NYSE$WCN

Waste Connections Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Waste Connections reported Q4 2021 results, driven by organic growth and acquisition activity, exceeding expectations and providing a higher entry point into 2022.

Waste Connections reported Q4 2021 revenue of $1.624 billion, a net income of $166.3 million, and an adjusted EBITDA of $495.4 million. The company's strong performance was attributed to price-led organic growth, acquisition activity, and margin expansion.

  • Strong price-led organic growth and acquisition activity drove Q4 results above expectations.
  • Revenue reached $1.624 billion with a net income of $166.3 million.
  • Adjusted EBITDA was $495.4 million, representing 30.5% of revenue.
  • Net income and adjusted net income per share were $0.64 and $0.83, respectively.

Headline financials

Total Revenue

$1.62B

Previous: $1.4B+16.2%
EPS (adj)

$0.83

Previous: $0.68+22.1%
Core Price Growth

5.0%

Previous: 4.3%+16.3%
Surcharges

0.7%

Previous: -0.5%+240.0%
Volume

1.2%

Previous: -3.1%+138.7%
Recycling

2.6%

Previous: 0.5%+420.0%
Capital Expenditures

$265M

Previous: $176M+50.2%
Free Cash Flow

$163M

Previous: $46.6M+250.8%
Net Income

$166M

Previous: $131M+27.3%
Operating Income

$249M

Previous: $197M+26.5%
Gross Profit

$643M

Previous: $551M+16.7%
Cash & Equivalents

$147M

Previous: $617M-76.1%
Total Assets

$14.7B

Previous: $14B+5.1%
Stock-Based Comp

$15.5M

Previous: $7.44M+108.8%

Revenue & EPS history

Waste Connections · Revenue · Quarterly

$1.62B

Q4 2021+16.2%vs Q4 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Waste Connections · $1.62B total across 5 segments · Q4 2021

  • Solid Waste Collection
    $1.17B
  • Disposal & Transfer
    $316M
  • Solid Waste Recycling
    $69.7M
  • Intermodal & Other
    $37.5M+12.4%
  • E&P Waste
    $34.3M

Forward guidance

Waste Connections provided its outlook for 2022, expecting revenue of approximately $6.875 billion and adjusted free cash flow of approximately $1.150 billion.

Tailwinds

  • Strong pricing growth.
  • Acquisition growth.
  • Continuing underlying margin expansion.
  • Net income of approximately $846 million
  • Adjusted EBITDA of approximately $2.145 billion, or about 31.2% of revenue

Headwinds

  • Excludes any impact from additional acquisitions that may close during the year.
  • Excludes expensing of transaction-related items.
  • Assumes no change in the current economic environment.
  • Capital expenditures are expected to be up 14.2% to approximately $850 million, including $100 million for new landfill gas and resource recovery facilities
  • Outlook is forward looking, and actual results may differ materially depending on risks and uncertainties

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 Q4 2021

Historical avgQ4 2021

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro