Waste Connections Reports 11.2% Revenue Growth to $8.920 Billion in 2024

Waste Connections, Inc., the third-largest solid waste services company in North America, reported total revenues of $8.920 billion for the year ended December 31, 2024, an 11.2% increase compared to $8.022 billion in 2023. This increase includes $529 million from acquisitions completed during or after the prior year, while organic revenue growth, excluding acquisitions, was 4.6%. Solid waste internal growth was driven by a 6.6% increase in pricing and a 0.7% increase in recycled commodity quantities, partially offset by a 2.9% decrease in overall volumes. Net income attributable to Waste Connections decreased 19.0% to $617.6 million in 2024, primarily due to increased impairments and other operating items, which rose to $613.0 million from $238.8 million in 2023.

Adjusted EBITDA, a non-GAAP measure, increased 15.0% to $2.902 billion in 2024, representing a 32.5% margin compared to 31.5% in 2023. This improvement reflects price-led organic growth exceeding cost inflation, lower fuel costs, and higher revenues from recycled commodities, E&P waste, and landfill gas. Adjusted net income attributable to Waste Connections, another non-GAAP measure, increased 14.6% to $1.239 billion. Net cash provided by operating activities increased 4.8% to $2.229 billion, while adjusted free cash flow was $1.218 billion, slightly lower than the $1.224 billion in 2023. The company distributed $302.3 million to shareholders through dividends, a 11.7% increase from 2023, and also increased its quarterly dividend by 10.5%.

During 2024, Waste Connections completed 24 acquisitions with a net fair value of $2.199 billion, significantly more than the 13 acquisitions totaling $752.8 million in 2023. The company's workforce totaled 23,854 active employees as of December 31, 2024, including 11,191 commercial truck drivers and 1,958 mechanics. The company also highlighted a 15% reduction in its incident rate in 2024, with approximately 65% of its operating locations reporting zero or reduced safety-related incidents compared to the previous year. Employee engagement survey participation reached 95%, resulting in an overall engagement score of 8.5, an improvement from 8.3 in the prior year.

Waste Connections owned or operated 77 MSW landfills, 20 E&P waste landfills and caverns, and 16 non-MSW landfills as of December 31, 2024. The company is pursuing capacity expansions at seven landfills, which are considered probable. The average remaining landfill life, considering permitted and probable expansion capacity, is estimated at approximately 34 years. The company also noted that its operations are subject to extensive environmental, health, and safety regulations, and that compliance with these regulations requires significant capital and operating expenditures. The company's outlook includes continued focus on both internal and acquisition-based growth, targeting secondary and rural markets and niche markets such as non-hazardous E&P waste services. The company anticipates that future growth will be affected by additional acquisitions.