Summary
Waste Management Inc. (WM) demonstrated robust performance in its 2021 fiscal year, marked by significant revenue growth driven by the strategic acquisition of Advanced Disposal, strong commodity pricing in recycling, and improved yield across its collection and disposal services. The company navigated inflationary pressures and labor market challenges effectively, resulting in a notable increase in income from operations and net income compared to the previous year. WM continues to focus on its long-term strategy of focused differentiation and continuous improvement, underscored by its commitment to sustainability and technological investment. Key financial highlights include a substantial increase in total revenue to $17.9 billion, up 17.8% year-over-year, and a 21.8% increase in income from operations to $2.97 billion. The company also returned significant capital to shareholders through dividends and share repurchases, signaling confidence in its ongoing cash flow generation. Despite facing macroeconomic headwinds such as labor shortages and rising costs, WM's disciplined pricing strategies and operational efficiencies allowed it to deliver strong results and maintain its leadership position in the waste management industry.
Financial Highlights
53 data points| Revenue | $17.93B |
| Cost of Revenue | $11.11B |
| Gross Profit | $6.82B |
| SG&A Expenses | $1.86B |
| Operating Expenses | $14.97B |
| Operating Income | $2.96B |
| Net Income | $1.82B |
| EPS (Basic) | $4.32 |
| EPS (Diluted) | $4.29 |
| Shares Outstanding (Basic) | 420.40M |
| Shares Outstanding (Diluted) | 422.90M |
Key Highlights
- 1Revenue increased by 17.8% to $17.93 billion, primarily driven by the Advanced Disposal acquisition, strong recycling commodity prices, and higher yield in collection and disposal services.
- 2Income from operations rose by 21.8% to $2.97 billion, reflecting improved operational performance and successful integration of acquired businesses.
- 3Net income attributable to Waste Management, Inc. increased to $1.82 billion, or $4.29 per diluted share, from $1.49 billion, or $3.52 per diluted share, in the prior year.
- 4The company generated strong operating cash flow of $4.34 billion, a significant increase from $3.40 billion in the prior year.
- 5Free cash flow was $2.53 billion, slightly down from $2.66 billion in the prior year, impacted by changes in proceeds from divestitures.
- 6Waste Management announced a planned 13.0% increase in its quarterly dividend for 2022, marking the 19th consecutive year of dividend increases.
- 7Capital expenditures for 2021 were $1.90 billion, supporting growth initiatives, fleet modernization, and technology investments.