Summary
Waste Management Inc. (WM) reported a solid increase in revenue and net income for the second quarter and first half of 2022 compared to the prior year. Revenue rose by 12.3% in the quarter and 12.8% year-to-date, driven by strong performance in its collection and disposal services, supported by "yield" (pricing initiatives) and "volume" (service demand). Net income attributable to WM also saw a significant jump, reaching $587 million ($1.41 diluted EPS) for the quarter and $1.101 billion ($2.64 diluted EPS) for the first half of 2022. The company is navigating inflationary pressures, including higher labor and fuel costs, by implementing disciplined pricing strategies and focusing on operational efficiencies. Despite these cost headwinds, WM demonstrated its ability to pass on costs and grow its top and bottom lines. The company also continued its capital allocation priorities, returning significant capital to shareholders through dividends and share repurchases, while also investing in growth initiatives, particularly in sustainability-focused areas. Key financial health indicators remain robust, with strong operating cash flow generation. While capital expenditures increased, reflecting investments in both traditional business needs and sustainability projects, the company maintained significant liquidity. Overall, WM's Q2 2022 performance indicates resilience and effective strategic execution in a challenging economic environment.
Financial Highlights
51 data points| Revenue | $5.03B |
| Cost of Revenue | $3.14B |
| Gross Profit | $1.89B |
| SG&A Expenses | $487.00M |
| Operating Expenses | $4.14B |
| Operating Income | $890.00M |
| Net Income | $587.00M |
| EPS (Basic) | $1.42 |
| EPS (Diluted) | $1.41 |
| Shares Outstanding (Basic) | 414.40M |
| Shares Outstanding (Diluted) | 416.40M |
Key Highlights
- 1Revenue increased by 12.3% to $5.03 billion for the three months ended June 30, 2022, compared to $4.48 billion in the prior year period.
- 2Net income attributable to Waste Management, Inc. more than doubled to $587 million ($1.41 diluted EPS) for the three months ended June 30, 2022, from $351 million ($0.83 diluted EPS) in the prior year period.
- 3Operating expenses increased by 13.3% to $3.14 billion, largely due to inflationary cost pressures, higher fuel prices, and labor costs, which were partially offset by strong revenue growth.
- 4The company generated $1.05 billion in net cash from operating activities for the three months ended June 30, 2022, a slight increase from $1.04 billion in the prior year period.
- 5Free cash flow was $503 million for the three months ended June 30, 2022, down from $649 million in the prior year period, primarily due to increased capital expenditures.
- 6Waste Management actively returned capital to shareholders, repurchasing $524 million in common stock and paying $544 million in cash dividends during the first six months of 2022.
- 7The company amended and extended its $3.5 billion revolving credit facility through May 2027, demonstrating strong liquidity management and access to capital.