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Mar 31, 2024
Waste Management Q1 2024 Earnings Report
Reported strong first quarter, driven by cost optimization and disciplined pricing, leading to increased full-year financial outlook.
Key Takeaways
Waste Management (WM) announced strong financial results for Q1 2024, with adjusted operating EBITDA growth of 14.6% and margin expansion of 240 basis points. The company raised its full-year outlook for both adjusted operating EBITDA and free cash flow by $100 million.
Adjusted operating EBITDA grew by 14.6%.
Operating EBITDA margin expanded by 240 basis points.
The company raised its full-year outlook for adjusted operating EBITDA and free cash flow by $100 million.
Performance was driven by cost optimization in the Collection and Disposal business and disciplined execution on price programs.
Waste Management
Waste Management
Waste Management Revenue by Segment
Revenue by Segment
Collection & Disposal Revenue
CapyFin.comRecycling Revenue
CapyFin.comWM Renewable Energy Revenue
CapyFin.com Forward Guidance
WM raised its prior outlook for both adjusted operating EBITDA and free cash flow by $100 million.
Positive Outlook
- Company is positioned to deliver full-year margin in the range of 29.7% to 30.2%.
- Full-year margin is expected to expand more than 100 basis points from the prior year at the midpoint.
- Momentum in capturing cost efficiencies.
- Execution on pricing programs.
- Team's dedication to executing on strategic priorities.
Challenges Ahead
- Failure to implement optimization, automation, growth, and cost savings initiatives and overall business strategy.
- Failure to obtain the results anticipated from strategic initiatives, investments, acquisitions or new lines of business.
- Environmental and other regulations, including developments related to emerging contaminants, gas emissions, renewable energy, extended producer responsibility and our natural gas fleet.
- Macroeconomic conditions, geopolitical conflict and large-scale market disruption resulting in labor, supply chain and transportation constraints, inflationary cost pressures and fluctuations in commodity prices, fuel and other energy costs.
- Weakness in general economic conditions and capital markets, including potential for an economic recession.
Revenue & Expenses
Visualization of income flow from segment revenue to net income