James Somerville's questions to Waste Connections Inc (WCN) leadership • Q3 2024
Question
James Somerville of Eight Capital asked for clarification on whether M&A targets are gross of shedding and inquired about the expected future rate of shedding underperforming contracts.
Answer
Executive Ronald Mittelstaedt confirmed that reported M&A revenue is a gross figure. He explained that the recent elevated level of contract shedding is a function of high M&A activity over the last three years and a weaker macro environment that makes the impact more visible. He expects the rate of shedding to decrease going forward as many larger items have been anniversaried.