Waste Management (NYSE:WM) Q3 2025 Earnings Call October 28, 2025 10:00 AM ET Company ParticipantsTara Hemmer - Chief Sustainability OfficerRafael Carrasco - EVP Enterprise Strategy and PresidentJim Fish - CEOJohn Morris - President and COODevina Rankin - EVP and CFOEd Egl - VP of Investor RelationsConference Call ParticipantsShlomo Rosenbaum - AnalystFaiza Alwy - Stock AnalystBryan Burgmeier - Stock AnalystTyler Brown - Equity Research AnalystNoah Kaye - Senior Research AnalystRob Wertheimer - Research Ana ...

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]

This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. By the numbers: Q3 2025 Revenue: $6.44B Up 14.9% year over year Net income: $603M Down 20.7% year over year Operating EBITDA: $1.72B Up 2.5% year over year, with an adjusted margin of 30.6% Financial picture: During a Q3 earnings call on Tuesday, CEO Jim Fish highlighted WM’s expanded margins, as well as reduced operating costs from technology and fleet automation. The c ...

U.S. stock futures were swinging on Tuesday following Monday’s positive moves. Futures of major benchmark indices were mixed.On Monday, the benchmark indices set a new record as the U.S. trade negotiators reached a "very successful framework" with their Chinese counterparts, according to statements by Treasury Secretary Scott Bessent. The development came ahead of a potential meeting between President Donald Trump and President Xi Jinping. The Federal Reserve Open Market Committee will announce its decision ...

U.S. stock futures were swinging on Tuesday following Monday’s positive moves. Futures of major benchmark indices were mixed.On Monday, the benchmark indices set a new record as the U.S. trade negotiators reached a "very successful framework" with their Chinese counterparts, according to statements by Treasury Secretary Scott Bessent. The development came ahead of a potential meeting between President Donald Trump and President Xi Jinping. The Federal Reserve Open Market Committee will announce its decision ...

| WM 美国废物管理 | | | | --- | --- | --- | | 213.770 ↓-0.890 -0.41% | | 收盘价 10/27 15:59 美东 | | 207.760 + -6.010 -2.81% | | 盘前价 10/28 04:43 美东 | | 三 71 24 华 5 8 日 ♥ 白 ♥ 白 ♥ 白 ♥ 白选 | | ● 快捷交易 | | 最高价 215.280 | 开盘价 215.280 | 成交量 275.3万 | | 最低价 212.970 | 昨收价 214.660 | 成交额 5.88亿 | | 平均价 213.424 | 市福率 IIM 33.66 | 总市值 861.13亿(…) | | 振 幅 1.08% | 市盈率(静) 31.39 | 总股本 4.03亿 | | 换手率 0.69% | 市净率 9.046 | 流通值 858.5亿 | | 52周最高 240.837 | 委 比 99.14% | 流通股 4.02亿 | | 52周景低 197.522 | 量 比 1.90 | 每 手 1股 | | 历史最高 240.837 | 股息TTM 3.225 | ...

For the quarter ended September 2025, Waste Management (WM) reported revenue of $6.44 billion, up 14.9% over the same period last year. EPS came in at $1.98, compared to $1.96 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $6.49 billion, representing a surprise of -0.71%. The company delivered an EPS surprise of -1.49%, with the consensus EPS estimate being $2.01.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Waste Management (WM) came out with quarterly earnings of $1.98 per share, missing the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $1.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.49%. A quarter ago, it was expected that this garbage and recycling hauler would post earnings of $1.89 per share when it actually produced earnings of $1.92, delivering a surprise of +1.59%.Over the last four qu ...

Waste Management missed on both EPS and revenue, cutting full-year guidance to the low end amid recycling weakness. ...

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]