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Dec 31, 2021

Waste Connections Q4 2021 Earnings Report

Waste Connections reported Q4 2021 results, driven by organic growth and acquisition activity, exceeding expectations and providing a higher entry point into 2022.

Key Takeaways

Waste Connections reported Q4 2021 revenue of $1.624 billion, a net income of $166.3 million, and an adjusted EBITDA of $495.4 million. The company's strong performance was attributed to price-led organic growth, acquisition activity, and margin expansion.

Strong price-led organic growth and acquisition activity drove Q4 results above expectations.

Revenue reached $1.624 billion with a net income of $166.3 million.

Adjusted EBITDA was $495.4 million, representing 30.5% of revenue.

Net income and adjusted net income per share were $0.64 and $0.83, respectively.

Total Revenue
$1.62B
Previous year: $1.4B
+16.2%
EPS
$0.83
Previous year: $0.68
+22.1%
Core Price
5%
Previous year: 4.3%
+16.3%
Volume
1.2%
Previous year: -3.1%
-138.7%
Surcharges
0.7%
Previous year: -0.5%
-240.0%
Gross Profit
$643M
Previous year: $551M
+16.7%
Cash and Equivalents
$147M
Previous year: $617M
-76.1%
Free Cash Flow
$163M
Previous year: $46.6M
+250.8%
Total Assets
$14.7B
Previous year: $14B
+5.1%

Waste Connections

Waste Connections

Waste Connections Revenue by Segment

Forward Guidance

Waste Connections provided its outlook for 2022, expecting revenue of approximately $6.875 billion and adjusted free cash flow of approximately $1.150 billion.

Positive Outlook

  • Strong pricing growth.
  • Acquisition growth.
  • Continuing underlying margin expansion.
  • Net income of approximately $846 million
  • Adjusted EBITDA of approximately $2.145 billion, or about 31.2% of revenue

Challenges Ahead

  • Excludes any impact from additional acquisitions that may close during the year.
  • Excludes expensing of transaction-related items.
  • Assumes no change in the current economic environment.
  • Capital expenditures are expected to be up 14.2% to approximately $850 million, including $100 million for new landfill gas and resource recovery facilities
  • Outlook is forward looking, and actual results may differ materially depending on risks and uncertainties

Revenue & Expenses

Visualization of income flow from segment revenue to net income