NYSE$WCN

Waste Connections Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Waste Connections reported strong Q3 2023 results, marked by revenue growth, adjusted EBITDA increase, and solid operational execution.

Waste Connections announced its Q3 2023 results, with revenue reaching $2.065 billion, a 9.8% increase year-over-year. Net income was reported at $229.0 million, or $0.89 per share, while adjusted EBITDA rose to $671.2 million, up 14.1% year-over-year. The company's adjusted EBITDA margin was 32.5%, reflecting a 120 basis point increase year-over-year.

  • Revenue increased to $2.065 billion, representing a 9.8% year-over-year growth.
  • Adjusted EBITDA rose by 14.1% year-over-year, reaching $671.2 million.
  • Adjusted EBITDA margin improved to 32.5%, up 120 basis points year-over-year and 140 basis points sequentially from Q2.
  • Net income was reported at $229.0 million, with earnings per share at $0.89.

Headline financials

Total Revenue

$2.06B

Previous: $1.88B+9.8%
EPS (adj)

$1.17

Previous: $1.10+6.4%
Core Price Growth

8.8%

Previous: 8.3%+6.0%
Surcharges

-1.1%

Previous: 1.8%-161.1%
Volume

-2.4%

Previous: -1.5%-60.0%
Recycling

-0.5%

Previous: -1.3%+61.5%
Total Internal Growth

4.4%

Previous: 6.8%-35.3%
Capital Expenditures

-$616M

Previous: -$618M+0.4%
Free Cash Flow

-$387M

Previous: -$381M-1.3%
Net Income

$229M

Previous: $237M-3.3%
Operating Income

$353M

Previous: $327M+8.0%
Gross Profit

$860M

Previous: $759M+13.3%
Cash & Equivalents

$96.2M

Previous: $200M-51.9%
Total Assets

$17.7B

Previous: $16.1B+9.9%
Stock-Based Comp

$14.6M

Previous: $20.7M-29.2%

Revenue & EPS history

Waste Connections · Revenue · Quarterly

$2.06B

Q3 2023+9.8%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Waste Connections · $2.06B total across 5 segments · Q3 2023

  • Solid Waste Collection
    $1.51B+10.5%
  • Disposal & Transfer
    $418M+12.7%
  • E&P Waste
    $58.5M+10.4%
  • Intermodal & Other
    $44.9M-1.4%
  • Solid Waste Recycling
    $35.1M-23.5%

Forward guidance

The expected Q4 and ongoing expanding impacts from that evolving landfill situation are currently being evaluated, along with a recent shorter-term development at a landfill in Texas, and as such weren’t anticipated in the full year outlook we provided in August. We expect to get more clarity going forward but currently estimate the range of outcomes in Q4 to include impacts of up to $20 million to revenue, adjusted EBITDA and adjusted free cash flow.

Tailwinds

  • Employee retention is improving.
  • Differentiated strategy and execution should provide for above average underlying margin expansion in solid waste collection, transfer and disposal in 2024.
  • Positioned for high single-digit adjusted EBITDA growth in 2024.
  • Expected mid to high single-digit revenue growth.
  • Approximately $150 million of revenue carryover from acquisitions signed or closed year to date, with upside potential from additional acquisition activity and any further improvement in commodity-related activity.

Headwinds

  • Expected Q4 impacts from evolving landfill situation are currently being evaluated.
  • Shorter-term development at a landfill in Texas.
  • Unanticipated impacts in the full year outlook provided in August.
  • Range of outcomes in Q4 to include impacts of up to $20 million to revenue.
  • Range of outcomes in Q4 to include impacts of up to $20 million to adjusted EBITDA and adjusted free cash flow.

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 Q3 2023

Historical avgQ3 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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