Industry Overview - The Waste Management industry is benefiting from positive trends in government regulations, advanced technologies, and increased environmental awareness, with the global sector reaching $1.2 trillion in 2024 and projected to grow to $1.6 trillion by 2029 [1] - The industry is categorized into segments based on waste type, including industrial, commercial, domestic, and agricultural, with industrial waste gaining significance due to ongoing industrial expansion [3] - The Disposal services segment is the primary revenue-generating category, driven by the growing need for waste recycling [3] Future Trends - Environmental, Social, and Governance (ESG) goals are becoming increasingly important, with waste management playing a key role in improving ESG ratings and promoting sustainability [4] - Technology is crucial for the industry's growth, with AI being utilized to sort waste and enhance recycling efforts, leading to more effective and eco-friendly waste management [5] - The Waste-to-Energy (WTE) market is expected to grow from $48.1 billion in 2024 to $93 billion by 2034, with a CAGR of 6.8%, driven by rising waste generation and a focus on sustainable living [6] Financial Performance - The Zacks Waste Removal Services industry currently holds a Zacks Industry Rank of 189, placing it in the bottom 23% of 245 Zacks industries, indicating dull near-term prospects [8] - Over the past year, the industry has risen 5.3%, underperforming compared to the broader sector's 9.3% growth and the S&P 500's 16.6% rally [10] - The industry is trading at an EV-to-EBITDA of 13.68X, lower than the S&P 500's 17.77X and the sector's 11.44X, with historical trading ranging from 12.48X to 13.98X [13] Company Highlights - Montrose Environmental Group, Inc. (MEG) reported a 35.3% year-over-year revenue increase in Q2 2025, with a 69.8% surge in adjusted EBITDA, driven by strong internal execution and market conditions [18] - Zurn Elkay Water Solutions Corp (ZWS) achieved a 7.9% year-over-year revenue growth in Q2 2025, with an expanded adjusted EBITDA margin, supported by strategic initiatives and a new product launch [23][25] - Pentair (PNR) experienced a 2% year-over-year revenue growth in Q2, with a 14% increase in the bottom line, driven by transformation initiatives and strong performance in the Pool segment [29]