Covanta Holding Corporation (CVA) reported solid financial results for Q2 2020 today.
The company cited three reasons for its solid performance:
- Strong Q2 results reflect decisive response to business conditions
- Waste markets recovering from initial pandemic levels
- Effectively navigating a challenging operating environment
During the company’s earnings call, the Covanta management team highlighted that waste volumes were up meaningfully, tip fees were up in June YOY and dramatically improved from previous months, and that its cost management initiatives were successful.
The company pointed out that even though one month does not make a trend, the June 2020 results are promising and volume recovery began earlier than expected. Covanta maintenance timing and relative increased costs will impact EBITDA.
Here’s an overview of the financials:
"Our business performed well in the second quarter under difficult circumstances," said Covanta's president and CEO Stephen J. Jones. "Covanta adapted quickly to the emerging COVID-19 pandemic, implementing steps to protect employees, ensure continued reliable operations at our facilities, and reduce costs to mitigate financial impacts. Overall business conditions remain challenging and there remains significant macro uncertainty, but we have seen meaningful recovery in our core waste markets from the initial months of the crisis, which benefited results as we exited the quarter. Covanta is a resilient company, built on critical infrastructure and outstanding employees, and these unprecedented times highlight the underlying stability of our business."
Jones also confirmed the company’s ongoing commitment to sustainability, its existing projects, and the importance of being a good operator in the overburdened communities it serves. Even though Covanta stated that the pace and slope of the recovery is unclear, it is enthusiastic about Q2 results and the impressive resiliency of its business and team.