Waste Management, Inc. (WM) Bundle
A Brief History of Waste Management, Inc.
Overview
Waste Management, Inc. (WM) is a leading provider of comprehensive waste management services in North America. As of 2024, the company operates a vast network of collection, transfer, recycling, and disposal facilities, serving millions of customers across residential, commercial, and industrial sectors.
Company Growth and Development
Founded in 1968, Waste Management has grown through a series of acquisitions and organic growth, resulting in a significant market presence. The company reported total revenues of $19.83 billion for the nine months ended September 30, 2024, compared to $18.78 billion for the same period in 2023, reflecting a growth of approximately 5.6% year-over-year.
Financial Performance
For the third quarter of 2024, Waste Management achieved consolidated net income of $760 million, a 14.8% increase from $662 million in the third quarter of 2023. The earnings per share (EPS) for the third quarter were $1.89, up from $1.64 in the previous year. Total cash flows from operating activities for the nine months ended September 30, 2024, were reported at $3.879 billion, an increase from $3.337 billion in the same period in 2023.
Debt and Capital Structure
As of September 30, 2024, Waste Management had total long-term debt of $15.977 billion, with a weighted average interest rate of 3.9%. The company maintains a revolving credit facility of $3.5 billion, which had no outstanding borrowings at the end of the third quarter.
Segment Performance
The company's operations are divided into several segments, each contributing to overall revenue growth:
- Collection and Disposal: Generated $18.15 billion in revenues for the nine months ended September 30, 2024.
- Recycling Processing and Sales: Contributed $1.414 billion, up from $1.154 billion in the same period of 2023.
- WM Renewable Energy: Reported revenues of $228 million, reflecting ongoing investments in sustainable energy solutions.
Operational Efficiency
Waste Management continues to enhance its operational efficiency. The company reported a significant increase in average yield from its collection and disposal services, with a growth of 5.1% and 5.6% for the three and nine months ended September 30, 2024, respectively.
Investments in Sustainability
In alignment with its commitment to sustainability, Waste Management has been investing in renewable energy projects. The company is anticipated to realize an investment tax credit benefit of approximately $145 million in 2024, derived from the completion of five new RNG facilities.
Comprehensive Financial Data
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Net Income | $760 million | $662 million | 14.8% |
| Earnings Per Share | $1.89 | $1.64 | 15.2% |
| Total Revenues | $19.83 billion | $18.78 billion | 5.6% |
| Cash Flow from Operations | $3.879 billion | $3.337 billion | 16.3% |
| Total Long-Term Debt | $15.977 billion | N/A | N/A |
As of 2024, Waste Management, Inc. remains a key player in the waste management industry, continuously adapting to market demands while focusing on sustainable growth and operational excellence.
A Who Owns Waste Management, Inc. (WM)
Major Shareholders
As of 2024, Waste Management, Inc. (WM) has a diversified ownership structure, with significant institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Owner |
|---|---|---|
| The Vanguard Group, Inc. | 8.1% | Institutional Investor |
| BlackRock, Inc. | 7.4% | Institutional Investor |
| State Street Corporation | 4.9% | Institutional Investor |
| Wellington Management Group LLP | 3.8% | Institutional Investor |
| FMR LLC (Fidelity) | 3.1% | Institutional Investor |
| Individual Investors | 73.7% | Individual Shareholders |
Insider Ownership
Insider ownership is also a crucial aspect of WM's ownership structure. As of 2024, the following details reflect insider ownership:
- Insider Ownership Percentage: 0.9%
-
Key Executives:
- James C. Fish Jr. (CEO) - 0.03% ownership
- Devina A. G. Wadhwa (CFO) - 0.02% ownership
Stock Performance
As of October 2024, Waste Management, Inc. stock (WM) has shown the following performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $200.45 |
| Market Capitalization | $85.2 billion |
| 52-Week High | $210.50 |
| 52-Week Low | $180.75 |
| Dividend Yield | 1.56% |
Recent Developments
WM has been actively engaging in acquisitions and strategic initiatives. In 2024, the company announced its acquisition of Stericycle for approximately $7.2 billion, including debt, which is expected to enhance its market presence in waste management solutions.
Financial Highlights
For the nine months ended September 30, 2024, Waste Management reported the following financial highlights:
| Financial Metric | Value (in Millions) |
|---|---|
| Operating Revenues | $19,829 |
| Net Income | $2,147 |
| Free Cash Flow | $618 |
| Capital Expenditures | $2,116 |
Debt and Financial Position
As of September 30, 2024, Waste Management's debt profile is as follows:
| Debt Type | Amount (in Millions) |
|---|---|
| Senior Notes | $1,490 |
| Commercial Paper | $9,424 |
| Total Debt | $10,914 |
Conclusion
In summary, Waste Management, Inc. has a robust ownership structure with significant institutional and individual ownership. The company continues to perform well in the market, supported by strategic acquisitions and strong financial metrics.
Waste Management, Inc. (WM) Mission Statement
Mission Statement Overview
The mission of Waste Management, Inc. is to provide comprehensive waste management services that are sustainable and innovative, ensuring a cleaner environment for future generations. WM strives to lead in the environmental services industry by delivering superior services while maintaining a commitment to safety, customer satisfaction, and corporate responsibility.
Financial Performance Indicators
As of 2024, Waste Management, Inc. has demonstrated robust financial performance, with significant revenue growth and operational efficiencies contributing to its mission of sustainability and community service.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $5,609 million | $5,198 million | 7.9% |
| Operating Income | $1,119 million | $1,021 million | 9.6% |
| Net Income | $760 million | $662 million | 14.8% |
| Free Cash Flow | $618 million | $612 million | 1.0% |
| Operating Cash Flow | $1,358 million | $1,263 million | 7.5% |
Revenue Breakdown by Segment
The company’s revenue streams are diversified across various segments, each contributing to the overall mission of efficient waste management and environmental sustainability.
| Segment | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | Change (%) |
|---|---|---|---|
| Collection and Disposal | $5,084 million | $4,821 million | 5.5% |
| Recycling Processing and Sales | $432 million | $305 million | 41.6% |
| WM Renewable Energy | $87 million | $67 million | 29.9% |
| Corporate and Other | $6 million | $5 million | 20.0% |
Strategic Initiatives
In alignment with its mission, Waste Management is focusing on enhancing operational efficiencies and investing in technology to improve service delivery and reduce costs.
- Investment in automation and digital platforms to optimize waste management processes.
- Expansion of recycling and renewable energy initiatives to promote sustainability.
- Enhancement of employee engagement and training programs to ensure high service standards.
Commitment to Sustainability
Waste Management, Inc. is committed to sustainability as a core component of its mission. This commitment is reflected in its operational practices and strategic investments.
| Sustainability Metric | 2024 Target | Current Status |
|---|---|---|
| Reduction in Greenhouse Gas Emissions | 20% by 2025 | 15% reduction achieved |
| Increase in Recycled Materials Processed | 50% by 2025 | 35% increase achieved |
| Investment in Renewable Energy Projects | $1 billion by 2025 | $600 million invested |
How Waste Management, Inc. (WM) Works
Business Segments
Waste Management, Inc. (WM) operates through several key business segments, including:
- Collection and Disposal
- Recycling Processing and Sales
- WM Renewable Energy
- Corporate and Other
Financial Performance
For the nine months ended September 30, 2024, WM reported the following financial results:
| Segment | Gross Revenues (in millions) | Intercompany Revenues (in millions) | Net Revenues (in millions) | Income from Operations (in millions) |
|---|---|---|---|---|
| Commercial | $4,591 | ($586) | $4,005 | $2,064 |
| Industrial | $2,915 | ($592) | $2,323 | $2,009 |
| Residential | $2,659 | ($67) | $2,592 | N/A |
| Other Collection | $2,354 | ($162) | $2,192 | N/A |
| Total Collection | $12,519 | ($1,407) | $11,112 | $4,064 |
| Landfill | $3,813 | ($1,225) | $2,588 | N/A |
| Transfer | $1,819 | ($797) | $1,022 | N/A |
| Total Collection and Disposal | $18,151 | ($3,429) | $14,722 | $4,064 |
| Recycling Processing and Sales | $1,414 | ($209) | $1,205 | $69 |
| WM Renewable Energy | $228 | ($3) | $225 | $67 |
| Corporate and Other | $36 | ($18) | $18 | ($1,056) |
| Total | $19,829 | ($3,659) | $16,170 | $3,144 |
Revenue Growth and Composition
WM's revenue for the third quarter of 2024 was $5,609 million, compared to $5,198 million in the prior year, marking a 7.9% increase. This growth was driven primarily by:
- Higher yields in the Collection and Disposal businesses
- Increased market value for recycled commodities
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $3,399 million, representing 60.6% of revenues, compared to 61.3% in the prior year. Key components include:
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Percentage of Revenues |
|---|---|---|---|
| Labor and Related Benefits | $962 | $913 | 17.2% |
| Transfer and Disposal Costs | $339 | $325 | 6.0% |
| Maintenance and Repairs | $527 | $508 | 9.4% |
| Subcontractor Costs | $576 | $566 | 10.3% |
| Cost of Goods Sold | $282 | $187 | 5.0% |
| Fuel | $106 | $122 | 1.9% |
| Disposal and Franchise Fees | $197 | $190 | 3.5% |
| Other Expenses | $184 | $188 | 3.3% |
| Total Operating Expenses | $3,399 | $3,188 | 60.6% |
Income from Operations
For the third quarter of 2024, WM reported income from operations of $1,119 million, which is 20.0% of revenues, compared to $1,021 million or 19.6% in the prior year.
Recent Acquisitions
During the nine months ended September 30, 2024, WM completed solid waste and recycling acquisitions totaling $780 million. This included:
- $774 million in cash
- $6 million of other consideration
Cash Flow Metrics
For the nine months ended September 30, 2024, WM reported:
- Net cash provided by operating activities: $3,879 million
- Free cash flow: $618 million
- Capital expenditures: $2,116 million
Market Conditions and Outlook
The company has noted fluctuations in operating revenues and volumes due to changes in commodity prices and general economic conditions. Seasonal increases in revenues are typically observed during the summer months.
How Waste Management, Inc. (WM) Makes Money
Revenue Streams
Waste Management, Inc. generates revenue primarily through four main segments: Collection and Disposal, Recycling Processing and Sales, WM Renewable Energy, and Corporate and Other. The following table summarizes the gross, intercompany, and net operating revenues for the nine months ended September 30, 2024.
| Segment | Gross Operating Revenues (in millions) | Intercompany Revenues (in millions) | Net Operating Revenues (in millions) |
|---|---|---|---|
| Commercial | $4,591 | $(586) | $4,005 |
| Industrial | $2,915 | $(592) | $2,323 |
| Residential | $2,659 | $(67) | $2,592 |
| Other Collection | $2,354 | $(162) | $2,192 |
| Total Collection | $12,519 | $(1,407) | $11,112 |
| Landfill | $3,813 | $(1,225) | $2,588 |
| Transfer | $1,819 | $(797) | $1,022 |
| Total Collection and Disposal | $18,151 | $(3,429) | $14,722 |
| Recycling Processing and Sales | $1,414 | $(209) | $1,205 |
| WM Renewable Energy | $228 | $(3) | $225 |
| Corporate and Other | $36 | $(18) | $18 |
| Total | $19,829 | $(3,659) | $16,170 |
Collection and Disposal Services
The Collection and Disposal segment remains the largest revenue contributor, accounting for approximately 74% of total revenues in 2024. This segment includes commercial, industrial, residential, and other waste collection services. In the nine months ended September 30, 2024, the total collection revenue reached $11,112 million.
Recycling Processing and Sales
This segment experienced growth due to improved commodity pricing. For the nine months ended September 30, 2024, Recycling Processing and Sales generated net revenues of $1,205 million. The increase in revenues is attributed to a 75% rise in market prices for single-stream recycled commodities compared to the previous year.
WM Renewable Energy
WM Renewable Energy focuses on generating energy from landfill gas. For the nine months ended September 30, 2024, this segment produced net revenues of $225 million. The increase in revenue was driven by higher Renewable Identification Numbers (RINs) quantities and market values.
Operating Expenses
Operating expenses for Waste Management, Inc. totaled $9,830 million for the nine months ended September 30, 2024. The major components of operating expenses include:
| Expense Type | Amount (in millions) | Percentage of Revenues |
|---|---|---|
| Labor and Related Benefits | $2,780 | 17.2% |
| Transfer and Disposal Costs | $981 | 6.1% |
| Maintenance and Repairs | $1,538 | 9.5% |
| Subcontractor Costs | $1,673 | 10.3% |
| Cost of Goods Sold | $766 | 4.7% |
| Fuel | $329 | 2.0% |
| Disposal and Franchise Fees and Taxes | $559 | 3.5% |
| Landfill Operating Costs | $393 | 2.4% |
| Risk Management | $269 | 1.7% |
| Other | $542 | 3.4% |
Income from Operations
Income from operations for Waste Management, Inc. was $3,144 million for the nine months ended September 30, 2024, representing a margin of approximately 19.4%.
Net Income
The consolidated net income for the nine months ended September 30, 2024, was $2,147 million, resulting in a basic earnings per share of $5.35.
Capital Expenditures
In the nine months ended September 30, 2024, Waste Management allocated $2,116 million to capital expenditures, focusing on enhancing operational capabilities.
Acquisitions
In 2024, Waste Management completed solid waste and recycling acquisitions totaling $780 million, which included $774 million in cash.
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Article updated on 8 Nov 2024
Resources:
- Waste Management, Inc. (WM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Waste Management, Inc. (WM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Waste Management, Inc. (WM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.