WM Reports Q4 and Full-Year Earnings for 2023

WM (NYSE: WM) reported its Q4 and full-year 2023 results, showing resiliency in severe weather conditions and operational efficiencies through technology implementation.

Jim Fish, CEO, reported that WM's collection and disposal business drove growth for the company, which achieved an adjusted operating EBITDA growth of 15 percent and record adjusted margin of 29.9 percent.

"Our performance in 2023, particularly the momentum built during the second half of the year, positions us well to sustain growth throughout 2024," he added.

He announced the company expects five new renewable natural gas (RNG) facilities by the end of the year.

Furthermore, WM also touted its technology improvements in collections,

labor and maintenance that led to a "substantial improvement" in performance.

CFO Devina Rankin commented that WM remained resilient despite severe weather in some areas.

WM reported a 3.7 percent growth in total company revenue for 2023, attributed to a 7.0 percent surge in core prices.

Despite lower commodity prices impacting revenue from energy surcharges, recycling sales, and renewable energy businesses, the revenue growth from core price and volume exceeded expectations in 2023. Collection and disposal yield rose by 5.4 percent, with volumes increasing by 0.7 percent (or 0.9 percent on a workday adjusted basis).

Operating expenses improved to 61.7 percent of revenue due to efficiencies in collection and disposal operations. Adjusted operating EBITDA increased 7.0 percent to $5.90 billion, with margin expanding to 28.9 percent. The company returned $2.44 billion to shareholders, including share repurchases and cash dividends.

Q4:

Revenue: 5.2 billion, up from 4.9 billion in 2022

Operating EBITDA: $1.31 billion, no change from 2022

Net Income: $493 million, up from $499 million in 2022

Full-Year 2023:

Revenue: $20.4 billion up from $19.7 billion in 2022
Operating EBITDA: $1.31 billion, no change from 2022

Net Income: $2.27 billion, up from $2.24 billion in 2022