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Waste Management
🇺🇸 NYSE:WM
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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.

Total Revenue
$5.16B
Previous year: $4.89B
+5.5%
EPS
$1.75
Previous year: $1.31
+33.6%
Gross Profit
$1.51B
Previous year: $1.81B
-16.7%
Cash and Equivalents
$322M
Previous year: $257M
+25.3%
Free Cash Flow
$699M
Total Assets
$32.7B
Previous year: $31.3B
+4.4%

Waste Management

Waste Management

Waste Management Revenue by Segment

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

Company Overview

Full financial data and analysis

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