Haulers show strong performance in fourth quarter, overall year
Hauling companies had a robust year in 2024, marked by increased revenues and significant mergers and acquisitions. The five largest publicly traded recycling companies, including WM, Republic Services, GFL Environmental, Waste Connections, and Casella Waste Systems, all reported higher earnings for both their fourth quarter and the full year.
Commodity prices played a crucial role in driving up revenues for these companies in 2024. This positive outcome contrasts with the previous year, 2023, which was marked by overall losses due to declining commodity prices despite a strong fourth quarter. The industry also witnessed record earnings in the third quarter of the year.
While the haulers attributed their increased revenues to rising commodity prices, the Northeast Recycling Council’s MRF Commodity Values Survey Report indicated a drop in the average commodity price for the fourth quarter of 2024. The survey, based on data from 19 MRFs in twelve states, showed a decrease of 23% in average commodity prices without residuals and 26% with residuals compared to the previous quarter. Single-stream MRFs reported a more substantial decline compared to dual-stream MRFs.
However, despite this decline in the fourth quarter, the NERC reports demonstrated rising commodity values over the rest of 2024, reaching a high in the second quarter. For example, single stream recycled commodities saw a significant increase in prices, up approximately 50% in 2024 compared to the previous year.
Looking at the financial results of these hauling companies, WM reported a robust performance in 2024. The company’s recycling revenue for the fourth quarter was $398 million, up 14% from the same period in 2023. Annual recycling processing and sales net operating revenue in 2024 also saw a substantial increase of 27% year over year. WM attributes these revenue increases to higher commodity prices, with an average price of $92 per ton in 2024 compared to $62 per ton in the previous year.
Republic Services also experienced revenue growth in 2024, reporting $99 million in recycling revenue for the fourth quarter, a 15.5% increase from the same period in 2023. The company’s overall revenue for 2024 increased by 6.7% to over $16 billion. EBITDA for the recycling and waste division also showed a positive trend, reaching $4.5 billion in 2024.
The other hauling companies, including GFL Environmental, Waste Connections, and Casella Waste Systems, also reported revenue increases for the fourth quarter and the full year in 2024. These companies highlighted the role of rising commodity prices in driving their financial performance throughout the year.
Overall, the hauling industry’s positive performance in 2024 reflects the resilience and adaptability of these companies in responding to market dynamics and changes in commodity prices. Despite fluctuations in commodity values, the industry remains focused on sustainable growth and delivering positive environmental outcomes while ensuring long-term financial stability.
