HOUSTON - WM (NYSE: WM), North America's leading environmental solutions provider, announced its financial results for the fourth quarter and the full year that ended on December 31, 2023. The company reported a significant increase in revenue and income from operations, demonstrating robust growth in its operations.
The total company revenue for the fourth quarter grew by 5.7% to $5.217 billion compared to $4.935 billion in the same period of the previous year. The full-year revenue also saw an increase of 3.7%, reaching $20.426 billion against $19.698 billion in 2022. This growth is primarily attributed to the company’s effective price programs and operational optimizations.
Income from operations for the fourth quarter rose to $785 million, up from $765 million in the prior year. For the full year, the income from operations was $3.575 billion, a significant increase from $3.365 billion in 2022. The operating EBITDA for the fourth quarter was reported at $1.311 billion, and the adjusted operating EBITDA margin expanded to 29.9%.
WM's President and CEO, Jim Fish, credited the strong execution on pricing and operating excellence programs for surpassing expectations in the second half of 2023. He noted that the company’s investments in people, technology, and assets have accelerated margin expansion, particularly in the fourth quarter.
The company's collection and disposal business played a crucial role in driving the adjusted operating EBITDA growth of 15% and achieving a record adjusted margin. Fish also highlighted the company's momentum in the latter half of 2023, positioning it for sustained growth throughout 2024.
Looking ahead to 2024, WM anticipates its financial performance to be propelled by disciplined pricing, enhanced operational efficiencies, and contributions from investments in recycling and renewable energy businesses. The company expects total company adjusted operating EBITDA growth of almost 8% at the midpoint of its guidance.
In terms of capital allocation, WM plans to continue investing in sustainability growth, completing accretive acquisitions, and returning cash to shareholders through dividends and share repurchases.
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