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Waste Connections (WCN) Q3 Earnings call transcript Oct 24, 2024

Daily EarningsMonday, Oct 28, 2024 8:27 pm ET

1min read

WCN -- WM --

In the latest earnings call, Waste Connections Inc. reported a robust performance for the third quarter of 2024, demonstrating a strong operational execution and strategic growth initiatives. The company's focus on quality of revenue and human capital has led to solid waste growth, with a core pricing of 6.8% and a record year of private company acquisition activity.

Operational Highlights and Financial Performance

The company's operational execution in Q3 was exceptional, with solid waste growth and improved employee retention. Waste Connections reported an adjusted EBITDA margin of 33.7% and revenue growth of $2.338 billion, marking a significant achievement in the solid waste industry. The company's strategic acquisition of Royal Waste Services in New York City has further solidified its position as the largest and only fully-integrated player in the city.

M&A Strategy and Outlook for 2025

Waste Connections has set the stage for a strong start to 2025, with a record year of private company acquisition activity. The company plans to maintain its focus on solid waste, targeting high single-digit adjusted EBITDA growth in 2025, assuming no change in the current economic environment. With a proven market selection strategy and a track record for integrating and maximizing value, Waste Connections is poised for continued success in the waste management sector.

Employee Retention and Sustainability

The company's commitment to employee retention and sustainability was evident in the call, with a multiyear reduction of over 40% in voluntary turnover. This reduction has led to ongoing improvements in safety-related metrics, demonstrating the company's dedication to creating a positive work environment and promoting long-term savings opportunities. Waste Connections also highlighted its progress towards achieving its sustainability targets, showing that outsized growth can coexist with environmental goals.

Challenges and Outlook

Despite the positive outlook, the company acknowledged challenges such as evolving regulatory environments and commodity pricing fluctuations. However, Waste Connections remains confident in its ability to navigate these challenges and maintain its growth trajectory. The company's focus on quality of revenue, human capital, and strategic acquisitions positions it well for continued success in the waste management industry.

Conclusion

Waste Connections Inc.'s Q3 2024 earnings call underscored the company's operational excellence, strategic growth initiatives, and commitment to sustainability. With a strong focus on quality of revenue, human capital, and strategic acquisitions, Waste Connections is well-positioned for a robust 2025, poised to maintain its leadership in the waste management sector.

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