Waste Management Inc (WM, Financial) announced its financial results for the quarter ended September 30, 2023, on October 24, 2023. The company reported a strong quarter with significant expansion in its Operating EBITDA Margin. The company's revenue for the quarter was $5.198 billion, a slight increase from $5.075 billion reported in the same period last year. The Operating EBITDA Margin expanded to 29.6%, up from 28.5% in Q3 2022.
Financial Highlights
Income from operations for the quarter was $1.021 billion, up from $942 million in Q3 2022. Net income stood at $663 million, compared to $639 million in the same period last year. Diluted earnings per share (EPS) were $1.63, up from $1.54 in Q3 2022.
WM's President and Chief Executive Officer, Jim Fish, commented on the results, stating,
Over the course of the year, our team has consistently delivered strong results driven by our focus on pricing discipline and optimization of our cost structure. In the third quarter, organic growth in our collection and disposal business, operating cost improvements, and our commitment to SG&A cost management translated into more than 6% growth in adjusted operating EBITDA and 100 basis points of adjusted operating EBITDA margin expansion."
Key Financial Tables
The company's cash flow statement showed net cash provided by operating activities of $1.263 billion for the quarter. After accounting for capital expenditures and proceeds from divestitures, free cash flow stood at $612 million, a significant increase from $432 million in Q3 2022.
The balance sheet as of September 30, 2023, showed total assets of $31.935 billion, up from $31.367 billion at the end of 2022. Total liabilities stood at $24.969 billion, while total equity was $6.966 billion.
Looking Ahead
WM expects sustainability growth capital spending of about $750 million in 2023. The decrease from prior expectations is based on a shift in the timing of spending across the next few quarters. As a result of lower anticipated capital spending, 2023 free cash flow is expected to be in the range of $1.825 and $1.925 billion.
CEO Jim Fish concluded,
We are pleased with our results in the initial three quarters of the year across all key financial metrics giving us confidence in our ability to deliver on the guidance we communicated in July. Our team remains focused on continuing to drive operating leverage in the business to deliver a strong finish to this year and lay the groundwork for further growth in 2024."