Summary
Waste Management, Inc. (WM) operates as North America's leading provider of comprehensive waste management and environmental services. For the fiscal year ending December 31, 2020, the company reported revenues of $15.2 billion, a slight decrease of 1.5% from the prior year, largely due to the impact of the COVID-19 pandemic on waste volumes, particularly in its collection and disposal segments. Despite the revenue dip, WM demonstrated resilience through proactive cost management, resulting in operating expenses remaining flat as a percentage of revenue. The company completed a significant strategic move with the acquisition of Advanced Disposal Services, Inc. in October 2020, which is expected to enhance its service offerings and geographic reach, though it also contributed to increased acquisition-related costs and integration efforts. Financially, WM generated $3.4 billion in net cash from operating activities and $2.7 billion in free cash flow, showcasing its strong operational cash generation. The company continued its commitment to shareholder returns by paying $1.3 billion in dividends and share repurchases, and announced an expected 5.5% increase in its quarterly dividend for 2021, marking its 18th consecutive year of dividend increases. WM's robust asset network, including the largest landfill network in North America, positions it well for continued leadership and adaptability in the evolving waste management and environmental services industry.
Financial Highlights
53 data points| Revenue | $15.22B |
| Cost of Revenue | $9.34B |
| Gross Profit | $5.88B |
| SG&A Expenses | $1.73B |
| Operating Expenses | $12.78B |
| Operating Income | $2.43B |
| Net Income | $1.50B |
| EPS (Basic) | $3.54 |
| EPS (Diluted) | $3.52 |
| Shares Outstanding (Basic) | 423.00M |
| Shares Outstanding (Diluted) | 425.10M |
Key Highlights
- 1Revenue of $15.2 billion for FY 2020, a 1.5% decrease from FY 2019, primarily impacted by COVID-19 related volume declines in collection and disposal services.
- 2Completed the acquisition of Advanced Disposal Services, Inc. in October 2020 for approximately $4.6 billion (including net debt), expanding its market presence and customer base.
- 3Generated $3.4 billion in net cash from operating activities and $2.7 billion in free cash flow in FY 2020, demonstrating strong liquidity and cash generation.
- 4Returned $1.3 billion to shareholders through dividends and share repurchases in FY 2020.
- 5Announced an expected 5.5% increase in quarterly dividends for 2021, signaling confidence in continued cash flow generation.
- 6Maintained operating expenses as a percentage of revenue flat at 61.4% despite revenue challenges, due to proactive cost management efforts.
- 7Invested $1.6 billion in capital expenditures and $4.1 billion in acquisitions in FY 2020, reflecting continued strategic investment in growth and operations.