Waste Connections Inc (WCN, Financial) announced its Q3 2023 results on October 25, 2023. The company reported a revenue of $2.065 billion, up from $1.880 billion in the same period last year. The adjusted EBITDA margin for the quarter was 32.5%, up 120 basis points year over year, despite facing over $15 million in unforeseen headwinds.
Financial Performance
Operating income for the quarter was $353.0 million, which included $59.2 million primarily in impairments and other operating items. This compares to operating income of $326.8 million in Q3 2022, which included $25.1 million primarily in impairments and other operating items and transaction-related expenses. Net income for the quarter was $229.0 million, or $0.89 per share on a diluted basis of 258.2 million shares. In the year-ago period, the company reported net income of $236.9 million, or $0.92 per share on a diluted basis of 257.9 million shares.
Commentary from the CEO
“We are extremely pleased by the durability of our financial and operating results in the quarter, with momentum for continued outsized margin expansion. Solid operational execution enabled us to deliver adjusted EBITDA margin of 32.5% in the third quarter, as expected, up 140 basis points sequentially and up 120 basis points year over year, in spite of over $15 million in unforeseen headwinds," said Ronald J. Mittelstaedt, President and Chief Executive Officer.
Financial Tables Summary
The company's revenue for the nine months ended September 30, 2023, was $5.986 billion, up from $5.343 billion in the year-ago period. Operating income for the same period was $1.012 billion, compared to $930.2 million in the prior year period. Adjusted net income for the nine months ended September 30, 2023, was $795.8 million, or $3.08 per diluted share, compared to $755.5 million, or $2.93 per diluted share, in the year-ago period.
Outlook
Despite challenges such as elevated levels of risk-related expenses and site-specific incremental operating expenses, the company remains optimistic about its performance. The company expects high single-digit adjusted EBITDA growth in 2024 on expected mid to high single-digit revenue growth, including approximately $150 million of revenue carryover from acquisitions signed or closed year to date.
Explore the complete 8-K earnings release (here) from Waste Connections Inc for further details.
