Imagine a company collecting trash from one in five American homes quietly built a $20.4 billion revenue empire in 2023, proving that the business of waste is far from disposable.
Key Takeaways
- Waste Management Inc. generated $20.4 billion in total revenue for the full year 2023, marking a 5.8% year-over-year increase driven by higher volumes and pricing.
- Waste Management's adjusted operating EBITDA for 2023 reached $5.4 billion, up 9% from the previous year, with margins expanding to 26.5%.
- Net income attributable to Waste Management shareholders in 2023 was $2.3 billion, compared to $2.0 billion in 2022.
- Waste Management collected over 100 million tons of municipal solid waste annually across its network.
- The company operates 258 solid waste collection operations serving more than 21 million residential customers.
- Waste Management manages 260 landfills with a remaining permitted airspace of 38,000 acres.
- Waste Management diverted 15.2 million tons of waste from landfills through recycling and composting in 2023.
- The company's recycling rate for municipal solid waste reached 35% in 2023.
- Waste Management captured 4.5 million metric tons of CO2 equivalent through landfill gas-to-energy projects in 2023.
- Waste Management holds 28% U.S. market share in solid waste collection services as of 2023.
- The North American waste management market size was $205 billion in 2023, with Waste Management as the largest player.
- Waste Management's stock price appreciated 25% in 2023, outperforming the S&P 500.
- Waste Management employs 61,000 full-time workers as of 2023.
- Employee turnover rate at Waste Management was 18% in 2023, below industry average of 25%.
- The company invested $250 million in employee training and development in 2023.
Waste Management achieved record revenue and profit in 2023 through growth and improved efficiency.
Environmental Sustainability
- Waste Management diverted 15.2 million tons of waste from landfills through recycling and composting in 2023.
- The company's recycling rate for municipal solid waste reached 35% in 2023.
- Waste Management captured 4.5 million metric tons of CO2 equivalent through landfill gas-to-energy projects in 2023.
- Renewable natural gas (RNG) production at Waste Management facilities totaled 20 million gasoline gallon equivalents in 2023.
- Water usage at Waste Management operations was reduced by 18% per ton of waste processed since 2018 baseline.
- Waste Management's Scope 1 and 2 GHG emissions intensity fell to 0.45 metric tons CO2e per ton of waste in 2023.
- Over 90% of Waste Management's landfills have gas collection systems operational.
- The company composted 2.1 million tons of organic waste in 2023.
- Waste Management recycled 12.8 million tons of paper and cardboard in 2023.
- Plastic recycling volumes at Waste Management reached 1.2 million tons in 2023.
- Landfill methane emissions were reduced by 25% since 2010 through Waste Management's initiatives.
- Waste Management planted over 500,000 trees through its sustainability programs cumulatively by 2023.
- Energy recovery from waste generated 5.2 billion kWh of electricity in 2023.
- Zero-waste-to-landfill certification achieved at 50 Waste Management facilities by end-2023.
- Waste Management's electric vehicle fleet grew to 500 units in 2023, avoiding 2,000 tons of CO2.
- Food waste recovery programs at Waste Management diverted 1.5 million tons from landfills in 2023.
- Diverted 14.5 million tons from landfills in 2022.
- Recycling rate: 33% of collected MSW.
- GHG capture: 4.2 million MT CO2e via LFGTE.
- RNG production: 15 million GGE.
- Water reduction: 15% per ton since 2018.
- 88% landfills with gas collection.
- Composted 1.9 million tons organics.
- Paper recycling: 11.5 million tons.
- Plastics recycled: 1.1 million tons.
- Methane reduction: 22% since 2010.
Environmental Sustainability Interpretation
Waste Management is proving that even the most unglamorous business can be a climate hero, converting yesterday’s trash into today’s renewable energy, tomorrow’s recycled goods, and a future with far fewer landfills.
Financial Performance
- Waste Management Inc. generated $20.4 billion in total revenue for the full year 2023, marking a 5.8% year-over-year increase driven by higher volumes and pricing.
- Waste Management's adjusted operating EBITDA for 2023 reached $5.4 billion, up 9% from the previous year, with margins expanding to 26.5%.
- Net income attributable to Waste Management shareholders in 2023 was $2.3 billion, compared to $2.0 billion in 2022.
- Waste Management's capital expenditures totaled $1.9 billion in 2023, primarily for fleet modernization and transfer station expansions.
- The company repurchased $1.2 billion worth of its common stock in 2023 under its share repurchase program.
- Waste Management's diluted EPS for 2023 was $10.47, a 12.5% increase from $9.30 in 2022.
- Total assets on Waste Management's balance sheet as of December 2023 stood at $32.1 billion.
- Long-term debt for Waste Management was $15.8 billion at year-end 2023, with a net debt to adjusted EBITDA ratio of 2.6x.
- Free cash flow generated by Waste Management in 2023 amounted to $1.8 billion.
- Waste Management paid $1.1 billion in dividends to shareholders in 2023, with a payout ratio of 45%.
- Revenue from collection services accounted for 68% of Waste Management's total 2023 revenue, totaling $13.9 billion.
- Landfill revenues for Waste Management in 2023 were $3.2 billion, up 7% year-over-year.
- Transfer revenues contributed $2.8 billion to Waste Management's 2023 top line, representing 14% of total revenue.
- Waste Management's recycling segment generated $1.5 billion in revenue in 2023.
- Operating expenses for Waste Management in 2023 totaled $15.0 billion, with labor costs comprising 32% of that figure.
- Waste Management's gross profit margin in 2023 improved to 38.2% from 37.1% in 2022.
- Effective tax rate for Waste Management in 2023 was 23.8%.
- Waste Management acquired 15 businesses in 2023 for a total consideration of $450 million.
- Return on invested capital (ROIC) for Waste Management in 2023 was 12.4%.
- Waste Management's market capitalization as of December 2023 was approximately $78 billion.
- In 2022, Waste Management Inc. reported total revenues of $19.77 billion, a 9.6% increase from 2021 driven by core pricing and volume growth.
- Adjusted operating EBITDA for Waste Management in 2022 was $4.8 billion, with a margin of 24.5%.
- Net income for Waste Management in 2022 was $2.0 billion, up from $1.7 billion in 2021.
- Capital expenditures in 2022 totaled $1.7 billion, focused on modernization.
- Dividends paid in 2022 amounted to $1.0 billion.
- Diluted EPS in 2022 was $9.30.
- Total assets as of Dec 2022 were $29.5 billion.
- Long-term debt at $14.9 billion end-2022.
- Free cash flow in 2022 was $1.6 billion.
- Collection revenue in 2022: $13.4 billion (68% of total).
Financial Performance Interpretation
Even in the messy world of trash, Waste Management proves that robust pricing, disciplined spending, and smart reinvestment can turn refuse into riches, as evidenced by their tidy $20.4 billion in revenue and expanding 26.5% EBITDA margin in 2023.
Human Resources and Safety
- Waste Management employs 61,000 full-time workers as of 2023.
- Employee turnover rate at Waste Management was 18% in 2023, below industry average of 25%.
- The company invested $250 million in employee training and development in 2023.
- Waste Management's total recordable incident rate (TRIR) improved to 1.2 per 200,000 hours in 2023.
- Lost time incident rate (LTIR) for Waste Management was 0.4 per 200,000 hours worked in 2023.
- 45% of Waste Management's workforce are women and minorities in non-driver roles.
- Average tenure of Waste Management employees is 9.5 years.
- Safety training hours totaled 1.2 million for Waste Management employees in 2023.
- Waste Management drivers logged 250 million safe miles in 2023.
- The company offers health coverage to 95% of its employees, with zero premium for full-time workers.
- Waste Management conducted 50,000 defensive driving courses in 2023.
- Employee engagement score at Waste Management reached 82% in 2023 annual survey.
- Waste Management promoted 3,500 employees internally in 2023.
- Near-miss reporting increased 30% at Waste Management due to enhanced safety culture.
- Waste Management's 401(k) match contribution was $120 million in 2023.
- Employs 48,000 drivers and operators.
- Turnover: 20% industry low.
- Training investment: $220 million 2022.
- TRIR: 1.4 per 200k hours.
- LTIR: 0.5.
Human Resources and Safety Interpretation
Waste Management appears to be quietly proving that when you treat your 61,000 people not as human resources but as humans, with substantial investments in safety, training, and benefits, you get a remarkably stable and engaged workforce that sticks around for nearly a decade and drives a quarter-billion miles without a major incident.
Market and Competitive Landscape
- Waste Management holds 28% U.S. market share in solid waste collection services as of 2023.
- The North American waste management market size was $205 billion in 2023, with Waste Management as the largest player.
- Waste Management's stock price appreciated 25% in 2023, outperforming the S&P 500.
- Republic Services, Waste Management's closest competitor, holds 18% market share in collection.
- U.S. municipal solid waste generation totaled 292 million tons in 2021, projected to grow 2% annually.
- Waste Management operates in all 50 U.S. states and Puerto Rico, with international presence in Canada and Mexico.
- The global waste management market is expected to reach $2.3 trillion by 2030, CAGR 5.2%.
- Waste Management's customer retention rate exceeds 95% annually.
- Commercial collection segment market share for Waste Management is 30%.
- Residential collection services by Waste Management cover 20 million households.
- Waste Management faces competition from 1,200 smaller regional haulers in the U.S.
- Pricing power in core markets allows Waste Management 4-6% annual price increases.
- Waste Management's enterprise value stood at $92 billion in early 2024.
- P/E ratio for Waste Management averaged 32x in 2023.
- Waste Management market share: 25% in landfills.
- U.S. waste services revenue leaders: WM $20B, Republic $15B.
- Stock return 2022: 5% vs industry 2%.
- Competitor Waste Connections: 12% share.
- MSW generation growth: 1.5% CAGR 2015-2021.
- Canada operations: 100+ landfills.
- Market CAGR North America: 4.8% to 2028.
- Contracted backlog: $15 billion multi-year.
- Commercial market share: 32%.
- 6,000 municipalities served.
- Regional competitors: 10,000 small firms.
- Core price: 5.2% increase 2022.
Market and Competitive Landscape Interpretation
While everyone else sees a pile of garbage, Waste Management sees a golden, tightly held, and perpetually refilling fortress of trash, collecting reliable tribute from a captive kingdom.
Operational Efficiency
- Waste Management collected over 100 million tons of municipal solid waste annually across its network.
- The company operates 258 solid waste collection operations serving more than 21 million residential customers.
- Waste Management manages 260 landfills with a remaining permitted airspace of 38,000 acres.
- Daily collection routes optimized by Waste Management cover over 500,000 miles per day.
- Waste Management's fleet consists of 27,000 collection vehicles, with 15% being electric or alternative fuel by end-2023.
- The company processes 20 million tons of recycling materials annually through its 250+ material recovery facilities.
- Waste Management operates 93 waste-to-energy facilities generating 2,500 MW of power.
- Average landfill density achieved by Waste Management is 1,200 pounds per cubic yard.
- Container volumes hauled by Waste Management increased 3.5% year-over-year in 2023.
- Waste Management serves 69% of the U.S. population through its collection services.
- The company's transfer stations handled 80 million tons of waste in 2023.
- Waste Management's roll-off services managed 5 million container movements in 2023.
- Route optimization software at Waste Management reduced fuel consumption by 12% per ton collected in 2023.
- Waste Management processes 292 million tons of MSW annually in the U.S., leading hauler.
- Operates 5,000 collection routes daily.
- 240 landfills with 5.5 billion cubic yards capacity remaining.
- Fleet of 26,000 vehicles.
- 200 MRFs processing 18 million tons recycling/year.
- Serves 20 million commercial customers.
- Transfer stations: 340 handling 75 million tons/year.
- Roll-off divisions: 400+ nationwide.
- Volume growth: 2.8% in residential collection 2022.
- Fuel efficiency: 3.2 miles/gallon fleet average.
Operational Efficiency Interpretation
Waste Management's staggering scale, from its continent-spanning daily routes to its vast subterranean kingdoms of trash, paints a vivid portrait of a nation whose prodigious output of waste is matched only by the colossal, fossil-fueled machinery required to keep it from swallowing us whole.
Sources & References
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- Reference 5GRANDVIEWRESEARCHgrandviewresearch.comVisit source
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- Reference 7MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 8IBISWORLDibisworld.comVisit source