Waste Connections Earnings: Poised for Another Year of Strong Growth and Margin Expansion in 2024

Wide-moat-rated Waste Connections reported strong fourth-quarter results with revenue and adjusted EBITDA increasing 9% and 16% year over year, respectively. The market reacted positively, sending shares up 5% on Feb. 14, as management guided toward a 120-basis-point improvement in adjusted EBITDA margin (to 32.7%) on top of greater than 9% sales growth for fiscal 2024. We expect to raise our fair value estimate for both New York Stock Exchange- and Toronto Stock Exchange-listed shares by approximately 6%, primarily due to our more optimistic view on near-term profit margins.