Waste Connections Q4 Earnings Miss Estimates, Revenues Rise Y/Y

Core Insights - Waste Connections, Inc. (WCN) reported mixed fourth-quarter 2024 results, with earnings missing estimates while revenues exceeded expectations [1][2] Financial Performance - Adjusted earnings per share were $1.16, missing the Zacks Consensus Estimate by 3.3%, but increased 4.5% year-over-year [2] - Revenues reached $2.3 billion, slightly beating consensus estimates and growing 11% from the previous year [2] - Adjusted EBITDA was $656 million, down 10.4% year-over-year, with an adjusted EBITDA margin of 32.4%, a decrease of 20 basis points from the prior year [6] Segment Performance - Solid Waste Collection segment revenues grew 7.4% year-over-year to $1.6 billion, meeting estimates [4] - Solid Waste Disposal and Transfer segment revenues increased 6.9% to $718.5 million, surpassing expectations [4] - Solid Waste Recycling segment revenues surged 44.7% to $63.3 million, exceeding estimates [5] - E&P Waste Treatment, Recovery and Disposal segment revenues more than doubled to $146.3 million, significantly surpassing projections [5] - Intermodal and Other segment revenues declined 6.4% to $45.9 million, missing estimates [5] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q4 2024 were $62.4 million, down from $78.4 million in the previous quarter [7] - Long-term debt remained stable at $6.7 billion [7] - Generated $568.9 million in cash from operating activities, with adjusted free cash flow of $173.8 million [7] - Capital expenditures totaled $396.7 million, and dividends paid amounted to $81 million [7] 2025 Outlook - For 2025, Waste Connections expects revenues between $9.45 billion and $9.6 billion, with a midpoint of $9.52 billion aligning with consensus estimates [8] - The company anticipates adjusted EBITDA of $3.12 billion to $3.2 billion, with an EBITDA margin projected at 33-33.3% [8]