Waste Connections Reports 13.3% Revenue Growth, 34.7% Operating Income Increase in Q3 2024

Waste Connections, Inc. reported significant financial growth for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenues increased by 13.3% to $2.34 billion for the third quarter and by 11.2% to $6.66 billion for the nine-month period. This growth was driven by acquisitions, which contributed $162.7 million and $366.7 million to revenues for the respective periods. Additionally, net price increases added $127.7 million for the third quarter and $387.4 million for the nine months, although volume losses, primarily from shedding low-margin municipal contracts, negatively impacted revenues by $37.7 million and $161.5 million.

Operating income rose significantly, with a 34.7% increase to $475.3 million for the third quarter and a 25.2% increase to $1.27 billion for the nine months. The operating income margin improved to 20.3% for the third quarter and 19.0% for the nine months, reflecting effective cost management despite rising operational costs. Total costs of operations increased by 11.6% to $1.34 billion for the third quarter and by 9.0% to $3.87 billion for the nine months, primarily due to acquisitions and existing operations.

Net income attributable to Waste Connections also saw substantial growth, reaching $308.0 million for the third quarter and $813.6 million for the nine months, compared to $229.0 million and $636.0 million in the prior year. Earnings per share increased to $1.19 for the third quarter and $3.15 for the nine months, up from $0.89 and $2.46, respectively.

The company’s total assets grew to $20.10 billion as of September 30, 2024, from $17.92 billion at the end of 2023, while total liabilities increased to $11.83 billion from $10.22 billion. Waste Connections completed 17 acquisitions in the nine months ended September 30, 2024, compared to nine in the same period of 2023, with total transaction-related expenses rising to $25.2 million from $7.0 million.

Cash and equivalents increased to $115.3 million, up from $78.4 million at the end of 2023. The company reported net cash provided by operating activities of $1.66 billion for the nine months, an increase from $1.57 billion in the prior year. The increase in cash flows was attributed to higher net income and improved working capital management.

In terms of dividends, Waste Connections raised its quarterly cash dividend from $0.255 to $0.285 per share in October 2023, with total cash dividends paid during the nine months reaching $221.3 million, compared to $196.8 million in the same period of 2023. The company also announced a further increase in the quarterly dividend to $0.315 per share, effective November 2024.