Waste Connections Reports Strong Q4, FY 2023 Results along with Promising 2024 Outlook

Waste Connections, Inc. (TSX/NYSE: WCM) (Waste Connections) announced its fourth quarter (Q4) and full year results for 2023 today. Additionally, Waste Connections provided expectations for a promising 2024.

Chief Executive Officer Ronald J. Mittelstaedt spoke this morning about how proud he is of Waste Connections’ results and thanked the company’s 23,000 employees who worked tirelessly all year, leading the way for Waste Connections’ continued success.

“At Waste Connections, we recognize the importance of both relationships and results. Moreover, we believe that not only are they both achievable, but they are necessarily interrelated. We’re proud of our results and applaud the local teams who embody the enduring operating values of the company,” said Mittelstaedt.

Closing up Q4, Waste Connections posted revenue of $2.036 billion, an increase of 8.9% year-over-year. Net income for the company finished the quarter at $126.8 million with an adjusted EBITDA of $656 million.

“Adjusted EBITDA margin expansion of 200 basis points in Q4 capped off a remarkable year for Waste Connections, driven by solid execution and continued improvement in operating trends.  Solid waste organic growth led by 8.7% core pricing was bolstered by improvements in commodity-driven revenues during the quarter, providing momentum for 2024,” said Mittelstaedt.

Earlier this month, right before year’s end for Waste Connections, the company announced the acquisition of the $255 million revenue E&P waste disposal-oriented assets of Secure Energy in Western Canada. This brings the expected 2024 acquisition revenue contribution to roughly $325 million.

For the full year of 2023, Waste Connections posted a revenue of $8.022 billion, up 11.2% year-over-year. The company’s net income finished the year at $762.8 million, with an adjusted net income of $1.081 billion. Adjusted EBITDA for 2023 finished the year at $2.523 billion, up 13.6% year-over-year.

“[In] 2023, we delivered 70 basis points adjusted EBITDA margin expansion after overcoming 60 basis points in headwinds from recovered commodity values to report industry-leading margin of 31.5%.  Double-digit growth in both revenue and adjusted EBITDA(b) from price-led organic solid waste growth and outsized acquisition contribution, along with disciplined execution and focus on quality of revenue, drove adjusted free cash flow(b) of $1.224 billion, or 15.3% of revenue," added Mr. Mittelstaedt.

Looking ahead at 2024’s outlook, assuming no change from the current economic environment, Waste Connections is estimating revenue at $8.750 billion with net income estimated at approximately $1.096 billion.

“We enter 2024 with continued momentum and well positioned for outsized growth along with a renewed commitment to sustaining the model that has set us apart at Waste Connections,” said Mittelstaedt.

KEY HIGHLIGHTS

2023 Q4 Results:

Revenue: $2.036 billion
Net Income: $126.8 million
Adjusted EBITDA: $656 million

Full Year 2023 Results:

Revenue: $8.022 billion
Net Income: $762.8 million
Adjusted Net Income:  $1.081 billion
Adjusted EBITDA: $2.523 billion