The company faces risks from fluctuating fuel and commodity prices, potentially impacting operating and capital costs. Legal proceedings and environmental remediation liabilities, including uncertain costs and timing, pose significant financial risks. Downgraded credit ratings could increase borrowing costs and limit access to capital markets. Severe weather events could disrupt operations and affect waste collection and disposal. Compliance with financial covenants under debt agreements is crucial, as default could lead to debt acceleration and liquidity issues.
Financial Upside
The company's revenue increased 7.7% in the first nine months of 2024, driven by higher average yield, acquisitions, and increased recycling processing and commodity sales. Acquisitions of environmental services businesses are expected to provide growth opportunities. The company's investments in renewable energy assets qualify for tax credits, potentially reducing tax burdens. The company has significant available landfill capacity and ongoing expansion opportunities.
