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Sep 30, 2023
Waste Connections Q3 2023 Earnings Report
Waste Connections reported strong Q3 2023 results, marked by revenue growth, adjusted EBITDA increase, and solid operational execution.
Key Takeaways
Waste Connections announced its Q3 2023 results, with revenue reaching $2.065 billion, a 9.8% increase year-over-year. Net income was reported at $229.0 million, or $0.89 per share, while adjusted EBITDA rose to $671.2 million, up 14.1% year-over-year. The company's adjusted EBITDA margin was 32.5%, reflecting a 120 basis point increase year-over-year.
Revenue increased to $2.065 billion, representing a 9.8% year-over-year growth.
Adjusted EBITDA rose by 14.1% year-over-year, reaching $671.2 million.
Adjusted EBITDA margin improved to 32.5%, up 120 basis points year-over-year and 140 basis points sequentially from Q2.
Net income was reported at $229.0 million, with earnings per share at $0.89.
Waste Connections
Waste Connections
Waste Connections Revenue by Segment
Revenue by Segment
Solid Waste Collection Revenue
CapyFin.comSolid Waste Disposal & Transfer Revenue
CapyFin.comSolid Waste Recycling Revenue
CapyFin.comE&P Waste Treatment Revenue
CapyFin.comIntermodal & Other Revenue
CapyFin.com Forward Guidance
The expected Q4 and ongoing expanding impacts from that evolving landfill situation are currently being evaluated, along with a recent shorter-term development at a landfill in Texas, and as such weren’t anticipated in the full year outlook we provided in August. We expect to get more clarity going forward but currently estimate the range of outcomes in Q4 to include impacts of up to $20 million to revenue, adjusted EBITDA and adjusted free cash flow.
Positive Outlook
- Employee retention is improving.
- Differentiated strategy and execution should provide for above average underlying margin expansion in solid waste collection, transfer and disposal in 2024.
- Positioned for high single-digit adjusted EBITDA growth in 2024.
- Expected mid to high single-digit revenue growth.
- Approximately $150 million of revenue carryover from acquisitions signed or closed year to date, with upside potential from additional acquisition activity and any further improvement in commodity-related activity.
Challenges Ahead
- Expected Q4 impacts from evolving landfill situation are currently being evaluated.
- Shorter-term development at a landfill in Texas.
- Unanticipated impacts in the full year outlook provided in August.
- Range of outcomes in Q4 to include impacts of up to $20 million to revenue.
- Range of outcomes in Q4 to include impacts of up to $20 million to adjusted EBITDA and adjusted free cash flow.
Revenue & Expenses
Visualization of income flow from segment revenue to net income