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Sep 30, 2024
Waste Management Q3 2024 Earnings Report
Reported strong organic revenue growth and cost optimization, driving record results.
Key Takeaways
Waste Management announced strong Q3 2024 results, driven by investments in technology and disciplined pricing programs, leading to an 11% growth in adjusted operating EBITDA and a record margin of 30.5%. The company is on track to deliver approximately $6.5 billion in adjusted operating EBITDA and $2.15 billion in free cash flow for the full year 2024.
Total company revenue grew by 7.9% driven by core price of 6.5%.
Adjusted operating EBITDA increased by $170 million, with the margin growing to a record high of 30.5%.
The company completed 24 out of 39 planned recycling automation and new market projects, adding 1.5 million tons of annual recycling capacity.
The company has invested $790 million on acquisitions in 2024, largely for solid waste businesses, and continues to work toward acquiring Stericycle.
Revenue by Segment
Forward Guidance
The company anticipates continued growth in its solid waste business, increased contributions from sustainability growth investments, and the successful integration of the Stericycle business to create a significant step change in revenue, earnings, and free cash flow in 2025. The Company expects to deliver adjusted operating EBITDA near the upper end of 2024 guidance.
Positive Outlook
- Continued growth in the solid waste business is expected.
- Increased contributions from sustainability growth investments are anticipated.
- Successful integration of the Stericycle business is expected to create a significant step change in revenue.
- Successful integration of the Stericycle business is expected to create a significant step change in earnings.
- Successful integration of the Stericycle business is expected to create a significant step change in free cash flow.
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, including the planned Stericycle acquisition, or new lines of business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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