quarter was $359.2 million, or $1.43 per share on a diluted basis of 251.9 million shares. In the year ago period, the Company reported net income of $286.3 million, or $1.11 per share on a diluted basis of 257.6 million shares.This advertisement has not loaded yet, but your article continues below.Adjusted net income* in the third quarter was $398.9 million, or $1.58 per diluted share, versus $372.0 million, or $1.44 per diluted share, in the prior year period. Adjusted EBITDA* in the third quarter was $895.8 million, as compared to $830.3 million in the prior year period. Adjusted net income, adjusted net income per diluted share and adjusted EBITDA, all non-GAAP measures, primarily exclude impairments and acquisition-related items, as reflected in the detailed reconciliations in the attached tables. Nine Months Year to Date ResultsFor the nine months ended September 30, 2026, revenue was $7.570 billion, up from $7.094 billion in the year ago period. Operating income was $1.343 billion, which included $139.9 million from impairments and other operating items and $13.0 million in transaction-related expenses, partially offset by $1.8 million associated with fair value changes to equity awards. This compares to operating income in the prior year period of $1.289 billion, which included $70.6 million from impairments and other operating items and $20.3 million primarily attributable to transaction-related expenses and fair value changes to equity awards.Net income for the nine months ended September 30, 2026 was $875.0 million, or $3.45 per share on a diluted basis of 253.9 million shares. In the year ago period, the Company reported net income of $818.1 million, or $3.16 per share on a diluted basis of 258.5 million shares.Adjusted net income* for the nine months ended September 30, 2026 was $1.095 billion, or $4.32 per diluted share, compared to $998.3 million, or $3.86 per diluted share, in the year ago period. Adjusted EBITDA* for the nine months ended September 30, 2026 was $2.505 billion, as compared to $2.329 billion in the prior year period.Waste Connections also updated its outlook for 2026, which assumes no change in the current economic environment or underlying economic trends. The Company’s outlook excludes any impact from additional acquisitions that may close during the year, and expensing of transaction-related items. The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Certain components of the outlook for 2026 are subject to quarterly fluctuations. See reconciliations in the attached tables.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Revenue is estimated to be approximately $10.09 billion;Net income is estimated to be approximately $1.18 billion, and adjusted EBITDA* is estimated to be approximately $3.345 billion;Capital expenditures are estimated to be approximately $1.25 billion; andNet cash provided by operating activities is estimated to be between $2.64 billion and $2.69 billion, and adjusted free cash flow* is estimated to be between $1.40 billion and $1.45 billion.* A non-GAAP measure; see accompanying Non-GAAP Reconciliation Schedule Q3 2026 Earnings Conference CallWaste Connections will be hosting a conference call related to third quarter earnings on October 22nd at 8:30 A.M. Eastern Time. A live audio webcast of the conference call can be accessed by visiting investors.wasteconnections.com and selecting “Events & Presentations” from the website menu. Alternatively, conference call participants can preregister by clicking here. Registered participants will receive dial-in instructions and a personalized code for entry to the conference call. Shortly after the conclusion of the conference call, a webcast replay will be available on the Waste Connections investor website or by clicking here.is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 46 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S. and Canada. Waste Connections views its sustainability efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement. Visitfor more information and updates on our progress towards targeted achievement.This advertisement has not loaded yet, but your article continues below. Safe Harbor and Forward-Looking InformationThis press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 (“PSLRA”), including “forward-looking information” within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections’ current beliefs and expectations regarding future events and operating performance. These forward-looking statements are often identified by the words “may,” “might,” “believes,” “thinks,” “expects,” “estimate,” “continue,” “intends” or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about expected 2026 financial results, outlook and related assumptions, and potential acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company’s filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.– financial tables attached –WASTE CONNECTIONS, INC.CONDENSED CONSOLIDATED STATEMENTS OF NET INCOMETHREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2026(Unaudited)(in thousands of U.S. dollars, except share and per share amounts)Three months ended September 30,Nine months ended September 30,2025202620252026Revenues$2,458,378$2,638,081$7,093,609$7,570,319Operating expenses:Cost of operations1,406,8541,501,1434,091,1534,341,459Selling, general and administrative236,476253,934729,576765,546Depreciation263,999290,625763,727836,387Amortization of intangibles51,33148,783149,209143,647Impairments and other operating items60,1271,85170,598139,901Operating income439,591541,7451,289,3461,343,379Interest expense(84,449)(96,376)(248,074)(275,298)Interest income5,0902,9889,17410,227Other income, net14,5422,76826,46340,105Income before income tax provision374,774451,1251,076,9091,118,413Income tax provision(88,503)(91,901)(258,852)(243,446)Net income$286,271$359,224$818,057$874,967Earnings per common share:Basic$1.11$1.43$3.17$3.45Diluted$1.11$1.43$3.16$3.45Shares used in the per share calculations:Basic256,948,902251,338,542257,835,515253,369,277Diluted257,580,321251,873,132258,484,698253,855,805Cash dividends per common share$0.315$0.350$0.945$1.050This advertisement has not loaded yet, but your article continues below.WASTE CONNECTIONS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(in thousands of U.S. dollars, except share and per share amounts)December 31, 2025September 30, 2026ASSETSCurrent assets:Cash and equivalents$45,968$95,694Accounts receivable, net of allowance for credit losses of $21,402 and $23,669 at December 31, 2025 and September 30, 2026, respectively1,024,9921,106,208Prepaid expenses and other current assets240,603235,136Total current assets1,311,5631,437,038Restricted cash183,612183,125Restricted investments80,75773,896Property and equipment, net8,733,3279,005,291Operating lease right-of-use assets312,508320,279Goodwill8,392,2498,413,634Intangible assets, net2,006,2001,967,946Other assets, net109,147109,059Total assets$21,129,363$21,510,268LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilities:Accounts payable$765,227$811,498Book overdraft14,67414,841Deferred revenue416,025436,145Accrued liabilities810,367776,370Current portion of operating lease liabilities44,27248,043Current portion of contingent consideration65,02960,120Current portion of long-term debt and notes payable8,6677,801Total current liabilities2,124,2612,154,818Long-term portion of debt and notes payable8,811,1049,427,069Long-term portion of operating lease liabilities267,000275,113Long-term portion of contingent consideration19,66719,464Deferred income taxes1,085,6131,146,675Other long-term liabilities576,337603,087Total liabilities12,883,98213,626,226Commitments and contingenciesShareholders’ Equity:Common shares: Unlimited shares authorized; 255,661,011 shares issued and 255,614,663 shares outstanding at December 31, 2025; 250,293,972 shares issued and 250,247,624 shares outstanding at September 30, 20262,783,4311,845,308Additional paid-in capital373,239406,383Accumulated other comprehensive loss(111,044)(176,879)Treasury shares: 46,348 and 46,348 shares at December 31, 2025 and September 30, 2026, respectively––Retained earnings5,199,7555,809,230Total shareholders’ equity8,245,3817,884,042Total liabilities and shareholders’ equity$21,129,363$21,510,268WASTE CONNECTIONS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSNINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2026(Unaudited)(in thousands of U.S. dollars)Nine months ended September 30,20252026Cash flows from operating activities:Net income$818,057$874,967Adjustments to reconcile net income to net cash provided by operating activities:Loss from disposal of assets, impairments and other71,61410,222Adjustments to closure and post-closure liabilities–131,977Depreciation763,727836,387Amortization of intangibles149,209143,647Deferred income taxes, net of acquisitions93,83962,316Current period provision for expected credit losses9,32119,488Amortization of debt issuance costs6,2716,949Share-based compensation60,43261,824Interest accretion38,41133,311Payment of contingent consideration recorded in earnings(400)(1)Adjustments to contingent consideration30,874(1,315)Other(7,046)(7,411)Net change in operating assets and liabilities, net of acquisitions(177,119)(201,550)Net cash provided by operating activities1,857,1901,970,811Cash flows from investing activities:Payments for acquisitions, net of cash acquired(627,310)(368,682)Capital expenditures for property and equipment(794,937)(893,732)Capital expenditures for undeveloped land–(56,192)Proceeds from disposal of assets9,1535,470Other(20,819)1,863Net cash used in investing activities(1,433,913)(1,311,273)Cash flows from financing activities:Proceeds from long-term debt2,222,2352,668,176Principal payments on notes payable and long-term debt(1,808,598)(2,022,304)Payment of contingent consideration recorded at acquisition date(28,324)(11,211)Change in book overdraft(336)167Payments for repurchase of common shares(442,176)(944,432)Payments for cash dividends(243,950)(265,492)Tax withholdings related to net share settlements of equity-based compensation(31,306)(29,279)Debt issuance costs(4,825)(9,572)Proceeds from issuance of shares under employee share purchase plan5,4646,309Proceeds from sale of common shares held in trust324–Net cash used in financing activities(331,492)(607,638)Effect of exchange rate changes on cash, cash equivalents and restricted cash627(2,661)Net increase in cash, cash equivalents and restricted cash92,41249,239Cash, cash equivalents and restricted cash at beginning of period198,173229,580Cash, cash equivalents and restricted cash at end of period$290,585$278,819This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.ADDITIONAL STATISTICS(in thousands of U.S. dollars, except where noted)Solid Waste Internal Growth: The following table reflects a breakdown of the components of our solid waste internal growth for the three and nine month periods ended September 30, 2026:Three months ended September 30, 2026Nine months ended September 30, 2026Yield(a)4.3%4.5%Surcharges1.3%0.8%Unit Volume(a)(1.2%)(1.5%)Recycling0.3%(0.1%)Foreign Exchange Impact(0.2%)0.1%Total4.5%3.8%Core Price(b)5.5%5.7%____________________(a) In the first quarter of 2026, WCN began providing a breakdown of organic growth in solid waste collection, transfer and disposal to include Yield and Unit Volume, which are performance metrics used by management to evaluate the effectiveness of our pricing and organic growth strategies. Yield, or change in average price per unit of service, reflects the impacts of customer churn and new business activity and the resulting mix by line of business and by geographic segment; Unit Volume reflects estimated change in units of activity.(b) Core Price is defined as the revenue growth attributable to price increases, net of rollbacks, on solid waste collection, transfer and disposal customers. This definition is consistent with Core Price references provided in prior periods.Revenue Breakdown: The following table reflects a breakdown of our revenue for the three month periods ended September 30, 2025 and 2026:Three months ended September 30, 2025RevenueInter-company EliminationReported Revenue%Solid Waste Collection$1,730,339$(5,733)$1,724,60670.1%Solid Waste Disposal and Transfer804,442(348,040)456,40218.6%Solid Waste Recycling58,351(2,110)56,2412.3%E&P Waste Treatment, Recovery and Disposal188,679(9,542)179,1377.3%Intermodal and Other42,686(694)41,9921.7%Total$2,824,497$(366,119)$2,458,378100.0%Three months ended September 30, 2026RevenueInter-company EliminationReported Revenue%Solid Waste Collection$1,825,657$(5,771)$1,819,88669.0%Solid Waste Disposal and Transfer866,609(374,421)492,18818.7%Solid Waste Recycling67,707(3,001)64,7062.4%E&P Waste Treatment, Recovery and Disposal222,636(9,781)212,8558.1%Intermodal and Other60,348(11,902)48,4461.8%Total$3,042,957$(404,876)$2,638,081100.0%ADDITIONAL STATISTICS (continued)(in thousands of U.S. dollars, except where noted)Contribution from Acquisitions: The following table reflects revenues from acquisitions, net of divestitures, closed during or subsequent to the prior periods:Three months ended September 30,Nine months ended September 30,2025202620252026Acquisitions, net$76,621$53,434$318,789$154,445This advertisement has not loaded yet, but your article continues below.Other Cash Flow Items: The following table reflects cash interest and cash taxes for the three and nine month periods ended September 30, 2025 and 2026:Three months ended September 30,Nine months ended September 30,2025202620252026Cash Interest Paid$83,792$108,072$239,038$280,973Cash Taxes Paid50,39444,792141,535143,970Debt to Book Capitalization as of September 30, 2026: 54%Internalization for the three months ended September 30, 2026: 58%Days Sales Outstanding for the three months ended September 30, 2026: 39 (23 net of deferred revenue)Share Information for the three months ended September 30, 2026:Basic shares outstanding251,338,542Dilutive effect of equity-based awards534,590Diluted shares outstanding251,873,132NON-GAAP RECONCILIATION SCHEDULE(in thousands of U.S. dollars, except where noted)Reconciliation of Adjusted EBITDA:Adjusted EBITDA, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a performance and valuation measure in the solid waste industry. Management uses adjusted EBITDA as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections’ operations. Waste Connections defines adjusted EBITDA as net income, plus income tax provision, plus interest expense, less interest income, plus depreciation and amortization expense, plus closure and post-closure accretion expense, plus or minus any loss or gain on impairments and other operating items, plus other expense, less other income. Waste Connections further adjusts this calculation to exclude the effects of other items management believes impact the ability to assess the operating performance of its business. This measure is not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate adjusted EBITDA differently.Three months ended September 30,Nine months ended September 30,2025202620252026Net income$286,271$359,224$818,057$874,967Plus: Income tax provision88,50391,901258,852243,446Plus: Interest expense84,44996,376248,074275,298Less: Interest income(5,090)(2,988)(9,174)(10,227)Plus: Depreciation and amortization315,330339,408912,936980,034Plus: Closure and post-closure accretion11,96310,34335,77930,962Plus: Impairments and other operating items60,1271,85170,598139,901Less: Other income, net(14,542)(2,768)(26,463)(40,105)Adjustments:Plus: Transaction-related expenses(a)3,8353,00419,77812,952Plus/(Less): Fair value changes to equity awards(b)(509)(570)527(1,839)Adjusted EBITDA$830,337$895,781$2,328,964$2,505,389As % of revenues33.8%34.0%32.8%33.1%This advertisement has not loaded yet, but your article continues below.____________________(a)Reflects the addback of acquisition-related transaction costs.(b)Reflects fair value accounting changes associated with certain equity awards.NON-GAAP RECONCILIATION SCHEDULE (continued)(in thousands of U.S. dollars, except where noted)Reconciliation of Adjusted Free Cash Flow:Adjusted free cash flow, a non-GAAP financial measure, is provided supplementally because it is widely used by investors as a liquidity measure in the solid waste industry. Waste Connections calculates adjusted free cash flow as net cash provided by operating activities, plus or minus change in book overdraft, plus proceeds from disposal of assets, less capital expenditures for property and equipment. Waste Connections further adjusts this calculation to exclude the effects of items management believes impact the ability to evaluate the liquidity of its business operations. This measure is not a substitute for, and should be used in conjunction with, GAAP liquidity or financial measures. This measure is not meant to represent residual cash available for strategic acquisitions, stock repurchases, dividends or other discretionary expenditures since it does not adjust for mandatory debt service requirements and other non-discretionary expenditures. Other companies may calculate adjusted free cash flow differently.Three months ended September 30,Nine months ended September 30,2025202620252026Net cash provided by operating activities$677,449$691,925$1,857,190$1,970,811Plus/(Less): Change in book overdraft(733)(14,077)(336)167Plus: Proceeds from disposal of assets3,7362,5489,1535,470Less: Capital expenditures for property and equipment(297,172)(294,783)(794,937)(893,732)Adjustments:Transaction-related expenses(a)1,7341,68612,8959,058Executive separation costs(b)––2,119978Payment of contingent consideration recorded in earnings(c)––4001Pre-existing Progressive Waste share-based grants(d)––16–Tax effect(e)(434)(422)(2,832)(2,510)Adjusted free cash flow$384,580$386,877$1,083,668$1,090,243As % of revenues15.6%14.7%15.3%14.4%____________________(a)Reflects the addback of acquisition-related transaction costs.(b)Reflects the cash component of severance expense associated with an executive departure from 2023.(c)Reflects the addback of acquisition-related payments for contingent consideration that were recorded as expenses in earnings and as a component of cash flows from operating activities as the amounts paid exceeded the fair value of the contingent consideration recorded at the acquisition date.(d)Reflects the cash settlement of pre-existing Progressive Waste share-based awards during the period.(e)The aggregate tax effect of footnotes (a) through (d) is calculated based on the applied tax rates for the respective periods.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.NON-GAAP RECONCILIATION SCHEDULE (continued)(in thousands of U.S. dollars, except per share amounts)Reconciliation of Adjusted Net Income and Adjusted Net Income per Diluted Share:Adjusted net income and adjusted net income per diluted share, both non-GAAP financial measures, are provided supplementally because they are widely used by investors as valuation measures in the solid waste industry. Management uses adjusted net income and adjusted net income per diluted share as one of the principal measures to evaluate and monitor the ongoing financial performance of Waste Connections’ operations. Waste Connections provides adjusted net income to exclude the effects of items management believes impact the comparability of operating results between periods. Adjusted net income has limitations due to the fact that it excludes items that have an impact on the Company’s financial condition and results of operations. Adjusted net income and adjusted net income per diluted share are not a substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate these non-GAAP financial measures differently.Three months ended September 30,Nine months ended September 30,2025202620252026Reported net income$286,271$359,224$818,057$874,967Adjustments:Amortization of intangibles(a)51,33148,783149,209143,647Impairments and other operating items(b)60,1271,85170,598139,901Transaction-related expenses(c)3,8353,00419,77812,952Fair value changes to equity awards(d)(509)(570)527(1,839)Tax effect(e)(29,005)(13,412)(59,903)(74,177)Adjusted net income$372,050$398,880$998,266$1,095,451Diluted earnings per common share:Reported net income$1.11$1.43$3.16$3.45Adjusted net income$1.44$1.58$3.86$4.32____________________(a)Reflects the elimination of the non-cash amortization of acquisition-related intangible assets.(b)Reflects the addback of impairments and other operating items.(c)Reflects the addback of acquisition-related transaction costs.(d)Reflects fair value accounting changes associated with certain equity awards.(e)The aggregate tax effect of the adjustments in footnotes (a) through (d) is calculated based on the applied tax rates for the respective periods.UPDATED 2026 OUTLOOKNON-GAAP RECONCILIATION SCHEDULE(in thousands of U.S. dollars, except where noted)Reconciliation of Adjusted EBITDA:Updated 2026 OutlookNet income$1,182,000Plus: Income tax provision(a)336,000Plus: Interest expense, net362,000Plus: Depreciation and Depletion1,120,000Plus: Amortization192,000Plus: Closure and post-closure accretion42,091Plus: Impairments and other operating items(b)139,901Less: Other income, net(b)(40,105)Adjustments(b)Plus: Transaction-related expenses12,952Plus: Fair value changes to equity awards(1,839)Adjusted EBITDA$3,345,000This advertisement has not loaded yet, but your article continues below.____________________(a)Approximately 22.1% full year effective tax rate, including amounts reported for the nine month period ended September 30, 2026.(b)Reflects amounts reported for the nine month period ended September 30, 2026, as shown on page 9.Reconciliation of Adjusted Free Cash Flow:Updated 2026 OutlookLow EstimateHigh EstimateNet cash provided by operating activities$2,636,836$2,686,836Plus: Change in book overdraft(a)167167Plus: Proceeds from disposal of assets(a)5,4705,470Less: Capital expenditures for property and equipment(1,250,000)(1,250,000)Adjustments:(a)Transaction-related expenses9,0589,058Executive separation costs978978Payment of contingent consideration recorded in earnings11Tax effect(2,510)(2,510)Adjusted Free Cash Flow$1,400,000$1,450,000____________________(a)Reflects amounts reported for the nine month period ended September 30, 2026, as shown on page 10.View source version on businesswire.com: This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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