Waste Management(US:WM)2026-01-28 22:08Financial 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]