Waste Management (WM) 30 Jan 252024 Q4 Earnings call transcript

Company Profile

Participants

Edward Egl	executive
James Fish	executive
John Morris	executive
Devina Rankin	executive
Patrick Brown	analyst
Noah Kaye	analyst
Rafael Carrasco	executive
Jerry Revich	analyst
Trevor Romeo	analyst
Faiza Alwy	analyst
Kevin Chiang	analyst
James Schumm	analyst
Sabahat Khan	analyst
Bryan Burgmeier	analyst
Tobey Sommer	analyst
Brian Butler	analyst
Toni Kaplan	analyst
George Bancroft	analyst
David Manthey	analyst

Call transcript

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Operator

Good day. Thank you for standing by. Welcome to WM Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that today's conference may be recorded.

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

Edward Egl

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

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

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

All expectations, to on During opinions actual about the are could that differ which call, results periods. based statements statements, cause you to hear materially. or projections and forward-looking uncertainties forward-looking are current will future risks subject

uncertainties discussed Some Form risks and and recent our the and SEC, filings are of including most release in today's XX-Qs. XX-K Form in these our press with

which otherwise, the in of will our or growth yield discuss volume. internal John results or are references revenue yield unless and to area specifically volume, stated more IRG from

Devina and amortization. which EBITDA, operating Jim, is operations discuss call, and will before from the depreciation John During income

otherwise of WM prior be Information the acquired WM businesses. references will Healthcare the to results, the medical References also hear Solutions. total Secure with comparisons, segment. new Any WM and business, and fundamental includes items not You EPS, by results and results income certain Healthcare Destruction our margin excluding operations. excluding comparability legacy performance unless Solutions and period, margin, Stericycle will stated, have that This expense segment SG&A base from and WM business the EBITDA to do reflect management operations year expense our adjusted been enhance and net to margin operating or operating margin, income, believes

GAAP addition cash to to the the earnings reconciliations in Please on projections be at adjusted and www.wm.com to measures website found additional projections. most call are recorded non-GAAP measures. company's which for use flow adjusted and is X:XX p.m. of free today. and the and be hours beginning and can of press measures information measures tables, non-GAAP release These a approximately refer our This will comparable available Time XX Eastern non-GAAP day being

January To Time-sensitive of is accessed prohibited. rebroadcast the which at replay hear the today's may redistribution, WM Any no time express website longer accurate be consent WM written call, occurring the call XX, the on of in any or a form of a out provided retransmission XXXX, during is www.investor.wm.com. information call replay. of this at

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

James Fish

Good everyone, on to discipline. another for Ed. financial Thanks, of outsized focus you line year cost today. team's morning, performance and thank report and by right. our joining us driven and All I'm growth top pleased operational

first operating legacy history. operating focus time achieving returns. business long-term of achieve value optimizing This than This dedicated shareholder to in margin technology, investments In structure, XX% the our to have EBITDA EBITDA remain delivering expanding for year full growth us platform XX% to sustainability sustainability WM our in along and combination, more enhancing to led positioned ongoing continue in and shareholders. our cost our year our we XXXX, and automation with for the the

growth natural natural we're cost confident assets. thesis in gas, and for leader revenue X way, especially and in for facilities progressing a sources a growth, focus renewable transformative collection our investment environmental and We from on year by gas platform as mix initiatives disciplined driven brought milestones of disposal organic business WM the investments. Our positioning business renewable consistent marked online, energy led optimization. And further these sustainability and continued like the XXXX overall expanding our sustainability. in a demand landfills renewable our in significant

operating automation and recycling at network, XXXX, lowering markets. outcomes customers XX and financial facilities, renewable upgrades across $XXX we environmental recycling X improving in positive our recycling million These while EBITDA are progressing broader costs XXXX. throughput expect a to the path long-term our unlocking and recycling We're on remaining also operating Additionally, and growth in putting delivering facilities projects advanced and gas to opportunities investments with us in on natural growth. investments new well contribute added approaching

confidence of and great projects are provide these deal business. to they complements that of about We existing the have in strong the underway, value a enthusiastic we're our

of across addition waste comprehensively to serve Stericycle's to solutions, sizable a successful achieving in was to our our destruction environmental in medical for the acquisitions, business the range suite organic services. WM and information more Stericycle our of us year management growth, a wider acquisition Adding of completion leading in broadens customers allowing it strong XXXX, In across platform secure November. including

X integration structures commercial seasoned integrated functions by are Our led underway. and the operations we've our in disciplined leaders. support And back-office months, efforts short the WM into

a new One acquisition to grow the feels management optimize business. team be good summed for our to of it working our employees this up and that's saying excitement really for looking

by before confident $XXX period, and Healthcare growth to synergies, revenue to deliver The changes, $XXX to team XXXX. we're can we've WM over WM Solutions progress expect a X-year in We the driven operations and about operational making now far. expected encouraged capture, so necessary million up synergy in cultural business made of initiatives. is synergies have organic by million we're we With we a and and engaged grow well-resourced X% the experienced respect

for and we're approach it will acquisition and WM. the employees remain focused strategic ensuring smooth growth, to customers driving both disciplined on allocation This about confident and and we a transition to capital Overall, value. synergies long-term exemplifies our excited and while bring unlocking benefits

built our we midpoint our headwind expect as lead face of we've the disposal confident and tax produce we X% operating fuel Looking collection to the than in alternative the more momentum even year another business growth growth. the outpaced a ahead credits. that of will expiration ahead guidance, to of to EBITDA year from XXXX. At We're

focus disciplined spread. will price that ensure margins pricing Our a cost healthy on maintain positive to we with cost management and

will our $XXX energy sustainability continue scale and and to recycling projects renewable accelerate growth EBITDA from in of sustainability Our additional expected with platforms investments adding operating contributions to coming this online year, segments. incremental million

total all or midpoint to nearly we XXXX EBITDA in deliver company of XXXX. growth of our billion the XX% expect compared range of of growth Combining operating at this, to $X

to operating entire WM the turn including gratitude want results, call from Before to to our express over the my to I John team members team, new cover I Stericycle.

our Their commitment and continues be success. mission to our to of values foundation the

about ahead and goal creating the in excited long-term As we look of remain value for all forward, our opportunities steadfast stakeholders. of we're our

provide to detail to operational I'll now over our hand on more it performance. John

John Morris

good and Jim, morning. Thanks,

performance, their employees our our and we team the recovery Before serve, to and we're These devastating communities everyone supporting discussing want for have to the impacted committed dedication I affected. thank our during wildfires. and for fires restoring normalcy California efforts

on execution. quarter another WM reflecting Turning to focus our to XXXX, our discipline price operational close fantastic and delivered results.

fifth consecutive as of a marking quarter below XX.X%, percentage expenses XX%. were Operating the revenue

was from in technology for as improved Our well continued as considering our the result by was driven history XXXX of Winter's efficiency full XX particularly strong percentage dilutive and XXXX, during automation WM's a and below revenue Brothers adoption. time basis the with the first for team points by to compared basis XX% by XX.X% as the This XXX year from Stericycle improve year Labor of notable labor to execution costs impacts points acquisitions. and declining improvement is XXXX. full which

Our our improvements operational time of the leadership, center in leaders human that field. allows cost discipline stem to and to commitment spend labor importantly, technology the from our introduction process more

basis an Our annualized ever over as turnover points at of marking XX%, the was from of XXXX. lowest improvement driver XXX December

automation advances residential margins tools not service. XXX XXXX, have driven conversion performance planning labor and over an started our dependency enhanced exited customer an routes XXX where and challenged. in option were labor route and has Since we effort safety outcome in was residential reduced savings. profit routes or have automated Additionally, The greatly optimization additional while been improve we resource

have growing and approaching more with for line progress year. points we driver XXX improving the shedding We're efforts full and be lower-margin residential on these Combining the year basis our routes, business these made value and in efforts. XX% in maintaining on pleased we've EBITDA than captured in turnover margin the operating will of business the translated considerable focused XXXX automating ahead from

using data, productivity services. maintenance serve. reducing enhance focused while costs deliveries, fleet optimization, also and thanks increased percentage our discipline our a Repair process remain that approach on declined rental customers' a and and our maintenance units of to on optimizing reduced business reliance to We revenue, third-party and cost truck streamlined increased technician to and technology as experience

XX.X% to disposal the our collection Our operational EBITDA growth original in with margin basis growth a achievements, a XX.X% highest and in million our for growth expanding in operating achieving projections business $XXX delivering margins led our collection These and XXX combined ever. XXXX, points disposal exceeded business. year, our in in with and disciplined results EBITDA pricing operating nearly

impressive impressive performance of is team's strategic focused priorities. -- this underscores performance This our execution

at a and yield grew of about of X.X% by core across X.X% lines disposal all price revenue and remaining of churn supported Our business collection with X%.

and pricing and the in in lines to analytics objectives. customer refine the with business, performance to value our our key our data of We deliver line Throughout serve commercial meeting grew continue customers to maximize use volume cost to year, of landfill. margin our while consistently MSW lifetime

net year as Workday the expected service adjusted and positive. finished Our increases volume remain

our of The indicating increase remain operations positive steadily XXXX MSW year, expanded expanding pipelines the Midwest. demonstrate of acceleration second by year. as our value X.X% in the the the For Special network as showed volumes waste for MSW also strong. momentum, evidenced half our rail an and in annual with serving volumes potential growth grew capabilities observed logistical the

levels, rolling in business outlook volume us disciplined pricing our are out capture industrial enhance While soft, programs at for appropriate confidence we gives growth XXXX. remains our which to

to our on look XXXX. we As building ahead in focus XXXX, upon is our success

and further and in from improving investments. our core sustainability collection Our growth business disposal and include acquisitions opportunities operational priorities maximizing efficiency

Additionally, WM driving a our core disciplined organization, revenue the Healthcare embedded fleet are and process. management Solutions optimization into now leadership integration business

X.X%, price delivering of At between value our and With volume and confident disciplined and a these our revenue our programs, in efforts, midpoint to pricing in XXXX. sustained X.XX% in shareholders growth increase continued we X%, guidance, disposal X.XX% customers. expect to momentum X.X% EBITDA while and yielded ability of the resulting core and we compared and between with collection our drive X.X% operating to between are

whose to hard we growth. my build achievements and driving I all do. Together, striving customer inflation committed We cost in our we'll year's gratitude and volume this exceeds for pricing to members extend have work lifetime dedicated excellence disciplined to our that continue success. closing, maximizing remain our in that value, commitment team securing instrumental been In on

I'll to now results financial further the to outlook our Devina discuss XXXX call and detail. turn XXXX over in financial

Devina Rankin

of of benefits operational by basis year. points of excellence, to Thanks, growth. disposal John, operating in and the with the building on basis sustainability residential expansion leadership price, through margin from points shedding This improved value strong morning. the good optimization business. of results, cost result by business, collection and creation and was We intentional commitments basis about driven XXX points proud targeted low-margin XXX our XX We're EBITDA shareholder our margin for XXXX and

the from lower collection fuel growth The higher the business of business, and about remaining improvement and XX costs from the was points. measure of higher The business, costs. and offset impact margin health in brokerage basis by Stericycle, was addition disposal and recycling increased by employee costs, compensation partially our record collection commodity in pricing margin affecting and welfare collection disposal the each disposal incentive

theme XXXX. remained efficiency Cost a in central

spending including SG&A for revenue year, business, achieved Our of of our costs. and a addition XX from as point through headwind a and a the discipline basis legacy was percentage XX of Compared XXXX, of point WM engagement SG&A targeted to improvement a X.X% customer percentage as largely revenue discretionary Solutions. the optimization in we for Healthcare basis full

before robust XXXX. performance generation investments Cash flow translated marking XX.X% $X.XX more flow into growth increase operations from billion, billion, sustainability to cash XXXX. a Our cash over $X.XX flow and grew than reached strong XX% operating in free

dividends. expansion, we optimization $X.X billion focuses XXXX, In These more outcomes and in capital working our margin expenditure to disciplined capital including investment. returned shareholders, than $X.XX on billion highlight

to acquired all $XXX in we Additionally, our million acquisitions and Stericycle invested about growth sustainability initiatives. recycling expand traditional while and $XXX and solid million waste funding in footprint, tech

care long-term drive and returns our health a investment shareholder a a to as targeted that Our expect growing prioritizes this XXXX strategic identifying will focus, disciplined approach investment outsized we result. of business opportunities at growth attractive of in capital growth be growth to The operating by demonstrate allocating sustainability EBITDA year and returns.

operating Capital million expenditures for targeted As about robust at in Jim year, anticipate directed outlined, with cash and $X.XXX XX% business. we billion and operations expect which from EBITDA cash to toward flow. we growth grow translating the projects for $XXX Solutions $X.XXX by Healthcare between $XXX sustainability free about million are and XXXX WM high-return into our billion

of We more includes million. benefit cash credits outlook. of about expect grow This than $X.XXX the free billion outlook tax $XXX our an flow midpoint to to from XX% anticipated at investment

us WM's to commitment and outlook strong to flow continue growth balance sound our sheet our allocation. position capital cash

payments of paused $X.X million as to sheet reduction. expect we the of of dividend debt targeted solid to be Our outlook the acquisitions XXXX, buyback estimated investment a on share combination with balance of to in X.Xx. getting back includes $XXX and approximately we leverage to earnings We've leverage By levels and expect about waste growth billion. $XXX million focus end

In dedicated people these our opportunities our to WM's about by and ahead excited leadership. of XXXX summary, capital management strength make future results members our and operational our excellence, achievements and in years. We're team hard and disciplined sustainability driven to possible. the resilience and model like work in gratitude ability commitment strong confident deliver to for the to XXXX I'd whose my extend showcased business

the questions. line open for that, let's Olivia, With

Operator

Instructions] [Operator

coming the with line James. question Brown Tyler first Raymond Now from of

Patrick Brown

but business. I the like promised couple Devina, are assuming a a can correct? it, But to that you So me with bridge items? tax a question you I first, million? on ask I And headwind, is help CNG is of $XX think credit that heard

Devina Rankin

in million $XX XX a in It's margin. correct. and that's headwind dollars basis a Yes, headwind point

Patrick Brown

Excellent.

$XXX including on take to do number... I going think then the QX I something of million, EBITDA, incremental Stericycle, And Okay. million like you're you're means $XXX which if

Devina Rankin

correct. That's

Patrick Brown

Does -- that Okay.

is feels So calculate million is on Or number one, convention like Stericycle reporting rate? a that versus or a that $XXX definitional including was how am I in because a synergies? change two, they EBITDA lower the you just then run were that? EBITDA it their is realized for there than what of And off base

Devina Rankin

pointing them great Tyler, and are questions, thanks those Yes, for out.

between definitional companies. And the X a one take yes, second was I'll So first. there change EBITDA in the

adjusted a have, course conventional normal more to out like would that approach I And we look we We costs. I adjust guess, of earnings. what say, of things found that business more they

quarter $XX recast And rate we had the with that million of the of synergies so we've was the that the numbers that And exiting $X year business for realized -- so million in us. representative about that. fourth for XXXX run

year. in ahead, optimistic would be I starting million and year capture the recommend for about XXXX. that we so the will up And realized the $XXX in to using as We're point think synergy

$XX realization. to assumes $XX midpoint million Our of million

Patrick Brown

Excellent.

Great. Okay.

I royalties your management benefit was -- don't at following quarter, there recycling I missing QX? kind get saying. Terra looks and maybe EBITDA the think to many you am. was but incremental foot to I said probably it what numbers that and $XX XXX. I is year-to-date, in hate in sustainability Or was fees I'm can't am million today, like contribution I table something, the look I which But But the so validate of if at -- $XX again, throw no up if contribution you're I sustainability I more and release last there, apologize. waste million just but 'XX said for you know sustainability Okay. then because the

Unknown Executive

the math. and to in side the that And right recycling of piece report. you're There's then what disposal. couple the that have we up collection business, I royalty the the I on the course, are going it and am a flows on in XX% collection guess of in a things the And of and business. you segments disposal following -- of the ends room. And between

businesses to both investments. to we're of $XXX tailwinds lot in end XXXX, lot gives a we million about XXXX, contribute What is of impact optimism new at going of delivered of us going side that's we've those recycling the lot with have you look if And much Jim like these there's XXXX want going into emphasize XXXX. roll how in from to growth another that the said, R&D roll through really what at XXXX And for coming P&L. of that's on the a X a the XX plus There's we the in to RNG positive plans. facilities,

Patrick Brown

at because This headwind. credit CNG like last the disposal question. you've is John, organic grower. to Okay. EBITDA mean up be tough to helpful. Obviously, Last I despite That for Analyst Day, is said X% and got pretty or super is back you're frankly, sounds organic like collection X% expected is solid. Jim you guys that it tax a your comps. quite X% And something

So really good. that's

talk Maybe you just maybe very collection So cost in and inflation about pricing? there's spread a the cost dynamics, outlook disposal. and it core like because feels productivity importantly, price for solid can the more to

James Fish

Yes. Tyler, it's Jim.

businesses, probably grew we're highlighted core. the last lot the you've area about core X%, And that if business which 'XX, a you XX% just one and itself. think to maybe most about Stericycle proud 'XX from which think we is -- But talk I the core the of of, are business, the it year, the exciting. sustainability grew

course. another And year the kind this looking then at we're X% on of over

out, pricing price But talk team just spread really about X% lot well but as look, So and is does that back from great is a that is And not job. -- cost to our XXXX. It price. way the several gave pricing to cost. point of in X% a so we number areas, we ahead you -- coming, that

kind team spectacular I done it John his and job a And a but mentioned John of in has cost script, that his guy, of number. is mean modest taking

think about we XX% that that aspirationally ago, of said, never laughed We're now. kind as that you a a room scratching happen. Years number coming of the If "Yes, XX%. right will and kind revenue of OpEx about talked about kind and well, at under close. percent that We're of in then

in price you've a of the on So just the last the lot ultimately cost I margin growth that well on over in lot and spread of doing cost growth the to are seen we're at business as growth numbers that and a cited the a few years side the that same time price. coming

And EBITDA the I off. muted pretty off. think and years, can pick the solutions volume once free of And as taking volume new Stericycle business, couple start as Healthcare same you core the at flow. over because been the up time, business the really investments see has really you last to see the old cash sustainability WM takes to time add start the same At

John Morris

I thing of play of the you're lot is only add think a in all out for middle seeing to it the WM. the the would P&L I or covered And Jim benefits

handful developed lay think release Raf a I -- and business lot that Healthcare around we've meaningful the business. processes comment press and of start the and the top the you really Raf WM in technology do the But capture next of same drive advantages the on over There's over you our confidence that the results, team heard years. we that. to to practices synergy can the and and right some are saw excited of with can

Patrick Brown

perfect. Yes,

and inflation, that? call like, collection it productivity, So percent cost a like of X% disposal, unit in feels and net maybe yield couple it, something

John Morris

Yes.

our in saw you it EBITDA see to you're and into our OpEx going margins up continued to see ratios, going spread what perspective, and labor from XXXX. think and you're our that, I benefits a showed

Operator

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

Noah Kaye

I'll on of pick Tyler's up line questioning.

obviously, little Just come CPI to the XXXX down X.X%, yield guide, X% bit. we've seen a

assumptions different restricted index sort you're factoring in of components the core business? understand that pricing of yield help just versus part open So us market the maybe of the

Devina Rankin

Sure.

profitable price a in that high John's So yield a yield lot than at it of what's you conversion, about. unit that's what's of the that commentary mix, does conversion. is what landfill the to a part happening important about it something core a and it's the network. good, because really is we And prepared important very really rate talk see think down really the come And on in level, I example the business business but average business for lower that's rest lower to at us, comes of a remarks

the business core that's guide X.X And conversion X.X at X to year leading of the to things mix a being this X so X.X, is little with price lower that.

James Fish

residential surprised I margins when going on XX% I been in myself. significantly that improved even thing was surprised is of job business. we've mean, a only to still Yes. improvement an But has zero guess the the that -- business maybe resi it, margin resi, And done see call me a EBIT such less. but we've no, with was of great this at look through would our a add side, process we I have on or this customers I number number the residential line of that little

we inning use I the but we're baseball than a more ask us probably were if I terms analogy, that assuming sixth And sometimes in price -- call it's of of it's eighth residential it -- cleanup, this what what was XX% but kind all don't I inning, know like are the guess, we and the we in, to inning on in helps front. to in

Noah Kaye

from those Helpful. think, a you $XXX areas see million did sort Can you're overall. bucketing now an and to maybe $XX different now, us give the you maybe this year $XXX million to updated where of going previously, Stericycle, of synergies. breakdown obviously, going to Yes. now WMHS, job I between million going nice

that break synergies Where from? cost down? do of Just kind come the does how

Rafael Carrasco

Noah. Healthcare think This I Yes, take Rafa Solutions a the at WM business. I that, now Carrasco. stab leading can is I'm

the around that the centered of was internalization, essentially is meaningfully So the time same the acquisition. offered we buckets you higher we but which -- said was X XX% at is and we the of what about SG&A opportunities now, OpEx, doubling each. same and That at estimates SG&A the opportunities. tell about the value larger time is synergy Internalization OpEx now I'll see

you business. the of on the maintenance the side, on, give on the uncovered I'll Shred-it the we've opportunities on in and the SG&A fleet And for on while sales network consolidating Examples capacity OpEx number coverage, in-house. embarked optimization repair we've then side, which new and reducing working bringing already recycling

Noah Kaye

Very helpful.

one pieces some could this pieces the on any maybe at from we can the items Just consider interest at. guide. flow in EBITDA to for moving what you one, cash and Devina. operating look free just flow if around bridge we last -- normally you would maybe other expense, year to tax But nice touch wondering provides other gave us some cash there's least of

Devina Rankin

Yes.

always So There's are is with million be tent XXXX. great of great billion ahead, the and have cash make. being will long we free $XXX to going points we to almost the One of operations. free growth to conversion EBITDA more of the year regard it's things from going about pole year that to I'd $X with in another increased to that higher like expect a to offset to and expected The flow $XXX EBITDA we're another interest, X in cash conversion cash million be talk that that flow flow in growth. couple cash

just million remainder And of related. Stericycle to that related is is acquisition. about timing The $XXX the

full in pulled in we help have had XXXX, had or that more And year a a more of so from and year of for we in run rate you'll the more ahead. that

because cost ITC from And a XXXX. side, and story expectation incremental have some comes cash we're but a that at a fantastic higher of income pretax growth interesting then seeing in is high on an it's we tax the in for cash perspective, this because pretty tax offsets usually

taxes And So $XX offsetting ITC income that's cash about plus the pretax up $XXX impact. million the will total slightly million. go from higher higher to

timing working growth. on of point is capital fantastic related, And a that impacting key I may improving XXXX contributing of of think other little that's some of XXXX. look the is some which And QX what's terms the was in that, the is into XXXX, benefit by would DPO DSO in we do it like also result timing the of strong and our a first then of thing that but only the team we steps and some we part to rollover execution think muted is why level got to

Noah Kaye

And I a lot just want for us details and additional as release and given you've to all information. has say the the transform in business well to the providing continued that obviously grow, thanks of

So appreciate it.

Devina Rankin

Thank you, Noah.

Operator

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

Jerry Revich

the I'm wondering in really the without piece opportunity, moving interesting just commercial target commercial if about Rafa, synergy I even you talk higher wonder hear about to the kicking yet.

significant on You It sounds business? looks just like talk the work really economics there. route there's runway about that to you given core your

inning you right business? of at? sort you contribution can process as the pricing on of the And internalize can get you by what what talk the about that routes right we're Just getting

Rafael Carrasco

something cross-selling, that all evaluating now. that I units. of we should we're XXXX, built joint the that Look, in of in we things engaged contribution the one coming of into what tell I'll down virtually tell say. could you is I actually with the important accountability is and P&L some is to is with to That also the our into working right on the you way team the driving respect kind routing, business existing team, XXXX have respect see nothing

discipline inform before. do going have that's going disciplined we're by customer. also WM actually actually something already at When a revenue. Stericycle implement we of and we that facilities, built quality exist That's That's to P&Ls generate to that, didn't to that our into growth allow going us to

James Fish

Jim. is this Sorry,

ramp in and any that helms, this I'll there want on other of said, for couple long And of and 'XX. we physical but Stericycle the we but case, was 'XX about but there give have cross-selling. an opportunity one were say Legacy what in has business. you term it was biggest meaning doctors' I we -- the up kind WM to is of He for in to business exclamation we in not over would Rafa was really office, anything don't the A Stericycle there recently, starts be just Just have present, said I couple not. put a for point might my single examining not. -- offices were and

of us. for we So point, opportunities we opportunity those would baked fully that is but both a haven't like cross-selling into this anything feel be for at really big

Jerry Revich

Jim. And all glad performance, got sector. think in time had a holding heading for the recalibration through a this of of hit. earnings quarter took to a base we're light, I'm prices business the the you our across the go green terms We I because bit last the group breath commodity into -- the

that's base in looking I aggressive of for compensate Now that risk Can here. It talk margin part to have the sure attractive potential how pushing and folks maybe what's about right. make downside just really to like 'XX. taking business 'XX feels pricing you you're are a I you make recycling. want out playing But approach more expansion, at we're versus to sure

James Fish

in -- give as the I take much customers report. example, earlier, developed to to so business, is be here going around answer. is that we're base same able Well, a on whatever, more such level level fact is think think at business going, our pickups to customers, point everybody good the something able for made And basis probably We're like say is to superstar missed to look, I think this sophistication price point point, a of where want the do the this I really not those I which base Should you could have -- a it? at we but have looking you table this the and the of team pricing, price that really price increase. look we're we has or had granular the

mean, didn't granularity exist several I that within years at level the of company ago.

of majority talks we within the business. large, is Stericycle that take think to in pricing the level pricing I of So related group within about, can Stericycle, that Rafa's $XXX cost mean, that really palpable. sophistication about And is think point Really, the million that to I large internalization. same sophistication or the Rafa I

in whole is And some, lot There not respect price. a to so there with a but there isn't lot.

we I've away is thing about also good with lot a say years Stericycle. and not at I a several that. certain number about talked chipping only that been of price, So the in about but about we cost, I think will we've And And not replacing business, that ago. talked feel one core positions cost.

have I replace last we about chosen about not I we've X,XXX end to that spans another is recycling think up is from it's different But the we're right, X,XXX coming to primary [indiscernible]. areas. One upgrade through functional John, conversions other think, year, as areas. we the facilities. these that X But positions of these

Jerry Revich

to not might that Tara, versus given you we're that landfill that's be on numbers? out last feels production that really full ask, XXXX per looks I on good Is the gas on can the that laid you schedule 'XX or the about the environmental And quarter. higher it. in happening It ramp you talk out Got ramp coming see getting maybe OpEx what's online coming right? just the as 'XX if MMBtu Can comment Can like like up. you EBITDA the credits. that is maybe

Devina Rankin

if you Jerry. range is point, update look It's XXXX driven a by And and our at updated that it also OpEx. great

gas about cost electricity. think renewable plants, it's category highest our you natural If our within

closely working our to out figure consumption are very to we on reduce ways So in lock rates. and power

necessarily landfill confident has online the but the side important be that end all to we're about But that We completed flows. The So And that's X that a bring good really plants construction. we gas of one our have optimizing going the of feel going fantastic because and But a very plants completed. we XXXX on really John have in the of by on that X plants are done will XXXX, item. won't job team commissioning. is see timing on these in note of XXXX. into done most our to revenue We're curve. leans in

We momentum have solid there.

Operator

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

Trevor Romeo

growth more revenue growth to about organic you on performance from for could the perspective a expect First, back side. the the was wondering that and drivers pre-synergies? to an and some could a include 'XX of clarify, benefits. kind number X% either Stericycle especially going if and EBITDA for just Just then revenue doesn't I it of talk organic or cross-sell performance about 'XX, the you QX maybe you just is just that margin way, maybe Stericycle, organic in if of any like-for-like talk

Devina Rankin

Sure.

Stericycle about was I the like think earlier, we synergy the when $X capture. said of that look million fourth at quarter, in I So performance

generate X% the of we the And Solutions the in at the of when last they've a growth several rest will over the can forward being generated ahead business. that business, look what so you change it, performance from in the step to years. the Healthcare year we look is And

to to step fleet were for the the primary that opportunities underway see historically reasons: with And They optimization. started being upon order to to X and facility we operating regard we that They one fourth possible some have fleet. recharacterization of McCarran at had asset some coming better of that as fleet. into quarter. online they accelerated being cost, expansion used recapitalize execute fund their network leases other their some with change in And the and a knew the and

up a in we to ability so capital those and see cost reduce have instances organization more funding costs for to to fleet. our And able approach by being some a better by the intentional the XX% of to

Rafael Carrasco

data one revenue weeks, would thing we'll the have the have Rafa. a the OpEx PIs contracts Devina And I now is annual more going allow The over and well. earned on in capture we leakage. -- Yes. of Stericycle very And couple been the in it side in in revenue that revenue Trevor, covered better outside is our will of to overlooked us it ability that of prevent then add to add $XX,XXX had past mart. and one to single every this that it's

us gives XXXX into confidence well. going that as So some

Trevor Romeo

Great.

the there X% little number, you just of an bit expect the a like, So uptick but outlook EBITDA revenue it to sounds is clarify, an as well.

Devina Rankin

That's leakage mentioned business. X.X% X% to some revenue correct. and expected offset in X% price volume that execution EBITDA revenues in that Rafa with the on the on of depending FI range

Trevor Romeo

puts my of expected maybe disposal cyclical portions point business, takes of year. I the maybe collection volume outlook for specifically, and maybe likely some could to guess, Okay. -- Great. that the and hear. guess, how on what are in the to and the specifically how are that X.[ you they about -- I rebound? And be and more going for follow-up, thinking That's this to the volumes, good to XX point X.XX ] back

John Morris

Jim good though, MSW statement you in mean we there. you there optimism with we I down, business opening change, and the as think had landfill made So perspective. break a I if some Trevor, if our at it comments. it have some volume specifically administration the from to C&D, look momentum start

Our special strong. pipeline waste is

results waste special solid year, that we're the about for 'XX. were Our through and optimistic

I highlight as is residential, percent And one made part number. that. would a residential volume going do The to about our X.X-ish that Jim intentional shedding to the of of comment we're continue

calculation of business. volume As that's XXX XXX prepared points. the up basis that benefits part a us routes. is. We're we're to what that, close getting down of in on there my I and We're remarks, mentioned to XX% doing There's lot

residential have trying you are opportunities some team commercial piece I side, back the capacity if of kind good volumes where momentum that remarks, the volume there. But softness the acceptable. and some And as margins in we've out there. at to mentioned got look disposal around on strip for my look we've we've and a the and some to that seen industrial business, we I of think bring rallied got But

Operator

Our Faiza from of the with line coming Deutsche next Bank. question Alwy

Faiza Alwy

first business about some to what opposed the sustainability is recycling energy goes renewable that the the to understanding in in disposal wanted -- collection as I So I'm and of business. that ask is the collection and

get So $XXX of a just million to is increase how EBITDA, projects? sense related to in much of sustainability X% the wanted the the I

Devina Rankin

are foremost, $XXX the going our -- million What And segments, XXXX, That's is from then gas. in So And when that's happens royalty XX% that our are there first the business, look you EBITDA recycling. go and the $XXX we're a key incremental Those see use elements. and with to investments. paid million. really roughly showing landfill business. you'll fees renewable their collection for the of growth to we're collection energy to into deliver at certain there's EBITDA related business the about disposal

Faiza Alwy

Okay.

is out, your the and some assumptions the gas as pricing? if the cycle it's then could maybe you us Okay. help it cadence was various And I'm of buildup tariff of around synergies the laid quarterly OCC I of items. relates costs with Understood. on commodity what And hoping you natural that to some whether and of the thinking

Devina Rankin

in with at first to of half year can margin I I in you and base automation, comp solid the Sure. expect think look the X QX the can business. on toughest say it's saw take a would we take some it because is in particular, you as hold. We And momentum our what this. if pieces, traditional the is the regard of XXXX, pressure some basis about actually year-over-year

we a muted in look so half. in first may and but from little And particular, would collection say and more an earnings QX disposal growth margin

will capture of in the then year. expect be the ramp of that weighted the synergy And the Stericycle significantly towards you second business, half more

of the recycling into commodity of the more earnings that see recycling sustainability prices because associated We see growth, half we say would the then QX. to on start pressure, in pressure I you'll impact first because get with of as the being the more And year-over-year businesses, of comparisons. prices. actually momentum of downside So commodity that XXXX the of

Faiza Alwy

changes I new and you're change a that? anticipate just and mentioned if the to Great. wanted in around the sort I there? anticipating curious changes you administration we the more could Like in. funding ITCs. IRA of just to the I'm that, If sneak related any one should given

Devina Rankin

certainly not any expect changes. do We

made. our remind closely. decisions of on interpretation those everything it's our think our gas IRA think I watching capital was But being We based before the those that benefits will said, are that That ITC everyone decisions get business renewable natural investment to important we for are really We in made place. where secure.

from excludes period benefit get ITC. the years payback that of that the And we incremental X

of this irrespective that benefit. profile significant the return business it speaks to of incremental So -- really

James Fish

-- even the came would that alternative if put $XX we plus bonus number something did as $XX of exact XXX. put I million an be tax north said not the fuel similarly, credits earlier, would is that not we that and depreciation something bigger And be back, We Devina think also that the number, in, in. on million, have

not We credits. sure we're so feel put did -- So we investment but expect what bit strongly that TBD, remain. a those the there. tax It's in will of to

Operator

with Chiang Our next from Kevin the question line CIBC. coming

Kevin Chiang

the on earlier, thanks that's of a you this look revenue the the echo disclose 'XX, disclosure -- the I helpful. but that Stericycle Maybe a I of percentage percentage synergy cross-selling clients might opportunity could of very how get guess, opportunities, long-term sense opportunity significant health use you not maybe did be? as care some the missed just of, talked today, about big vice to or you here. WM versa, past that It's I

James Fish

of I kind that. Rafa, if assessing still you. know, We're don't

Rafael Carrasco

and national actually a assessing our their accounts, And excited right the sales we has a are of customers of leaders commercial WM now. going last that. for the placed over functions see frankly, merge large atop no, grown of number been double-digit the sure we're accomplish at between we we parallels in say, pace because that what Stericycle still we've making see the we just commercial teams. opportunity years lot to some and of we mean do to and you particularly was which, can as know, with with able looms Yes, in I in concentrating I process were a those and us. what cross-selling X we We've

Kevin Chiang

We the and shedding. previous exciting know trends. It just in the a QX volume of quarter a I little helpful. it bit, some step touched at -- the just did down of maybe an the rate, trends guess, That's versus this intentional the take on growth residential like I a look bit And opportunity. sounds you

wondering incremental guess maybe in terms we've down intentional opportunity? the we accelerating yourself or you 'XX, of in like specifically trend Just of of more what like a of what I in annual QX front terms to more X And of given does look that there? volume like kind in that basis you looks can the inning kind that shedding? maybe saw Are the find it seen attribute delta X% in we it handle with on an that

John Morris

be Kevin, you, lumpy. a can that tell business little would I

through I think If X.X% certainly and X% when think you heard what that But range you through routes period. would think what 'XX probably again, could and reduced over is and I we 'XX I contract, up highlight the you that is QX. on what no, lose at probably from here can to Jim I we expect. follow we But is look both XXX it,

It's basis a in We've been this XXX by haven't year to been improved shining which in say long points. collection a margins we star, able time our business.

whatnot. -- the margin we from and service standpoint, continue So other I the from time get being a mean, to return a and from going standpoint and on that all for from I a safety benefits We're path a from think

James Fish

it price a we we up, margins we're happens do this anybody. actually the that's with business. we at at end whatever, we underwater customers, we so many bid What residential they're be just contract on acceptable that or clear And cases, us. or would losing that to is when fire it lose flat don't up if And if if in how these comes aren't go acceptable, just a Well, okay. it.

Operator

Konark of Scotia coming question next Bank. Our from Gupta the with line

Unknown Analyst

that. Stericycle And back the I to health business. congrats get to doubling to or care just see good want synergies, on the you're

do million Your in including over to especially CAGR growth XXXX. when $X.X baseline, in we that the guys X a in EBITDA XX% [ as compare $XXX at XX% I looking and obviously, was EBITDA. billion ] guess, to business, use If about suggesting guidance years, revenue envision how is, you that you directionally in that what next synergies at the pre-acquisition X, Stericycle about

Devina Rankin

were eye us for the weren't this difficult XX% prior at going but through consistently had we diligence growth point. seeing rate the and XX%, team create specifically on long-term always that it's indicate you, delivering tell our that to when would certainly I also we processes, to on So strong traction

the of business. doorstep So the see we're we in this of on change step growth profile that do a

a synergy for top to be and though, that will year has early too specific big capture growth for that It's in the we XXXX leveraging WM a indicate terms of that take growth. approach us, line customer-centric rate. and ensuring

can a You growth pretty for that moderate line is see top year of XXXX still business. this

in see XXXX. We beginning expect that a to step change in

James Fish

on into on some one to hope And ownership than this thing Investor months having able here. give in little additional add bit this you We're Day X it. really June. less to be of a to We color

showed. incremental thing add to I earlier which that down historically on about this already take value And business of amount XX% this more we but of the initially team think significant XX% to we opportunities, and these Rafa synergies like, how to able little the about revisions have there's talking improvement saw a talking we take like. range, revenue is have think XX%, was we'll 'XX the bit significant time a to bump about remainder for by we when look business being like better side. started XXX 'XX the great shape. [indiscernible], of because But than that to if has one June, from synergies maybe this get synergy that of done looks I mentioned over those post So aiming XXX. identifying to I coming SG&A acquisition, to percent a what as were in insights excited SG&A into first the what looks job from But a I'll of even thing might sort now, a we're any the super really starting

percent eclipse targets our if about set [ line an now, know, the XX. I time. you that's what we as mean, we're to in like right to under about some own well. of And think important hovering our already that's we're we have ultimately, But have to number, and and I revenue now going question as think ] we on, you growth, would as of XX a beyond. get take asked -- you SG&A going sight element that

Unknown Analyst

And didn't I appreciate here battery run sure. the front to the for I color that. on want great. That's

situation? -- how help Can I'm expectations? So cycle understand ERP you on to the challenges we had how are And baked going we of trade your into is cutover that just ERP or or in transition 'XX. look that tackling kind year of much getting they some us last that. you forward were through

Devina Rankin

Sure.

important -- that really Stericycle optimize months using needs change what's team to So for they of operational see and team part what of not WM our the we exist much to the itself the focused is us management on in first And systems. this having with people. that technology X processes part more being on new our of technology and and so the is connectivity

bringing our impact you how on of the a run so technology team is And laser-focused of total together business. the on

focused on a redefinition got we've quality, so of process focused And on bringing and that's together. team that data all

$XX would we ERP. the that's spend that million million to in capital the expect around for between know We to provided for another we in And the be We that. on XXXX for $XX expense all spend investment year earnings, year expect ahead. while this of in split don't not currently and initiative incremental the

bullish is step So change a about. another going something but so that's that TBD, we're reason the that into that's XXXX

Unknown Analyst

terms X.X the I end great. sort that last this or leverage just the That's perhaps you're maybe. X X.X end good year. at might to the X.X, year. deleveraging? run XXXX, And by That's one do last And guess, be one of seems of you for It down close Is expecting from, me, on side. you of rate of expect so a in like

Devina Rankin

long-term strategic X.X And business opportunities. of great our is them. question. Xx. what our optimal provide to a acquisitions for for like that's when tell that is see powder It's dry target I you in We we plenty think order to would

you of some cash could million $XXX debt guidance, some the reduce if see we flow relative in we to the free see that reduction. cash With our moderation expect opportunities that tuck-in generating in debt to the acquisition included million That use $XXX said, to we in business, power XXXX. of of our level outsized flow to

earnings not Healthcare that from While that tell get range. core back will XXXX, an specifically you fundamental organic finish where in to really that provide Solutions both to momentum to what you prepared how to our business growth, we approach target is sustainability and in hear I the delevering think is the I'm we

James Fish

anywhere neighborhood is 'XX. million we that's last one team. in probably the the improvement, doesn't in on early team But an we opportunity working on, baked has $XXX fantastic have us something as that happen that which reduce point these receivables you a until outstanding. for It in maybe that And that are The ERP. cash haven't of identified --

So more that it's there improvement. even it us. high think DSO we But really could XXX as out a be as maybe is for

Operator

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

James Schumm

Any you're Most of what most RNG, my are questions can have regarding change you the answered. there? at us update But moment? facing been significant on delays the

Devina Rankin

any the then projections other 'XX. -- completely by the early plants the of constructed. remaining our since haven't call. last of in the have said XXXX, end our We 'XX Like we'll I our in but X before, first X And updated half of of all

you like getting happening what's still So Or we're the the with an But past, that -- presumably, are delays some is interconnect I on what in issue? delays had think there? track. an

Yes.

had have will when we with of in final mentioned We've some closely into the past, were issues and really worked then interconnects line X permits. we of our complete. sight interconnects utilities and on those So utility that biggest

did we feel So in the past. today more we than confident

James Schumm

you well? gave by of the that believe the get XXXX will there. as you the all And shovels 'XX, the ITC, such Did ground in for receive you on you in XX then end guidance ITC projects

Devina Rankin

XX will for the be All projects eligible few in ITC. than Yes. the Yes. Canada other

feel So confident we that may... we

James Schumm

And lastly, Great. just Okay. Go Sorry, Davina. then ahead.

Devina Rankin

in building facilities the the on also Well, content We've we extensively that amount super maximize so quickly. of focused the ITC. domestic

the $XXX for million been that $XXX XXXX, in you the exceed long-range to we're benefit. XXXX, look in we previous million committed. going our to you range And had that see million plus when at had So ITC target actually can captured million the $XXX we $XXX that

James Schumm

right. Right,

lot you into now, on off the you're think beyond projects? stands of look the projects. And is that it as right you'd so you Okay. bit you'd additional a for of RNG to the venture but it's operate these something know that a do those? guess I in and I own working you And a now? joint future, Or just then engage But have a so remaining incremental on opportunities do do have XX lastly, work to lot or still

Devina Rankin

beyond projects, look and that gas tracking could and are future power opportunities RNG like. we first is So more projects, these could the whether of looking team whole we put XX at to -- a the plants, have host it's we actively what landfill use,

we to doing haven't decisions partnerships We them made and any where come. others ourselves. that's yet or -- We at with had look could on

and the think we've important is thing optionality, and to remember we've maintained maintained I that's most of a assets, good control these thing.

Operator

question Our Sabahat RBC Capital. Khan coming next from with

Sabahat Khan

of Just quick a couple ones.

more some for year? of on the macro the here And bit cyclical been that Just challenged guess rest a few over the to last on start 'XX. volume off, I of view sector underlying or guess the assumption industrial when more years. have the we look for what's volumes at just maybe specifically the for the the I

James Fish

Yes.

that residential, talked and has And have the that. that been the I the it's intentional. volume U.S., the reflected somewhat quarters. recession morning, is at segment -- over a few soft that's in lot front. John I is think really are us. softest We've of that you I kind industrial an been side, the the which has industrial overall you've been this been if could you highlighted slowest production our X mean of which areas look for And last our mean, in numbers industrial one about on argue we've where

intentional the that's mentioned, those Love business those And tell we're haven't expecting new in we soft. halls. a it. administration baked but cautiously you in as one we I rebound not have been along And see to anything are XXXX. then is lines. those honestly, what John industrial about the brings And with to respect And would our not in big optimistic growth,

landfill of is business that superstar -- John respect has been volume. here line of the for has I strong. will kind mentioned us say been the with to MSW

pick up. that's talked is well, good pipeline You about our to as special and starting waste

with speaking all optimistically had just quarterly our our they about of we So waste. were reviews and area vice special pretty presidents,

you think, kind we're of tell pick that -- cautious see would that up you volume on being, exceed. X.XX%. industrial But I number I is side, So at to fairly to that X.XX% think I start should can things the

Sabahat Khan

bit about prices. a there's then of earlier discussion commodity And Great. the

the demand Just apparently, there's at been the port, some clogging evolution environment. in some

And cautious that? baked rest for recovery year? this a XXXX finer into if that assumption, is into just Just of color bit put how what's a more on the assumption on how or commodity your price point much you built

Devina Rankin

from for commodity which XXXX down prices our recycled So is ton, at is $XX. slightly a assumption $XX

important commodity December, the what's trough. the $XX were been of around to prices a that note Here's ton, exiting bottom and has

news the If you strike, a very at that were look for closely happen. port January, we've good and not tracking January uptick. we an did potential the is And already seen

provide seeing we're for holidays some generation commodities. slowdown the great seeing improve. post Also, on good now should movement structure prices we're that to So

modeled that is way the So year. it the increases we've throughout moderate

Operator

the Citi. from line coming question Burgmeier with next Our Bryan of is

Bryan Burgmeier

quick commodity sensitivity do think of recycled to a Or I the press maybe next the recycling earnings the release more growth? you earnings processing really the years? you lot maybe recycling to earnings I your opposed as commodity as the the with earnings steps new will scale will very I over commodities on as sensitivity to in the Just earnings One, prices. of rely just thoughts updated next prices? up on up wondering of step couple overall think fees sensitivity X kind in years. was appreciate have Do ones. just couple

Devina Rankin

of I think when automation And to important is these great we these prices. outside facilities Absolutely remember what's question. the made in investments much of benefit comes commodity

to out system, through has benefit we've you at do automation automated of the If look nothing that roles the XXXX, commodity with and really prices. over XXX

to going So run revenue. independent that's a that's to benefit straight EBITDA of

Westside plants, our price and out And of Cardboard to then premium. of able our is we're on ago we're was at we what getting how produced. a months get coming clean price a a couple Morf those premium I

X those aspects commodity prices. really So independent are of are that

The other this we model for we important paid note, that at is spent to were making a thing sure that lot we fee-for-service processing. I that evolve time our looking think and is week, really we and get first of

sort created a prices think of when commodity about decline. So floor we've it you when

grow same expect. here way. certainly will the as So up to little going is bit, would the a range volumes our you not It the at we level scale but same in not that go

Bryan Burgmeier

I quarter. just solid then can waste And it. I internalization, it. That for and XX% is it me, question Got last over turn makes think, this Got exceeded sense. your

that's think an I high. like all-time

I than Advanced optimized was the WM maybe originally expecting? Just you Disposal just that's plus or maybe internalization was curious moving for see Or fully maybe XX% you forward. on yourself acquisition. Do XX%? higher did consider after thoughts what always if penetrated broader potential at

John Morris

the the ways you mean, that That's facilities. on would constantly from a put focused good in I to find tell a volume I to we're Bryan. question, basis trying cash-on-cash right

rest me heard talk team over value and of landfills. the about network, the least, lot the just a quarters at not handful You've our the of of the last

rail Midwest. comments I that the Our we opened in my mentioned operation prepared in logistical up capabilities, another

We We've capabilities. got network the seeing look group, assets. think great And continue And rates. job our what's that's part positioned been planning I for doing of that's out of opportunities. team And great it. has driving a intermodal think those I what our building internalization to you're in

Operator

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

Tobey Sommer

should when the years look compare delta If isolate returns the of April you Day X do with what your Investor you there margins one? from recycling, be the could of your ago discretely drivers if and and those on kind how almost existing RNG at

Devina Rankin

when So our that's returns we've business, on is about it you really are tracking Day. our EBITDA flow-through the and seeing. biggest XX%, RNG look at pretty closely been Investor what to thing The

about increased, has capital been been within still and Devina -- transparent really The that, X-year has had our mentioned. we've that but biggest range change that pretty

than helped investments new recycling been build where Canada, We've in side, we these to a really there. new that Other right we've facilities we're investments us have investments. and these what on say result to to contracts new we've the a not leverage there, of with modeled, as lot customers. these gotten On able there done whole

So to we're seeing more volume plants. opportunities for come into these

Tobey Sommer

as if Is relevant could immigrants I that players illegal because my business? of industry whether that and the a your immigration matters you sort may about discussion change the that compensation. some a for And some and at -- wondering there's been to employ company smaller subpar local follow-up, talk was

James Fish

and think can't really pride for good it's relevant don't employees comment paying anybody we a our of and our I not are ourselves of on I But on wage documented, employees. us to all else. all really

I don't -- I So can't much say others. about else

Operator

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

Brian Butler

going just that talked that one $XXX Quick the weighted flowing to How on pretty about be that more or we sustainability, on Is you incremental even? quarters? think million through about. should back-end the

Devina Rankin

the really So of XXXX. X X at have the RNG plans back the and first end I of the say, about which the to on completed into had would in second of Then X half, QX. because we rollover that earnings we're those minimal of way that the show the in other think have plants a side, loaded, in year the of impact more the the half to going are we those it really XXXX, would impact X

we've costs impact 'XX. shutdown what On in automation in of the to we also those 'XX And XXXX. seen, going in the did have side, have than some less investments We're we recycling again, benefits. rollover

a more bit it's even distribution. So of an

Brian Butler

perspective, administration. year contracts considering That's the you potential your under the strategic on some with a especially new helpful. those thinking the kind from kind helpful. term, thoughts kind on then doing for you're RIN where Maybe the of volatility And which the prices? what you gave just the how strategy super of Okay. dealing could volatility your But are locking on of in RIN about in pricing, longer sensitivity, be is

Devina Rankin

Sure.

and up voluntary and market, XX% presold team RINs at fantastic that of they did sales XXXX and is mix a job a So XXXX locking first, of for some the projected had -- the our $X.XX. about of

at very able you in the feel -- and XXX should is that. we market the And to to XX if look that confident able today they that. [ that So we have do ] where being were for that we about sell, balance opportunistic to be do

activity split, taking year year that about lots we now, would we future towards talked there in, about who proactive we're CNG to on against Right we we're fleet fact of RINs are at out, the a getting pretty going where have I approach XX% the generate we make and would a locked and the players are portfolio trucks that whole And in some always our a balance robust XX% right the we There market XX%. that of where out have way. a in looking side. really We've voluntary XX-XX-XX to more can up say, monetizing there that decarbonize. have from sure years have

Operator

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

Toni Kaplan

I the shedding. ask about wanted resi to

something from market. in ago were long contracts were were these time they signed a inherited the just or wondering, acquisitions and that Just changed

not why wanted rationale these to the understand Just that anymore. profitable are for contracts

John Morris

few although think, few it's things. underperforming. few I'm a think it's acquisitions, I a it's I don't think I that we a were Toni, acquired necessarily things. But sure

you've prevalent line one, labor seen of think our seen was I residential in it's and inflation, business. that you've inflation, most always

the the we're by offsetting intensity and lot business, a model more in of changing seen driving of that, we've think labor I and because cost So automating lot pressure that that labor, of out risk. a

any approach. of And It's portfolio segment not it's in business. particular a one

have the when want any I over that's on X to be we assumptions contracts. The first any a In terms would are of when cautious lot it's duration, of to particular I it's our more X to I making you, X X comes X best years look it anything those say contracts wouldn't years don't X, X to thing length. in to going X. day that to to are the what like. I of we're is day tell

Toni Kaplan

cleanup just wanted could that I from from your then guidance and would know I you confirm it. California to this on at wildfire -- talk Got Great. that early, And but potential volumes. the there's And in upside. that the it's still nothing volume impacts just be point, the about

John Morris

thrilled The are Toni. mean, over the weekend. team about. folks we're and first of the other been was Yes, displaced, nobody have that safe. day, out our in news which as is And California I with our good foremost, I actually all

safe. operations Our are

solid benefit, there's a In California they've upside point. the our put at assessing in million look a they're the the really be meaningful terms of folks for bit that when doing in -- There great right of Southern $XXX guidance little any there. waste may in business, you But are there at now. for this nothing

Devina Rankin

our about X.X included included have that, We the volume point revenue in dollars for both is in year, flow-through of guide there and and of the EBITDA margin.

James Fish

a I difficulty out probably you natural question it's back it. something. think such X can't But The we disasters. about we of every -- see good in these X over looking it's important -- the also predict is decade, last years,

the we lot whatever just Northern volume not example an any that or probably fires was or but of see California, those Florida tornadoes really time XXXX where natural from or happening. in hurricanes is, weren't the is Midwest XX% the there disasters, it's Southern whether in disasters. So in of of year didn't something it a

impossible something initially, had And will been have something see predict And any XXXX, we it's But to very where or so impact. factor -- have we we and to it put it. recapture it in it's work of difficult being some these. in happens against likely we and running the in would for we again, upside therefore, uphill. up we it initially in us don't ends the year don't have that years either

John Morris

Yes. ready our The help all back is for our to when I get last those communities assets point make, very I and their positioned are folks out feet reach on well they're to think help. Toni, that

Operator

Our next question coming of from the Tony Bancroft line with Gabelli.

George Bancroft

ask success. and I was Great congratulations quarter. just your Jim all and want on I another on team, to call.

some you large that about a regional you talking remind So already sort out maybe have Xs I on maybe with Solutions the of of seems that highlighting were somewhere you're just Xs a there bit growth define of Could there lot of just Are market to little But just more going please could transformational me asked. there's again what and other seems competitors? since growth. of lot there's of regards business, it's are sort there. a like it competitors? through sort stop Healthcare walk it know you us like potential like there sort but -- obviously, or if

Rafael Carrasco

lacking portfolio sights you going making on with we obviously, were that we kind I about customers, Tony, maybe there out we're really look the back Yes. a something didn't of Rob. set they ability is who What we we see to that that. the with this we sure maximizing and of because introduce necessarily assets is, of on our was to what and tell all But to when and comes Really, the of largest most that can and properly centricity competing network with around that lacking assess was territory to cross-sell the lot had as customer acquired I we mean, Stericycle discipline Stericycle. focused a synergize comprehensive

Operator

question the coming of Our from Jefferies.. Harold Ander line with next

Instructions] [Operator

Unknown Analyst

about Sorry, Yes. labor been that's double been several has on has just labor turnover calls. talked apologize. these muted. been something of -- I

over is of X,XXX redundant you inflation So on a you sand have now -- an to think running turnover time. period update just expected on get is what when be jobs another said the labor

on So just stats what wanted to update are XXXX. in turndown that get those again an

Devina Rankin

in basis then frontline and the from quickly improvement color. best John add a this frontline take exiting labor I'll perspective, XXX turnover. XXXX can we history. we're had a our point in It's with some Basically,

at be X% then about a expect to the do run range achieved think ahead. abate, the are year actually pressure seeing inflation had wage turnover XX%, wage to be while X% continues inflation, And we speaking, frontline generally we in CPI top of look rate we fantastic. to when CPI, So we which wage pressure for above and

John Morris

going we and the in anything in us searching why I on make gave hear because talk labor is and that's that. suggest term the see why so don't the it's in -- plentiful about technology more the that and Devina a years thing are to the over you less answer, dependent. Harold, That's good is only I'd pool long the investments would to the for next term automation important horizon you that emphasize, going us our much or short candidly, after that that the year we're labor think be I think

commitment investments. So it those reinforces our to

Operator

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

David Manthey

right. All

quickly Just the on math Stericycle here.

$XX EBITDA you guess in which If run rate million XXXX. that $XX million for did implies run I in a roughly fourth million quarter, rate the implies a $XXX

the You're the math in million guiding into by including $XXX synergies. million backing in there $XXX XXXX, to

better business a you're So as definition question, synergy? of based all way Health Solutions are forma improvement ask just EBITDA? pro cycle to stair you WM defining the on XXXX is And for the assuming maybe what's EBITDA that the

Devina Rankin

Sure.

implying of around for $XX then on of together the $XX the measured When million So $X basically, projecting of WM on rate year to million brings you number base that, QX of a of adjust that implies in $XXX-ish a in the We're it that a for synergy synergy $XXX included we're $XX expected the to basis million capture. the business. EBITDA EBITDA capture million ahead. growth that's year and you million X% business all full million

Operator

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

James Fish

in on you on all look and to [indiscernible] next Well, Okay. next week quarter. for to you. take your We Thank for of you'll thank excellent questions open hope Channel this again our morning. my you Phoenix that. There's forward And Golf talking plug the we CBS.

Operator

for participation. concludes This you today's conference. Thank your

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