US Business Services: The short haul (primer) on US Waste

This note provides a short primer on the US Waste sector, covering Solid Waste Collection, Landfill, Recycling, Renewable Energy, and Incineration. Waste companies are often referenced as "quality compounders" defined by enduring moats and defensive growth. Collection (55-65% of sales and EBITDA) benefits from route density, but its economics are ultimately anchored by landfill ownership and disposal costs. Landfills (~20% of sales, ~30% of EBITDA) are the crown jewel of waste assets, with pricing ~200bps above CPI since the 1980s. The industry typically grows at a low-to-mid-single-digit rate, predicated on 1% volume and 3-4% pricing. Landfill EBITDA margins are 40-50%, Commercial Collection 30-40%, Industrial ~25%, Residential 20-25%; Recycling 15-20%;