Q3 2024 Waste Management Inc Earnings Call Transcript
Key Points
- Waste Management Inc (WM) reported double-digit operating EBITDA growth, positioning the company to deliver approximately $6.5 billion for the full year, near the upper end of their guidance.
- The company achieved a record operating EBITDA margin of 30.5% in the third quarter, marking a year-over-year expansion of 90 basis points.
- WM has successfully closed nearly $800 million of solid waste acquisitions in the first nine months of the year, with a strong pipeline of additional deals.
- The integration of automated recycling facilities has led to lower labor costs per ton and higher blended value on commodity sales, improving operating EBITDA margins.
- WM's renewable energy business is on track to commission four new renewable natural gas projects in the fourth quarter, contributing to significant future growth in this segment.
- Higher-than-expected recycling commodity prices impacted the operating EBITDA margin, which was at the low end of the company's projection.
- The roll-off business remained soft, with declines in volume, although there was sequential improvement.
- The expiration of the alternative fuel tax credit in 2025 is expected to create a $60 million EBITDA headwind and a 30 basis points margin impact.
- Industrial haul volumes have been lighter than expected, reflecting some reservation on industrial investment in the current economic environment.
- The acquisition of Stericycle is expected to temporarily impact consolidated margins due to its current SG&A cost structure.
Good day and thank you for standing by.
Welcome to the WM Third Quarter 2024 earnings conference call.
(Operator Instructions)
Please note that today's conference is being recorded and will now hand the conference over to your speaker, host Ed Egl, Vice President of Investor Relations.
Please go ahead.
Good morning, everyone, and thank you for joining us for third quarter of 2024 Earnings Conference Call.
With me this morning are Jim Fish, President and Chief Executive Officer, John Morris, Executive Vice President and Chief Operating Officer and Devina Rankin, Executive Vice President and Chief Financial Officer.
You will hear prepared comments from each of them today.
Jim will cover high-level financials and provide a strategic update; John will cover operating overview and Devina will cover the details of the financials.
Before we get started, please note that we have filed a Form 8-K that includes the earnings
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
