Waste Connections, Inc. · TSX:WCN
Waste Connections — Investor Presentation (May 2025)
21 slides from Waste Connections's investor presentation, May 2, 2025
Slide 1: Investor Presentation May / Q2 2025
Investor Presentation May / Q2 2025 Posted on 5/2/2025
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This document contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These fo
Slide 3: WCN: Investment Highlights
WCN: INVESTMENT HIGHLIGHTS Third largest solid waste Well-positioned for strategic company in North America growth opportunities in active M&A environment Differentiated strategy Long-term outperformance in focused on exclusive and total shareholder return with secondary markets current multi-year o
Slide 4: WCN: At a Glance
WCN: AT A GLANCE Revenues: 86% U.S. and 14% Canada ~ 24,000 employees ~$9.525 billion revenue* ~$3.160 billion adjusted EBITDA* ~$1.325 billion adjusted free cash flow* ~$20 billion assets ~$55 billion enterprise value Footprint across 46 U.S. states and 6 Canadian provinces *2025e based on midpoint
Slide 5: Our Differentiated View on Solid Waste
OUR DIFFERENTIATED VIEW ON SOLID WASTE Solid waste is a commodity Returns are driven by: ▪ Lowest price provider wins ▪ Market selection ▪ Customer has basic level of ▪ Asset and contractual service expectations positioning ▪ Private companies can dictate ▪ Local execution pricing in competitive mar
Slide 6: Targeting Attractive Markets
TARGETING ATTRACTIVE MARKETS Market Selection Strategy Integrated Operations Non-Integrated Operations Exclusive Markets ▪ Purposeful market selection strategy #1 EBITDA Margin #3 EBITDA Margin since inception #1 EBIT Margin #2 (tie) EBIT Margin ▪ Current mix: #1 FCF Margin #2 FCF Margin ➢ ~40% excl
Slide 7: 10-Year Total Shareholder Return (TSR)
10-YEAR TOTAL SHAREHOLDER 10-YEAR TOTAL SHAREHOLDERRETURN RETURN (TSR) (TSR) 700 Differentiated Returns 569% 569% 10-Year TSR 600 500 400 335% ~1.7x the returns of 220% the DJ Waste Index 300 200 131% ~2.6x the returns of the S&P500 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ~4.3x the r
Slide 8: Looking Ahead: Positioned for Outsized Growth
LOOKING AHEAD: POSITIONED FOR OUTSIZED GROWTH In addition to ongoing margin expansion opportunity: ▪ Human Capital ➢ Multi-year lows in voluntary turnover and open positions ➢ Record levels of safety performance (I-rates) ➢ Increased employee engagement ➢ Momentum for outsized margin expansion ▪ Ren
Slide 9: Culture Matters: Human Capital Drives Value Creation
CULTURE MATTERS: HUMAN CAPITAL DRIVES VALUE CREATION Turnover Safety Open Positions Engagement ▪ >50% multi-year ▪ >20% multi-year ▪ >35% reduction from ▪ Improving employee decline in voluntary reduction year-end 2022 engagement survey turnover ▪ 65% of locations ▪ >50% from peak scores improved Yo
Slide 10: ESG: Connecting with the Sustainable Future
ESG: Connecting with the Sustainable Future ▪ ESG targets aligned with business objectives and incentive compensation ▪ $500mm capital commitment towards achievement ESG Targets* ▪ On track for targeted achievement with multi-year progress ▪ Details provided at => Waste Connections Sustainability *L
Slide 11: Innovation and Human Capital Investments
INNOVATION AND HUMAN CAPITAL INVESTMENTS Operational Technologies OPERATIONAL TECH TRAINING & SAFETY ▪ Robotics and optical sorters at IN HOUSE TRAINING recycling facilities ROBOTICS ▪ PFAS treatment / capture => landfill leachate ▪ EV => electric vehicles being deployed / tested ▪ AI => application
Slide 12: Financial Discussion
FINANCIAL DISCUSSION 12
Slide 13: WCN: Financial Highlights
WCN: FINANCIAL HIGHLIGHTS* Revenue Adjusted EBITDA** Adjusted EBITDA Margin** Adjusted Free Cash Flow ** *2025e based on midpoint of financial outlook provided in February 2025. **A non-GAAP measure; see appendix for reconciliation tables. 13 ***Normalized adjusted Free Cash Flow excludes $100- $150
Slide 14: Capital Allocation
CAPITAL ALLOCATION Track record of capital deployment with attractive returns Recent outsized M&A with continued low leverage ▪ Robust Free Cash Flow and low leverage provide ▪ Current leverage => ~2.70x flexibility for continued M&A and increased return of capital ▪ Since 2020: ▪ Capital allocation
Slide 15: Full Year 2024 Highlights
FULL YEAR 2024 HIGHLIGHTS ▪ Revenue: $8.920 billion, up 11.2% ▪ Capital Allocation: ➢ Record year of private company acquisitions ▪ Adjusted EBITDA: $2.902 billion, up 15.0% ▪ ~$750mm acquired annualized revenue ➢ Acquisition outlays of ~$2.2 billion in 2024 ▪ Industry-leading adjusted EBITDA margin
Slide 16: Looking Ahead
LOOKING AHEAD ▪ Full year 2025 Outlook* ▪ Other Observations: ➢ Revenue: $9.45 billion - $9.60 billion ➢ Strong operating and acquisition momentum in Q1 ➢ Adj. EBITDA: $3.12 billion - $3.20 billion => positioned to achieve full year 2025 outlook* ➢ Adj. EBITDA Margin: 33.0% - 33.3% ➢ Outsized acquis
Slide 17: Waste Connections: In Summary
WASTE CONNECTIONS: IN SUMMARY Performance: Differentiated market model ESG: Integral to our business and consistent driving industry-leading EBITDA and FCF margins with objective to drive value creation Capital deployment: Track record of value Culture: Culture matters and differentiates creation TS
Slide 18: Non-GAAP Reconciliation Tables
NON-GAAP RECONCILIATION TABLES 18
Slide 19: Non-GAAP Adjusted EBITDA Reconciliation Schedule
NON-GAAP ADJUSTED EBITDA RECONCILIATION SCHEDULE (in thousands, except share and per share amounts) 2025 Outlook** Adjusted EBITDA* 2020 2021 2022 2023 2024 Low High Net income attributable to Waste Connections 204,677 618,047 835,662 762,800 617,573 1,186,000 1,224,000 Plus/(less): Net Inc. (exp.)
Slide 20: Non-GAAP Adjusted Free Cash Flow Reconciliation Schedule
NON-GAAP ADJUSTED FREE CASH FLOW RECONCILIATION SCHEDULE (in thousands, except share and per share amounts) 2025 Outlook*** Adjusted Free Cash Flow* 2020 2021 2022 2023 2024 Low High Net cash provided by operating activities 1,408,521 1,698,229 2,022,492 2,126,817 2,228,927 2,500,000 2,575,000 Plus/
Slide 21: Principal Administrative Offices / Investor Relations
PRINCIPAL ADMINISTRATIVE OFFICES 3 Waterway Square Place, Suite 110 The Woodlands, TX 77380 (832) 442-2200 INVESTOR RELATIONS Mary Anne Whitney, EVP - CFO Joe Box, VP – Investor Relations Phone: (832) 442-2253 Phone: (832) 442-2153 maryannew@wasteconnections.com joe.box@wasteconnections.com investor