Waste Connections Reports Second Quarter 2026 Results and Raises Full Year Outlook | Financial PostAdvertisement
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this Story : Financial Post Copy Link Email X Reddit LinkedIn Tumblr Waste Connections Reports Second Quarter 2026
Results and Raises Full Year OutlookAuthor of the article:Business WirePublished Jul 22, 202619 minute read Join the
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contentBetter than expected results drive increase to full year 2026 outlook, with upside from improving commodities and
ongoing acquisition activityRevenue of $2.562 billion, above expectations and up 6.4%Net income of $296.4 million, or
$1.17 per share, adjusted net income* of $381.7 million, or $1.50 per shareAdjusted EBITDA* of $840.1 million, above
expectations and up 6.8%Adjusted EBITDA* margin of 32.8% of revenueRecord year-to-date share repurchases of $614.5
million, or approximately 1.5% of shares outstandingTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read
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contentTORONTO — Waste Connections, Inc. (TSX/NYSE: WCN) (“Waste Connections” or the “Company”) today
announced its results for the second quarter of 2026 and raised its outlook for the full year.Article contentWe
apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.
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issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in
more newsletters? Browse here.Article content“We are extremely pleased to deliver results above expectations, led
primarily by strong operational execution driving a top-to-bottom beat in the second quarter. Most notably, adjusted
EBITDA* margin expanded to 32.8% on 70 basis points of underlying margin expansion overcoming cost pressures primarily
from rapidly spiking fuel and related costs, as well as ongoing drags from comparatively lower commodity values,” said
Ronald J. Mittelstaedt, President and Chief Executive Officer. “Our outperformance, in spite of ongoing geopolitical
instability and the associated uncertainty, is a reflection of our differentiated strategy and a purposeful culture,
both of which will continue to set us apart.”Article content“Our achievements in the first half of 2026, with recent
commodity values and ongoing fuel cost recovery, plus contributions from acquisitions closed to date, position us to
increase our full year outlook to revenue of $10.02 billion to $10.05 billion and adjusted EBITDA* of $3.33 billion to
$3.34 billion, with upside from improving trends in commodities and contributions from incremental
acquisitions.”Article contentMr. Mittelstaedt added, “Along with a record amount of share repurchases, we’ve
completed acquisitions with over $100 million in annualized revenue and remain well-positioned for another outsized year
of activity. The enduring strength of our balance sheet and free cash flow generation once again demonstrates our
ability to fund our growth strategy while increasing our return of capital to shareholders.”Article content Q2 2026
ResultsArticle contentRevenue in the second quarter totaled $2.562 billion, up from $2.407 billion in the year ago
period. Operating income was $437.6 million, which included $58.5 million primarily attributable to impairments related
to adjustments to landfill closure and post closure costs and $7.9 million primarily in transaction-related expenses.
This compares to operating income of $459.5 million in the second quarter of 2025, which included $7.3 million primarily
in impairments and other operating items and transaction-related expenses. Net income in the second quarter was $296.4
million, or $1.17 per share on a diluted basis of 253.9 million shares. In the year ago period, the Company reported net
income of $290.3 million, or $1.12 per share on a diluted basis of 259.0 million shares.Article contentArticle
contentAdjusted net income* in the second quarter was $381.7 million, or $1.50 per diluted share, versus $333.1 million,
or $1.29 per diluted share, in the prior year period. Adjusted EBITDA* in the second quarter was $840.1 million, as
compared to $786.4 million in the prior year period. Adjusted net income, adjusted net income per diluted share and
adjusted EBITDA, all non-GAAP measures, primarily exclude impairments and acquisition-related items, as reflected in the
detailed reconciliations in the attached tables.Article content Six Months Year to Date ResultsArticle contentFor the
six months ended June 30, 2026, revenue was $4.932 billion, up from $4.635 billion in the year ago period. Operating
income, which included $138.0 million primarily attributable to adjustments to landfill closure and post closure costs,
$9.9 million in transaction-related expenses, partially offset by $1.3 million in fair value changes to equity awards,
was $801.6 million, as compared to operating income of $849.8 million in the prior year period, which included $27.5
million primarily attributable to transaction-related expenses and impairments and other operating items.Article
contentNet income for the six months ended June 30, 2026 was $515.7 million, or $2.02 per share on a diluted basis of
254.9 million shares. In the year ago period, the Company reported net income of $531.8 million, or $2.05 per share on a
diluted basis of 258.9 million shares.Article contentAdjusted net income* for the six months ended June 30, 2026 was
$696.6 million, or $2.73 per diluted share, compared to $626.2 million, or $2.42 per diluted share, in the year ago
period. Adjusted EBITDA* for the six months ended June 30, 2026 was $1.610 billion, as compared to $1.499 billion in the
prior year period.Article content Updated 2026 OutlookArticle contentWaste Connections also updated its outlook for
2026, which assumes no change in the current economic environment or underlying economic trends. The Company’s outlook
excludes any impact from additional acquisitions that may close during the year, and expensing of transaction-related
items. The outlook provided below is forward looking, and actual results may differ materially depending on risks and
uncertainties detailed at the end of this release and in our periodic filings with the U.S. Securities and Exchange
Commission and the securities commissions or similar regulatory authorities in Canada. Certain components of the outlook
for 2026 are subject to quarterly fluctuations. See reconciliations in the attached tables.Advertisement 1This
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your article continues below.Article contentRevenue is estimated to be between $10.02 billion to $10.05 billion;Net
income is estimated to be between $1.169 billion and $1.173 billion, and adjusted EBITDA* is estimated to be between
$3.33 billion and $3.34 billion;Capital expenditures are estimated to be approximately $1.25 billion; andNet cash
provided by operating activities is estimated to be between $2.63 billion and $2.68 billion, and adjusted free cash
flow* is estimated to be between $1.40 billion and $1.45 billion.Article
content—————————————————————————————————————————————————-Article
content* A non-GAAP measure; see accompanying Non-GAAP Reconciliation ScheduleArticle content Q2 2026 Earnings
Conference CallArticle contentWaste Connections will be hosting a conference call related to second quarter earnings on
July 23rd at 8:30 A.M. Eastern Time. A live audio webcast of the conference call can be accessed by visiting
investors.wasteconnections.com and selecting “Events & Presentations” from the website menu. Alternatively,
conference call participants can preregister by clicking here. Registered participants will receive dial-in instructions
and a personalized code for entry to the conference call. Shortly after the conclusion of the conference call, a webcast
replay will be available on the Waste Connections investor website or by clicking here. About Waste Connections Waste
Connections ( wasteconnections.com) is an integrated solid waste services company that provides non-hazardous waste
collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling
and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial
customers in mostly exclusive and secondary markets across 46 states in the U.S. and six provinces in Canada. Waste
Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins
across the U.S. and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the
Pacific Northwest. Waste Connections views its sustainability efforts as integral to its business, with initiatives
consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource
recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill
leachate, further improving safety and enhancing employee engagement. Visit wasteconnections.com/sustainability for more
information and updates on our progress towards targeted achievement.Article contentArticle content Safe Harbor and
Forward-Looking InformationArticle contentThis press release contains forward-looking statements within the meaning of
the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 (“PSLRA”), including
“forward-looking information” within the meaning of applicable Canadian securities laws. These forward-looking
statements are neither historical facts nor assurances of future performance and reflect Waste Connections’ current
beliefs and expectations regarding future events and operating performance. These forward-looking statements are often
identified by the words “may,” “might,” “believes,” “thinks,” “expects,” “estimate,”
“continue,” “intends” or other words of similar meaning. All of the forward-looking statements included in this
press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada.
Forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include,
but are not limited to, statements about expected 2026 financial results, outlook and related assumptions, and potential
acquisition activity. Important factors that could cause actual results to differ, possibly materially, from those
indicated by the forward-looking statements include, but are not limited to, risk factors detailed from time to time in
the Company’s filings with the SEC and the securities commissions or similar regulatory authorities in Canada. You
should not place undue reliance on forward-looking statements, which speak only as of the date of this press release.
Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release,
whether as a result of new information, future events, or otherwise, unless required by applicable securities
laws.Article content– financial tables attached –Article contentWASTE CONNECTIONS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF NET INCOME THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2026 (Unaudited) (in thousands of U.S. dollars,
except share and per share amounts)Three months ended June 30,Six months ended June
30,2025202620252026Revenues$2,407,055$2,561,607$4,635,231$4,932,239Operating expenses:Cost of
operations1,392,8571,479,2172,684,2992,840,317Selling, general and
administrative242,966260,493493,100511,612Depreciation257,421278,277499,728545,762Amortization of
intangibles50,23647,60097,87894,864Impairments and other operating items4,03058,46610,471138,050Operating
income459,545437,554849,755801,634Interest expense(82,751)(91,203)(163,626)(178,922)Interest
income2,3144,1264,0847,239Other income, net10,05033,25311,92237,337Income before income tax
provision389,158383,730702,135667,288Income tax provision(98,882)(87,331)(170,348)(151,546)Net
income$290,276$296,399$531,787$515,742Earnings per common
share:Basic$1.12$1.17$2.06$2.03Diluted$1.12$1.17$2.05$2.02Shares used in the per share
calculations:Basic258,377,345253,457,489258,286,168254,398,232Diluted258,982,647253,856,582258,944,234254,860,729Cash
dividends per common share$0.315$0.350$0.630$0.70Article contentArticle contentWASTE CONNECTIONS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of U.S. dollars, except share and per share amounts)December 31,
2025June 30, 2026ASSETSCurrent assets:Cash and equivalents$45,968$98,180Accounts receivable, net of allowance for credit
losses of $21,402 and $23,961 at December 31, 2025 and June 30, 2026, respectively1,024,9921,069,733Prepaid expenses and
other current assets240,603231,225Total current assets1,311,5631,399,138Restricted cash183,612163,398Restricted
investments80,75772,781Property and equipment, net8,733,3278,965,023Operating lease right-of-use
assets312,508315,657Goodwill8,392,2498,388,109Intangible assets, net2,006,2001,973,464Other assets,
net109,147121,882Total assets$21,129,363$21,399,452LIABILITIES AND SHAREHOLDERS’ EQUITYCurrent liabilities:Accounts
payable$765,227$771,781Book overdraft14,67428,918Deferred revenue416,025429,904Accrued liabilities810,367781,129Current
portion of operating lease liabilities44,27246,878Current portion of contingent consideration65,02961,416Current portion
of long-term debt and notes payable8,6678,094Total current liabilities2,124,2612,128,120Long-term portion of debt and
notes payable8,811,1049,283,810Long-term portion of operating lease liabilities267,000270,860Long-term portion of
contingent consideration19,66719,647Deferred income taxes1,085,6131,121,465Other long-term
liabilities576,337654,332Total liabilities12,883,98213,478,234Commitments and contingenciesShareholders’ equity:Common
shares: Unlimited shares authorized; 255,661,011 shares issued and 255,614,663 shares outstanding at December 31, 2025;
252,201,043 shares issued and 252,154,695 shares outstanding at June 30, 20262,783,4312,171,955Additional paid-in
capital373,239389,514Accumulated other comprehensive loss(111,044)(178,647)Treasury shares: 46,348 and 46,348 shares at
December 31, 2025 and June 30, 2026, respectively––Retained earnings5,199,7555,538,396Total shareholders’
equity8,245,3817,921,218Total liabilities and shareholders’ equity$21,129,363$21,399,452Article contentWASTE
CONNECTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2025 AND 2026 (Unaudited)
(in thousands of U.S. dollars)Six months ended June 30,20252026Cash flows from operating activities:Net
income$531,787$515,742Adjustments to reconcile net income to net cash provided by operating activities:Loss from
disposal of assets, impairments and other11,4807,164Adjustments to closure and post-closure
liabilities–131,980Depreciation499,728545,762Amortization of intangibles97,87894,864Deferred income taxes, net of
acquisitions58,29237,189Current period provision for expected credit losses5,17114,519Amortization of debt issuance
costs4,1014,502Share-based compensation41,95641,539Interest accretion25,55622,156Payment of contingent consideration
recorded in earnings(400)(1)Adjustments to contingent consideration30,584(1,315)Other(2,661)(3,778)Net change in
operating assets and liabilities, net of acquisitions(123,731)(131,437)Net cash provided by operating
activities1,179,7411,278,886Cash flows from investing activities:Payments for acquisitions, net of cash
acquired(510,738)(309,644)Capital expenditures for property and equipment(497,765)(598,949)Capital expenditures for
undeveloped land–(51,049)Proceeds from disposal of assets5,4172,922Other(16,886)(5,232)Net cash used in investing
activities(1,019,972)(961,952)Cash flows from financing activities:Proceeds from long-term
debt1,613,5941,703,552Principal payments on notes payable and long-term debt(1,488,785)(1,176,382)Payment of contingent
consideration recorded at acquisition date(22,895)(4,707)Change in book overdraft39714,244Payments for repurchase of
common shares(389)(614,507)Payments for cash dividends(162,950)(177,101)Tax withholdings related to net share
settlements of equity-based compensation(30,934)(24,985)Debt issuance costs(3,433)(5,676)Proceeds from issuance of
shares under employee share purchase plan2,5933,031Proceeds from sale of common shares held in trust324–Net cash used
in financing activities(92,478)(282,531)Effect of exchange rate changes on cash, cash equivalents and restricted
cash2,007(2,405)Net increase in cash, cash equivalents and restricted cash69,29831,998Cash, cash equivalents and
restricted cash at beginning of period198,173229,580Cash, cash equivalents and restricted cash at end of
period$267,471$261,578Article contentADDITIONAL STATISTICS Article content(in thousands of U.S. dollars, except where
noted)Article contentSolid Waste Internal Growth: Article contentThe following table reflects a breakdown of the
components of our solid waste internal growth for the three and six month periods ended June 30, 2026:Article
contentThree months ended June 30, 2026Six months ended June 30, 2026Yield(a)4.6%4.6%Surcharges1.1%0.5%Unit
Volume(a)(1.9%)(1.7%)Recycling(0.2%)(0.3%)Foreign Exchange Impact0.0%0.2%Total3.6%3.3%Core Price(b)5.6%5.8%Article
content—————————————————————————–Article content(a) In the first
quarter of 2026, WCN began providing a breakdown of organic growth in solid waste collection, transfer and disposal to
include Yield and Unit Volume, which are performance metrics used by management to evaluate the effectiveness of our
pricing and organic growth strategies. Yield, or change in average price per unit of service, reflects the impacts of
customer churn and new business activity and the resulting mix by line of business and by geographic segment; Unit
Volume reflects estimated change in units of activity.(b) Core Price is defined as the revenue growth attributable to
price increases, net of rollbacks, on solid waste collection, transfer and disposal customers. This definition is
consistent with Core Price references provided in prior periods.Article contentRevenue Breakdown: Article contentThe
following table reflects a breakdown of our revenue for the three month periods ended June 30, 2025 and 2026:Article
contentArticle contentThree months ended June 30, 2025RevenueInter-company EliminationReported Revenue%Solid Waste
Collection$1,690,785$(5,331)$1,685,45470.0%Solid Waste Disposal and Transfer784,015(342,396)441,61918.3%Solid Waste
Recycling69,163(2,358)66,8052.8%E&P Waste Treatment, Recovery and Disposal178,117(8,282)169,8357.1%Intermodal and
Other43,934(592)43,3421.8%Total$2,766,014$(358,959)$2,407,055100.0%Article contentThree months ended June 30,
2026RevenueInter-company EliminationReported Revenue%Solid Waste Collection$1,789,235$(5,512)$1,783,72369.6%Solid Waste
Disposal and Transfer829,536(365,280)464,25618.1%Solid Waste Recycling63,946(2,549)61,3972.4%E&P Waste Treatment,
Recovery and Disposal211,153(10,198)200,9557.9%Intermodal and
Other62,806(11,530)51,2762.0%Total$2,956,676$(395,069)$2,561,607100.0%Article contentADDITIONAL STATISTICS (continued)
Article content(in thousands of U.S. dollars, except where noted)Article contentArticle contentContribution from
AcquisitionsArticle content: The following table reflects revenues from acquisitions, net of divestitures, closed during
or subsequent to the prior periods:Article contentThree months ended June 30,Six months ended June
30,2025202620252026Acquisitions, net$112,870$45,758$242,168$101,011Article contentOther Cash Flow Items: Article
contentThe following table reflects cash interest and cash taxes for the three and six month periods ended June 30, 2025
and 2026:Article contentThree months ended June 30,Six months ended June 30,2025202620252026Cash Interest
Paid$71,092$64,657$155,246$172,901Cash Taxes Paid68,96577,30691,14099,179Article contentDebt to Book Capitalization as
of June 30, 2026: Article content54%Article contentInternalization for the three months ended June 30, 2026:Article
content59%Article contentDays Sales Outstanding for the three months ended June 30, 2026:Article content38 (23 net of
deferred revenue)Article contentShare Information for the three months ended June 30, 2026:Article contentBasic shares
outstanding253,457,489Dilutive effect of equity-based awards399,093Diluted shares outstanding253,856,582Article
contentNON-GAAP RECONCILIATION SCHEDULE Article content(in thousands of U.S. dollars, except where noted)Article
contentReconciliation of Adjusted EBITDA:Article contentAdjusted EBITDA, a non-GAAP financial measure, is provided
supplementally because it is widely used by investors as a performance and valuation measure in the solid waste
industry. Management uses adjusted EBITDA as one of the principal measures to evaluate and monitor the ongoing financial
performance of Waste Connections’ operations. Waste Connections defines adjusted EBITDA as net income, plus income tax
provision, plus interest expense, less interest income, plus depreciation and amortization expense, plus closure and
post-closure accretion expense, plus or minus any loss or gain on impairments and other operating items, plus other
expense, less other income. Waste Connections further adjusts this calculation to exclude the effects of other items
management believes impact the ability to assess the operating performance of its business. This measure is not a
substitute for, and should be used in conjunction with, GAAP financial measures. Other companies may calculate adjusted
EBITDA differently.Article contentThree months ended June 30,Six months ended June 30,2025202620252026Net
income$290,276$296,399$531,787$515,742Plus: Income tax provision98,88287,331170,348151,546Plus: Interest
expense82,75191,203163,626178,922Less: Interest income(2,314)(4,126)(4,084)(7,239)Plus: Depreciation and
amortization307,657325,877597,606640,626Plus: Closure and post-closure accretion11,94210,32823,81620,619Plus:
Impairments and other operating items4,03058,46610,471138,050Less: Other income,
net(10,050)(33,253)(11,922)(37,337)Adjustments:Plus: Transaction-related expenses(a)3,9737,58815,9439,948Plus/(Less):
Fair value changes to equity awards(b)(734)2671,036(1,269)Adjusted EBITDA$786,413$840,080$1,498,627$1,609,608As % of
revenues32.7%32.8%32.3%32.6%Article contentArticle content____________________________Article content(a)Reflects the
addback of acquisition-related transaction costs.(b)Reflects fair value accounting changes associated with certain
equity awards.Article contentNON-GAAP RECONCILIATION SCHEDULE (continued) Article content(in thousands of U.S. dollars,
except where noted)Article contentReconciliation of Adjusted Free Cash Flow:Article contentAdjusted free cash flow, a
non-GAAP financial measure, is provided supplementally because it is widely used by investors as a liquidity measure in
the solid waste industry. Waste Connections calculates adjusted free cash flow as net cash provided by operating
activities, plus or minus change in book overdraft, plus proceeds from disposal of assets, less capital expenditures for
property and equipment. Waste Connections further adjusts this calculation to exclude the effects of items management
believes impact the ability to evaluate the liquidity of its business operations. This measure is not a substitute for,
and should be used in conjunction with, GAAP liquidity or financial measures. Other companies may calculate adjusted
free cash flow differently.Article contentThree months ended June 30,Six months ended June 30,2025202620252026Net cash
provided by operating activities$638,202$733,288$1,179,741$1,278,886Plus: Change in book
overdraft50720,35839714,244Plus: Proceeds from disposal of assets4,4481,1435,4172,922Less: Capital expenditures for
property and equipment(285,310)(302,354)(497,765)(598,949)Adjustments:Transaction-related
expenses(a)8,7695,75911,1617,372Executive separation costs(b)1,6709782,119978Payment of contingent consideration
recorded in earnings(c)40014001Pre-existing Progressive Waste share-based grants(d)––16–Tax
effect(e)(1,673)(1,684)(2,398)(2,088)Adjusted free cash flow$367,013$457,489$699,088$703,366As % of
revenues15.2%17.9%15.1%14.3%Article content___________________________Article content(a)Reflects the addback of
acquisition-related transaction costs.(b)Reflects the cash component of severance expense associated with an executive
departure from 2023.(c)Reflects the addback of acquisition-related payments for contingent consideration that were
recorded as expenses in earnings and as a component of cash flows from operating activities as the amounts paid exceeded
the fair value of the contingent consideration recorded at the acquisition date.(d)Reflects the cash settlement of
pre-existing Progressive Waste share-based awards during the period.(e)The aggregate tax effect of footnotes (a) through
(d) is calculated based on the applied tax rates for the respective periods.Article contentNON-GAAP RECONCILIATION
SCHEDULE (continued) Article content(in thousands of U.S. dollars, except per share amounts)Article
contentReconciliation of Adjusted Net Income and Adjusted Net Income per Diluted Share:Article contentAdjusted net
income and adjusted net income per diluted share, both non-GAAP financial measures, are provided supplementally because
they are widely used by investors as valuation measures in the solid waste industry. Management uses adjusted net income
and adjusted net income per diluted share as one of the principal measures to evaluate and monitor the ongoing financial
performance of Waste Connections’ operations. Waste Connections provides adjusted net income to exclude the effects of
items management believes impact the comparability of operating results between periods. Adjusted net income has
limitations due to the fact that it excludes items that have an impact on the Company’s financial condition and
results of operations. Adjusted net income and adjusted net income per diluted share are not a substitute for, and
should be used in conjunction with, GAAP financial measures. Other companies may calculate these non-GAAP financial
measures differently.Article contentThree months ended June 30,Six months ended June 30,2025202620252026Reported net
income$290,276$296,399$531,787$515,742Adjustments:Amortization of intangibles(a)50,23647,60097,87894,864Impairments and
other operating items(b)4,03058,46610,471138,050Transaction-related expenses(c)3,9737,58815,9439,948Fair value changes
to equity awards(d)(734)2671,036(1,269)Tax effect(e)(14,687)(28,629)(30,898)(60,765)Adjusted net
income$333,094$381,691$626,217$696,570Diluted earnings per common share:Reported net income$1.12$1.17$2.05$2.02Adjusted
net income$1.29$1.50$2.42$2.73Article content_________________________Article content(a)Reflects the elimination of the
non-cash amortization of acquisition-related intangible assets.(b)Reflects the addback of impairments and other
operating items.(c)Reflects the addback of acquisition-related transaction costs.(d)Reflects fair value accounting
changes associated with certain equity awards.(e)The aggregate tax effect of the adjustments in footnotes (a) through
(d) is calculated based on the applied tax rates for the respective periods.Article contentUPDATED 2026 OUTLOOK Article
contentNON-GAAP RECONCILIATION SCHEDULE Article content(in thousands of U.S. dollars, except where noted)Article
contentArticle contentReconciliation of Adjusted EBITDA:Article contentUpdated 2026 OutlookLow EstimateHigh EstimateNet
income$1,169,000$1,173,000Plus: Income tax provision(a)351,000353,000Plus: Interest expense, net358,000358,000Plus:
Depreciation and Depletion1,110,0001,114,000Plus: Amortization192,000192,000Plus: Closure and post-closure
accretion40,60840,608Plus: Impairments and other operating items(b)138,050138,050Less: Other income,
net(b)(37,337)(37,337)Adjustments(b)Plus: Transaction-related expenses9,9489,948Plus: Fair value changes to equity
awards(1,269)(1,269)Adjusted EBITDA$3,330,000$3,340,000Article content____________________________Article
content(a)Approximately 23.1% full year effective tax rate, including amounts reported for the six month period ended
June 30, 2026.(b)Reflects amounts reported for the six month period ended June 30, 2026, as shown on page 9.Article
contentReconciliation of Adjusted Free Cash Flow:Article contentUpdated 2026 OutlookLow EstimateHigh EstimateNet cash
provided by operating activities$2,626,571$2,676,571Plus: Change in book overdraft(a)14,24414,244Plus: Proceeds from
disposal of assets(a)2,9222,922Less: Capital expenditures for property and
equipment(1,250,000)(1,250,000)Adjustments:(a)Transaction-related expenses7,3727,372Executive separation
costs978978Payment of contingent consideration recorded in earnings11Tax effect(2,088)(2,088)Adjusted Free Cash
Flow$1,400,000$1,450,000Article content____________________________Article content(a)Reflects amounts reported for the
six month period ended June 30, 2026, as shown on page 10.Article contentArticle contentArticle contentArticle
contentView source version on businesswire.com: Article content
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