Summary
Waste Management, Inc. (WM) reported solid financial results for the fiscal year ended December 31, 2022, with revenues increasing by 9.9% to $19.7 billion. This growth was driven by a combination of higher yield (pricing increases) across its collection and disposal services and a modest increase in volumes. The company successfully navigated inflationary cost pressures, particularly in fuel, maintenance, and labor, by implementing fuel surcharges and other fees, and by focusing on operational efficiencies and automation investments. WM continues its strategic focus on sustainability, investing in its recycling and renewable energy businesses. The company announced a 7.7% increase in its quarterly dividend, marking the 20th consecutive year of dividend increases, signaling strong and consistent cash flow generation. Shareholder returns were also supported by substantial share repurchases. The company's robust balance sheet and operational execution position it well for continued growth and shareholder value creation.
Financial Highlights
53 data points| Revenue | $19.70B |
| Cost of Revenue | $12.29B |
| Gross Profit | $7.40B |
| SG&A Expenses | $1.94B |
| Operating Expenses | $16.33B |
| Operating Income | $3.37B |
| Net Income | $2.24B |
| EPS (Basic) | $5.42 |
| EPS (Diluted) | $5.39 |
| Shares Outstanding (Basic) | 412.80M |
| Shares Outstanding (Diluted) | 415.00M |
Key Highlights
- 1Revenue growth of 9.9% to $19.7 billion, driven by higher yield and volume in collection and disposal services.
- 2Income from operations increased by 13.5% to $3.37 billion, with operating margins improving to 17.1% from 16.5%.
- 3Announced a 7.7% increase in the quarterly dividend to $0.70 per share, marking the 20th consecutive annual increase.
- 4Continued strategic investments in recycling and renewable energy businesses, including opening five new MRFs with advanced technology.
- 5Managed inflationary cost pressures through strategic pricing and operational efficiencies, despite a 3.0% increase in operating expenses as a percentage of revenue.
- 6Significant capital allocation towards capital expenditures ($2.59 billion) and shareholder returns ($2.58 billion) through dividends and share repurchases.
- 7Strong operating cash flow of $4.54 billion, though free cash flow decreased to $1.98 billion due to increased capital spending.