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Dec 31, 2023
Waste Management Q4 2023 Earnings Report
Accelerated earnings growth in the fourth quarter, driven by strong execution of price programs and optimization of cost of operations.
Key Takeaways
Waste Management reported strong Q4 2023 earnings, driven by pricing and operating excellence programs. The company's adjusted operating EBITDA grew by 14.7%, with margin expansion ahead of plan. WM anticipates continued growth throughout 2024.
Total company revenue grew by 5.7%, driven primarily by core price of 7.3%.
Adjusted operating EBITDA grew 14.7% to $1.56 billion, with margin expanding 240 basis points to 29.9% on an adjusted basis.
Operating EBITDA in the Collection and Disposal business grew $250 million to $1.77 billion.
The Company returned $593 million to shareholders, including $312 million of share repurchases and $281 million of cash dividends.
Forward Guidance
Waste Management anticipates continued growth throughout 2024, driven by disciplined pricing, enhanced operational efficiencies, prudent cost management, and contributions from investments in recycling and renewable energy businesses. The company expects total company adjusted operating EBITDA to grow almost 8% at the midpoint of its guidance.
Positive Outlook
- Total Company revenue is expected to grow between 6% and 7%.
- Disciplined pricing programs are expected to result in core price of between 6% and 6.5%.
- Collection and disposal yield approaching 5%.
- Collection and disposal volume growth is expected to approach 1%.
- Adjusted operating EBITDA margin is expected to be in the range of 29.0% and 29.4%, expanding 30 basis points at the midpoint of the range.
Challenges Ahead
- WM expects to spend in the range of $2.2 to $2.3 billion on capital expenditures to support its normal business activities.
- WM intends to invest between $850 and $900 million for capital expenditures on high-return growth projects in its recycling and renewable energy businesses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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