WM revenue grew 5.5 percent in second quarter of 2024
Growth driven primarily by increase in recycled commodities values
WM's revenue grew 5.5 percent, driven primarily by core price of 6.8 percent and increases in the value of the recycled commodities the Company sells.
Collection and disposal yield was 4.6 percent, and collection and disposal volume declined 0.3 percent.
Operating expenses as a percentage of revenue improved 130 basis points to 60.9 percent compared to prior year. This improvement was driven by benefits from price and cost optimization efforts.
SG&A expenses were 9.3 percent of revenue, or 9.1 percent of revenue on an adjusted basis and flat with the prior year.
WM's adjusted operating EBITDA grew 10.3 percent to $1.62 billion, and margin expanded 130 basis points to 30.0 percent on an adjusted basis.
Operating EBITDA in the company's collection and disposal business grew $200 million to $1.83 billion, and margin expanded to 37.3 percent. Adjusted operating EBITDA in WM's collection and disposal business grew $203 million to $1.84 billion, and margin expanded to 37.3 percent.
Operating EBITDA in the recycling processing and sales and WM Renewable Energy businesses grew 20.8 percent, in line with expectations, driven by higher market prices for recycled and renewable energy commodities, partially offset by temporary shutdown costs associated with recycling facility upgrades.
In the first half of the year, net cash provided by operating activities increased 21.6 percent to $2.52 billion compared to the same period in 2023 driven by the WM's strong operating EBITDA growth combined with working capital benefits.
In the first half of the year, free cash flow before investments in high-return sustainability projects grew 41.1 percent to $1.63 billion. The company continues to progress its sustainability growth portfolio with investments in an industry-leading network of renewable natural gas projects and recycling assets. Total company free cash flow in the first half of the year, including these investments, grew 32.3 percent to $1.24 billion.
WM's strong first half performance is on track to achieve the increased full-year outlook provided in April for adjusted operating EBITDA of between $6.375 and $6.525 billion and for free cash flow including sustainability growth investments of between $2.0 and $2.15 billion.
"We continue to strategically expand our core collection and disposal operations in North America through targeted acquisitions," said Jim Fish, WM's President and Chief Executive Officer. "Looking forward, we are excited about our planned acquisition of Stericycle, and we are progressing through the customary regulatory reviews."
Fish concluded, "We are pleased with the progress we've made on our strategic priorities so far in 2024. Our team continues to exceed the high expectations we have set."
