The second-quarter earnings reports from the major publicly traded solid waste companies point to an industry that continues to perform well despite uneven volumes and ongoing macroeconomic uncertainty.
Across Casella, GFL, Republic Services, Waste Connections, and WM, pricing remained strong, generally running in the 5% to 6% range. At the same time, disciplined cost management and operating efficiencies helped support margin expansion. M&A also remains an important part of the growth story, while investments in recycling infrastructure, renewable natural gas (RNG), automation, and artificial intelligence continue to reshape the industry’s operating model.
Sector Takeaways
- Pricing remains a key earnings driver with core pricing generally ranging from approximately 5% to 6% across the major public companies.
- Volumes remain mixed with macroeconomic conditions weighing on certain C&D, residential, and special waste markets, although landfill and project activity showed signs of improvement in some areas.
- Margin performance remains strong as companies continue to use pricing, cost discipline, route optimization, automation, and technology to improve operating efficiency.
- M&A activity continues at a healthy pace ranging from tuck-in transactions designed to improve route density to larger strategic acquisitions.
- Capital investment remains elevated particularly around recycling modernization, RNG development, and technology-enabled operating platforms.
Casella Waste Systems (NASDAQ: CWST)
Casella Waste Systems delivered another solid quarter, supported by pricing, landfill volumes, and continued acquisition activity.
Second-quarter revenue totaled $543.7 million, including $442.2 million in solid waste revenue, while adjusted EBITDA reached $123.2 million. Solid waste pricing increased 5.5% year over year, including 5.8% collection price growth and 4.7% disposal price growth.
Acquisitions remain an important part of Casella’s strategy. The company has acquired five businesses so far in 2026 representing approximately $165 million in aggregate annualized revenue, including approximately $100 million associated with the previously announced acquisition of Star Waste Systems.
Reflecting acquisition activity and a higher floating fuel surcharge, Casella increased its full-year outlook and now expects 2026 revenue of $2.090 billion to $2.110 billion and adjusted EBITDA of $473 million to $483 million.
GFL Environmental (NYSE: GFL)
GFL continued its strong start to 2026 with second-quarter revenue of $1.370 billion and adjusted EBITDA of $416.1 million. Core pricing reached 6.1%, ahead of the company’s plan and higher than the previous quarter.
Volume trends were more challenging in certain end markets. External special waste and C&D volumes declined 10% year over year, illustrating some of the macroeconomic pressure affecting the industry. Despite that softness, GFL’s pricing discipline and acquisition contributions helped support continued growth.
The company again raised its 2026 guidance, with revenue now expected to reach $5.364 billion to $5.379 billion and adjusted EBITDA expected to total approximately $1.636 billion.
GFL also continues to advance its proposed SECURE transaction following shareholder approval in May, with the transaction progressing through regulatory review and a closing targeted for the latter part of 2026. Meanwhile, the company expects growth-related capital expenditures to exceed $200 million this year as it invests in RNG facilities and infrastructure supporting extended producer responsibility contracts in Canada.
Republic Services (NYSE: RSG)
Republic Services reported second-quarter revenue of $4.330 billion, including $3.972 billion from its solid waste business, while adjusted EBITDA reached $1.423 billion.
Pricing remained a significant contributor to performance. Core price increased total revenue by 5.3%, while core price in the related business increased revenue by 6.4%. That included 7.8% pricing in open-market business and 4.1% in restricted markets.
Republic also continues to deploy significant capital toward acquisitions. The company has spent approximately $860 million on acquisitions to date and expects to invest approximately $1 billion in acquisitions during 2026.
Following its strong operating performance, Republic increased its full-year guidance. The company now expects revenue of $17.2 billion to $17.3 billion and adjusted EBITDA of $5.525 billion to $5.550 billion.
Waste Connections (NYSE: WCN)
Waste Connections exceeded expectations in the second quarter, with revenue reaching $2.562 billion, solid waste revenue of $2.309 billion, and adjusted EBITDA of $840.1 million. Adjusted EBITDA margin reached 32.8%, including 70 basis points of underlying margin expansion despite higher fuel costs and lower commodity values.
Core solid waste pricing was 5.6% for the quarter, ranging from approximately 4% in the company’s largely exclusive Western markets to approximately 7% in competitive markets. Including a 1.1% fuel and material surcharge, total price reached 6.7%.
Volumes remained a more complicated part of the story, declining approximately 1.9% amid continued macroeconomic uncertainty. However, landfill tons were flat, and C&D tons increased year over year for the first time in 10 quarters, a potentially encouraging sign as additional project activity is expected to continue into the third quarter.
Waste Connections has also completed acquisitions representing more than $100 million in annualized revenue and expects to close another approximately $30 million of “exclusive-market franchise transactions,” with discussions continuing around additional opportunities.
The company increased its 2026 outlook and now expects revenue of $10.02 billion to $10.05 billion and adjusted EBITDA of $3.330 billion to $3.340 billion.
WM (NYSE: WM)
WM reported second-quarter revenue of $6.684 billion, including $5.479 billion from solid waste operations, with adjusted EBITDA reaching $2.067 billion.
Core price was 5.7%, while collection and disposal yield reached 3.6%. Reported collection and disposal volumes declined 1.8%, largely reflecting wildfire cleanup activity that benefited the prior-year period. Excluding those wildfire-related comparisons, collection and disposal volume declined a more modest 0.4%, while landfill volumes increased 1.7%. Special waste volumes increased 4.5% excluding wildfire activity.
WM also completed $235 million of solid waste tuck-in acquisitions during the quarter, focused primarily on improving route density and expanding its customer base.
Beyond its traditional collection and disposal operations, WM continues to invest heavily in recycling, RNG, and technology. A new Denver recycling facility added approximately 60,000 tons of annual processing capacity, and the company’s recycling automation projects have reduced labor cost per ton by approximately 30% compared with its “legacy facilities.” WM processed 12% more recyclables during the quarter and has now completed 38 of the 39 recycling facility projects included in its multiyear modernization program.
WM also completed three new RNG facilities during the quarter, two in South Carolina and one in Florida, representing approximately 3.5 million MMBtu of expected annual run-rate production.
Technology is becoming an increasingly important contributor as well. WM reported that its AI-enabled Smart Truck platform is generating more than $300 million in annual run-rate EBITDA through service upgrades, optimized routing, and lower operating costs.
Unlike several of its peers, WM reduced its full-year guidance due to lower volume expectations. The company now expects 2026 revenue of $26.275 billion to $26.475 billion and adjusted EBITDA of $8.150 billion to $8.250 billion.
Looking Ahead
Q2 results reinforce many of the themes that have defined the solid waste sector in recent years. Strong pricing and disciplined operations continue to provide a durable earnings foundation even when volumes are uneven, while M&A remains an important avenue for building route density, expanding market presence, and adding disposal capacity.
At the same time, the industry’s investment priorities are evolving. Recycling automation, RNG development, AI-enabled routing and operating systems, and expanded landfill infrastructure are increasingly becoming part of the growth and margin story alongside traditional collection and disposal operations.
Heading into the second half of 2026, volume trends and broader economic conditions will remain important variables. But with most of the major public companies maintaining or increasing their earnings outlooks and continuing to deploy capital toward acquisitions and operating improvements, the Q2 results suggest that the solid waste sector remains well positioned to navigate a mixed economic environment.
