Waste Connections: Better Margins, But Volume Trend Is Still Weak

Waste Connections maintained strong pricing and margin expansion in Q2 2026, but overall volume remains in decline. WCN:CA raised its FY2026 outlook and posted robust quarterly free cash flow, yet first-half FCF conversion weakened and operational deleverage risk persists. Despite positive C&D volume growth and resilient pricing power, total unit volume fell 1.9%, raising concerns about fixed-cost absorption. I reiterate a hold rating, as valuation appears fair at ~15x NTM EBITDA and volume recovery remains insufficient to warrant a bullish stance.

I previously gave Waste Connections ( WCN:CA ) a hold rating because pricing remained strong, but volumes had not stabilized and landfill-related uncertainty still reduced visibility on margins and cash flow. What we saw in the