Summary
Waste Management Inc. (WM) reported a strong second quarter in 2021, demonstrating significant recovery and growth. Revenue increased by 25.7% year-over-year to $4.48 billion, largely driven by improved volumes across its collection and disposal segments, the integration of the Advanced Disposal acquisition, and higher commodity prices for recyclables. Despite inflationary cost pressures and increased labor expenses, the company effectively managed its operational expenses, resulting in a notable improvement in operating income to $791 million, up from $527 million in the prior year. This was further bolstered by lower interest expenses due to strategic debt refinancing. While the company incurred a $220 million loss on early debt extinguishment, its robust operating performance led to a net income of $351 million ($0.83 per diluted share), an increase from $307 million ($0.72 per diluted share) in the prior year. The company also generated strong free cash flow of $649 million, reflecting healthy operational cash generation and disciplined capital expenditures, supporting its capital allocation priorities.
Financial Highlights
51 data points| Revenue | $4.48B |
| Cost of Revenue | $2.74B |
| Gross Profit | $1.74B |
| SG&A Expenses | $445.00M |
| Operating Expenses | $3.69B |
| Operating Income | $791.00M |
| Net Income | $351.00M |
| EPS (Basic) | $0.83 |
| EPS (Diluted) | $0.83 |
| Shares Outstanding (Basic) | 421.60M |
| Shares Outstanding (Diluted) | 423.60M |
Key Highlights
- 1Revenue surged by 25.7% to $4.48 billion in Q2 2021, driven by volume recovery, the Advanced Disposal acquisition, and higher recycling commodity prices.
- 2Operating income increased significantly to $791 million from $527 million in the prior year, reflecting improved operational efficiency and revenue growth.
- 3Net income attributable to Waste Management, Inc. rose to $351 million ($0.83/share) from $307 million ($0.72/share) year-over-year.
- 4The company successfully managed operating expenses as a percentage of revenue, keeping them at 61.1% despite increased costs, due to strong revenue growth in higher-margin businesses.
- 5Free cash flow generation was robust at $649 million for the quarter, indicating strong liquidity and ability to fund shareholder returns and investments.
- 6The acquisition of Advanced Disposal continues to positively contribute to revenue and operations, though integration costs are being managed.
- 7Strategic debt refinancing activities led to a reduction in interest expense, although a $220 million loss was recognized on early debt extinguishment.