Core Insights - Waste Management (WM) reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.65 per share, but down from $1.75 per share a year ago, indicating an earnings surprise of 1.21% [1] - The company generated revenues of $6.02 billion for the quarter, missing the Zacks Consensus Estimate by 1.33%, but showing an increase from $5.16 billion year-over-year [2] - Waste Management shares have increased by approximately 13.1% since the beginning of the year, contrasting with a -6.1% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $6.41 billion, and for the current fiscal year, it is $7.60 on revenues of $25.63 billion [7] - The estimate revisions trend for Waste Management is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Waste Removal Services industry, to which Waste Management belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Revenue Performance - Total revenue for Q1 2025 was $6,018 million, representing a 16.7% increase compared to $5,159 million in Q1 2024[2] - Operating revenues for Q1 2025 were $6,018 million, a 16.6% increase from $5,159 million in Q1 2024[21] - Total collection and disposal revenues for Q1 2025 were $6,038 million, up from $5,774 million in Q1 2024, marking a 4.6% increase[27] - Internal revenue growth for the company was 16.7% for the three months ended March 31, 2025, compared to the same period in 2024[29] Profitability Metrics - Adjusted operating EBITDA for Q1 2025 was $1,669 million, up 12.2% from $1,530 million in Q1 2024, with an operating EBITDA margin of 27.7%[2][3] - The company achieved a net income of $637 million, with diluted EPS of $1.58, compared to $708 million and $1.75 in the prior year[2] - Consolidated net income for Q1 2025 was $637 million, down from $707 million in Q1 2024, representing a decrease of 9.9%[21] - Basic earnings per share for Q1 2025 were $1.58, compared to $1.76 in Q1 2024, reflecting a decline of 10.2%[21] Operating Expenses - Operating expenses for the total company were $3,647 million, maintaining a margin of 60.6%[5] - SG&A expenses totaled $687 million, with a margin of 11.4%, reflecting continued cost discipline[6] - Adjusted operating expenses for the same period were $3,640 million, compared to $3,140 million in 2024, reflecting an increase of 15.9%[47] - The adjusted SG&A expenses were reported at $663 million, up from $491 million in the prior year, indicating a rise of 35%[47] Cash Flow and Investments - The company generated $1.21 billion in net cash from operating activities, with free cash flow of $475 million[12] - Free cash flow for the three months ended March 31, 2025, was $475 million, down 33.5% from $714 million in the same period of 2024[33] - Net cash provided by operating activities decreased to $1,208 million in Q1 2025 from $1,367 million in Q1 2024, representing a decline of 11.6%[33] - The free cash flow for 2025 is projected to be between $2,675 million and $2,775 million, with net cash provided by operating activities at $5,750 million[47] Capital Expenditures and Debt - Capital expenditures for Q1 2025 were $831 million, an increase from $668 million in Q1 2024[25] - The company’s long-term debt increased to $22,883 million as of March 31, 2025, compared to $22,541 million at the end of 2024[23] - The company anticipates capital expenditures to support the business to be approximately $2,575 million in 2025[47] Sustainability and Growth Initiatives - Investments in sustainability growth projects amounted to $128 million, including two recycling automation projects completed during the quarter[12] - The company plans to invest $600 million in sustainability growth investments as part of its capital expenditures[47] - The company is on track to achieve targeted synergies of $80 to $100 million from the Stericycle acquisition in 2025[7] Tax and Other Expenses - The effective tax rate for Q1 2025 was 19.2%, slightly higher than 18.6% in Q1 2024[40] - Total landfill depletion expense increased to $218 million in Q1 2025, compared to $209 million in Q1 2024, driven by increased volumes at higher cost sites[34][35] - The Stericycle acquisition and integration-related costs were adjusted to $24 million, affecting the overall SG&A expenses[47]

Core Insights - WM is set to release its first-quarter 2025 results on April 28, with a history of earnings surprises, having beaten the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 3.9% [1] Revenue Expectations - The Zacks Consensus Estimate for total revenues is $6.1 billion, indicating an 18.4% increase from the same quarter last year [1] - Collection revenues are expected to reach $4.7 billion, reflecting a 15.3% year-over-year growth [2] - Landfill revenues are projected at $1.4 billion, suggesting a 19.4% increase compared to the previous year [2] - The Transfer segment is estimated to generate $681.4 million, indicating a 21.7% rise year-over-year [2] - Recycling Processing and Sales revenues are anticipated to be $526.3 million, representing a 20.7% increase from the prior year [3] - WM Renewable Energy is expected to contribute $89 million, marking a 27.2% year-over-year growth [3] - WM Healthcare Solutions revenues are estimated at $107.6 million [3] EBITDA and Operational Efficiency - Adjusted EBITDA is projected to be $1.8 billion, suggesting a 21% growth from the same quarter last year [4] - Factors contributing to improved operational efficiency include cost optimization, shedding of low-margin residential business, and lower fuel costs in Collection and Disposal [4] Earnings Per Share (EPS) Expectations - The consensus estimate for earnings per share is $1.68, indicating a 5.1% decline from the year-ago quarter [5] - Strong margins driven by robust top-line growth and a disciplined cost strategy are expected to enhance the bottom line [5] Earnings Prediction Model - The model predicts an earnings beat for WM, supported by a positive Earnings ESP of +0.83% and a Zacks Rank of 3 (Hold) [6]

Group 1: Investment Strategy - Bill Gates favors a concentrated investment portfolio, focusing on a few key titles rather than a diversified list [1][2] - The Gates Foundation Trust's portfolio is heavily weighted towards Microsoft, Berkshire Hathaway, and Waste Management [2] Group 2: Microsoft - Microsoft is the largest holding in the Gates Foundation Trust, with approximately 28.5 million shares valued at nearly $12 billion [4] - The company has shown consistent profitability and impressive growth rates, particularly in the AI sector, where it has made significant investments in OpenAI [5][6] Group 3: Berkshire Hathaway - Berkshire Hathaway is the second-largest holding, with nearly 19.7 million shares worth over $8.9 billion [8] - The company follows a buy-and-hold investment philosophy and has a diverse equity portfolio, including long-term positions in American Express and Coca-Cola [9][10] Group 4: Waste Management - Waste Management is the third-largest holding, with over 32.2 million shares valued at more than $6.5 billion [11] - The company is the largest in its sector by revenue, with a full-year 2024 revenue exceeding $22 billion and a net income of approximately $2.75 billion [12] - Waste Management has a strong history of paying dividends, with a yield of 1.5%, making it attractive for investors [13]

Group 1: Investment Overview - Energy Transfer, Xylem, and Waste Management are identified as stable investment options amid macroeconomic challenges such as higher tariffs, inflation, and elevated interest rates [1][2] - These companies are expected to generate stable and predictable returns due to the essential nature of their services, making them attractive for conservative investors [2] Group 2: Energy Transfer - Energy Transfer operates over 125,000 miles of pipeline across 44 U.S. states, serving as a major midstream company for transporting natural gas, NGLs, crude oil, and refined products [3] - As a master limited partnership (MLP), it offers a forward dividend yield of nearly 7% and has increased its payout annually for 12 years [4] - From 2014 to 2024, its earnings per unit (EPU) grew at a CAGR of 8%, with expectations of a 12% CAGR from 2024 to 2027 [5][6] - The stock is currently valued at 11 times next year's projected EPU, indicating it may be a safe haven for income-oriented investors [6] Group 3: Xylem - Xylem is a leading water technology provider, offering products for water delivery, usage analysis, and wastewater treatment across over 150 countries [7] - Its earnings per share (EPS) grew at a CAGR of 7% from 2014 to 2024, with a projected CAGR of 13% from 2024 to 2027 due to increasing global demand for clean water [8] - The stock is valued at 27 times next year's earnings and offers a forward yield of 1.4%, positioning it as a key player in the global water infrastructure market [9] Group 4: Waste Management - Waste Management serves over 20 million customers and is a leading waste disposal and recycling company in North America, also converting waste into renewable energy [10][11] - Its EPS grew at a CAGR of 9% from 2014 to 2024, with expectations of a 12% CAGR from 2024 to 2027 [12][13] - The stock is valued at 26 times next year's earnings and offers a forward yield of 1.5%, making it a solid investment in the growing demand for efficient waste management and recycling services [13]

Core Insights - The article emphasizes the importance of resilience investing in the face of inflation and potential recession, focusing on companies with strong financial health and diversified income streams [1] Johnson & Johnson - Johnson & Johnson (JNJ) is highlighted as a defensive investment within the stable healthcare sector, with a diversified business model that includes Innovative Medicine and MedTech [2] - JNJ's financial health is reinforced by its AAA credit rating, shared only with Microsoft among US companies [2] - The company reported a revenue of $88.821 billion in 2024, a 4.3% increase from the previous year, with adjusted net earnings of $24.242 billion [3] - JNJ's Innovative Medicine segment saw a 5.7% operational growth in 2024, while the MedTech segment achieved 6.2% operational growth [4] - The stock forecast for JNJ indicates a current price of $162.94 with a 12-month target of $171.33, reflecting a potential upside of 5.15% [3][4] Microsoft - Microsoft (MSFT) demonstrates resilience through its transition to a recurring revenue model, primarily via cloud services, allowing it to navigate economic challenges effectively [5] - The company reported total revenue of $69.6 billion in Q2 2025, a 12% year-over-year increase, with cloud revenue reaching $40.9 billion, up 21% [6] - Microsoft's AI business has surpassed an annual revenue run rate of $13 billion, showing a remarkable 175% year-over-year growth [6] - The stock forecast for MSFT shows a current price of $388.56 with a 12-month target of $510.43, indicating a potential upside of 31.36% [6][7] Waste Management - Waste Management (WM) is presented as a resilient company due to the essential nature of its services, providing stable revenue regardless of economic conditions [8] - The company reported revenue of $22.063 billion in 2024, an 8.0% increase from the previous year, with adjusted operating EBITDA of $6.563 billion [9] - WM is projected to see revenue growth of 16.4% and adjusted operating EBITDA growth of 15.0% in 2025 [9] - The stock forecast for WM indicates a current price of $225.06 with a 12-month target of $236.65, reflecting a potential upside of 5.15% [9][10] Resilience Investing - The article concludes that resilience investing is not limited to a single industry, but rather focuses on identifying companies with strong financials, diversified revenue streams, and adaptability to market changes [11]

Company Overview - Casella Waste Systems has significantly outperformed major stocks like Tesla, Strategy, and Amazon, with a $10,000 investment in Casella now worth $269,000, reflecting a nearly 2,600% increase over the last 10 years [2][3] - The company operates in the waste management sector, providing residential and commercial garbage services across 10 states, primarily in the New England region [4] Financial Performance - In 2024, Casella generated $962 million in revenue from trash collection, marking a 35% year-over-year increase, with this segment accounting for 62% of total revenue [5] - The company has pursued a growth strategy through mergers and acquisitions, acquiring 29 companies for $1.4 billion over the past three years [10] Market Position and Strategy - Casella's business model is resilient to economic downturns, as garbage collection remains necessary regardless of economic conditions [7] - The company has a competitive advantage due to its limited number of landfills, which are valuable assets in its operational territory [8] Growth Potential - Future growth for Casella is expected to come from continued acquisitions and improvements in profitability through operational efficiencies [10][11] - The company signs long-term contracts in its service areas, providing a predictable revenue stream and potential for low-single-digit growth through price increases [9] Valuation Considerations - Currently, Casella's stock is trading at a slightly higher-than-normal valuation, and a 15% pullback could present a more attractive buying opportunity [12] - Market corrections often lead to stable companies like Casella being available at discounted prices, with historical pullbacks of around 20% during such events [13][14]

Summary of Waste Management, Inc. Conference Call Company Overview - **Company**: Waste Management, Inc. (NYSE: WM) - **Event**: Stifel 2024 Cross Sector Insight Conference - **Date**: June 5, 2024 Key Points Industry Context - Waste Management operates in the environmental services sector, focusing on waste collection and disposal, including medical waste management [1][16]. Acquisition Details - Waste Management is in the process of acquiring Stericycle, a company specializing in medical waste management [1][15]. - The acquisition is viewed as a strategic move to enhance Waste Management's capabilities in the medical waste sector, which is projected to grow at 5% to 6% annually [19][20]. Financial Projections and Synergies - The expected timeline for closing the acquisition is approximately four to five months, barring any second requests from regulatory bodies [3][4]. - Waste Management aims to return to a target leverage ratio of 2.75 to 3 within 18 months post-acquisition [8]. - The acquisition is anticipated to generate significant synergies, including: - Reduction of duplicate public company costs estimated at $60 million [10]. - Streamlining IT systems, with potential savings of $25 to $30 million [10]. - Lean SG&A management, with expectations to reduce Stericycle's SG&A from 22% to closer to Waste Management's 9% [18][27]. Strategic Rationale - The acquisition is seen as a way to enhance operational efficiencies, particularly in routing and logistics, where Waste Management has invested heavily [17][18]. - There is a strong emphasis on cross-selling opportunities between Waste Management's existing services and Stericycle's offerings, particularly in the healthcare sector [22][33][59]. - Waste Management's leadership believes that the integration will allow for a broader suite of services, enhancing their competitive position in the market [34][45]. Market Position and Growth - Waste Management's solid waste business is expected to grow at 1% to 2% over the next decade, while the medical services business is projected to grow at a higher rate [20]. - The company is focused on maintaining a strong balance sheet and capital efficiency, which is expected to support continued growth in free cash flow [61][65]. International Considerations - Waste Management is not currently planning to expand aggressively into European markets but is open to exploring opportunities that may arise from Stericycle's existing international operations [70][72]. Conclusion - The acquisition of Stericycle is positioned as a strategic growth opportunity for Waste Management, with a focus on operational efficiencies, cost reductions, and enhanced service offerings in the medical waste sector [62][68]. The leadership is optimistic about the potential for synergies and the long-term growth trajectory of the combined businesses [66][67].

As filed with the Securities and Exchange Commission on May 8, 2023 Registration No. 333-271360 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 ____________________ VERDE CLEAN FUELS, INC. (Exact name of registrant as specified in its charter) ____________________ (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) Delaware 2860 85-18 ...