Summary
Waste Management Inc. (WM) demonstrated robust performance in 2016, with revenues increasing by 5.0% to $13.6 billion, driven by a combination of volume growth, yield improvements in collection and disposal services, and strategic acquisitions, notably Southern Waste Systems/Sun Recycling (SWS). The company also reported a significant increase in income from operations, reaching $2.3 billion, a 12.3% rise year-over-year, reflecting strong execution of its strategies. This financial strength allowed WM to return substantial value to shareholders through dividends, with a planned increase in the quarterly dividend for 2017, and share repurchases totaling $725 million in 2016. The company is strategically focused on continuous improvement and differentiation, investing in existing diversion technologies like recycling and expanding its service offerings to meet evolving customer needs. Despite facing a competitive landscape and the ongoing impact of regulations, WM's diversified business model, extensive asset network, and commitment to operational efficiency position it well for sustained growth and shareholder value creation. The company's continued investment in natural gas fleet technology and sustainable solutions further underscores its forward-looking approach.
Financial Highlights
54 data points| Revenue | $13.61B |
| Cost of Revenue | $8.49B |
| Gross Profit | $5.12B |
| SG&A Expenses | $1.41B |
| Operating Expenses | $11.31B |
| Operating Income | $2.30B |
| Net Income | $1.18B |
| EPS (Basic) | $2.66 |
| EPS (Diluted) | $2.65 |
| Shares Outstanding (Basic) | 443.50M |
| Shares Outstanding (Diluted) | 446.50M |
Key Highlights
- 1Total revenues increased by 5.0% to $13.6 billion in 2016, driven by yield, volume, and acquisitions.
- 2Income from operations grew by 12.3% to $2.3 billion, demonstrating improved profitability and operational efficiency.
- 3Net income attributable to Waste Management, Inc. rose significantly to $1.18 billion, or $2.65 per diluted share.
- 4The company returned $1.45 billion to shareholders in 2016 through dividends and share repurchases.
- 5A planned 3.7% increase in the quarterly dividend for 2017 signals confidence in sustained cash flow generation.
- 6Strategic acquisitions, including the notable SWS acquisition, contributed positively to revenue and expanded market presence.
- 7Commitment to sustainable practices and investment in technologies like natural gas fleet and renewable energy projects.
- 8Successfully managed a competitive market and complex regulatory environment, maintaining strong operational performance.