WM Outperforms Expectations in Q1 2024, Citing Tech Adoption and Cost Optimization

WM (NYSE: WM) reported its 2024 first-quarter earnings, citing cost optimization and investment in technology as contributors.

Strong core pricing of 7.2 percent drove total company revenue growth of 5.5 percent. Q1 2024 revenue reached $5.15 billion, up from $4.8 billion in Q1 2023.

"We outperformed our own high expectations in the first quarter, and what really stands out in our results is our ability to convert more of each revenue dollar to earnings," commented Jim Fish, WM CEO.

He further told investors, "Our results are a testament to the investments we have made in talent, technology, and assets over the past several years."

Adjusted operating EBITDA grew 14.6% to $1.53 billion, up from $1.33 billion year over year. Margin expanded 240 basis points to 29.6% on an adjusted basis.

Fish noted WM has nine facilities scheduled for completion. He commented on the company's execution of strategic investments in sustainability, including a large recycling upgrade facility in Germantown, Wisc, which is scheduled to be online by the end of 2024, and the expansion of a renewable natural gas facility in Dallas-Fort Worth.

WM's focus on leveraging technology, such as routing optimization tools and automation of residential routes, has led to a reduction in operating costs and improved efficiencies.

"In the first quarter of 2024. Our continued adoption of technology and automation initiatives led to substantial reductions in both labor costs, and repair expenses on the labor front efficiency and all three of our collection lines of business improved," said John Morris, WM COO and executive vice president."

He continued to discuss the impact of technology adoption throughout WM, citing improvements in performance with routing efficiency optimization in the company's industrial line of business to reduce costs and improve assets.

"We're also leveraging technology to digitize more workflow, beginning with all of our technicians who now have affordable technology in their hands," Morris said. "These tools facilitate our ability to assign and track work and track technician efficiency, reduce downtime and improve asset utilization. Our results encourage further runway to optimize repair and maintenance costs in the future."

Q1 2024:

FY 2024 Outlook: