Core Insights - Waste Management (WM) reported quarterly earnings of $1.98 per share, missing the Zacks Consensus Estimate of $2.01 per share, but showing an increase from $1.96 per share a year ago, resulting in an earnings surprise of -1.49% [1] - The company posted revenues of $6.44 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 0.71%, but an increase from $5.61 billion year-over-year [2] - Waste Management shares have increased by approximately 6.4% since the beginning of the year, underperforming compared to the S&P 500's gain of 15.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.00 on revenues of $6.48 billion, and for the current fiscal year, it is $7.55 on revenues of $25.36 billion [7] - The estimate revisions trend for Waste Management was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Waste Removal Services industry, to which Waste Management belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Waste Management reported a miss on both earnings per share (EPS) and revenue, leading to a downward revision of its full-year guidance to the low end due to ongoing weakness in the recycling sector [1] Financial Performance - The company experienced a decline in EPS and revenue, indicating challenges in its operational performance [1] - Full-year guidance has been adjusted to reflect a more conservative outlook, particularly influenced by the recycling market's struggles [1] Industry Context - The recycling sector is facing significant challenges, which have adversely impacted Waste Management's financial results [1] - The overall industry may be experiencing similar pressures, suggesting a broader trend affecting waste management and recycling services [1]

Revenue Performance - Total revenue for Q3 2025 was $6,443 million, representing a 14.9% increase from $5,609 million in Q3 2024[2] - Operating revenues for Q3 2025 reached $6,443 million, a 14.8% increase from $5,609 million in Q3 2024[26] - Total operating revenues for the three months ended September 30, 2025, were $7,908 million, a decrease of 1,465 million compared to $6,443 million in 2024[32] - Gross operating revenues for the three months ended September 30, 2025, totaled $7,170 million, compared to $6,840 million in the same period of 2024, marking an increase of 4.8%[50] - Reported gross operating revenues for the three months ended September 30, 2025, were $7,170 million, compared to $6,840 million for the same period in 2024, representing a year-over-year increase of 4.8%[53] EBITDA and Profitability - Adjusted operating EBITDA for the WM Legacy Business grew 8.7%, with a margin of 28.0% in Q3 2025 compared to 29.9% in Q3 2024[4] - The Collection and Disposal business achieved an operating EBITDA margin of 37.5%, driven by technology improvements and disciplined pricing[4] - The company is affirming its adjusted operating EBITDA guidance of between $7.475 and $7.625 billion for 2025[11] - Adjusted operating EBITDA for the three months ended September 30, 2025, was $1,970 million, with an adjusted operating EBITDA margin of 30.6%[48] - Recycling commodity rebates contributed $177 million to adjusted operating EBITDA for the three months ended September 30, 2025, with a margin change of 0.8%[59] Cash Flow and Liquidity - Free cash flow for the first nine months of 2025 was $2.11 billion, a 13.5% year-over-year increase[12] - Free cash flow for the nine months ended September 30, 2025, was $4,345 million, up from $3,879 million in 2024, indicating improved liquidity[30] - Free cash flow for the three months ended September 30, 2025, was $821 million, up from $618 million in 2024[42] - The company projected free cash flow for 2025 to be between $2,800 million and $2,900 million, with capital expenditures supporting the business estimated at $2,575 million to $2,625 million[53][54] - The company reported a net cash provided by operating activities of $5,860 million for the projected free cash flow scenario[53] Income and Earnings - Consolidated net income for the nine months ended September 30, 2025, was $1,967 million, compared to $2,147 million for the same period in 2024, reflecting a decrease of 8.4%[30] - Basic earnings per common share for Q3 2025 were $1.50, compared to $1.89 in Q3 2024, reflecting a decrease of 20.6%[26] - The company reported a net income of $603 million for the three months ended September 30, 2025, compared to $760 million in the same period of 2024, a decrease of 20.7%[48] Expenses and Cost Management - Operating expenses as a percentage of revenue for the WM Legacy Business improved by 160 basis points, reflecting cost discipline[6] - Adjusted SG&A expenses for the three months ended September 30, 2025, were $643 million, which is 10.0% of net revenues, compared to $499 million or 8.9% in 2024[53] - Adjusted operating expenses for the three months ended September 30, 2025, were $3,830 million, which is 59.4% of net revenues, compared to $3,399 million or 60.6% in 2024[53] - The adjusted operating expenses margin for the three months ended September 30, 2025, was 59.0%, down from 60.6% in 2024[53] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $45,608 million, an increase from $44,567 million at the end of 2024[28] - The company reported a total current liability of $5,737 million as of September 30, 2025, down from $6,258 million at the end of 2024[28] - The company’s long-term debt, less current portion, was $22,482 million as of September 30, 2025, slightly down from $22,541 million at the end of 2024[28] - Cash and cash equivalents decreased to $175 million as of September 30, 2025, from $414 million at the end of 2024[28] Market Conditions and Future Outlook - The company expects total revenue for 2025 to be approximately $25.275 billion, at the low end of prior guidance due to declining recycled commodity prices[11] - The average price received for single stream recycled commodities was about $68 per ton, down from about $101 per ton in the prior year[16] - The leverage ratio is expected to improve, targeting a range of 2.5 to 3.0 times by mid-2026[12] - The company anticipates continued growth and optimization of its business, including the integration of the Stericycle acquisition, which is expected to yield synergies[19] Operational Highlights - The company completed four growth projects in Q3 2025, including new renewable natural gas facilities and recycling projects[12] - The landfill depletable tons increased to 33.7 million for the three months ended September 30, 2025, from 32.9 million in 2024[42] - The total collection and disposal revenue for the nine months ended September 30, 2025, was $19,124 million, a decrease of $3,600 million from $15,524 million in 2024[32] - The company achieved a 3.8% internal revenue growth in collection and disposal for the three months ended September 30, 2025[36] - The recycling processing and sales segment experienced a revenue decline of 14.0% for the three months ended September 30, 2025[36]

Core Insights - WM reported strong financial results for Q3 2025, with a revenue increase of 14.9% year-over-year, reaching $6,443 million compared to $5,609 million in Q3 2024 [2][4] - The company achieved double-digit growth in cash flow from operations, driven by disciplined growth, cost optimization, and sustainability investments [1][10] - Adjusted operating EBITDA for the WM Legacy Business grew by 8.7%, with a record operating EBITDA margin of 37.5% in the Collection and Disposal segment [3][4] Financial Performance - Total revenue for Q3 2025 was $6,443 million, up from $5,609 million in Q3 2024, reflecting a 14.9% increase [2][4] - Net income for Q3 2025 was $603 million, compared to $760 million in Q3 2024, resulting in diluted EPS of $1.49 [2][4] - Operating EBITDA for the total company was $1,718 million, with an operating EBITDA margin of 26.7% [2][3] Segment Performance - The WM Legacy Business generated $5,815 million in revenue, a 3.7% increase from the previous year, driven by a 6.0% core price increase and a 3.8% yield [4][10] - The Recycling Processing and Sales segment experienced a revenue decline of $60 million due to lower market prices for recycled commodities, with a nearly 35% drop in blended average prices [4][10] - WM Healthcare Solutions generated $628 million in revenue, slightly below expectations, as the company prioritized customer lifetime value [4][10] Cost Management - Total operating expenses for Q3 2025 were $3,833 million, with an adjusted operating expense margin of 59.5% [5][6] - SG&A expenses for the total company were $665 million, reflecting a margin of 10.3% [6][7] - The company improved adjusted operating expenses as a percentage of revenue for the WM Legacy Business by 160 basis points, attributed to better driver retention and strategic exits from low-margin contracts [5][10] Cash Flow and Investments - The company generated $4.35 billion in net cash from operating activities in the first nine months of 2025, a 12.0% increase from the prior year [10] - Free cash flow for the first nine months was $2.11 billion, a 13.5% year-over-year increase [10] - WM continues to invest in sustainability projects, with four new facilities commencing operations during the quarter [10][11] 2025 Outlook - The company affirms its adjusted operating EBITDA guidance of $7.475 to $7.625 billion and free cash flow guidance of $2.8 to $2.9 billion [10][11] - Total company revenue is expected to be approximately $25.275 billion, at the low end of prior guidance, primarily due to declining recycled commodity prices [10][11] - Projected adjusted operating EBITDA margin guidance has increased to between 29.6% and 30.2% [10][11]

Market Overview - U.S. markets opened with significant gains, with the Nasdaq rising by 1.47% to reach 8,532.62 and the S&P 500 increasing by 0.91% to 23,546.16, both setting new records [2] - The Dow Jones Industrial Average jumped 310 points, or 0.66%, to 47,517.13 [2] - Small caps, represented by the Russell 2000, initially rose by 0.53% before pulling back [2] Premarket Movers - Notable gainers in premarket trading included Janus Henderson (+14% on buyout rumors), Darling Ingredients (+14%), and Keurig Dr. Pepper (+9.7% following earnings) [4] - Major losers included Organon & Co (-21% due to CEO resignation amid controversy), Carter's Inc. (-9.4% after earnings), and Newmont Corp (-5.1% linked to declining gold prices) [4] Economic Context - U.S. stock futures were on the rise, buoyed by strong earnings reports and a softer-than-expected inflation report from the previous week [5] - The S&P 500 and Nasdaq Composite reached new intraday records, surpassing 6.8K and 23.2K, respectively, while the Dow Jones also exceeded 47.2K [5] - Hopes for a U.S.-China trade deal have increased, with a framework being discussed that includes issues like fentanyl, rare earth metals, and tariffs, as President Trump and President Xi are expected to meet at the APEC [6] Earnings Reports - The week is anticipated to be busy for earnings, with reports from Keurig Dr. Pepper and others, including Welltower, Cadence Design, and Waste Management, expected later in the day [7]

Earnings Reports - Keurig Dr Pepper Inc. (NASDAQ: KDP) is expected to report quarterly earnings of 54 cents per share on revenue of $4.15 billion [2] - Nucor Corp. (NYSE: NUE) is projected to post quarterly earnings of $3.70 per share on revenue of $12.57 billion [2] - Whirlpool Corp. (NYSE: WHR) is anticipated to report quarterly earnings of $1.41 per share on revenue of $3.93 billion [2] - Waste Management Inc. (NYSE: WM) is expected to report quarterly earnings of $2.02 per share on revenue of $6.50 billion [2] Stock Movements - Keurig Dr Pepper shares rose 0.3% to $27.25 in after-hours trading [2] - Nucor shares increased by 0.2% to close at $138.70 on Friday [2] - Plymouth Industrial REIT Inc. (NYSE: PLYM) shares fell 1.5% to $21.75 in after-hours trading following acquisition news [2] - Whirlpool shares gained 1% to $74.40 in after-hours trading [2] - Waste Management shares rose 0.3% to $215.20 in after-hours trading [2] Acquisition News - Plymouth Industrial REIT Inc. agreed to be acquired by Makarora Management LP and Ares Alternative Credit Funds in an all-cash transaction valued at approximately $2.1 billion [2]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it [1] - The service includes access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Offerings - Subscribers can take advantage of a two-week free trial to explore the services related to oil and gas investments [2]

Earnings Report - Waste Management, Inc. is set to release its third-quarter earnings results on October 27, with expected earnings of $2.01 per share, an increase from $1.96 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $6.5 billion, compared to $5.61 billion a year earlier [1] Recent Performance - In the second quarter, Waste Management reported better-than-expected financial results, although shares fell by 0.2% to close at $216.11 [2]

Key Takeaways WM will release third-quarter 2025 results on Oct. 27, after market close.Revenues are expected at $6.5B, up 15.7% year over year, driven by strong segmental growth.Earnings per share are estimated at $2.01, reflecting a 2.6% rise, aided by expense management.WM (WM) is scheduled to release third-quarter 2025 results on Oct. 27, after market close.WM’s earnings surprise history has been decent. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, th ...

Core Viewpoint - Wall Street analysts anticipate Waste Management (WM) to report quarterly earnings of $2.01 per share, reflecting a year-over-year increase of 2.6%, with revenues expected to reach $6.49 billion, up 15.7% from the previous year [1]. Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [2]. - The consensus EPS estimate for the quarter has remained stable over the last 30 days, indicating analysts have reassessed their initial estimates [1]. Revenue Estimates - Analysts project 'Operating revenues- WM Renewable Energy' to be $129.50 million, indicating a significant increase of 48.9% from the prior-year quarter [4]. - 'Operating revenues- Recycling Processing and Sales' are expected to reach $395.44 million, reflecting a decrease of 8.5% from the previous year [4]. - 'Operating revenues- Corporate and Other' is forecasted at $5.70 million, showing a decline of 5.1% from the year-ago quarter [5]. Internal Revenue Growth - The estimated 'Internal Revenue Growth - Period-to-Period Change - Total - As a % of Total Company' is projected at 15.8%, an increase from 7.9% reported in the same quarter last year [5]. - 'Internal Revenue Growth - Period-to-Period Change - Internal revenue growth - As a % of Total Company' is expected to be 4.9%, down from 6.7% in the previous year [6]. Stock Performance - Over the past month, Waste Management shares have returned -1.5%, contrasting with the Zacks S&P 500 composite's +1.1% change [6]. - Currently, WM holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6].