Waste Connections Reports Third Quarter 2024 Financial Results
Intellectia.AI2024-10-24
Waste Connections Reports Third Quarter 2024 Financial Results
Waste Connections, Inc. (TSX/NYSE: WCN) has announced its financial results for the third quarter of 2024, showcasing a robust performance that exceeded market expectations.
Key Financial Metrics:
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $2.338B | $2.065B | +13.3% | $2.29B |
| Net Income | $308M | $229M | +34.5% | |
| Earnings Per Share (EPS) | $1.19 | $0.89 | +33.7% | $1.30 |
| Adjusted Net Income | $350M | $303.1M | +15.5% | |
| Adjusted EPS | $1.35 | $1.17 | +15.4% | $1.29 |
| Adjusted EBITDA | $787.4M | $671.2M | +17.3% |
The company reported a significant increase in both revenue and net income, driven by strong operational execution and strategic acquisitions. The adjusted EBITDA margin improved by 120 basis points year-over-year to 33.7%, reflecting efficient cost management and enhanced operational performance.
Revenue Breakdown by Segment:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change |
|---|---|---|---|
| Solid Waste Collection | $1.617B | $1.508B | +7.2% |
| Solid Waste Disposal and Transfer | $459.8M | $418.3M | +9.9% |
| Solid Waste Recycling | $67.1M | $35.1M | +91.1% |
| E&P Waste Treatment, Recovery, Disposal | $147.3M | $58.5M | +151.8% |
| Intermodal and Other | $46.9M | $44.9M | +4.5% |
The revenue growth was broad-based across all segments, with notable performance in the E&P Waste Treatment, Recovery, and Disposal segment, which more than doubled its revenue year-over-year.
Operational Highlights:
- The company achieved a core pricing growth of 6.8% and a sequential improvement in solid waste volumes by 90 basis points.
- Employee retention improved for the eighth consecutive quarter, with voluntary turnover reducing by over 40%.
Management Commentary:
Ronald J. Mittelstaedt, President and CEO, expressed satisfaction with the company's performance, highlighting the strength in operational execution and the positive impact of acquisitions. He emphasized the company's commitment to employee engagement and retention as key drivers for future growth.
Dividends and Share Repurchase Program:
Waste Connections announced a 10.5% increase in its regular quarterly dividend, raising it to $0.315 per share, payable on November 21, 2024. The company also continues its share repurchase program, reflecting its strong cash flow generation and commitment to returning capital to shareholders.
Forward Guidance:
The company raised its full-year 2024 revenue outlook to approximately $8.9 billion, up $150 million from the original forecast. Net income is projected to be around $1.082 billion, with adjusted EBITDA expected to reach $2.91 billion.
Stock Price Movement:
Following the earnings release, Waste Connections' stock experienced a slight decline of approximately 0.55%, reflecting a typical market reaction to earnings announcements.
Overall, Waste Connections delivered a strong quarter, with solid financial performance and strategic initiatives positioning the company for continued growth in 2025.
Share