Waste Management, Inc. Announces Q3 2024 Financial Results

authorIntellectia.AI2024-10-29
14
WM.N
Illustration by Intellectia.AI

Waste Management, Inc. Reports Third Quarter 2024 Financial Results

Waste Management, Inc. has released its financial performance data for the third quarter ending September 30, 2024. The company reported total operating revenues of $5,609 million, an increase from $5,198 million in the same period of 2023.

Key Financial Metrics

  • Operating Revenues: Increased to $5,609 million from $5,198 million year-over-year.
  • Income from Operations: Rose to $1,119 million from $1,021 million in 2023.
  • Operating EBITDA: Reported at $1,677 million, up from $1,540 million.
  • Adjusted Operating EBITDA: Adjusted to $1,711 million, compared to $1,541 million in the previous year.
  • Operating EBITDA Margin: Slightly increased to 29.9% from 29.6%.

Adjustments and Expenses

  • Adjustments included Stericycle transaction costs and gains from divestments, asset impairments, and unusual items.
  • SG&A expenses were adjusted to $499 million, down from $525 million, reflecting a margin of 8.9% compared to 9.0% in 2023.

Free Cash Flow Projection for 2024

Waste Management has projected its free cash flow for 2024 in two scenarios:

  • Scenario 1: Net cash provided by operating activities at $5,125 million with capital expenditures of $2,225 million, resulting in free cash flow of $2,100 million.
  • Scenario 2: Net cash provided by operating activities at $5,300 million with capital expenditures of $2,275 million, resulting in free cash flow of $2,200 million.

Recycling and Renewable Energy

  • The company noted diversity in recycling contract structures, impacting the accounting treatment of commodity rebates.
  • WM Renewable Energy paid a 15% intercompany royalty for landfill gas to Collection and Disposal businesses.

Accretion Expense Impact

  • Accretion expenses were not adjusted in the calculation of operating EBITDA, which is a practice that differs from some other companies.

Waste Management, Inc. continues to show robust financial health with improved revenue and operating margins, positioning itself strongly in the waste management and recycling sectors. The company's adjustments and strategic investments indicate a focus on sustainable growth and operational efficiency.

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