NYSE$WCN

Waste Connections Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Waste Connections reported strong Q1 2023 results driven by price-led organic growth and strategic acquisitions.

Waste Connections reported a strong start to 2023, with revenue up 15.4% to $1.901 billion. The company's performance was driven by record solid waste pricing growth, strong operational execution, and continuing acquisition activity. Net income was $197.8 million, or $0.77 per share, and adjusted EBITDA was $566.9 million.

  • Revenue increased by 15.4% year-over-year to $1.901 billion.
  • Net income reached $197.8 million, with EPS at $0.77.
  • Adjusted EBITDA was reported at $566.9 million.
  • The company is on track to achieve its full-year outlook, with potential upside from acquisitions and favorable market conditions.

Headline financials

Total Revenue

$1.9B

Previous: $1.65B+15.4%
EPS (adj)

$0.89

Previous: $0.82+8.5%
Core Price Growth

11.0%

Previous: 6.3%+74.6%
Surcharges

0.8%

Previous: 0.8%+0.0%
Volume

-1.3%

Previous: 0.5%-360.0%
Recycling

-1.9%

Previous: 1.1%-272.7%
Total Internal Growth

7.7%

No prior period
Capital Expenditures

-$176M

Previous: -$152M-15.4%
Free Cash Flow

$22M

Previous: $28M-21.3%
Net Income

$198M

Previous: $180M+9.7%
Operating Income

$315M

Previous: $274M+14.9%
Gross Profit

$754M

Previous: $657M+14.7%
Cash & Equivalents

$134M

Previous: $391M-65.8%
Total Assets

$17.2B

Previous: $15.4B+11.8%
Stock-Based Comp

$18.5M

Previous: $14.6M+26.2%

Revenue & EPS history

Waste Connections · Revenue · Quarterly

$1.9B

Q1 2023+15.4%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Waste Connections · $1.9B total across 5 segments · Q1 2023

  • Solid Waste Collection
    $1.43B+19.4%
  • Disposal & Transfer
    $355M+16.3%
  • E&P Waste
    $48.1M+17.9%
  • Intermodal & Other
    $38M-12.8%
  • Solid Waste Recycling
    $30.7M-49.3%

Forward guidance

Continued visibility on pricing, improving trends in labor availability and retention, and recent normalization of weather patterns position Waste Connections to deliver the full year outlook they provided in February. Upside potential to this outlook remains from any additional acquisitions, increases in recycled commodities and renewable fuels values, or reduction of inflationary pressures.

Tailwinds

  • Continued visibility on pricing
  • Improving trends in labor availability and retention
  • Recent normalization of weather patterns
  • Potential upside from any additional acquisitions
  • Increases in recycled commodities and renewable fuels values

Headwinds

  • Weather-related impacts to solid waste roll-off activity and landfill volumes, particularly on the West Coast
  • Decline in resource recovery values during the second half of 2022
  • Acquisitions completed since the year-ago period were 30 basis points dilutive to reported margins
  • Inflationary pressures
  • Difficult year-over-year comparison

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.4%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.3%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+8.1%

Q1 2026

Best reaction

-8.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.1%+4.5%-0.6%
Q4 2025-8.2%-6.1%-3.0%
Q3 2025+2.7%+0.6%+0.9%
Q2 2025+0.0%+0.6%-4.7%
Q1 2025+0.5%-0.1%+0.6%
Q4 2024-0.6%-1.2%-2.5%
Q3 2024-1.5%-2.4%+4.7%
Q2 2024-2.9%-2.7%+3.2%
Q1 2024-0.6%-0.9%-0.4%
Q4 2023+6.3%+8.7%+9.6%
Q3 2023-4.8%-3.4%-0.8%
Q2 2023-1.5%+0.2%-2.5%
Q1 2023-3.1%-1.5%-2.0%
Q4 2022+1.2%+1.1%-0.2%
Q3 2022+5.8%+6.5%+11.1%
Q2 2022+2.7%+4.7%+5.5%
Q1 2022-2.5%-5.8%-3.2%
Q4 2021+0.7%+1.2%+15.5%
Q3 2021+0.5%+3.0%+1.6%
Q2 2021-1.2%-1.8%+2.9%
Q1 2021+1.3%+2.8%+3.8%
Q4 2020+1.3%+0.4%+4.6%
Q3 2020-2.7%-1.9%+2.8%
Q2 2020+0.7%-1.6%-2.0%
Q1 2020+5.3%+7.2%+12.6%
Q4 2019+3.1%+4.1%-11.0%
Q3 2019+1.1%+0.7%-0.1%
Q2 2019-3.3%-5.0%-3.8%
Q1 2019+2.1%+3.3%+6.0%
Q4 2018-4.6%-2.5%-0.6%
Q3 2018+3.5%+1.8%+7.9%
Q2 2018+1.7%+0.8%+1.6%
Q1 2018+2.2%+4.1%+8.2%
Q4 2017+0.7%+3.6%+7.3%
Q3 2017+2.7%+1.2%-2.0%
Q2 2017+3.3%+1.8%+1.3%
Q1 2017+2.8%+2.0%+4.6%
Q4 2016+3.7%+4.5%+3.9%
Q3 2016-1.7%-0.1%+3.0%
Q2 2016+3.2%+5.0%+6.8%
Q1 2016+3.4%
Q4 2015-1.4%
Q3 2015-4.0%
Q2 2015+2.1%
Q1 2015-0.1%
Q4 2014-1.5%
Q3 2014+2.2%
Q2 2014+1.1%
Q1 2014-0.0%
Q4 2013+0.9%
Q3 2013-2.3%
Q2 2013-0.6%
Q1 2013+3.9%
Q4 2012-2.7%
Q3 2012-3.4%
Q1 2012+2.0%
Q2 2012+2.0%
Q4 2010+1.3%
Q4 2011+1.3%
Q3 2011-5.4%
Q2 2011-0.6%
Q1 2011-3.4%
Q3 2010-2.9%
Q2 2010+6.9%
Q1 2010-1.1%

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