Waste Management (WM) Q3 2023 Earnings Call Transcript Summary
Waste Management (WM) Q3 2023 Earnings Call Summary
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Adjusted operating EBITDA grew by more than 6%
2. Margin expanded 100 basis points to 29.6% when compared to Q3 of 2022
3. Third quarter core price of 6.6% reflects robust price performance across all lines of business
4. Commercial volumes turned mostly positive, and special waste growth improved from the second quarter
5. Success in managing the middle of the P&L, driving SG&A leverage, and gaining momentum on operating cost optimization and efficiency gains
6. Leveraged attrition and technology to reduce headcount by 1,650 positions since January 2022
7. Investments in renewable energy and recycling business tracking well
8. Automated recycling facilities driving lower labor and processing costs, improving throughput, and enhancing material quality
9. Best-ever operating EBITDA margin in Q3 at 29.6%
10. Strong cash flow from operations exceeding $3.3 billion
Bearish Points:
1. Lingering effects of inflation and timing of fleet deliveries impacting repair and maintenance expenses
2. Overall collection volumes were down modestly due to intentional steps to price every contract to achieve acceptable returns and the impact of lower volumes from roll-off business
3. Lower revenue than planned in recycling brokerage businesses
4. Construction delays in capex line related to recycling and renewable energy
5. Delays in sustainability capital spending projects
6. Supply chain and permitting issues
7. Inflation in repair and maintenance costs
8. Dilutive impact from M&A on recycling brokerage side and solid waste tuck-in acquisitions
9. Negative 20 basis points impact from renewable energy in Q3
10. Some sustainability capex being pushed to 2024 and 2025
For more information about Waste Management(WM)'s earnings call, you can read the relevant news: Waste Management (WM) Q3 2023 Earnings Call Transcript
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