On fourth-quarter earnings calls, waste management companies highlighted their strategic initiatives and sustainability efforts. Transcripts of the earnings calls, which were provided by Bloomberg, revealed three key themes: customer engagement, operational efficiency and sustainability investments.
Customer engagement
Waste Connections Inc. improved its employee-turnover rate, which the company said contributed to better operational execution and higher customer satisfaction. Ronald J. Mittelstaedt, president and CEO, said, “Our continued focus on human capital resulted in multiyear lows for employee turnover, now down over 1,000 basis points from 2022.” The company has expanded its frontline training and increased staffing levels, which Mittelstaedt said has contributed to improved retention and safety statistics. He said the company has prioritized employee well-being and a supportive work culture, which has created a motivated and dedicated workforce.
Waste Management Inc. also highlighted its efforts in customer engagement, focusing on maximizing customer lifetime value and delivering pricing performance in line with the cost to serve. The company refined the use of data and analytics to optimize customer interactions and improve pricing strategies. Waste Management said this approach led to consistent volume growth in key lines of business, such as special waste and commercial and municipal solid waste landfill. Company leaders said Waste Management leveraged advanced analytics to better understand customer needs and preferences, leading to improved pricing strategies and enhanced customer satisfaction.
GFL Environmental Inc. (GFL) focused on improving employee engagement and reducing turnover through various initiatives, such as providing training and development opportunities, offering competitive compensation and benefits, and fostering a positive work environment. The company says that a committed and engaged workforce is crucial for driving growth and value creation. In the fourth quarter, GFL saw improvements in employee turnover, which company leaders say contributed to the organization’s strong financial performance.
Operational efficiency
Waste Management said it has made significant strides in optimizing its cost structure and improving operational efficiency. John Morris, executive vice president and COO, said strong execution, automation and technology adoption drove this improvement. The company also saw labor efficiency improvements, with labor costs as a percentage of revenue declining by 60 basis points for the full year compared to 2023. Waste Management implemented route automation and resource planning tools, which the company said contributed to labor savings and improved safety performance, while advances in recycling facility automation and fleet optimization further enhanced operational efficiency.
Waste Connections focused on reducing overtime and reliance on third-party services, which has resulted in better operational execution and higher customer satisfaction. The company implemented strategies to maximize the integration benefits from new acquisitions and provide more avenues for growth. Company leaders said these efforts resulted in better operational execution and higher customer satisfaction. The company said that by continuously improving its operational efficiency, Waste Connections delivered high-quality services and maintained strong customer relationships.
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GFL focused on several strategic growth initiatives to drive value creation. These included generating durable price cost spread, focusing on quality volume, optimizing asset utilization and capturing synergies from accretive mergers and acquisitions within the company’s existing footprint.
Sustainability
Waste Management invested in renewable natural gas and recycling facilities. In 2024, the company upgraded automation capabilities at 10 recycling facilities, improving throughput, lowering operating costs and enhancing environmental outcomes across its recycling network. Company leaders say these investments will contribute to long-term financial growth and positive environmental outcomes.
Waste Connections focused on renewable natural gas projects and is working with partners to provide solutions for the treatment of PFAs, which are known as “forever chemicals.” The company is also working to expand renewable natural gas generation in its landfills. Company leaders say these projects will contribute significantly to the company’s long-term growth and value creation.
GFL made significant investments in sustainability-related initiatives. These investments are expected to contribute to the company’s growth and value creation. In 2024, GFL deployed $300 million of incremental growth investments, with a focus on sustainability. The company plans to continue investing in sustainability-related projects that will total approximately $600 million by the end of 2025.
The takeaway
The fourth-quarter earnings calls highlighted the waste management industry’s focus on customer engagement, operational efficiency and sustainability investments. These themes demonstrate the companies’ focus on enhancing customer satisfaction, optimizing operations and investing in sustainable practices.
