Financial report: Waste Connections records 13.3 percent revenue increase in third quarter 2024

Waste Connections is reporting better than expected third quarter results, with revenue of $2.338 billion, up 13.3 percent year over year, and net income up 17.3 percent year over year. The increased full year 2024 outlook is $8.9 billion of revenue, up $150 million from original outlook, with net income of $1.082 billion and adjusted EBITDA of $2.91 billion, up $50 million from original outlook.

"We are extremely pleased by the strength of our operating and financial results in the period, positioning for another increase to our full year 2024 outlook, with momentum as we look ahead to 2025," says Ronald J. Mittelstaedt, president and CEO of Waste Connections. "Solid waste growth led by 6.8 percent core pricing was supplemented by incremental acquisition contributions and 90 basis points sequential improvement in solid waste volumes during the period to drive results above expectations.  Solid operational execution enabled us to deliver an adjusted EBITDA(b) margin of 33.7 percent in the third quarter, up 120 basis points year over year, overcoming margin dilution from acquisitions closed during the quarter and storm-related impacts at quarter-end." 

Third-quarter and year-to-date 2023 highlights

• Revenue of $2.338 billion, up 13.3 percent year over year
• Net income(a) of $308.0 million, and adjusted EBITDA(b) of $787.4 million, up 17.3 percent year over year
• Adjusted EBITDA(b) margin of 33.7 percent, up 120 basis points year over year
• Net income of $1.19 per share, and adjusted net income(b) of $1.35 per share
• Year to date net cash provided by operating activities of $1.660 billion and adjusted free cash flow(b) of $1.044 billion
• Increased regular quarterly dividend by 10.5 percent
• On pace for acquisitions totaling over $700 million in annualized revenue, with an estimated rollover revenue contribution in 2025 of approximately two percent
• Increased full year 2024 outlook to $8.9 billion of revenue, up $150 million from original outlook, with net income of $1.082 billion and adjusted EBITDA(b) of $2.91 billion, up $50 million from original outlook

Updated 2024 Outlook

Waste Connections also updated its outlook for 2024, which assumes no change in the current economic environment or underlying economic trends.  The company's outlook excludes any impact from additional acquisitions that may close during the year, and expensing of transaction-related items.  The outlook provided below is forward looking, and actual results may differ materially depending on risks and uncertainties detailed at the end of this release and in our periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Certain components of the outlook for 2024 are subject to quarterly fluctuations.

• Revenue is estimated to be approximately $8.9 billion, up $150 million from original outlook.
• Net income is estimated to be approximately $1.082 billion, and adjusted EBITDA(b) is estimated to be approximately $2.910 billion, up $50 million from original outlook.
• Capital expenditures are estimated to be approximately $1.150 billion, in line with original outlook.
• Net cash provided by operating activities is estimated to be approximately $2.342 billion, and adjusted free cash flow(b) is estimated to be approximately $1.200 billion, in line with original outlook.