Waste Management (WM) 29 Oct 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to WM Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded.

I will now hand the conference over to your speaker host, Ed Egl, Vice President, Investor Relations. ahead. go Please

Chief Good Rankin, us Livia. call. and you Financial Operating President thank me Vice Morris, Thank and Officer. Vice President our morning, President third joining Chief and Fish, Jim for morning and conference Officer; quarter for John this Executive Devina you, Officer; are everyone, Executive Executive XXXX With Chief earnings and

John Jim will hear financials. comments an details a from will today. cover prepared them provide into high-level will and You strategic overview, of update. cover operating come Devina and financials each will the of

Before press note earnings a press get and the of release The our include we the Form is and have www.wm.com. available on the information. schedules we filed started, release please release website press includes the X-K important X-K, that at that Form

During based you incurred not future an with are acquisition outlook XXXX. Stericycle forward-looking on opinions of acquisition in the statements, We'll This contributions current updated also the which about will financial of advisory costs or the providing transaction and planned post-closing to be for Stericycle. periods. projections call, related connection hear outlook include nor expectations, does

could statements to and forward-looking cause materially. risks All differ actual uncertainties subject to that results are

yield XX-K specifically Some of Form otherwise, or references stated areas our and press uncertainties volume. volume, the Form filings discuss more of from these John results our are and revenue in in recent risks XX-Qs. to today's release growth which with including are and and discussed in IRG most the our yield SEC, internal unless or will

or from from before prior stated, business be to not operating Any operating comparability and that our Jim, EBITDA, depreciation income been fundamental income, call, believes and operations John the will comparisons, the and and unless excluding which do management is results of SG&A reflect margin operations. certain net with and results discuss by expense and income and operations EPS performance adjusted margin During otherwise year, enhance margin, will EBITDA amortization. items Devina have

in adjusted at non-GAAP can release addition are flow, on company's website and Please measures, to cash earnings These refer to press tables, the which www.wm.com. be the free found measures.

the non-GAAP to our a X:XX day and This additional call non-GAAP comparable and hours being approximately information today. will XX reconciliations about GAAP Eastern use For be measures p.m. measures most is Time recorded and of available beginning projections.

As accurate may you're replay. express occurring WM call, website a during any of not at of Time-sensitive call be is retransmission in today's at consent written is replay information or form no or time WM which longer the of at this XXXX, prohibited. the rebroadcast XX, October call, provided the redistribution, a accessed www.investor.wm.com. of on Any

Jim turn and to the WM's President over I'll CEO, Fish. Now call

you thank joining and Ed, Thanks, Okay. us. all for

near the robust again about of Our deliver us executing in success priorities. full operational collection our upper quarter performance operating as positioning business another for quarterly We're once year, and on the of well strategic billion guidance. to results report our well pleased growth, $X.X to disposal reflect EBITDA our double-digit end as our

pricing sustainability our programs serve to accretive growth. investments the are optimization margin our and efforts together disciplined growth Our cost increasing cost price between and and providing spread are

retention. and improving efforts shareholders. and frontline disposal our We remain And our optimization cost share and to This the our to our focused collection third expansion making year-over-year anticipated, As on XX.X%, more XX commitment new margin of we'd underscores about operating business here. headway will delivering a John consistent quarter at value growth exceptional a record points. for in disposal the furthering we're collection set EBITDA basis in

year with the work integrating of through solid first closed of pipeline have nearly additional strong waste $XXX and in are teams a acquisitions hard the markets of acquisitions Our also million at X deals. key months

We our will our continue platform and add which complementary a suite the expand medical of to waste progress to business towards acquisition of Stericycle, closing service offerings.

all During is merger also Stericycle international our except to quarter. progressing. regulators, team from the the value We welcoming shareholders has of forward acquisition. agreement. integration We our We're the team for Stericycle quarter, in received Canada, which clearance advancing approved confirmed planning, to the which WM the members look this confidence Stericycle

to Turning recycling.

York During and across automation our network, X in facilities the new we including completed and Florida. X projects quarter, upgrades New

in has which of Our projects been America. of operations in quarter team's X.X of capacity We've recycling the growth the annual completed excellent of XX with execution the added beginning program, have projects now X focus ahead tons across the on XX completed plan. million North

labor recycling facilities EBITDA our lower plants, value delivering cost are on automated translates legacy ton blended higher into to consistently commodity our operating per margins. sales and which compared better Our

adding we on energy renewable the In earlier quarter, business, X track to natural online to remain brought we plants, DFW this the our in renewable which fourth commission gas projects year. the new

projects, to XXXX. million X completed the XXXX, XXXX. construction along the year-end. X active of have the plant in final and production online planned annual an of begin we projects prior projects these With The There to contribute construction in X will in XX by are projects approximately with are early X we MMBtus X will expected additional XX

that contributions delivered strong committed from Next we're anticipated and shareholders and expectations. of environment year our this gas scaling first renewable to this pivotal through own exceeded came to investments, alike. across natural fronts. several We into is value be long-term create year, high expecting the year execution months, the for unique to And a results we've opportunity X

successful over solid and to our come of sustainability business, in XXXX, a our the into anticipate investments change integration quarter. turn operational John, our growth and free of cash As Stericycle dive in to hard whose to ahead call results I all increased will continued we now business possible. the waste dedicated for commitment contributions create the provide to growth work want step And to flow. our revenue, make team, and the significant we thank who from earnings this a look I'll together deeper

morning. good Jim, Thanks, and

metrics, in our performance operational to the Hurricanes I to for and to especially Milton we events. financial a minute our the dive and and serve. our our severe take service weather team reliable we and customers, Helene Before and effect communities providing considering thank employees safe acknowledge both want of

We helping hard normalcy impacted in support are these of working those a to restore sense areas.

results. Turning to our

quarter continue headwind additional This structure from We the and consecutive the points This enhance of been basis is automation in operational to and of third technology is overcame improved cost this in XX XX.X% measure has point operating optimize quarter. to XX%. our basis the workdays evident XX and revenue which a in fourth efficiency. expenses prioritize below quarter

from pricing This discipline cost quarter's and by is inflation. benefits easing result driven optimization, continued

prices from of by also were commodity We increased fuel recycled business. prices the benefited the renewable business, and contributions stronger offset from lower impact our brokerage these gains though on energy

and scheduling operating performance. efficiency our in Our labor Labor than We've tools, repair improved since The mapping operating dynamic maintenance also was largely combination our costs reducing through expense retention, systems routes costs. in driven of technology planning a routing performance labor by more adoption costs. and and safety improving boosting automated efficiency and reducing and in is business, driving automation. XXXX, collection residential continued advanced XXX and particular, our of dependence, and fleet

weighted the X%, line our collection In the more business than by of residential average increasing quarter, efficiency with third X%. rose

year. and by to significant focus revenue, Repair a implementation on build intentional driven improvement leading annualized, place improving and last technology-driven improved making ongoing WM career a and our maintenance of delivery in a schedule. turnover, great technician over to improvements our processes a truck of Our driver is XX% reduced also as costs about percentage

as operating disposal in strong business in EBITDA in financial these margin leading expanding $XXX the performance to Our quarter, and grew adjusted and the are focus execution XX.X%. with million to areas collection

our Finally, turning to revenue growth.

continue to track results Our well. pricing

and team deliver pricing to to Our alongside inflation leverage data with expansion in line our customer-specific margin objectives. continues insights

are our lower-margin line at our business time very their we've allocating and is our use. evident improving expanding margin. revenue same approach while organic where intentionally to We operating moved the our performance, purposeful being assets This people growing best from in away safety and business, of residential EBITDA significantly in

we enhancing returns. growing driving overall the and volumes, and are maintaining By long-term value right

have to up see encouraging saw with first commercial the in of volumes from the volume It half key waste. X.X% consistently results growth year, to we is trended which special our the to grow, was what quarter. collection, Our MSW, continue MSW and particularly in

the remains declines quarter the volume residential business, soft, improvement. While roll-off revenue EBITDA as volume the in the to organic Similar making trade-offs we're expanded. margin and right business showed operating grew sequential in the

leading decreases our validates further customer quarter, confident and was the is in which Churn and year effectiveness return our to continued to our data-driven greater operational increases are reflected growth in outpace performance model. operations. margin our similar technology is We and of the that disposal the execution. value and Service lifetime decisions business of capital, remain and to efficiency improved collection reinforcing which investments X.X% last on

turn thank to financial now positions over year-end Devina for third in again the contributions. team discuss results call WM a and entire I'll to detail. want us into I their And closing, heading the sustained to XXXX. performance finish further quarter In for strong Their growth our

Thanks, John, morning. and good

the to lifetime efficiency. value and results maximize drive strategy customer effectiveness Our of our operating underscore

that which XX% reached prices. When projection in recycling the range. basis growth, higher result the from our and points expansion evident from right all-time commodity optimization an XX% the recycled see high strong and is pressure low basis highlights in our commodity Once This our collection guidance again was of quarter to the of XX disposal Our expectations. again, margin, the business. cost of to margin of growth quarter due was which expansion and met of result at success is XX.X% This about middle a at EBITDA EBITDA of end margin was the points by the driven considering We for XX.X%. prices. operating higher-than-expected expansion was operating organic margin that margin XX

residential to growth shedding use XXX from in basis intentional deliveries and deliver volume, truck the strategy, third quarter. drive combined technology efficiency the retention of low-margin pricing disciplined Our to employee benefits margin improved points of of

from -- XX XX% operations XXXX, business driven results in to of generated to proceeds first operating months and flow by robust free the an increase more and cash cash cash offset to assets plan the grown nonstrategic growth our by XX%. incentive We of divestiture relates as These higher basis X a robust billion point the expenditures ahead we've The tracking they capital $X.XX of than from of XXXX. according period plan, compensation same compared across of the With been through have operating have costs. flow well. free driven little

expenditures capital are on strong, for end to for billion the high outlook year billion with of the from continued The be sustainability the of about growth full $X.XX expectations expected toward $X.XX year. relates Total to million prior Our development the EBITDA our increase the our being progress to of investments. is $XX operating guidance driver.

Additionally, million we this for the credits natural together, we're year in $XXX full from gas of our guidance cash continue end to projects. of investment Putting renewable all year high on billion. of flow of the pace to our tax achieve expect XXXX free $X.XX

sheet and well of to remains Our acquisition positioned Stericycle. balance strong, fund we're the

the capital, shareholder strong dividends inorganic returns allocating million quarter. a have M&A the acquisitions waste to nearly buyback third a credit program repurchases. and remain and of prioritize growth end Organic Stericycle $XXX of to we our and the solid growth reminder, share acquisition current through strategic pending and core a including We prudent the As the share through strong focus we and approach completed investment-grade on suspended of long-term because committed rating. disciplined

complete, from quarters exceed cash adding the billion operating ahead will EBITDA, confident With momentum free flow. $X.X representing growth year we we increase our deliver sustainability our for contributions expect the expect year in create to about of strong This will or and finish XXXX an plan. XXXX waste end and from XX%. to we're to high standout to that that rate X solid performance. be the will the guidance the combine of a earnings we meet revenue And portfolio, about of expected Stericycle of growth of XXXX our business with When projects you carry our one benefits we into

line We all to the team for they plus who future out across priorities, efforts we questions. all want forward look we're the for of deliver XX,XXX the of With that, Livia, targets on the are our delivering XXXX WM. do. bullish close to members the on working strategic about thank team to Thanks WM open remainder for hard of year. our the to We at let's as the

the James. with our Tyler of from Brown Instructions] Raymond first [Operator And coming line question

So I still it, how can EBITDA, renewable be somewhere QX? sustainability $XX color, run you'll here EBITDA did, you much but you big guys call comfortable $XXX in back just of rating any EBITDA comes you guys million from in in us million that incremental that in think guys segment segment feel 'XX. 'XX, do around on And picture give

that billion Does the had bit that at by a you seem guys that would or has of run maybe mentioned pushed you rating 'XX. $X.X think all I right? little end still good been to the be

can is Hemmer. Tara I this This take one. So

deliver and had recall plan during we You'll call, that $XXX last in XXXX, to million our is out. what we pushed

for $XXX in $XX recycling what really a the business. And can for guided $XXX range to from expect at XXXX businesses, contribution recall, we in qualitatively million plus originally we million you'll in to is earnings of prices had we Related another bit the to If commodity be expecting XXXX, sustainability-related the the tell from XXXX. $XXX the you we're to deliver million that pieces. what million look little coming you

going higher expect XXXX. RNG space, these we're plants the not come EBITDA to online, certainly but space. recycling in also We on CapEx just the expect as lower growth And

pieces So you'll greater put those together, when you flow-through. expect

$X is thing billion we're we had expecting the should we and $X.X mention expecting and billion, said CapEx between other slightly higher now program. The we Originally, are for $X.X billion. about

plants sustainability-related of our a prices. where XXXX. may we're for It's pieces out premature you bit a XXXX related things all, commodity in we us the of on for significant for And to So expect the give to also, year investments. then in tracking the closely XXXX be all to all based do of QX shake completion course,

in early So update of an we'll give more XXXX.

of with look contribution will growth the clarify would additional Tyler, collection current the release reporting, just associated I press the details the portfolio And disposal to and the we the some their of regard I give business with talked important there's is segment to it's total to that And that sustainability one the earnings think mechanics has some details to color thing in Tara investment at picture. see and the those about. to that provided

$XX million details, we've you in if you'll those at And look EBITDA. what see year-to-date, is delivered

CapEx. the And then Tara, on just

already $X.X So you've take and the $XXX I million, think if think I it, I spent, billion. call

call I your it, the by $X billion think, So of $X [ 'XX, already, ]. end billion,

it that big going 'XX? So the a that implies million. in between rata steps $XXX then maybe that Is Or be two. down another pro and down in mostly in maybe 'XX, is step so 'XX to

Absolutely.

You have that right.

pieces You right. have the

Okay.

know mention outsized Okay. my in color set one, but guys of of we're hairs. ton and on Perfect. don't a kind you splitting you're Jim, just again, so did the in out you 'XX, I And last that year, an for business the give up of growth

by that. what kind want mean you I exactly So to understand just of

think to M&A renewables. add organic So grower and X% EBITDA we of something I a for X% you and then guys as

outsized So X% that grower, to Stericycle to when are that organically can north to context and be that saying an you in just X% renewables. is X% you growth of say that, or with simply X%

any would Just super additional color helpful. be

Yes.

have years So couple over and couple to X% that excited at reason that XXXX look as been, 'XX, with of is when the organically. But are the last 'XX, we gave -- things. that as actually been of is number Day, you the a we've you 'XX we if a Investor about in we're X% outperforming

all, -- to you investments. the at look talked just Tara, of First you sustainability

you in than million more about a that year. of left maybe probably We bit happens most the have And had said, exactly little $XXX right. CapEx numbers CapEx, about she -- next that. just As

So uptick you in flow free to can -- in cash substantial expect free cash see pretty component. a the

to time, year $XXX I at fourth still sustainability when something will CapEx do it, than the it for CapEx. really, most these plants, see will in in XXXX investments seems up. of those because be year, than really kicking is this lower say that of the have call next in terms quarter. same next year is that then of of this occurs And going And And on most that be the lower you year that. terms We lower significantly rolling than million EBITDA be,

number getting Kind not thing same coming fully are be a year of see impact the This will we're to fourth first full the XXXX. in the plants we million $XXX So by the of But quarter. -- that next online EBITDA year. expect for coming year, that, of that year exception fourth we with in in no of time X the to quarter. is X the online do the

X.X going conservative to in us, X which know side to to we've now into Rafael we X.X years. to X.X his was The now $XXX You we X I the pretty over that be for and look convinced which that enthusiastic we'll of give when team spending kind we what lot said this. million even more looking more business, Stericycle, we number months were that exactly add business into We that's strategic just it. are and core line at have this thought addition after We're in we about Stericycle a their ago 'XX. than fourth more ago, might synergies of had months had that guidance number. it. announced really of yet, at don't a that even initially, is piece, with be to insight of months a said look you we opportunity months and believe on

up. we worth We revenue XX% million. there down And their SG&A. is synergies in the baked you was that -- type away takes and example shortage best there years coming around positions, started with attrit of there X that ourselves number technology. have the so trade We're over to reporting -- these in in those to years we've an technology us that recognizing that started use use John from $XX have replace the It's them would wouldn't so talked mean investments technology. started $XXX to hence, of all and then of in made that we impending to particularly SG&A today, when from positions understand would our was kind investing SG&A I the million ago, X X.X% can synergies. we look, technology XX%. that of last show lot And a really those optimism original But the And something we about about probably

You've heard OpEx sub-XX% also John That driven efficiency side. a the our said talk revenue. but consecutive of think you pricing as our X of improvement about, programs, cost a lot quarters largely is on percent I by by

see all No why those combine 'XX, robust you events, And with tuck-in You very really, plus we're what geopolitical there still election, no the with really 'XX, we're of for out the disastrous optimistic happens a can barring pretty what matter economy, a market about acquisitions. 'XX. optimistic. matter happens

line coming Our Toni the with Morgan Stanley. of, next Kaplan from question

was you you XQ much. to was Wanted I raise. but stronger I bit little so know Thank guess, revenue what guidance ask I expecting. quarterly, about than, the give don't a guidance

XQ continue by doesn't into anything quarter won't Is the And that And driven so why you sound was not? XQ. the like it. It there in momentum to the had expect you leads raise performance?

there. wanted to just I thought the what was into understand process So going

There quarter X commodity and the that that came the that volumes. an on volume from with some the some impacts piece going specific that late business. recycled the We're into landfill It's uncertainty it's contribution recycling upside of good saw prices third you'll of to the growth. the price right optimistic revenue in The associated at line, continuing and into really the us contribution prices fourth strike wasn't brokerage performance our and for from quarter. too early unusual say. to landfill and It of is was impacts was quarter point, third anything strong fourth performance outsized or recycling those you're we're things. recycling commodity So really into company Midwest less market it the margin part in quarter, see ahead we this continues optimistic port into quarter and that or that contribution kind about the commodity XXXX with that continue

disposal to So performance from really business more recycling the with the core a commodity regard specifically, happy and price little with and cautious the contributors piece. collection

contribution the confident growth. part of is that lower is we're in still why So of flow-through revenue EBITDA which business, the that the

And hit little had I the think, a Devina, for line top lower bit an quarter. from the offset that of electricity pricing we

top you there were growth would we it's performance that of on pleased that tell -- as So X.X% line. with why the the part at

really the there think hard is out I as it sides the both tells points. horizon talking in seeing these on tell so would like feel look footing. we are that tell their economy. Obviously, to on not is It's indicate it's hard respect any because horizon that we're us, to anything own clouds But an for good We what aren't to to the us. days. kind relatively with the election XXXX, economy there of storm storm giving clouds year, on

next great. thinking progresses few to sounds the I that an and That quarters. spread in on how also price about you're update on the how ask cost Yes. wanted

Yes. pleased. Toni, think we're certainly, I

Devina a you points to XXX if I tells from the numbers, up quarter that in the it is A shown again, then think objectives and with that things few to when comments regard And my story. and for CPI the I point said margin. for certainly spread at down, remarks, on to in to I I our prepared Jim out As track about our you our basis basis yield price you and had remain would look the points core XXX see compare good you we and is heard the year. year-to-date. pricing And

customer kind at up value mentioned, margin. you you I to and the and long about feel the spread, to it look look lifetime of from we in at, analytics in show So continues when model as data using OpEx and pricing. story when good disciplined approach standpoint short, The a we're we're taking

us trading the precise X,XXX more And from since about little Tyler's question. lot XXXX, that via just about too, call Most that we chosen And refill left I automation to fifth are in Toni, and we X,XXX, attrition a not be traditional and kind John, analogy jobs think, it the a rear I then John, load. where talked those potentially to at that have from fourth so we've we've response X,XXX briefly away inning We're of baseball recycling positions use is about think, -- to another mentioned X,XXX to than this chosen X,XXX us. not it, those. or to bit through to now. to refill out of we through conversion coming automated are load side

make X.X% I while not general technology, whether down, frontline we're wages the generally about recycling why core seeing so business, final and roles. inflation hear one the automation we're still point with is you is X.X% on reason that and it's might whether part to conviction inflation facilities, investments our frontline of it's wage in Toni, seeing coming continued that's the much those with

per one In technicians, terms and quarterly that it's hour. rate the and with start that in fact, now we're number with X X a AVPs starts during a we from of going to our hiring reviews the heard of

it mentioned, about when investments. gives us you be little to more making the less we're conviction Jim much through kind those that look a investments as of attrition, to labor So try dependent at

of Revich the with question Goldman Sachs. coming line Jerry from next our And

line, For for more us please. we'll those Yorkers of baseball New no analogies, the on ask

to at congratulations per budgeting to get in So is results folks seeing we're sense Typically, the folks as on you we the we automation beginning are out? what just program? And investments, versus for economics play when thinking the are upside. the that results. recycling a make just wondering, is how program. plant it plants I that savings should that the seen on you about we're the talk the We've be the wanted these I'm the the strong What to starting per underwrote seeing returns about of price plant possible of coming on moves. the online.

a tell Well, is you key we're what we metrics. tracking can couple of

consistently, plants. we've the that is in that really said this and range across improvement cost first, The XX% all labor of and ton our consistent per is

really other The and is creating value We're important. we that we're a the product, on commodities thing higher roughly seeing blended is cleaner XX% sell. this

today you prices $XX year about we're expecting at think end the we're a and around to that If commodity ton. the

Our was investment thesis $X.XX.

So higher is important, our been that's getting commodities a blended out. value proven on and very

one of we've first we investments in. And other across that year. a was operating other because XX% growth The had track thing seeing And out which investments, what plans. these have and portfolio transfer are the so was we the those be pivotal of piece that communities are is volume, also where volume that of that impacts across don't some we'll then improvement quarters our related is automation coming of each we were we to going seen see volume growth about gross much and expenses, the point QX shutdowns, story really we've offering that the to to we these talk as a

our across So together, plans margin seeing those recycling on strong stack portfolio. we're when improvement you the

function Tara, a of the plant faster, that And processing really volume, correct? is

Exact.

and also the visiting growth building market later the seen volume been of So it's also we're plants markets of that processing to be today these when faster. We're of per Minneapolis, one in story EBITDA strong and we've plants a at where them, really is John we look really, great quarter. in then expanding going size some as

really this It in I investment at traditional recycling thing look in investments factors. that confident When relative important of and assets. to think was make contributing the strategy. the the that we the all made investments we together. of it's period pull us payback disposal Tara outlined to our of all collection so really

about some better what commodity on with X- our so despite when see going the investments values. we not invested capital return in just to on we're happy of the had to we that really throughput payback portfolio. that talked X-year being planned that of built always have outlined, best across outsized to periods actually lower the it's range, accelerate, recycling we've And Tara got the that be hold that and price one And are volume, we and as the strategy than confidence performance, particularly we've seeing we

in the that roughly then are online, of And speaking coming Super. economics. facilities of landfill market gas spot terms

think we million or on would should $XXX imply these roughly EBITDA strategy I in $XXX of incremental 'XX that bridge think mind versus as any versus of about 'XX that terms 'XX investment. plants. that to So your other keep 'XX in Anything contracting the part from million pieces we moving in

glad because a up prices a was there's producing to are brought RINs. and the more tendency we of our you R&D things to volumes. I'm look really outlined spot portfolio And of of contracting for just we we're market that our work one at the view I a taking Sure. think that on that reminder,

we to today, of expect offtake at the balance and for mix So And are XXXX to ability utilities we expand the QX is also that long-term market into XXXX, to with that RINs, do and our XXXX. voluntary XX% sell in successfully. able we've early been about that going over and of a forward

XXXX Trump any not on or or really selected So selling us environment, political gets in seeing that gives forward we're strong Harris confidence whether RINs.

everyone's complete, starting EPA the of that construction gas control, It's to are the the cases, and that that revenue plants commissioning that worth the produce which step, there stops the once that are plant are of -- steps of then coming sudden, themselves, the CapEx and these on just our of and is final to afterwards largely in multiple think the of EBITDA of mentioning for all probably we plant, plant. testing approval is a tend also clarification the and to once the of many out outside kind

And to efficiently, of we'd is while that like all think those government. move it

construction like, So in credit efficiently the the we are we close team that or as as as many your relatively doesn't stay beyond would quickly able XX so we're steps the we to plants Tara always I broadcast, get but there -- phase. lines still have would cases, -- to it just as which move is multiple to plants a think and that as we've time as many

just ask Stericycle you that I made Can Super call. earlier diligence, one and the to the the management type pricing last thread lease the on on cross-sell. pull just think you course you over can talk the business implement folks ability to ability on about of and just Jim, one the you to what that about comments

about to the of based very pricing side. on So additional cost diligence opportunity What the do part on the think on hear you the equation? interesting the

to regard been our regard with integration our as strategic planning earlier, processes of all hasn't of Jerry, to spoken diligence is you, customer So integration to mentioned I pricing, planning outlook bullishness oriented. business. really have this With would long-term this Jim the and what tell

that bringing about use of together business. technology processes fleet serving It's been systems about together, using and order the in the our more how reduce the way cost and to technology thinking the teams we optimize back X of using optimize office can bringing to WM our to in

holds going and of know We'll those where runway thesis WM think of to on But the Stericycle once the we medical see U.S. one of investment is that more part that economy the because growth. outsized still about we're we growth. long-term revenue the waste think overall is an projections team parts

right, Jerry, trucks but business, that nicely Devina fit a elements do line in of think if there's bit business consider of of that and very over of when step it I it, touched it's top kind little of it, you WM fourth you and talked collection terms a back Yes, on folks processes -- and operating of those on we drive investments efficiency things all drive think can we you last maintenance to the labor we've couple down to improvement and or repair side. there's overlay some benefits about years, the the the road and and and over from that

next from question line Our Oppenheimer. of coming Noah Kaye the with

much. very Thanks

addition housekeeping Can what Stericycle a in waste to standpoint, from a types you So bit on the M&A for solid we a up? the this contribution talk rollover on picking little businesses that, 'XX. you're And lot spent is about year. revenue then pending, of

We acquisitions. million closed of strong Yes, almost had a Yes, certainly. we've year. $XXX

to said up Island. good about the the a be I closes determined, QX, be Florida the $X Long mentioned note, that but rolls and little last the markets have yet that is I on the in important into it in to call, we still probably feel good pipeline, range pipeline we most we of on the billion. and Arizona, of handful about And we this whether feel think we we think acquisition bit the we of QX deals Brothers call could last Carolinas, there's recent that teed mentioned a now in the Winters

deals not of a for Those in are good us, reasons. both for host represent strategic only but different markets

well and So date performing on of They're to we next feel to very that. the good trying about handful few closed here focused we're months. in next get the deals really all

the rollover from line, we about in Noah, $XXX we will of see rollover to XXXX. think then, a about $XX revenue million And perspective, to of translate benefit EBITDA which million

so should you with be stick Okay. yield implied sort probably pretty your modeling growth know there. total Very what, X% And I'll healthy. helpful then short-term just for trends revenue to of housekeeping, XQ, continue

the to got on a M&A side. close You've point here probably what,

like think kind comp provide of year think So could you But I tough it some had volume storms you flattish. know we sounds some this year. that almost last because volumes might be some you a cleanup opportunities. I had also had the

organic of for kind just there whether us be you're would the baseline how upside So thinking XQ about to and side? for any volume trends

the we those which us than speak expectations. the been story So soft health and commercial MSW, been general strong consistent collection the overall one The has and XXXX really one been spot for for for really over expected. and business the industrial economy where of us volume has hauls course the with of they've has the been lighter about to year us

marketplace industrial something to we this a more after And in We certainly, determined outlook of guidance quarter clarity something that not is on in environment. be up that on. creating about election, fourth we're loosen investment reservation there but in certainly the hear just little the yet in and could the think that some

the to respect QX, With isn't reserved revenue were price. top guide it where we really a for story the on relative it fourth was volume to line commodity quarter,

that And them XXXX we volumes carry our what includes. expectation saw is QX tell I is outlook into QX and would the take those early so and you,

our CIBC. question, with from Kevin And next of coming line Chiang the

was Congrats color if wondering on on you a close looks Competition maybe one could on any review. good QX you the there. It like more provide Canadian Bureau before Stericycle. I print it's last the

noted they of get filed they're comfortable the looking You've terms at that you'll in you But done color in QX feel since [indiscernible]. what just any here.

pharmaceutical me on color Any there but I'm helpful? correct if you think overlap I do destruction, wrong. be would

and who getting would to specifically, really reviews and us move that work I processes. team So it's And to yet you close. to nothing the Canada thank that close the pathway in our say both to competition operations concerns members fourth the been working the legal here in diligently in I to we're market, quarter quickly through to all these typical leadership to clearance we're able the optimistic just have of get be going say order that to to team Canada with have regard and

from on if at are as OpEx of of line look to these of to at may them, my revenue, intensity here, them an they let's If look your second inflationary where perspective, a of I were prior I to cost percentage helpful. I a say, a good kind That's lot it environment. a items, one back progress initiatives. lot this

mid- and a high to repairs, thing stand me as does is one tracking percentage the out of X% that maintenance kind to Maybe revenue. of

seen the that below in to inflation. we've prior think move X% I

there's Just bit this Or there that environment? is that a move wondering an there something cost to new little that lower? opportunity in if keeps more elevated structural

of think and point maintenance was you're basis the There's and improvement repairs. I the non-fleet X fleet this to fair. starting to side. Kevin, a sides There's that's see, XX that. And side think, Yes, I quarter in terms

replacing going the loader On to benefiting and that assets us system of plan One since a strategy, is so strategically now part couple really that we system. vehicle is when that about I continue rear loader. the expensive are big can and more consistent more more allowing have the of is will this they've configuration coming side, truck to fleet of talk it's been one traditional out pre-COVID our been about into truck add, talk a -- we deliveries than going us. to we a be residential rear things sort a the to automation, for run of than of day

from an operation of a we But total but cost that what's a from from perspective, to basis. look look we at M&R important take away also is both it unit per at it on

more more may double you when complicated technology. be plus pay we to different a maintain efficiency, So willing with the vehicle to

here, clearly And if on points seeing it's we were think less the in seeing are off driving overall you you're but quarter CPU and margins. X.X% residential, up my basis which going In I'm the performance, for I top the it of about head XXX-plus volume.

wrap maintenance of do that total operation but opportunities goals. so you we right, our still when together, all against and of And in backstop are repairs, sort cost there that you're overall

repairs in dollar cost and environment And year-to-date, maintenance our this effectively a basis. are flat on

of momentum ahead. of expect deliveries, good the and year continue getting indication a we it's that to the off leverage So truck into

from Trevor coming Romeo of question next the Blair. Our line with William

in was it quarter. maybe growth X%, depletable worth volume back X%. the tons up the landfill going strong thought up to MSW almost I the Total

was was landfill the a in you in while. think Midwest, or about a strongest in anything I more. the you've Was I kind if think that talk I seen wondering you those of was the strength some could there Devina, bit but there mentioned quarter? unusual dynamics just onetime

rail-served the growth and of and sites, out in middle a was was X last year, performance ones outside a of the opened tell will, our sort really that pointed post continued speaks got consistent it. we of there, talk about landfill We volume of of to or that we you starting to heard what that now collection us aspect we're do and planning folks have chunk network with a country, if see bit. performance. good we is the organization. particular Trevor, the the I you, most that there that would you One areas the operation of through X a saw were in pretty drove sort That

So facility that in is will, the intermodal one up slugs, of us the the in you Midwest. helped opening couple us of volume if last quarters another

through special regions commented and of our of a part handful think were that country. same middle of a was in Jim volumes waste those volume to good I flowing strong the the

the year and just follow-up little That's this that's the then then $XXX $X it. CapEx to sounds sustainability this billion like come on a in total. year, the anticipated one going million you earlier helpful. And quick than Got higher bit

or that? else inflation is details wondering mostly the Just on cost there? related driving to more something Just what's increase any

mix for then the the plants on cost primarily related side our interconnects on those of some higher gas and the cost and a gas also our utility interconnects inflation electrical and renewable utility construction are natural on It's to interconnect natural interconnect.

it's So categories. two really those

XXXX to increase would accelerate the QX some into And then projects remaining these acceleration specifically say portfolio. our as of at spending relates complete and I capital intentional the the investment we the in ongoing

to. an indication inflation the of So really that timing not is It's Tara related. that spoke

That last capital. almost won't by because though track, lag, the realized end then XX% on the XX%. of we right still at EBITDA. still this quarter, expected have the And said case, we would of course, the we're have the we of about total But is -- to spent year, we of

of that We will EBITDA $XXX the about a bit XX% or have only realized million. little of about XX%, more, XX%

cash ticks that So so the see encouraged -- you 'XX after EBITDA cash. really most we're goes and the the start that's away flow growth for why but only part after next really the EBITDA CapEx is growth, free also and not away and free goes 'XX to year 'XX, because about up really part of

line David coming of with the next question Baird. from Our Manthey

if fourth caught the Or asked the your was for in could you? did hurricanes XXXX? quantify and into net impact but sure and I'm you quarter I from It expectations it, earlier, not

year storms our in historic obviously were quantified Yes, 'XX. David. obviously There's now ways, nothing of or the that first These are lot but the of foremost, right people a we've and balance safe. for

Our untouched assets first and were largely foremost.

it's now and teams the here, potentially any nothing benefit in to going talk we the Florida. don't think may example. to road some from but Hurricane our to In regarding for be there's Southeast continue outlook events. we specifically anything get with volume across we to be But of those the I saw would terms Ian, down cleanup, right the There similar

upside we And potential is into get second, of vertical as you year. Okay. for next the source industrial

starts to XXXX production industrial industrial low coming XXXX volume like in growth turn expect maybe saw digits, if type or a growing that single So positive out environment? in of downturn, we would you of

industrial not It a not been -- certainly good so does tell the It's sign hard roll-off us the that and negative certainly, this good, X.X% negative a healthy, that economy been we've quarter, consistently to while line say pretty for much, we economy has -- that's the turn that. reported positive. in whether it that's business been of negative to would X.X% a range. overall it's X.X% But but of and pretty that been

that come I see think to start expect to back. can you

Now could But -- time we know. to pick expect that system, make we'll kind see to come And start it the through we economy of industrial start I back is the think big go see up. of by out get I a will the the back. positive? cycle, industrial the Don't would there's then number uncertainty up. That's election to

see morning could for favorable. And lagging start And from interesting this a recently. you of macro some the us watch out isn't there, perspective, be all environment momentum starts point news I that interest with an things do some rate think although will like if housing to

industrial the one we about things eye part than of the temporary the on this So rather the side. the of have business because that permanent really of our side is it's

of that's residential. the been been other of business, has On line negative course,

even say more get asked John So to that quarter. to he by more John, design. back 'XX, was of some go of flat years. do of X been when that's end in letting in been before, I don't we're X.X% is the know, that to fair? That's been we're script think and underperforming It's Is early been -- If a And to the I expect it's breakeven. get down probably business. by for for, years you X that back X maybe expect in down the I range business John, that design, it safe his that question mentioned has to that 'XX. that of could or the some has that now. ongoing we the for

benefits mean it a are continue kind the moderated has competes contracts going a day path I Yes. see has quarter-over-quarter really look par. when a year-to-date think the safety overall efficiency, at line on other of up margin job. stay of at the to got collection and to I great from And X. until We've bit, But not bit. done our mission look, we'll we're a if you team since that healthy business with inventory lines, performing that you -- of been improvement, this which Jim, to

next Scotiabank. our Gupta coming of with the And question Konark from line

echo congratulations a CapEx. sustainability my I to follow-up on quarter. on good I wanted

So parts just X maybe like there.

the will think, that's envelope, XX% between And be then of of CapEx I split year, new done is this think you number I think and like RNG $X recycling RNG or if that's about of and that XX-XX Today, I by billion. remember there? correctly, your the $X.X original $X that's billion total. billion, a the CapEx recycling. was, billion I XX% $X.X end mentioned the What's

Yes.

energy roughly $X.X recycling. from from number, billion $X the So and original was breakdown billion the renewable

$X on $X.X billion for for $X the And roughly is the so to billion number and renewable today, energy. the is recycling $X.X based billion the XX% and billion split increased

difference, is it that for Tara, portion I right? example, though, mean but it's Ontario, I a -- in some A of portion is, plants. inflation, it's mean, of of new

not really a to it adding piece a $X of billion, apples-to-apples it's related but is that's the billion you compare inflation, when piece of an $X.X So to facilities. the new is it

That's energy plants Jim. changed renewable portfolio. And also, within facilities. new point, great we the a Adding the

plant one got EBITDA, projecting Day deck, that you the reasons, were slightly go the moved to was that's And mix different. $XXX if million. we back and $XXX So of Investor in the million to

mix Day, outlined sides of that So that different. the on of the but was you contact one back go both if the are and we've numbers more to the it's reasons Investor plants why setting

And of great. scaping on on things. I up if follow margin quickly That's side Okay. can

and right for Like number great a was do X.X% exiting about a QX. implied you bit But there. QX post with today election, what is expect at of your you in better little margin excluding like you're XX-ish 'XX, XX%, Stericycle? historically that terms of trend have of seen expansion call what to is sort line clarity, it in cetera, knowing know you fair maybe organically, So now. your looking can Obviously, et XXXX it, in margins kind can

early that really about collection we've look company's driven execution ahead, retention we our disposal efficiency in the as operating the and and all strong a conversation business. best expense And it's for when us of term, over Yes, to in so you expansion for points what the would is long it's and question, But you XXX excluding I targeted because basis a to great tell the margin too of say. we've XX on seen have Stericycle that the history. percentage thank revenue

there to expect a and continue, that that That's larger of XXXX? growth continued alternative tax for basis the caveat in than we to is it's to in one margin us the have headwind I ahead. one credit We an and expect is that and be it year ahead. The of XX that because of to year it driver competitors, important for is our fuel $XX in the the is about point EBITDA expiration million a

from basis have to XXXX. ahead And think third full Jim points points X And the million, this sustainability look we year for Tara we're energy the and for a targeting points of the businesses. look for I that basis XX would So by execution basis bringing see when we for the we you, that's provided by sustainability businesses, XX range. we And the in quarter upside incremental XX of that of XXXX, down talked see we million business expansion contribution renewable $XX end about tell of then to from level. the margin when another But The same $XXX expansion us. that XXXX. the bring us online at facilities

question next of Schumm TD Cowen. with the line Jim from coming Our

that there's wondering a So Stericycle, why you a sales on SG&A but might this, if now WM. more structurally touched had business cost relative to on as percentage time structure some higher I'm to a this require of you've reason spend

$X a one one for as order opportunity. that So anticipated optimize externally all rightfully billion point, undertaking not between to granted. structurally SG&A billion-plus internally revenue the think I $X.X think their it's to it's and two. ERP great we think a we're really revenue when I both and you that is has business. That's so and lot And to one journey And tremendous that speak, bringing a gotten way, that that will be is commending $XX we of That taking and WM that term. and it's acquisition is attention, one of platform upside onto the billion that of their opportunity of there's really to kind a hard significant been think business, disparate you that for What compare call businesses long that would The evaluated of the things and rest out. undertaking an that you for of use we're percentage similar of single a it, undertaking, a we effort. the them have in work stands a for the we when a to and different all tell I it, so, has

of you ultimate the operated comparison, that's opposed rollout, ERP Devina, ultimate came X.X%. past one at before, said James, once corporate SG&A, to the as areas, would comparison the really X%. which And our you've areas our to our Well, in get be

what a synergies we're SG&A for percent why with and as can about us what it's enthusiastic like the of revenue associated are that. So look

fully makes rolled wouldn't start -- Tara our with our right business ERP about is arm out -- that point about like the that. point reason to Devina areas. costs of start there's Tara to to no think complete, being right think that But associated Stericycle the and not of that about more looking then once the we the and there one get having I makes

has update new you upgrades? can with in OCC, makes recycling all to that, on the your And respect value us recycling the up facility that changed that With your at portion of revenues?

capture represents about plans investment our of more product. improvements is value. really to has it and OCC our move time the what to XX% higher-value our able more a So we've blended with automated through changed of in mixed a made overall paper that over our some bit And we're to quality XX% of

think about been when spot that's for our automation a investments. us bright you So real

clarify. to just And

of mixed of is sort saying sort all and like OCC of XX% that to are you paper just office the value OCC. So paper XX% -- base fiber or the

Yes, OCC.

together. All

Just specifically. OCC

from of coming question next Sommer Securities. with the Truist Tobey Our line

out. fleet If to you there's improve chain incremental the Do opportunity supply next retention has I normalization process was year. employee for normally further for And retention and into played think an and at. the could experience of seeing contrast fleet, labor sort supply chain targets with that look company's you acquisition in expense what you're retention and in you hoping the employee potential

Yes, it's a good point.

we our assets paying to the M&R just also make optimizing delivery on in percentage number fact this but a I that as had CPU, or number vehicles. years ability think, as our fleet we of and really we haven't earlier, in not frankly better in we're is a dividends, the I stability have mentioned case schedule base total in sure of manage a our asset that really have

some M&R maybe of X% to pressure. in to markets. the across mentioned the area probably That's I pressure, still still really and is one specific in we X.X% X.X%, see labor wage

is employees the that a environment, drivers, So we a there. lower And our our bringing technicians the the continue But in little adjustments I we're higher punch for line still It's XX%. necessary having even is technicians. around and retention which down, big of is for defection to benefit. a obviously make little for think obviously drivers

some respect lastly, I the this few year. we've of we've the mentioned a purchased, -- then to with that operations done And

as While well-run they referenced, when to they've really the is tools team really, I heard supply been our of technology the and Jim come I see the to well-run into put of we with. continue go our we see areas But one all of operating a the way That's capture chain, operation. and even leverage what strength and our additional you've of that And think which playbook. get Way companies, sort of and we is out places a WM value we we one Devina upside.

remaining your incremental acquisition-led to investments thoughts that with And are -- the term, company's in portfolio, the sort cash may harvesting you've mean understanding got a choice. what MMBtus near-term near of related it's about not into uses growth that

be that we've larger much to beat XX convert have built, how plants and that they through gas really actively on it's tend landfill landfill important new a more have at into R&D investments. So to we note looked we we had first the could where we gas. we that And

we're next ourselves evaluating approach much That's something leveraging whether prescriptive we really them XXXX. partner a or in perhaps developing So not more a should tranche the on make and those. we'll for a likely or be on decision taking

really think of make I business. it's important to cash a generation flow the power statement this about

the we're before businesses, coming the generating at fact in see in sustainability cash Stericycle with in annually leverage to we back to the to XXXX when step associated of XX over change really, step free XX target the Stericycle and the transaction. a While the closing and ratios we're about billion free to expect change look flow our acquisition, And we're step before in cash flow. that with leverage WM going return closing talking that of within months you to adding $X

indicates that to for benefit our growth, period of sheet call that over X-year ability of and cash use, benefit for it, dividend a the free $X flow to balance so then we billion order meet of rationalization, substantial continue the and the And have it the have return this business our funds. business present see the ability use of the strategic strong if and to best themselves runway those highest opportunities fundamentals just profile to speaks at to in of sustainability in our the

coming line Capital. from question Sabahat of next Our the RBC with Khan

of on the lot a these quick credits tax a question to investments. Just related investment

you Is Our just to there of are those or understanding is those guaranteed? paid accrued. just if can these kind the the getting in being Or of sort administration? highlight risk any change with process to

Yes.

about change but the could that's there's in in with XXXX, on So something But project. table, thinking on showing there administration. the reduction been be is But the cash regard as we're to to accruing, able a in associated to us for that reduction provision and certainly not risk $XXX up with income what that and very be our difficult statement. being we've taxes both a in million it's

of think really evaluated into is applicability that we we We One [indiscernible] first team of And the work, rules. quarter. saw the details IRA We of all the and see slip things. comes projects of solely the associated X the wouldn't domestic complexity tax the downside get devils our the the doing if right XXXX risk content those, with the timing. and that specifically, one the legislation. is to in when it but in We've

our well a that but we think within while we've have so IRS it our And the will as the year. findings. taken guidance, in done right into finalized won't review thing, interpretation. that continues be to We've as something providing down that come will account be That we

just a XX% as and it's And difference mentioned, that reminder, XX%. that Devina part last the between

and we're difference XX% confident just XX%. It's really the between get XX% on would the And we so ITC.

may a you color. consolidated sort you get understanding the around years over margin to the Stericycle. of Or improvement a would consolidated to look to as next I impact X maybe get the then and margins come few after something it? a get years? back Just or from margins that and at X business, how or positive discussion of and look take give back journey I just in the an as to reporting path a about think evolve is question how long a And may maybe couple business trying you follow-up however Great. over the at territory? it appreciate you guess closes, offsetting base earlier closer potentially towards it that QX

Yes.

I mean, kind they're margins in I -- range, looked, -- are that. we'll -- believe of last I XX%, what something XX% is I the think XX% do like their the

synergies. So start -- you the we opportunities have and with when looking at

Devina as not, said customer look had their all. have at to chance earlier, a We base at

it So of we of top we means their today, or the we any margins because today But cross-selling from terms improve it are think do know in that of what can that things. where line. is don't those

to will 'XX. we 'XX, February 'XX, what it think will look for -- think I into to take obviously, be like for us Stericycle but at assess until least able

we'll back XX% little get It's on to of When to able a hard be combined basis. kind to say. a

you and our through do something which technology said, improvements. have own favor, the use John the improvement working sustainability businesses operating and the gone has lot of then Devina in a our As is of through

directions. both in working things got you've So

hard get what But we right better February I margin give can you when will we it's the and that. think idea a to to very give say be I of now. think guidance, we

next Moore of question Our from with coming is the line Stephanie Jefferies.

frame these high commentary what the then so whether upgrades. the pre differential one your strategic and you margin some a for maybe given provided facilities it just from wouldn't of appreciate kind could is at of think are or recycling the what incremental standpoint? we closed can any One maybe costs. there be way margin truly productivity is the allocating productivity apples-to-apples question about or completely new doing Obviously, But corporate throughput like, it's level me. I updated facilities, about

a management or point important really capital I part P&L it return of indication margin that business So we're business, invested XX margin on seeing cost and post rather give power point effectively specific a a of increase we've that all XX is a automation, and in each lift top you the than percentage say, the is that's in and bring the of benefits be perspective together a think on and strong the margins what expansion the that's perspective, line model, middle the technology. from of we the on margin. of the percentage And reduction, whether growth about seen

expectations for one quarter, are those. that's fourth On Great. in the And pricing embedded OCC just what then And quick helpful. your underlying follow-up. assumptions

blended Our assumptions for in a $XX basket our ton. is underlying commodity QX

line the last of Brian Butler is question with coming Our Stifel. from

on commodity Just the one last side. one, guess, quick I

maybe facilities the impact kind that if EBITDA. should you you've So price? annualized improved changes, of that a in on $XX about have automation, the we think commodity Now do to how an sensitivity

previously, producing labor those we've the bring that we is the of commodity the said And that's get to cost. blended definitely when Well, XX% this and benefit prices, is That's through automation way plants on values we because these it, online. to independent about the product. really uplift flow higher-quality think our of seeing related about plants we're and a we're automated

a to of So commodity sensitivity there there's exists but less is that the business. still prices, sensitivity in a

long of perspective, automation then the that many you in and the about automated XXX how last that be like And couple routes, Okay. talked guess could I being how side, on something routes automated more automated. the over on routes you Can would take? put years

I about to a are perspective, safety volume, bit obviously think an XX more cycle XXX and would trading got we them. it's mentioned, you, though least from efficiency But I it's been years of fantastic be down And probably the we're we're mean, the through that routes we've before effort the tell even go of by I list, margin X I standpoint, eligible team. automated. all off at year third a an from as investment little into

the contract of expiration. a is John, itself. it, of necessarily truck, Some not the the function contract It's getting but it's

negotiated and to has public an the contract transition contract contract to contract sector a a project. everything existing is that X-year end [ that up you're that is If you've and got ] to be ASL the team of pick at the going script by

Thank you. remarks. And Jim President I Fish, CEO, will over call to now and Mr. closing any for turn back the

for great at and point. business your quarter. much We're the questions remainder the optimistic into 'XX, feel the in thank about much. 'XX. be We But you good you this about We very 'XX, to excited of thank so Okay. year Well, today. feel this very very

to you soon, talk will and next to talk you quarter. We

and you now your Ladies and disconnect. our today. conclude for that you does for conference may gentlemen, participation, Thank