WM Drives into New Year with Strong 2022 Earnings Results

Houston-based WM achieved a year of "tremendous growth," announced Jim Fish, CEO and president.

The company excelled as its collection and disposal business outperformed headwinds from inflationary pressures, a tight labor market and volatility in recycled commodity pricing. This resulted in double-digit adjusted operating EBITDA growth for both Q4 and full-year 2022. Fish noted a total company adjusted operating EBITDA growth of 8.8 percent in the fourth quarter and more than 9.5 percent growth for the full year.

"Throughout the year, we also advanced our strategic priorities—enhancing employee engagement, improving our operations through the use of technology, and investing in sustainability leadership and growth," he added.

During the Q4 and full-year investors call, Fish discussed WM's further investment in automation technology in an effort to advance service offerings and accelerate performance. The company published a supplemental presentation about its multi-year sustainability growth plan, which features details about its investments in renewable energy and recycling businesses. 

The company's investment in the renewable energy sector were touted as a "unique opportunity" that couldn't be missed. WM has collected landfill methane emissions on a historical basis and converted it to electricity as a revenue stream.

"Fast forward to present day with landfill gas designated as a renewable resource," Fish explained. "We are increasing the value of the gas. That's an inevitable byproduct of most landfills."

John Morris, WM executive vice president and COO, further noted the company's collection and disposal results as "impressive." Adjusted operating EBITDA grew 11 percent and margin expanded 40 basis points, which he said "sets the stage" for a positive 2023. 

"This momentum sets the stage for continued growth in 2023 and strengthens our conviction that the investments we're making in our people in automation and in differentiating our service offerings are the right decisions," he added.

Q4 2022 Highlights

Core Price: 8.1 percent in 2022 compared to 5.1 percent in Q4 2021
Collection and Disposal Yield: 7.7 percent in 2022 compared to 3.7 percent in Q4 2021
Total Company Volumes: 0.7 percent decrease in 2022 compared to 2.8 percent in Q4 2021
Adjusted Operating EBITDA: $1.36 billion compared to $1.25 billion in 2021
Free Cash Flow: $196 million compared to $243 million in 2021
Revenue: $4.935 billion compared to $4.678 billion

Full-Year 2022 Highlights

Core Price: 7.8 percent compared to 4.8 percent in 2021
Collection and Disposal Yield: 6.7 percent in 2022 compared to 4.8 percent in 2021
Total Company Volumes: 1.3 percent increase in 2022 compared to 2.8 percent increase in 2021
Adjusted Operating EBITDA: $5.51 billion compared to $5.03 billion in 2021
Free Cash Flow: $1.976 billion compared to $2.5 billion in 2021
Revenue: $19.698 billion compared to $17.9 billion in 2021