How did Waste Connections perform in 2024 on an adjusted basis?

Adjusted net income was $1.239 billion, or $4.79 per diluted share, up from $1.081 billion, or $4.19 per diluted share, in 2023. Adjusted EBITDA was $2.902 billion, up from $2.523 billion, and equaled 32.5% of revenue, which the company said was 100 basis points of year-over-year margin expansion. Adjusted free cash flow was $1.218 billion.

Why was the fourth quarter 2024 result a net loss?

Operating loss in the fourth quarter was $199.2 million, which included $601.6 million of impairments primarily related to the early closure of a landfill and adjustments to landfill closure and post-closure costs. The company reported a net loss of $196.0 million, or $0.76 per diluted share, compared with net income of $126.8 million in the prior-year period.

What is the 2025 guidance for revenue, earnings and cash flow?

The company expects 2025 revenue of $9.450 billion to $9.600 billion, net income of $1.186 billion to $1.224 billion, and adjusted EBITDA of $3.120 billion to $3.200 billion (33.0% to 33.3% of revenue). Net cash from operating activities is estimated at $2.500 billion to $2.575 billion, and adjusted free cash flow at $1.300 billion to $1.350 billion.

What drove growth and what could push results above guidance?

Management attributed 2024 results to 7% solid waste core price, plus acquisition contribution; acquisitions added $529.2 million of revenue in 2024. For 2025, management cited price-led organic solid waste growth, improving commodity-driven revenues, and ongoing acquisition activity with a strong pipeline as factors that could position results at the high end of the range or above.

How strong is the balance sheet and how is capital being deployed?

Debt to book capitalization was 51% at December 31, 2024, and management said year-end leverage was less than 2.7 times. Long-term debt and notes payable rose to $8.073 billion from $6.725 billion. Management said the balance sheet provides optionality to fund acquisitions, sustainability projects and an increasing return of capital to shareholders, and dividends paid in 2024 were $302.3 million.

WCN 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed February 12, 2025. Cited figures are marked; the original filing is the authoritative source.

Waste Connections, Inc., an Ontario corporation, furnished an 8-K on February 12, 2025 attaching a press release that reports fourth quarter and full year 2024 results and gives its full year 2025 outlook.

For full year 2024, revenue was $8.920 billion^a, up from $8.022 billion, and net income attributable to Waste Connections was $617.6 million, or $2.39 per diluted share. Adjusted net income was $1.239 billion ($4.79 per diluted share), and adjusted EBITDA was $2.902 billion, or 32.5% of revenue. Operating income was reduced by $613.0 million of impairments, primarily related to the early closure of a landfill.

Fourth quarter results included a net loss of $196.0 million^b, driven by $601.6 million of impairments and landfill closure and post-closure cost adjustments. The company reported net cash provided by operating activities of $2.229 billion and adjusted free cash flow of $1.218 billion for 2024. It also completed a record year of private company acquisitions totaling approximately $750 million in annualized revenue.

Payments for acquisitions, net of cash acquired, were $2.121 billion^c for the year. Year-end debt to book capitalization was 51%, and management referred to year-end leverage of less than 2.7 times. For 2025, management guided to revenue of $9.450 billion to $9.600 billion, net income of $1.186 billion to $1.224 billion, and adjusted EBITDA margin of 33.0% to 33.3%.

Adjusted free cash flow is expected between $1.300 billion^d and $1.350 billion, and capital expenditures between $1.200 billion and $1.225 billion. Management said acquisition dialogue and improving commodity-driven revenues could place results at the high end of the range or above.

02—Key points

Key Highlights

Full year 2024 revenue of $8.920 billion, up from $8.022 billion in 2023, and adjusted EBITDA of $2.902 billion, or 32.5% of revenue.
Full year 2024 net income attributable to Waste Connections of $617.6 million ($2.39 per diluted share), compared with $762.8 million ($2.95 per diluted share) in 2023, reflecting $613.0 million of impairments and other operating items.
Fourth quarter 2024 net loss of $196.0 million ($0.76 per share), driven by $601.6 million of impairments primarily tied to the early closure of a landfill and adjustments to landfill closure and post-closure costs.
Record private company acquisitions of approximately $750 million in annualized revenue in 2024, with payments for acquisitions of $2.121 billion in cash flow.
2025 outlook calls for revenue of $9.450 billion to $9.600 billion and net income of $1.186 billion to $1.224 billion.
2025 adjusted free cash flow guidance of $1.300 billion to $1.350 billion, or over $1.550 billion on a normalized basis, with capital expenditures of $1.200 billion to $1.225 billion.
Management expects Q1 2025 revenue and adjusted EBITDA outlook to be filed in a separate Form 8-K before market open on February 13, 2025.

03—Questions

Frequently Asked Questions

How did Waste Connections perform in 2024 on an adjusted basis?
Adjusted net income was $1.239 billion, or $4.79 per diluted share, up from $1.081 billion, or $4.19 per diluted share, in 2023. Adjusted EBITDA was $2.902 billion, up from $2.523 billion, and equaled 32.5% of revenue, which the company said was 100 basis points of year-over-year margin expansion. Adjusted free cash flow was $1.218 billion.
Why was the fourth quarter 2024 result a net loss?
Operating loss in the fourth quarter was $199.2 million, which included $601.6 million of impairments primarily related to the early closure of a landfill and adjustments to landfill closure and post-closure costs. The company reported a net loss of $196.0 million, or $0.76 per diluted share, compared with net income of $126.8 million in the prior-year period.
What is the 2025 guidance for revenue, earnings and cash flow?
The company expects 2025 revenue of $9.450 billion to $9.600 billion, net income of $1.186 billion to $1.224 billion, and adjusted EBITDA of $3.120 billion to $3.200 billion (33.0% to 33.3% of revenue). Net cash from operating activities is estimated at $2.500 billion to $2.575 billion, and adjusted free cash flow at $1.300 billion to $1.350 billion.
What drove growth and what could push results above guidance?
Management attributed 2024 results to 7% solid waste core price, plus acquisition contribution; acquisitions added $529.2 million of revenue in 2024. For 2025, management cited price-led organic solid waste growth, improving commodity-driven revenues, and ongoing acquisition activity with a strong pipeline as factors that could position results at the high end of the range or above.
How strong is the balance sheet and how is capital being deployed?
Debt to book capitalization was 51% at December 31, 2024, and management said year-end leverage was less than 2.7 times. Long-term debt and notes payable rose to $8.073 billion from $6.725 billion. Management said the balance sheet provides optionality to fund acquisitions, sustainability projects and an increasing return of capital to shareholders, and dividends paid in 2024 were $302.3 million.

04—Continue

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