EPS of $1.23 beat estimates of $1.18; revenue of $2.37B beat estimates slightly. Waste Connections topped consensus EPS by offsetting rising fuel costs with price increases and timely hedging. Revenue rose 6%, driven by firm core solid-waste pricing, increased E&P Waste activity and acquisition contributions, which helped mitigate higher fuel costs, weak construction volume and low recycled-commodity prices. Adjusted Ebitda margin expanded 50 bps as pricing discipline and routing efficiencies offset weather and fuel pressure. Full-year guidance was reaffirmed with an upside bias following the 1Q beat. Free cash flow missed on higher sustainability capex and Chiquita Canyon outlays, though Ebitda conversion remained solid. Net leverage held at 2.8x despite $360 million of year-to-date buybacks, offering support for additional tuck-in M&A and capital returns. These are good results.
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