Financial Performance - Revenues for the third quarter of 2025 were $6,443 million, an increase of $834 million, or 14.9%, compared to $5,609 million in the prior year period, driven by recent acquisitions, higher yield in Collection and Disposal businesses, and increased volumes in landfill and recycling [129]. - Operating expenses were $3,833 million, or 59.5% of revenues, down from 60.6% in the prior year period, reflecting efficiency gains and improved turnover despite an increase in absolute terms [129]. - Income from operations decreased to $989 million, or 15.3% of revenues, down from $1,119 million, or 20.0% of revenues, impacted by a $152 million charge related to plastic film recycling operations and higher integration costs from the Stericycle acquisition [129]. - Net income attributable to Waste Management, Inc. was $603 million, or $1.49 per diluted share, compared to $760 million, or $1.88 per diluted share, in the prior year period, reflecting a $157 million decrease [129]. - Total operating revenues for the three months ended September 30, 2025, were $6,443 million, a 14.9% increase compared to $5,609 million in 2024 [131]. - The total income from operations decreased by $130 million (11.6%) to $989 million for the three months ended September 30, 2025, compared to $1,119 million in the prior year [166]. Expenses and Costs - Selling, general and administrative expenses rose to $665 million, or 10.3% of revenues, compared to $525 million, or 9.4% of revenues, primarily due to costs associated with the Stericycle acquisition [129]. - Labor and related benefits costs rose to $1,139 million (17.7% of revenues) for the three months ended September 30, 2025, up from $962 million (17.2%) in the same period last year, driven by recent acquisitions and annual wage increases [144][145]. - Transfer and disposal costs increased to $357 million (5.5% of revenues) for the three months ended September 30, 2025, primarily due to acquisitions and inflationary pressures [146]. - Cost of goods sold decreased by 17.4% to $233 million (3.6% of revenues) for the three months ended September 30, 2025, attributed to a 35% drop in average market prices for single-stream recycled commodities [149]. - Depreciation, depletion, and amortization expenses increased to $729 million (11.3% of revenues) for the three months ended September 30, 2025, driven by recent acquisitions and capital investments [161]. Acquisitions and Integration - The acquisition of Stericycle, completed on November 4, 2024, has been integrated into a new reportable segment, WM Healthcare Solutions, focusing on service delivery and operational integration [119]. - Interest expense increased to $225 million for the three months ended September 30, 2025, from $131 million in the prior year, primarily due to higher average debt balances related to the acquisition of Stericycle [168]. - Acquisitions spending decreased to $403 million in the nine months ended September 30, 2025, from $790 million in 2024, with most acquisitions related to solid waste and recycling businesses [181]. Cash Flow and Liquidity - Net cash provided by operating activities increased to $1,592 million from $1,358 million year-over-year, driven by higher earnings and contributions from recent acquisitions [130]. - Free cash flow rose to $821 million compared to $618 million in the prior year, attributed to increased operating cash flow despite a planned reduction in capital investment [130]. - Cash and cash equivalents decreased to $175 million as of September 30, 2025, from $414 million at the end of 2024 [174]. - Net cash provided by operating activities increased by $466 million to $4,345 million for the nine months ended September 30, 2025, compared to $3,879 million in the prior year [178]. - Free cash flow for the nine months ended September 30, 2025, was $2,114 million, compared to $1,862 million in 2024, indicating improved liquidity [184]. Sustainability and Technology - The company is investing in automation and technology to enhance operational efficiency and reduce costs, particularly in recycling and customer service [124]. - The company is committed to sustainability and has published its 2025 Sustainability Report, outlining progress towards its 2030 sustainability goals [122]. - The waste industry is experiencing increased complexity in waste streams and regulatory pressures for recycling and waste reduction, prompting the company to adapt its service offerings [122]. - The company is pursuing emerging diversion technologies to generate additional value and enhance its comprehensive environmental solutions [121]. - The company expects to continue benefiting from strong returns on sustainability growth projects as it transitions from peak construction to operational phases [130]. Market Conditions and Outlook - The company anticipates that inflation and economic conditions may impact financial outlook, and it is taking steps to mitigate these risks through pricing and cost management strategies [189]. - The company expects a cumulative benefit of approximately $400 million from the Inflation Reduction Act, with $145 million recognized in 2023 and 2024 [171].

Core Insights - WM reported disappointing third-quarter 2025 results, with adjusted earnings of $1.98 per share missing the consensus estimate by 1.5%, although it represented a 1% year-over-year increase. Total revenues of $6.4 billion also missed estimates but grew 14.9% from the previous year [1][9]. Financial Performance - The Collection segment generated revenues of $3.9 billion, a 3.5% increase year-over-year, but fell short of the $4.1 billion estimate. The Landfill segment saw a 7.8% increase to $995 million, exceeding the $986.5 million projection. The Transfer segment's revenues rose 8.5% to $396 million, surpassing the $391.5 million estimate. However, the Recycling Processing and Sales segment's revenues declined 13.9% to $372 million, missing the $432.3 million estimate [3][4][9]. - Adjusted operating EBITDA was $2 billion, missing the estimate of $1.9 billion but increasing 15.1% year-over-year. The adjusted operating EBITDA margin improved by 10 basis points to 30.6%, exceeding the 30.1% estimate [5][9]. Cash Flow and Dividends - WM generated $1.6 billion in cash from operating activities, with capital expenditures of $635 million, resulting in free cash flow of $821 million. The company distributed $332 million in cash dividends to shareholders during the quarter [6][9]. 2025 Outlook - For 2025, WM expects revenues of $25.275 billion, which is below the Zacks Consensus Estimate of $25.36 billion. The company anticipates adjusted operating EBITDA in the range of $7.475 billion to $7.625 billion [7][9].

Financial Data and Key Metrics Changes - The company reported a third-quarter operating EBITDA growth of over 15% and free cash flow growth of nearly 33% [8] - Total company operating EBITDA margin reached 30.6%, the best quarterly result in history, while the legacy business achieved a margin of 32% [19][24] - Free cash flow for the first nine months of 2025 grew 13.5% to $2.11 billion, with operating EBITDA to free cash flow conversion approaching 42% in Q3 [21][24] Business Line Data and Key Metrics Changes - The collection and disposal business contributed more than half of the year-over-year increase in operating EBITDA, with MSW and special waste volumes growing by 5% and 5.5% respectively [8][10] - Operating EBITDA margins in the collection and disposal business expanded by 100 basis points to a record 38.4%, with operating EBITDA growing more than 7% [14] - The healthcare solutions segment's operating EBITDA margin improved to 17.5% as integration efforts progressed [20] Market Data and Key Metrics Changes - The company experienced strong organic revenue growth driven by disciplined pricing and improving volume trends, with core price at 6% [15] - Landfill volumes rose by 5.2%, with broad strength across MSW, special waste, and construction and demolition [16] - Recycling segment's operating EBITDA grew by 18% despite a nearly 35% decline in recycled commodity prices [10] Company Strategy and Development Direction - The company is focused on maximizing customer lifetime value through pricing strategies and leveraging technology to optimize costs [9] - Strategic investments in technology and automation are expected to yield benefits in 2026, with free cash flow projected to approach $3.8 billion [11][12] - The company remains disciplined in capital allocation, expecting to translate performance into returns for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the healthcare solutions acquisition, despite a more measured revenue growth pace than initially projected [22][23] - The company anticipates achieving targeted operating EBITDA contributions from the healthcare solutions acquisition, with synergy capture exceeding expectations [23] - Management remains optimistic about achieving strong earnings, margin, and cash flow growth in 2025 and building on this success into 2026 [24] Other Important Information - The company has returned $1 billion to shareholders in dividends and allocated over $400 million to solid waste acquisitions through the first three quarters of 2025 [22] - The CFO announced retirement after 23 years with the company, expressing confidence in the incoming CFO and the company's future [24][25] Q&A Session Summary Question: How much have you benefited from the one-time cleanup work at the landfill? - The total revenues from wildfire volumes were around $115 million for the year, with Q3 solid waste results indicating $145 million in EBITDA growth without meaningful impacts from wildfires [30] Question: Can you provide details on the charges this quarter? - The landfill impairment was due to a long-term pursuit of expansion at a hazardous waste landfill that was deemed no longer worth pursuing [31][32] Question: What are the expectations for sustainability EBITDA? - The company expects to hit the sustainability EBITDA target for 2025, with a step-up anticipated in Q4 [37] Question: How is the healthcare solutions business performing? - The healthcare solutions business is experiencing some churn but has renewed nearly $200 million worth of business with strong average price increases [90] Question: What is the outlook for M&A activity? - The company is looking at a normal $100 million to $200 million in M&A for 2026, with potential for additional transactions in Q4 [84][86]

Financial Data and Key Metrics Changes - The company reported a third-quarter operating EBITDA growth of over 15% and free cash flow growth of nearly 33% [8] - Total company operating EBITDA margin reached 30.6%, the best quarterly result in history, with the legacy business achieving a margin of 32% [19][24] - Free cash flow for the first nine months of 2025 grew 13.5% to $2.11 billion, with operating EBITDA to free cash flow conversion approaching 42% [21][24] Business Line Data and Key Metrics Changes - The collection and disposal business contributed more than half of the year-over-year increase in operating EBITDA, with MSW and special waste volumes growing by 5% and 5.5% respectively [8][14] - Operating EBITDA margins in the collection and disposal business expanded by 100 basis points to a record 38.4%, with operating EBITDA growing more than 7% [14] - The healthcare solutions segment's operating EBITDA margin improved to 17.5% as integration efforts progressed [20] Market Data and Key Metrics Changes - The company experienced strong organic revenue growth driven by disciplined pricing and improving volume trends, with core price at 6% [15] - Landfill volumes rose by 5.2%, with broad strength across MSW, special waste, and construction and demolition [16] - Recycling segment's operating EBITDA grew by 18% despite a nearly 35% decline in recycled commodity prices [10] Company Strategy and Development Direction - The company is focused on maximizing customer lifetime value through pricing strategies and leveraging technology to optimize costs [9] - Strategic investments in technology and automation are expected to yield benefits in 2026, with free cash flow projected to approach $3.8 billion [11][12] - The company remains disciplined in capital allocation, expecting to translate performance into returns for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the healthcare solutions acquisition, despite a more measured revenue growth pace than initially projected [22][23] - The company anticipates achieving operating EBITDA and free cash flow guidance for the remainder of the year, with margin expectations raised to between 29.6% and 30.2% [24] - Management highlighted the importance of operational efficiency and customer relationships in driving future growth [18] Other Important Information - The company has returned $1 billion to shareholders in dividends and allocated over $400 million to solid waste acquisitions through the first three quarters of 2025 [22] - The CFO announced retirement plans, expressing confidence in the incoming CFO and the company's future [25] Q&A Session Summary Question: How much has the company benefited from one-time cleanup work at the landfill? - The company indicated that total revenues from wildfire volumes were around $115 million for the year, with a significant EBITDA growth in solid waste results without meaningful impacts from wildfires [30] Question: What were the charges this quarter related to the plastics film plant and landfill closure? - The plastics film plant was idled due to market conditions, while the landfill impairment was related to a long-term pursuit of expansion that was deemed no longer viable [32] Question: What factors will contribute to the expected free cash flow improvement in 2026? - The expected improvement will come from the wind-down of sustainability investments, strong performance from the legacy business, and contributions from healthcare solutions [33][35] Question: How is the healthcare solutions business performing regarding pricing increases? - The company is deferring price increases to ensure customer satisfaction and stabilize revenue, with confidence in achieving mid-single-digit revenue growth in the long term [58][65] Question: What is the outlook for yield and pricing in 2026? - The company is optimistic about maintaining a good spread between core price and operating expenses, with strong performance expected in the collection and disposal business [70][72]

Financial Data and Key Metrics Changes - The company reported a third-quarter operating EBITDA growth of over 15% and free cash flow growth of nearly 33% [6][10] - Total company operating EBITDA margin reached 30.6%, the best quarterly result in history, while the legacy business achieved a margin of 32% [18][19] - Free cash flow for the first nine months of 2025 grew 13.5% to $2.11 billion, with operating EBITDA to free cash flow conversion approaching 42% [20][21] Business Line Data and Key Metrics Changes - The collection and disposal business contributed more than half of the year-over-year increase in operating EBITDA, with MSW and special waste volumes growing by 5% and 5.5% respectively [6][12] - Operating EBITDA margins in the collection and disposal business expanded by 100 basis points to a record 38.4%, with every line of business contributing to growth [12][14] - The healthcare solutions segment's operating EBITDA margin improved to 17.5%, reflecting successful integration efforts [19][23] Market Data and Key Metrics Changes - The company experienced solid organic revenue growth driven by disciplined pricing and improving volume trends, with core price at 6% [13][14] - Landfill volumes rose by 5.2%, with broad strength across MSW, special waste, and construction and demolition [14][48] - Despite a nearly 35% decline in recycled commodity prices, the recycling segment's operating EBITDA grew by 18% [9][20] Company Strategy and Development Direction - The company is focused on maximizing customer lifetime value through pricing strategies and technology optimization [6][7] - Investments in technology and automation, as well as in new recycling and renewable natural gas facilities, are expected to yield benefits in 2026 [10][11] - The company remains disciplined in capital allocation, expecting to return significant value to shareholders through dividends and potential share repurchases [21][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the healthcare solutions acquisition, despite a more measured revenue growth pace than initially projected [21][23] - The company anticipates a strong fourth quarter, driven by improved execution and a robust post-collection network [50][51] - Management highlighted the importance of customer-centric strategies and operational efficiencies in driving future growth [62][64] Other Important Information - The company has returned $1 billion to shareholders in dividends and allocated over $400 million to solid waste acquisitions [21] - The CFO announced retirement plans, expressing confidence in the incoming CFO and the company's future [24][25] Q&A Session Summary Question: How much have you benefited from one-time cleanup work at the landfill? - The company indicated that total revenues from wildfire volumes were around $115 million for the year, with a significant EBITDA growth in solid waste results without meaningful impacts from wildfires [29][30] Question: Can you clarify the charges this quarter? - The landfill impairment was due to a long-term pursuit of expansion that was deemed no longer viable, leading to recorded impairments [31][32] Question: What are the expectations for 2026 free cash flow? - The company expects free cash flow to approach $3.8 billion, driven by a wind-down of sustainability investments and strong performance from the legacy business [10][33] Question: How is the healthcare solutions business performing? - The healthcare solutions business is experiencing some churn but has renewed nearly $200 million worth of business, indicating strong customer retention and growth potential [81] Question: What is the outlook for M&A activity? - The company anticipates a normal M&A pipeline of $100 million to $200 million for 2026, with ongoing integration of the healthcare solutions business [77][79]

Core Insights - The company reported Q3 2025 revenue of $6.44 billion, a 14.9% increase year over year, but net income decreased by 20.7% to $603 million [1] - Operating EBITDA was $1.72 billion, reflecting a 2.5% year-over-year growth with an adjusted margin of 30.6% [1] Financial Performance - CEO Jim Fish highlighted expanded margins and reduced operating costs due to technology and fleet automation [1] - Core price increased by 6%, and landfill volumes rose by 5.2%, driven by MSW, special waste, and construction categories [1] - The collection and disposal business contributed significantly to the year-over-year increase in operating earnings, achieving a 32% EBITDA margin in the legacy business [1] Sector Challenges - Healthcare Solutions revenue was $628 million, slightly below expectations, as the company integrates Stericycle and its ERP system [1] - The segment faced customer frustrations with billing and reporting, leading to credits or deferred price increases [1] Operational Adjustments - The closure of the Natura PCR facility in Texas resulted in a $152 million impairment charge due to unfavorable market conditions [1] - Recycled commodity prices fell nearly 35% year over year, yet the recycling segment's operating EBITDA grew by 18% due to MRF automation investments [1] Renewable Natural Gas (RNG) Developments - The company doubled its RNG production in the first nine months of the year and pre-sold about 45% of its 2026 offtake [2] - RIN prices for 2026 are projected to be in the $220 to $230 range [2] M&A Activity - The company has completed approximately $450 million in deals this year, with expectations to reach $500 million by year-end [2] - Future transactions may close in Q4 or roll into next year, with a return to a normal range of $100 million to $200 million expected in 2026 [2] Revised Guidance - The company maintains its full-year growth expectations for operating EBITDA and free cash flow, with revenue projected at the low end of the previous guidance range of $25.275 billion to $25.475 billion [2] - Margin expectations have increased to between 29.6% and 30.2% [2]

Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term stronger price trend but weaker medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares dropped 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Cautious market sentiment persists, with positioning remaining hedged and skeptical, which Siegel views as a healthy sign for future growth [11]

Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term strong price trend but weak medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares fell 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Sentiment remains cautious, with positioning still hedged, which Siegel views as a healthy sign for the market's future [11]

Group 1 - The core point of the article is that Waste Management (WM.US) reported disappointing third-quarter earnings, leading to a pre-market drop in stock price [1] - The company reported third-quarter revenue of $6.44 billion, which was below the FactSet estimate of $6.50 billion [1] - Adjusted earnings per share for the third quarter were $1.98, falling short of the IBES estimate of $2.02 [1] Group 2 - The company has lowered its full-year revenue forecast to the lower end of previous predictions due to a further decline in recycling commodity prices [1] - The stock closed at $213.77, down 0.41%, and pre-market trading showed a drop of 2.81% to $207.76 [1] - The company's market capitalization stands at $86.11 billion, with a 52-week high of $240.84 and a low of $197.52 [1]

Core Insights - Waste Management (WM) reported revenue of $6.44 billion for the quarter ended September 2025, reflecting a year-over-year increase of 14.9% [1] - Earnings per share (EPS) for the quarter was $1.98, slightly up from $1.96 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $6.49 billion, resulting in a surprise of -0.71% [1] - EPS also missed the consensus estimate of $2.01, with a surprise of -1.49% [1] Financial Performance Metrics - Internal Revenue Growth (Total) was 14.9%, compared to the average estimate of 15.8% from six analysts [4] - Internal Revenue Growth (Volume) was 0.8%, exceeding the average estimate of 0.4% from four analysts [4] - Internal Revenue Growth (Internal) was 3%, below the average estimate of 4.9% from four analysts [4] - Internal Revenue Growth (Acquisitions) was 11.9%, surpassing the average estimate of 10.5% from three analysts [4] - Total average yield was 2.2%, significantly lower than the average estimate of 5.6% from two analysts [4] Segment Performance - Operating revenues from WM Renewable Energy were $115 million, below the average estimate of $129.5 million, but showed a year-over-year increase of 32.2% [4] - Operating revenues from WM Healthcare Solutions reached $628 million, exceeding the estimated $587.33 million [4] - Operating revenues from Recycling Processing and Sales were $372 million, falling short of the estimated $395.44 million, representing a year-over-year decline of 13.9% [4] - Operating revenues from Corporate and Other were $7 million, above the average estimate of $5.7 million, with a year-over-year increase of 16.7% [4] Stock Performance - Shares of Waste Management have returned -1.8% over the past month, while the Zacks S&P 500 composite increased by 2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]