Waste Connections raises dividend 10.0% to $0.385 a share
Key Facts
Waste Connections' board approved a 10.0% increase in its quarterly cash dividend, according to a company statement announced in October 2026 and distributed by Business Wire. Under the decision, the company's quarterly payout rises to US$0.385 per common share. The new dividend compares with the US$0.350 per share the company paid before the latest increase. The company said in its earnings statement that the decision marks the 16th consecutive annual double-digit increase in its quarterly dividend. Alongside the dividend increase, the company's spending on share repurchases from the start of 2026 through the earnings announcement exceeded $1 billion, buying the equivalent of 2.5% of its outstanding shares.
The dividend increase was announced as third-quarter 2026 revenue reached $2.638 billion, a level Waste Connections said exceeded its expectations for the period. Revenue was $2.458 billion in the third quarter of 2025, according to comparative figures in the earnings statement. Quarterly net income rose to $359.2 million from $286.3 million in the year-earlier period. The company reported third-quarter adjusted earnings before interest, taxes, depreciation and amortization of $895.8 million. Its adjusted EBITDA margin was 34.0% of revenue, based on the company's non-GAAP measure. Adjusted diluted earnings per share were $1.58 for the same period, also calculated using a non-GAAP measure.
The chief executive attributed the strong performance partly to improved landfill activity and commodity-related revenue, according to the third-quarter earnings statement. In describing the performance drivers, he cited "landfill activity and commodity-driven revenue." Waste Connections collects non-hazardous waste, among the services listed in its investor relations business overview. Its activities also include transporting and disposing of this waste, encompassing the landfill operations cited by the chief executive. Alongside waste services, the company operates in recycling and renewable fuel production.
In light of its third-quarter results, Waste Connections raised its 2026 revenue forecast to approximately $10.09 billion, according to the earnings statement. In guidance announced in July, the company had forecast annual revenue of between $10.02 billion and $10.05 billion. The new annual estimate is therefore above the upper end of the range announced with its second-quarter results. For adjusted free cash flow, the company maintained its forecast for the current year at between $1.40 billion and $1.45 billion. That range remained unchanged from July guidance for the same year, alongside the increase in its annual revenue estimate.
On dividend policy, the board said it intends to "review the quarterly dividend every October," according to the company's statement announcing the increase. The board set a long-term goal for this review of increasing the cash dividends shareholders receive. For the next payment, shareholders of record at the close of business on November 5, 2026, will be entitled to the new dividend, according to the date specified in the statement. The dividend is scheduled to be paid on November 19, 2026, to eligible shareholders. The company said shareholders whose shares are held through a bank or broker participating in the U.S. depository will receive their dividends in U.S. dollars.