Summary
Waste Management, Inc. (WM) demonstrated resilience in its 2018 performance, with a 3.0% increase in revenue to $14.914 billion, driven by strong yield and volume growth in its core Traditional Solid Waste business, along with strategic acquisitions. Despite facing headwinds from lower recycling commodity prices, the company successfully managed operating expenses and saw an increase in income from operations to $2.789 billion. The company also returned significant value to shareholders through repurchases and dividends, including a planned 10.2% increase in the quarterly dividend for 2019, signaling confidence in its consistent cash flow generation. Looking ahead, WM remains focused on its strategy of focused differentiation and continuous improvement. The company is navigating evolving market dynamics, including increasing customer demand for sustainable services and adapting to stricter recycling quality standards. WM's robust network of assets, including its extensive landfill and transfer station operations, positions it well to meet future challenges and capitalize on opportunities within the waste management industry.
Financial Highlights
54 data points| Revenue | $14.91B |
| Cost of Revenue | $9.25B |
| Gross Profit | $5.67B |
| SG&A Expenses | $1.45B |
| Operating Expenses | $12.13B |
| Operating Income | $2.79B |
| Net Income | $1.93B |
| EPS (Basic) | $4.49 |
| EPS (Diluted) | $4.45 |
| Shares Outstanding (Basic) | 429.10M |
| Shares Outstanding (Diluted) | 432.20M |
Key Highlights
- 1Revenue increased by 3.0% to $14.914 billion in 2018, driven by volume growth and improved yield in the core Solid Waste business.
- 2Income from operations grew by 5.8% to $2.789 billion, reflecting effective cost management.
- 3Net income attributable to Waste Management, Inc. was $1.925 billion ($4.45 per diluted share), with a favorable impact from tax reform partially offset by lower recycling commodity prices.
- 4Free cash flow increased by 17.7% to $2.084 billion, underscoring strong operational cash generation.
- 5The company announced an expected 10.2% increase in its quarterly dividend for 2019, marking the 16th consecutive year of dividend increases.
- 6Significant capital allocation was directed towards acquisitions ($466 million) and capital expenditures ($1.694 billion) to support growth and efficiency.
- 7The company ended the year with a strong liquidity position, including $1.2 billion in unused credit capacity.