01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
Waste Connections, Inc. is the third largest solid waste services company in North America, providing non-hazardous waste collection, transfer and disposal services, including by rail, along with resource recovery primarily through recycling and renewable fuels generation, in 46 states in the U.S. and six provinces in Canada.
In 2024 revenues increased 11.2% to $8.920 billiona from $8.022 billion, with acquisitions contributing $529 million of incremental revenue and excluding acquisitions revenues increasing 4.6%, driven mainly by solid waste internal growth. Adjusted EBITDA rose 15.0% to $2.902 billion, and adjusted EBITDA margin improved from 31.5% to 32.5%. Reported net income attributable to Waste Connections fell 19.0% to $617.6 million, principally due to impairments and other operating items of $613.0 million, which were driven mainly by the decision to cease active waste disposal operations at the Chiquita Canyon Landfill as of December 31, 2024, including $480.8 million of closure and post-closure liability charges and a $116.1 million impairment.
Cash flow and balance sheet metrics were mixed. Net cash provided by operating activities rose 4.8% to $2.229 billionb, while capital expenditures for property and equipment reached $1.056 billion, leaving adjusted free cash flow of $1.218 billion, roughly flat versus $1.224 billion in 2023. Total indebtedness was approximately $8.152 billion at year-end, and the Leverage Ratio rose slightly from 2.60x to 2.67x against a target range of 2.5x to 3.0x.
The company completed 24 acquisitions for consideration with a net fair value of $2.199 billionc in 2024. Cash dividends declared rose to $302.3 million, and the quarterly dividend was increased 10.5% to $0.315 per share.
The Chiquita Canyon Landfill faces substantial litigation, including roughly 9,200 plaintiffs in civil lawsuits and a County of Los Angeles lawsuit, and the company cannot currently determine the likely outcomes or penalty amounts. Management expects 2025 capital expenditures of between $1.200 billiond and $1.225 billion.
02—Key points
Key Highlights
- Revenue grew 11.2% to $8.920 billion in 2024; excluding $529 million from acquisitions, revenues increased 4.6%, with solid waste internal growth of 4.4% and pricing growth of 6.6%.
- Net income attributable to Waste Connections decreased 19.0% to $617.6 million, principally due to impairments and other operating items of $613.0 million, mainly tied to the Chiquita Canyon Landfill ceasing active waste disposal operations as of December 31, 2024.
- Adjusted EBITDA increased 15.0% to $2.902 billion, and adjusted EBITDA as a percentage of revenue rose from 31.5% to 32.5%.
- Net cash provided by operating activities increased 4.8% to $2.229 billion, while adjusted free cash flow was $1.218 billion versus $1.224 billion in 2023.
- Total indebtedness was approximately $8.152 billion at December 31, 2024; the Leverage Ratio was 2.67x, up from 2.60x, within the company's 2.5x to 3.0x target range.
- The company completed 24 acquisitions in 2024 with a net fair value of $2.199 billion and expects 2025 capital expenditures of $1.200 billion to $1.225 billion.
- Quarterly dividend was raised 10.5% to $0.315 per share, and cash dividends declared totaled $302.3 million in 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Waste Connections kept $0.07.
- Revenue$8.92B100.0%
- Cost of revenue−$5.19B58.2%
- Gross profit$3.73B41.8%
- Operating costs−$2.66B29.8%
- Operating income$1.07B12.0%
- Interest, other & tax−$451.1M5.1%
- Net income$616.6M6.9%
Where FY2024 revenue went
$8.92B- Cost of revenue: $5.19B, 58% of revenue
- Other operating costs: $1.78B, 20% of revenue
- Net income: $616.6M, 6.9% of revenue
- SG&A: $883.4M, 9.9% of revenue
- Interest, other & tax: $451.1M, 5.1% of revenue
Kept 6.9% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $8.92B$8.02B | +11.2% |
| Cost of Revenue | $5.19B$4.74B | +9.4% |
| Gross Profit | $3.73B$3.28B | +13.7% |
| SG&A Expenses | $883.45M$799.12M | +10.6% |
| Operating Income | $1.07B$1.24B | −13.6% |
| Net Income | $616.57M$762.83M | −19.2% |
| EPS (Basic) | $2.39$2.96 | −19.3% |
| EPS (Diluted) | $2.39$2.95 | −19.0% |
| Shares Outstanding (Basic) | 257.97M257.55M | +0.2% |
| Shares Outstanding (Diluted) | 258.66M258.15M | +0.2% |
05—Questions
Frequently Asked Questions
Why did net income decline in 2024 despite revenue growth?
Net income attributable to Waste Connections decreased 19.0% to $617.6 million, principally as a result of impairments and other operating items, which increased to $613.0 million from $238.8 million in 2023. The increase reflects charges of $480.8 million to adjust the closure and post-closure liability and a $116.1 million impairment at the Chiquita Canyon Landfill, which ceased active waste disposal operations as of December 31, 2024.
What is driving revenue growth and pricing?
Revenues increased $897.6 million, or 11.2%, to $8.920 billion. Net price increases at existing operations contributed $506.4 million, consisting of $539.0 million of core price increases partly offset by $32.6 million of lower surcharges. Volume losses of $222.5 million, largely from the purposeful shedding of low-margin municipal contracts, partly offset these gains.
What legal and regulatory risks relate to the Chiquita Canyon Landfill?
The filing describes an elevated temperature landfill event, numerous notices of violation from California agencies and the U.S. EPA, roughly 9,200 plaintiffs in civil lawsuits as of February 5, 2025, and a County of Los Angeles lawsuit seeking injunctive relief and civil penalties. The company states it cannot determine the likelihood of outcomes or the amount of potential penalties. The landfill was closed to active waste disposal as of December 31, 2024, after a reduced tonnage limit took effect January 1, 2025.
How is the company funding its growth and returning capital to shareholders?
Capital expenditures were $1.056 billion in 2024, and acquisitions required significant cash, with payments for acquisitions net of cash acquired of $2.121 billion. The company funded these largely through net long-term borrowings of $1.322 billion and operating cash flow. It also paid $302.3 million in cash dividends and had no share repurchases under its normal course issuer bid in 2024. At year-end, $778 million was available under its Revolving Credit Agreement, which matures in February 2029.
06—Continue