Waste Connections Receives TSX Approval for Up to 5% Share Buyback

Waste Connections has received approval from the Toronto Stock Exchange to buy back up to 5% of its issued and outstanding common shares, totaling 12.9 million shares worth around C$3.32 billion, over the course of a year. The company plans to begin the share repurchase program on Aug. 12, with shares currently up 4.8% since the beginning of the year.

Waste Connections, Inc. (TSX/NYSE: WCN) has received approval from the Toronto Stock Exchange (TSX) to renew its Normal Course Issuer Bid (NCIB) for share repurchases. The renewed program allows the company to purchase up to 12,855,691 common shares, representing 5% of its outstanding shares, from August 12, 2025, to August 11, 2026 [1].

The share repurchase program is valued at approximately C$3.32 billion and is expected to begin on August 12, 2025. Waste Connections believes that the repurchase of common shares aligns with its objective to return capital to shareholders over time. The company has already purchased 1,299,339 shares through the facilities of the NYSE under the previous 2024 NCIB [1].

Daily repurchases will be limited to 80,213 shares on the TSX and 25% of the average daily trading volume on the NYSE and NYSE Texas. The TSX rules also allow the company to purchase, once a week, a block of common shares not owned by any insiders, which may exceed the daily limit. The maximum number of shares that can be purchased per day on the NYSE and NYSE Texas will be 25% of the average daily trading volume for the four calendar weeks preceding the date of purchase, subject to certain exceptions for block purchases [1].

Management's decisions regarding any share repurchases will be based on market conditions, share price, and other factors, including potential acquisition growth opportunities. The renewal of the NCIB demonstrates the company's confidence in its financial position and long-term prospects [1].

Waste Connections operates as an integrated solid waste services company, providing non-hazardous waste collection, transfer, and disposal services, 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' share repurchase program signals financial strength and commitment to shareholder returns through capital reallocation [2].

The share repurchase program is expected to create shareholder value by reducing the number of outstanding shares, increasing earnings per share, and signaling management's belief that shares are undervalued. It also provides an alternative to dividends for returning capital to shareholders [2].

The company has established prudent daily purchase limits to prevent artificial price manipulation while executing the buyback. These parameters protect shareholders and ensure that the repurchase program does not disrupt normal market trading [2].

Waste Connections' steady cash flow generation capabilities from its integrated waste services across exclusive markets in 46 U.S. states and 6 Canadian provinces reflect its consistent implementation of share repurchases. The company's disciplined approach to capital allocation ensures that buybacks will not come at the expense of strategic growth investments [2].

References:
[1] https://www.morningstar.com/news/pr-newswire/20250808sf47105/waste-connections-renews-normal-course-issuer-bid-for-share-repurchases
[2] https://www.stocktitan.net/news/WCN/waste-connections-renews-normal-course-issuer-bid-for-share-ub7kwo7qaao7.html