Core Insights - Waste Management, Inc. (WM) is a leading provider of waste management services in North America, offering collection, transfer, recycling, and disposal services [1] - Oppenheimer has set a price target of $264 for WM, indicating a potential price increase of 18.32% from its current price of $223.13 [1][5] - AlphaQuest LLC has increased its investment in WM by 131.8%, reflecting strong confidence in the company's future performance [2][5] Market Performance - WM's current stock price is $223.13, which represents a decrease of 3.66% or $8.47, with fluctuations during the trading day ranging from a low of $220.84 to a high of $231.67 [3] - Over the past year, WM's stock has reached a high of $242.58 and a low of $194.11, indicating volatility in the stock market [3] - WM's market capitalization is approximately $89.89 billion, showcasing its significant presence in the waste management industry [4][5] Investor Interest - The trading volume on the NYSE for WM is 3,670,753 shares, indicating active investor interest [4] - Other investment firms, such as Cornercap Investment Counsel Inc. and Wealthfront Advisers LLC, have also adjusted their positions in WM, reflecting broader interest in the company's potential [2]

Market Overview - The Solid Control Drilling Waste Management Market was valued at USD 1.50 billion in 2025 and is projected to reach USD 3.23 billion by 2035, growing at a CAGR of 8.06% from 2026 to 2035 [1][5]. Market Drivers - The increase in global oil and gas drilling activities is driving the demand for effective solid control and waste management systems due to the significant amount of drilling waste produced [1]. - Companies are focusing on implementing advanced separation technology and treatment solutions to manage contaminated drilling fluids and materials safely [1]. - Environmental protection regulations are encouraging operators to adopt eco-friendly disposal methods, further boosting market demand [1]. Key Market Segmentation By Waste Type - Contaminated Oil Based Muds held a dominant market share of approximately 58% in 2025, attributed to the large volume of hazardous muds generated from oil and gas drilling operations [6]. - The Waste Lubricants segment is expected to grow at the fastest CAGR from 2026 to 2035 due to increasing drilling operations and stricter environmental regulations [6]. By Application - The Onshore segment dominated the market with around 61% share in 2025, driven by the high number of land-based drilling projects [7]. - The Offshore segment is anticipated to grow at the fastest CAGR from 2026 to 2035, fueled by increasing deepwater and offshore oil and gas exploration activities [7]. By End-Use - The Oil & Gas sector accounted for approximately 69% of the market share in 2025, due to extensive use of drilling fluids and high-volume waste generation [8]. - The Geothermal Energy segment is projected to grow at the fastest CAGR from 2026 to 2035, driven by a rising focus on renewable energy and increasing geothermal drilling projects [8]. By Service Type - Solid Control services represented about 41% of the market in 2025, as they are essential for separating solids from drilling fluids [9]. - The Waste Treatment & Disposal segment is expected to experience the fastest growth from 2026 to 2035, driven by increasing environmental regulations and sustainability initiatives [9]. Regional Insights - North America led the market with a revenue share of approximately 38% in 2025, due to extensive oil and gas drilling activities in the U.S. and Canada [11]. - The Asia Pacific region is expected to grow at the fastest CAGR of about 9.39% from 2026 to 2035, driven by rising oil and gas exploration activities and growing investments in drilling infrastructure [11]. Competitive Landscape - Key players in the market include Schlumberger, Halliburton, Baker Hughes, Weatherford International, and others [4]. - Recent developments include TWMA securing a $15 million drilling waste management contract for BP's Mediterranean project and Schlumberger partnering with Cactus Drilling to optimize drilling operations [15].

Key Takeaways WM reported Q4 adjusted EPS of $1.93, missing estimates by 1%, though earnings rose 13.5% y/y.WM generated $6.3B in revenues, as Collection and Renewable Energy gains balanced recycling declines.WM generated $823M in free cash flow and guided 2026 revenues below estimates despite a higher EBITDA outlook.WM (WM) reported dismal fourth-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate.WM’s quarterly adjusted earnings of $1.93 per share missed the consensus mar ...

Investors looking for stocks in the Waste Removal Services sector might want to consider either Veolia Environnement SA (VEOEY) or Waste Management (WM) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on ...

Waste Management (NYSE:WM) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Company ParticipantsAdam Bubes - VP of Equity ResearchDavid Reed - EVP and CFODevina Rankin - Executive AdvisorEd Egl - VP of Investor RelationsFaiza Alwy - Managing DirectorJames Schumm - Director of Equity ResearchJim Fish - CEOJohn Morris - President and COOKevin Chiang - DirectorSabahat Khan - Managing DirectorShlomo Rosenbaum - Managing DirectorStephanie Moore - SVP of Equity ResearchTami Zakaria - Executive DirectorTara Hemm ...

Waste Management (NYSE:WM) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Company ParticipantsAdam Bubes - VP of Equity ResearchDavid Reed - EVP and CFODevina Rankin - Executive AdvisorEd Egl - VP of Investor RelationsFaiza Alwy - Managing DirectorJames Schumm - Director of Equity ResearchJim Fish - CEOJohn Morris - President and COOKevin Chiang - DirectorSabahat Khan - Managing DirectorShlomo Rosenbaum - Managing DirectorStephanie Moore - SVP of Equity ResearchTami Zakaria - Executive DirectorTara Hemm ...

Waste Management (NYSE:WM) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Speaker12Good day, and thank you for standing by. Welcome to the WM fourth quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your que ...

Core Insights - Waste Management (WM) reported revenue of $6.31 billion for the quarter ended December 2025, reflecting a year-over-year increase of 7.1% [1] - The earnings per share (EPS) for the quarter was $1.93, up from $1.70 in the same quarter last year [1] - Revenue fell short of the Zacks Consensus Estimate of $6.39 billion, resulting in a surprise of -1.21% [1] - The EPS also missed the consensus estimate of $1.95, with a surprise of -1.03% [1] Financial Performance Metrics - Internal Revenue Growth for the total company was 7.1%, compared to an average estimate of 8.1% from six analysts [4] - Volume growth as a percentage of total company revenue was 0.7%, exceeding the four-analyst average estimate of 0.1% [4] - Internal revenue growth was reported at 3.1%, surpassing the four-analyst average estimate of 2.5% [4] - Growth from acquisitions was 4.3%, below the average estimate of 6.1% from three analysts [4] - Divestitures showed a change of -0.3%, compared to an average estimate of 0% [4] - Total average yield was 2.3%, higher than the three-analyst average estimate of 1.8% [4] Segment Performance - WM Healthcare Solutions reported net operating revenues of $615 million, slightly below the four-analyst average estimate of $615.55 million [4] - WM Renewable Energy achieved net operating revenues of $157 million, exceeding the average estimate of $149.45 million and representing a significant year-over-year increase of 68.8% [4] - Recycling Processing and Sales generated net operating revenues of $355 million, falling short of the average estimate of $360.11 million and reflecting a year-over-year decline of 10.8% [4] - Corporate and Other segments reported net operating revenues of $6 million, surpassing the average estimate of $5.18 million and showing a year-over-year increase of 20% [4] Stock Performance - Shares of Waste Management have returned +4.2% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Waste Management reported quarterly earnings of $1.93 per share, missing the Zacks Consensus Estimate of $1.95 per share, representing an earnings surprise of -1.03% [1]. Financial Performance - The company posted revenues of $6.31 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.21%, compared to year-ago revenues of $5.89 billion [2]. - Over the last four quarters, Waste Management has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2]. Stock Performance - Waste Management shares have increased by approximately 5.3% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3]. - The current consensus EPS estimate for the upcoming quarter is $1.79 on revenues of $6.31 billion, and for the current fiscal year, it is $8.27 on revenues of $26.59 billion [7]. Industry Outlook - The Waste Removal Services industry is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges ahead [8]. - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Waste Management's stock performance [5].

Financial Performance - Total revenue for Q4 2025 was $6,313 million, representing a 7.1% increase year-over-year, while full-year revenue reached $25,204 million, up 14.2% from the previous year[5] - Operating revenues for Q4 2025 reached $6,313 million, a 7.1% increase from $5,893 million in Q4 2024[29] - Consolidated net income for the year ended December 31, 2025, was $2,709 million, slightly down from $2,745 million in 2024[33] - Basic earnings per share for Q4 2025 were $1.84, compared to $1.49 in Q4 2024, reflecting a 23.5% increase[29] - Operating revenues for the year ended December 31, 2025, were reported at $25,204 million, an increase from $22,063 million in 2024, representing a growth of approximately 9.7%[53] - Income from operations for 2025 was reported at $4,308 million, down from $4,063 million in 2024, indicating a decrease of approximately 6.0%[53] - The company reported a net income attributable to Waste Management, Inc. for the year ended December 31, 2025, was reported at $2,708 million, with a diluted earnings per share of $6.70[51] Cash Flow and Capital Expenditures - Free cash flow in 2025 was $2.94 billion, an increase of 26.8% compared to the prior year, with net cash provided by operating activities at $6.04 billion, up 12.1%[11] - Cash flows from operating activities for the year were $6,043 million, up from $5,390 million in 2024, indicating a 12.1% increase[33] - Capital expenditures for the year were $3,227 million, consistent with $3,231 million in 2024[33] - Projected free cash flow for 2026 is estimated to be between $3,750 million and $3,850 million, depending on different scenarios[61] EBITDA and Margins - Operating EBITDA for the total company grew 13.3% in 2025, with an adjusted operating EBITDA margin exceeding 30% for the first time, reaching 30.1% for the full year[4] - Adjusted operating EBITDA for the year ended December 31, 2025, was $7,582 million, with an adjusted operating EBITDA margin of 30.1%[51] - The adjusted operating EBITDA margin for the three months ended December 31, 2025, was 31.3%, up from 28.9% in the same period of 2024[45] - Adjusted operating EBITDA for 2026 is projected to be between $8,150 million and $8,250 million, indicating a growth of 6.2% on a comparable basis[13] Shareholder Returns - The company plans to return approximately $3.5 billion to shareholders in 2026 through dividends and share repurchases[2] Business Segments and Growth - The Healthcare Solutions business achieved an operating EBITDA margin of 13.5% in 2025, up from 1.0% in 2024, with further improvements expected in 2026[8] - The company invested approximately $400 million in acquisitions in 2025, focusing on solid waste and recycling businesses[11] - Acquisitions during the year resulted in gross annualized revenue of $2,622 million, with total consideration net of cash acquired amounting to $6,720 million[40] Sustainability and Future Projects - WM anticipates completing six additional renewable natural gas plants and four recycling projects in 2026 as part of its sustainability growth strategy[15] - The company anticipates capital spending of about $85 million in 2026 for renewable natural gas facilities and a new recycling growth project, expected to contribute to operating EBITDA by 2028[10] Pricing and Market Conditions - The company reported a blended average price for single-stream recycled commodities of approximately $62 per ton in the quarter, down from $87 per ton in the prior year period[7] - The average price for renewable natural gas sold in 2025 was about $31 per MMBtu, with expectations to generate between 21 and 22 million MMBtu of renewable natural gas in 2026[21] - The company has contracted 60% of its renewable natural gas at a blended average price of about $27 per MMBtu for 2026[21] - The 2026 financial outlook includes a blended average single-stream recycled commodity price of approximately $70 per ton, with a $10 per ton change impacting operating EBITDA by approximately $27 million[21] Debt and Liabilities - Long-term debt decreased to $22,196 million in 2025 from $22,541 million in 2024, a reduction of 1.5%[31] - The total liabilities decreased to $35,844 million in 2025 from $36,313 million in 2024, a decline of 1.3%[31] Operational Efficiency - Operating expenses as a percentage of revenue for the Legacy Business improved by 150 basis points in 2025, reflecting effective cost management strategies[7] - Operating expenses as a percentage of revenues for 2025 were 59.6%, a slight decrease from 60.7% in 2024[57] - Adjusted SG&A expenses for 2025 were $14,996 million, compared to $13,382 million in 2024, indicating an increase of approximately 12.1%[57] Conference Call - The company will host a conference call on January 29, 2026, to discuss the fourth quarter and full-year 2025 results[18]