Waste Connections Delivers Strong Fourth-Quarter Results Driven by Tailwinds in Core Pricing

Wide-moat-rated Waste Connections delivered fourth-quarter results that were mostly in line with our expectations as tailwinds in core pricing and strong acquisition activity outweighed headwinds from lower collection volumes and recycled commodity prices. For full-year 2022, Waste Connections posted over 17% top-line growth (7% organic solid waste) and adjusted EPS of $3.82 per share. Management issued a favorable outlook for 2023 propelled by continued gains in core pricing. We raised our fair value estimate by 9% to $107 (CAD 144) per share to reflect more favorable pricing dynamics in the core solid waste business.