#Canada #Toronto #2025 Outlook #2024 results #Waste Connections

Waste Connections Fourth Quarter 2024 Results

Waste Connections, Inc. has released its financial results for the fourth quarter of 2024, indicating a robust finish to the year, supported by consistent execution and significant improvements in operational trends. The company reported a noteworthy year-over-year revenue increase of 11.2%, totaling $8.920 billion for 2024.

Financial Highlights

In the fourth quarter alone, Waste Connections achieved a revenue figure of $2.260 billion, surpassing the $2.036 billion reported in the previous year’s quarter. The net income for the quarter stood at $617.6 million, marking a year-on-year decline attributable to impairments related to landfill operations, which accounted for a $601.6 million operating loss. This impairment significantly influenced the financial outcome compared to the fourth quarter of 2023, which recorded an operating income of $224.5 million.

Despite these challenges, adjusted net income for the fourth quarter came in at $300.6 million or $1.16 per diluted share, reflecting a growth from the previous year's adjusted income of $285.5 million. Adjusted EBITDA saw a significant increase, rising to $731.9 million for the quarter, up from $656.0 million previously, signifying improved operational efficiency.

For the entire year of 2024, Waste Connections reported:

• - Net income of $617.6 million, equivalent to $2.39 per share.
• - Adjusted net income of $1.239 billion, or $4.79 per diluted share.
• - Adjusted EBITDA of $2.902 billion, achieving an EBITDA margin of 32.5%.

Operational Excellence

President and CEO Ronald J. Mittelstaedt credited the company’s operational improvements and enhanced employee engagement for its strong performance. The company achieved its best-ever employee retention rates, indicating effective human resource strategies that significantly lowered turnover throughout the year. This human capital focus, coupled with successful acquisition strategies, contributed to the overall operational success.

In 2024, Waste Connections successfully executed a record number of acquisitions totaling around $750 million in annualized revenue. The integration of these acquisitions is part of the company’s strategy to enhance service offerings and operational efficiencies.

2025 Outlook

Looking to the future, Waste Connections has set ambitious targets for 2025, with projected revenues ranging from $9.450 billion to $9.600 billion. The company anticipates net income between $1.186 billion and $1.224 billion, and expects further expansion of its adjusted EBITDA margin by up to 80 basis points, reaching around 33.3% of revenue. Cash flow from operations is forecasted to be between $2.500 billion and $2.575 billion, supporting continued investment in acquisitions and advancements in sustainability initiatives.

As of December 31, 2024, Waste Connections held a solid balance sheet with a leverage ratio below 2.7 times, enhancing its financial flexibility for future growth initiatives. The company's commitment to Environmental, Social, and Governance (ESG) principles continues to play a crucial role in its long-term value creation strategy.

Conclusion

Overall, Waste Connections demonstrated a year of resilience and growth despite operational challenges. Its strong 2024 results and optimistic outlook for 2025 showcase the company’s solid market position and commitment to enhancing waste management services across North America. As it prepares for another year of expansion, shareholders and customers alike can expect continued innovation and attention to sustainability from Waste Connections.