Thanks!
Waste Connections' in-line results and above-consensus guidance reflect strong 2H margins and contributions from recent acquisitions that could propel low-to-mid teens Ebitda growth in 2024. Price increases and acquisitions drove gains in 4Q, offsetting fuel surcharges and declines in volume. Ebitda margin expansion included nonrecurring landfill charges that were on par with expectations. The 2024 outlook is for mid-single-digit organic growth, with 4% from acquisitions and 120 bps of margin increases, helped by the Secure Energy asset purchase, which closed Feb. 1. Free cash flow climbed in line with Ebitda and is projected to approach 50% of that metric in 2024, excluding sustainability capital spending and nonrecurring landfill charges. Buybacks remain on hold, given the continued focus on M&A. We would be happy holding this.