On July 24, 2024, Waste Management Inc (WM, Financial) released its 8-K filing for the second quarter of 2024. Waste Management Inc (WM) is the largest integrated provider of traditional solid waste services in the United States, operating 263 active landfills and about 332 transfer stations. The company serves residential, commercial, and industrial end markets and is also a leading recycler in North America.
Performance Overview
Waste Management Inc (WM, Financial) reported revenue of $5.402 billion for Q2 2024, a 5.5% increase from $5.119 billion in Q2 2023. Despite this growth, the company missed the analyst revenue estimate of $5.427 billion. The company's diluted earnings per share (EPS) came in at $1.69, falling short of the analyst estimate of $1.83.
Financial Achievements and Challenges
WM's income from operations increased to $1.009 billion from $944 million in the same period last year. The company's operating EBITDA rose to $1.552 billion, with an operating EBITDA margin of 28.7%. Adjusted figures show an even stronger performance, with adjusted operating EBITDA at $1.618 billion and an adjusted operating EBITDA margin of 30.0%.
“Revenue grew by 5.5% this quarter, and our disciplined focus on leveraging our people, technology, and processes to reduce our cost to serve continued to drive margin expansion,” said Jim Fish, WM’s President and Chief Executive Officer.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $5.402 billion | $5.119 billion |
| Income from Operations | $1.009 billion | $944 million |
| Operating EBITDA | $1.552 billion | $1.465 billion |
| Net Income | $680 million | $615 million |
| Diluted EPS | $1.69 | $1.51 |
Balance Sheet and Cash Flow
As of June 30, 2024, WM reported total assets of $33.999 billion, up from $32.823 billion at the end of 2023. The company's cash and cash equivalents stood at $172 million, a decrease from $458 million at the end of 2023. Total liabilities increased to $26.548 billion from $25.927 billion, while total equity rose to $7.451 billion from $6.896 billion.
Strategic Initiatives and Future Outlook
WM continues to expand its core collection and disposal operations through targeted acquisitions, including new geographies like Long Island, New York, and growth markets in Florida, North Carolina, and Arizona. The company is also progressing with its planned acquisition of Stericycle and making significant strides in sustainability investments.
“We continue to strategically expand our core collection and disposal operations in North America through targeted acquisitions in new geographies like Long Island, New York and through tuck-in acquisitions in growth markets in Florida, North Carolina, and Arizona,” said Jim Fish.
Despite the missed estimates, WM's robust revenue growth and strategic acquisitions position the company well for future performance. Investors and stakeholders are encouraged to review the detailed financial results and strategic initiatives outlined in the 8-K filing.
Explore the complete 8-K earnings release (here) from Waste Management Inc for further details.
