[WM] Summary of Waste Management 2023 1Q Earnings Call Transcript

WM participants

Ed Egl - Senior Director, IR
Jim Fish - President and CEO
John Morris - EVP and COO
Devina Rankin - EVP and CFO
Tara Hemmer - SVP and CSO

Business Highlights

1. Waste Management reports solid start to 2023 with Q1 results in line with expectations:

Waste Management, a provider of environmental solutions in the US and Canada, reported a solid start to 2023 with first quarter results in line with expectations and on track to achieve full year guidance. The company reported a 5% revenue growth with continued strong organic growth in the collection and disposal business of 7%.

2. Waste Management's strategic priorities are on track:

The company's strategic priorities of maintaining strong price discipline, reducing operating and SG&A cost structure through business optimization, technology and automation, and leveraging its sustainability platform for growth are right on track. Waste Management is making investments in renewable energy and recycling businesses, which are expected to provide meaningful operating EBITDA and free cash flow growth with impressive returns.

Financial Status:

1. Waste Management's revenue growth was impacted by commodity prices:

Waste Management's revenue growth was impacted by commodity prices, which are expected to improve in Q3 and Q4. The company's EBITDA margins were slightly lower in 1Q, but the company expects to see improvement in Q2 and significant improvement in Q3 and Q4. The company is confident in its guidance for an 80 basis points improvement in EBITDA margins for 2023.

2. Waste Management is focused on reducing costs and improving efficiency:

Waste Management is focused on reducing costs and improving efficiency through technology, such as optimization tools for route planning and self-service customer experience centers. The company is also investing in renewable natural gas and compressed natural gas vehicles, which it believes will be more cost-effective than electric vehicles until infrastructure improves.

Overall, Waste Management's performance is in line with expectations, and the company is focused on reducing costs and improving efficiency while investing in renewable energy. The company's revenue growth, profit trend, and dividend were important topics for stock value and future growth, and the company's outlook remains consistent with the full year guidance provided at the beginning of the year.

Question and Answer

Waste Management, a provider of environmental solutions in the US and Canada, reported its 1Q 2023 earnings call transcript. The company's presenters included Ed Egl, Jim Fish, John Morris, Devina Rankin, and Tara Hemmer. The investors' main interests were revenue growth, profit trend, and dividend. Waste Management's revenue growth was impacted by commodity prices, which are expected to improve in Q3 and Q4. The company's EBITDA margins were slightly lower in 1Q, but the company expects to see improvement in Q2 and significant improvement in Q3 and Q4. The company is confident in its guidance for an 80 basis points improvement in EBITDA margins for 2023. Waste Management is still looking to see a $70 per ton commodity basket for 2023. The company is also focused on productivity improvements, including getting additional truck orders fulfilled, which will impact results in the coming quarters. Waste Management is also focused on post-collection pricing momentum, which has been strong in transfer stations and landfills. The company is confident in its pricing strategy and expects to maintain a positive spread to unit cost inflation inWaste Management, a provider of environmental solutions in the US and Canada, reported its 1Q 2023 earnings call transcript. The company's main focus for 2023 is on price, cost control, and sustainability investments. The company's revenue growth was up $53 million in the quarter, while volume was down about $29 million. The company's SG&A was below 10% for the first quarter, which is a positive trend. The company's MRF in Toronto is expected to position the company well for the producer responsibility legislation in Ontario. The company is also looking at other propulsion techniques, such as electrification and hydrogen, to pivot its fleet strategy. The company's CNG/RNG strategy is progressing well, and the company is pleased with the outlook of that. The company's revenue growth, profit trend, and dividend were not discussed in detail during the call.Waste Management, a provider of environmental solutions in the US and Canada, reported its 1Q 2023 earnings call transcript. The company's revenue growth was in line with expectations, and the company is confident in its guidance for the year. Waste Management is focused on reducing costs and improving efficiency through technology, such as optimization tools for route planning and self-service customer experience centers. The company is also investing in renewable natural gas and compressed natural gas vehicles, which it believes will be more cost-effective than electric vehicles until infrastructure improves. Waste Management is optimistic about the potential of PFAS as a revenue opportunity. The company is also focused on reducing driver turnover and improving employee experience. The company's fuel surcharge revenue declined in 1Q 2023, which is expected to benefit margins going forward. Waste Management is confident in its ability to maintain a true pass-through model for fuel surcharges while making structural changes to how it bills customers. Overall, Waste Management's performance is in line with expectations, and the company is focused on reducing costs and improving efficiency while investing in renewable energy and reducing driver turnover.Waste Management, a leading environmental solutions provider in the US and Canada, reported solid performance in the first quarter of 2023, according to the company's CEO, Jim Fish. The company's revenue growth and profit trend were on track, and it is expected to have another solid year. Waste Management's brokerage business, which is part of its recycling portfolio, has added benefits to the company's ability to move materials. The company has no issues moving the material it brings in, and even with growing volumes, it is still able to move that material. Waste Management has also seen some positive movement in fiber pricing, and the whole basket of goods has moved up a little bit as the company exited Q4 into Q1 and then even exiting Q1 into Q2.

The company's customers have already appreciated the fact that Waste Management's CNG truck is quieter than the diesel vehicle, and the company sees this as something else that customers will receive as a positive from Waste Management investing economically and environmentally beneficially in a differentiated fleet to service.

China's reopening of its economy has also helped Waste Management, as it affects worldwide demand. When China closed down with its COVID policy, it hurt worldwide demand. Now that China has chosen to reopen its economy, it is helping and will help Waste Management out as well.

In conclusion, Waste Management is on track for another solid year, and the company's performance in the first quarter of 2023 was right on plan. Waste Management's ability to move materials and its positive movement in fiber pricing are expected to contribute to the company's revenue growth and profit trend. The company's differentiated fleet to service and its environmental solutions have been well-received by its customers. Waste Management's investors can expect a positive outlook for the company's future growth and dividend.