Waste Connections Reports Positive Earnings for Q2 2024, Increases Outlook for Rest of the Year
Waste Connections Inc. (Waste Connections) released its second-quarter earnings report for 2024 this morning, which highlighted growth from last year, increasing the company’s outlook for the rest of 2024.
July 25, 2024
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Waste Connections Inc. (Waste Connections) released its second-quarter earnings report for 2024 this morning, which highlighted growth from last year, increasing the company’s outlook for the rest of 2024.
“We are extremely pleased by the continued strength of operational execution during the quarter, including sequential improvement in employee retention, as we maintain the strategy that has served to differentiate our results and which positions us for continued outsized growth,” said Ronald J. Mittelstaedt, President and Chief Executive Officer.
Waste Connections saw significant improvements in its financials across the board compared to last year. Following the close of the second quarter in 2024, Waste Connections is reporting its revenue was $2.248 billion, which is up from $2.021 billion for Q2 2023, an increase of 11.2 percent. Net income for the company came in at $275.5 million in Q2, up from $209.2 million a year ago.
"Solid operational execution supplemented by incremental acquisitions and increased commodity values drove an across-the-board beat in the second quarter, positioning us for an increase to our full-year outlook. Revenue and adjusted EBITDA increased in the quarter by 11.2% and 16.4%, respectively, as price-led organic solid waste growth and 100 basis points sequential improvement in volumes was augmented by accretive acquisitions," said Mittelstaedt.
Adjusted EBITDA in the second quarter for Waste Connections was $731.8 million, compared to 2023’s Q2 report of $628.9 million
The success of the second quarter, positioning us firmly halfway through 2024, has Waste Connections adjusting its outlook for the rest of the year. The company now estimates its revenue will be $8.850 billion by year’s end, an increase of $100 million from its original outlook.
"Given the strength of our performance in the first half of 2024, the momentum from continuing trends, and contributions from recent acquisitions, we are raising our full-year 2024 outlook to approximately $8.850 billion in revenue and approximately $2.900 billion in adjusted EBITDA, or 32.8% adjusted EBITDA(b) margin, exceeding our initial outlook and up 130 basis points as compared to the prior year,” said Mittelstaedt.
Mittelstaedt added that the company is positioned for a “record year of private company acquisition activity in 2024.” Waste Connections has completed 18 acquisitions of $500 million in annualized revenue year-to-date. Mittelstaedt stated that the company has an additional $150 million under definitive agreements that he expects to close later this year. The company’s full-year outlook has not included these future agreements.
Outside of acquisitions, Mittelstaedt mentioned on Waste Connections Q2 earnings call that the company was actively looking to invest in technology that would focus on the customer experience and the company’s operations. This includes the use of robotics in Waste Connection’s recycling facilities, cameras on trucks for safety, and more.
“We see the benefits from these and other AI driver applications as opportunities to drive both growth and value creation,” said Mittelstaedt.
Q2 2024
Net Income: $275.5 million
Adjusted Net Income: $320.0 million
Operating Income: $424.7 million
Adjusted EBITDA: $731.8 million
Revenue: $2.248 billion
Adjusted Free Cash Flow: $727.4 million
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