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Dec 31, 2022

Waste Connections Q4 2022 Earnings Report

Waste Connections' Q4 2022 results were driven by price-led organic growth and acquisition activity, exceeding expectations and setting a higher entry point for 2023.

Key Takeaways

Waste Connections reported Q4 2022 revenue of $1.869 billion, net income of $194.4 million, and adjusted EBITDA of $563.6 million. The company's performance was driven by strong operational execution and solid waste pricing, along with acquisitions.

Revenue reached $1.869 billion, exceeding expectations.

Net income was reported at $194.4 million, or $0.75 per share.

Adjusted EBITDA amounted to $563.6 million, representing 30.2% of revenue.

Strong pricing and acquisition growth drove the results above expectations.

Completed acquisitions with approximately $640 million of total annualized revenue in 2022

Total Revenue
$1.87B
Previous year: $1.62B
+15.1%
EPS
$0.89
Previous year: $0.83
+7.2%
Core Price
9%
Previous year: 5%
+80.0%
Volume
-2.5%
Previous year: 1.2%
-308.3%
Surcharges
1.6%
Previous year: 0.7%
+128.6%
Gross Profit
$731M
Previous year: $643M
+13.7%
Cash and Equivalents
$78.6M
Previous year: $147M
-46.7%
Free Cash Flow
$228M
Previous year: $163M
+39.5%
Total Assets
$17.1B
Previous year: $14.7B
+16.6%

Waste Connections

Waste Connections

Waste Connections Revenue by Segment

Forward Guidance

Waste Connections anticipates strong pricing and acquisition growth to drive double-digit percentage increase in revenue, and adjusted EBITDA margin expansion in 2023.

Positive Outlook

  • Revenue of approximately $8.05 billion, up 11.6%
  • Net income of approximately $961 million
  • Adjusted EBITDA of approximately $2.50 billion, or about 31.1% of revenue
  • Strong pricing and acquisition growth
  • Additional acquisitions, increases in recycled commodities and renewable fuels values, or reduction of inflationary pressures to provide upside to 2023 outlook

Revenue & Expenses

Visualization of income flow from segment revenue to net income