On July 24, 2024, Waste Connections Inc (WCN, Financial) released its 8-K filing reporting robust second-quarter results for 2024. Waste Connections is the third-largest integrated provider of traditional solid waste and recycling services in North America, operating 103 active landfills, 157 transfer stations, and 81 recycling operations. The company serves residential, commercial, industrial, and energy end markets, with 12% of its consolidated revenue generated from its Canadian segment.
Q2 2024 Financial Performance
Waste Connections Inc (WCN, Financial) reported revenue of $2.248 billion for Q2 2024, surpassing the analyst estimate of $2.220 billion. This represents an 11.2% increase from the $2.021 billion reported in the same period last year. The company's operating income rose to $424.7 million, up from $344.1 million in Q2 2023.
Net income for the quarter was $275.5 million, or $1.07 per diluted share, meeting the analyst estimate of $1.07 per share. This is a significant improvement from the $209.2 million, or $0.81 per diluted share, reported in the same period last year. Adjusted net income was $320.0 million, or $1.24 per diluted share, compared to $262.3 million, or $1.02 per diluted share, in Q2 2023.
Operational Highlights and Strategic Acquisitions
Waste Connections Inc (WCN, Financial) attributed its strong performance to solid operational execution, incremental acquisitions, and increased commodity values. The company reported a 16.4% increase in adjusted EBITDA to $731.8 million, up from $628.9 million in the prior year period. The company's strategy of price-led organic solid waste growth and sequential improvement in volumes contributed to these results.
“Solid operational execution supplemented by incremental acquisitions and increased commodity values drove an across the board beat in the second quarter, positioning us for an increase to our full year outlook,” said Ronald J. Mittelstaedt, President and Chief Executive Officer.
Six Months Year-to-Date Results
For the six months ended June 30, 2024, Waste Connections Inc (WCN, Financial) reported revenue of $4.321 billion, up from $3.922 billion in the same period last year. Operating income for the first half of 2024 was $791.5 million, compared to $658.8 million in the prior year period. Net income for the six months was $505.5 million, or $1.96 per diluted share, up from $407.0 million, or $1.58 per diluted share, in the same period last year.
Updated 2024 Outlook
Given the strong performance in the first half of 2024, Waste Connections Inc (WCN, Financial) has raised its full-year outlook. The company now expects revenue of approximately $8.850 billion and adjusted EBITDA of approximately $2.900 billion, representing a 32.8% adjusted EBITDA margin. This updated outlook exceeds the initial estimates and reflects the company's confidence in its ongoing operational execution and strategic acquisitions.
“Given the strength of our performance in the first half of 2024, the momentum from continuing trends and contributions from recent acquisitions, we are raising our full year 2024 outlook to approximately $8.850 billion in revenue and approximately $2.900 billion in adjusted EBITDA,” added Mr. Mittelstaedt.
Financial Metrics and Balance Sheet
Key financial metrics for Waste Connections Inc (WCN, Financial) include:
| Metric | Q2 2023 | Q2 2024 |
|---|---|---|
| Revenue | $2.021 billion | $2.248 billion |
| Operating Income | $344.1 million | $424.7 million |
| Net Income | $209.2 million | $275.5 million |
| Adjusted EBITDA | $628.9 million | $731.8 million |
As of June 30, 2024, Waste Connections Inc (WCN, Financial) reported total assets of $19.301 billion, up from $17.916 billion at the end of 2023. The company's total liabilities increased to $11.318 billion from $10.218 billion, while total equity rose to $7.983 billion from $7.698 billion.
Conclusion
Waste Connections Inc (WCN, Financial) has demonstrated strong financial performance in Q2 2024, driven by solid operational execution and strategic acquisitions. The company's ability to exceed analyst estimates and raise its full-year outlook reflects its robust business model and effective management strategies. Investors and stakeholders will be keen to monitor Waste Connections Inc (WCN) as it continues to capitalize on growth opportunities in the waste management industry.
Explore the complete 8-K earnings release (here) from Waste Connections Inc for further details.
