Core Insights - Waste Management (WM) reported disappointing Q3 2025 results, with earnings and revenues missing consensus estimates [2] - The stock has seen a 5.9% increase since the last earnings report, outperforming the S&P 500 [1] Financial Performance - Adjusted earnings were $1.98 per share, missing estimates by 1.5% but up 1% year-over-year [2] - Total revenues reached $6.4 billion, slightly missing estimates but growing 14.9% from the previous year [2] - Collection segment revenues were $3.9 billion, a 3.5% increase year-over-year, but below the estimated $4.1 billion [3] - Landfill segment revenues increased 7.8% to $995 million, surpassing the estimate of $986.5 million [3] - Transfer segment revenues rose 8.5% to $396 million, beating the estimate of $391.5 million [3] - Recycling Processing and Sales segment revenues declined 13.9% to $372 million, missing the estimate of $432.3 million [3] - Renewable Energy revenues were $115 million, up 32.2% year-over-year, exceeding the estimate of $103 million [4] - Adjusted operating EBITDA was $2 billion, missing the estimate of $1.9 billion but up 15.1% year-over-year [5] - Cash generated from operating activities was $1.6 billion, with capital expenditures of $635 million and free cash flow of $821 million [6] Future Outlook - WM expects revenues of $25.275 billion for 2025 and adjusted operating EBITDA between $7.475 billion and $7.625 billion [7] - Recent estimates have shown a downward trend, indicating a potential shift in investor sentiment [8][11] Industry Context - WM is part of the Zacks Waste Removal Services industry, where Waste Connections (WCN) reported revenues of $2.46 billion, a year-over-year increase of 5.1% [12] - WCN's expected earnings for the current quarter are $1.30 per share, reflecting a year-over-year change of 12.1% [13]

Core Insights - WM reported disappointing third-quarter 2025 results, with adjusted earnings of $1.98 per share missing the consensus estimate by 1.5%, although it represented a 1% year-over-year increase. Total revenues of $6.4 billion also missed estimates but grew 14.9% from the previous year [1][9]. Financial Performance - The Collection segment generated revenues of $3.9 billion, a 3.5% increase year-over-year, but fell short of the $4.1 billion estimate. The Landfill segment saw a 7.8% increase to $995 million, exceeding the $986.5 million projection. The Transfer segment's revenues rose 8.5% to $396 million, surpassing the $391.5 million estimate. However, the Recycling Processing and Sales segment's revenues declined 13.9% to $372 million, missing the $432.3 million estimate [3][4][9]. - Adjusted operating EBITDA was $2 billion, missing the estimate of $1.9 billion but increasing 15.1% year-over-year. The adjusted operating EBITDA margin improved by 10 basis points to 30.6%, exceeding the 30.1% estimate [5][9]. Cash Flow and Dividends - WM generated $1.6 billion in cash from operating activities, with capital expenditures of $635 million, resulting in free cash flow of $821 million. The company distributed $332 million in cash dividends to shareholders during the quarter [6][9]. 2025 Outlook - For 2025, WM expects revenues of $25.275 billion, which is below the Zacks Consensus Estimate of $25.36 billion. The company anticipates adjusted operating EBITDA in the range of $7.475 billion to $7.625 billion [7][9].

Core Insights - Waste Management (WM) reported revenue of $6.44 billion for the quarter ended September 2025, reflecting a year-over-year increase of 14.9% [1] - Earnings per share (EPS) for the quarter was $1.98, slightly up from $1.96 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $6.49 billion, resulting in a surprise of -0.71% [1] - EPS also missed the consensus estimate of $2.01, with a surprise of -1.49% [1] Financial Performance Metrics - Internal Revenue Growth (Total) was 14.9%, compared to the average estimate of 15.8% from six analysts [4] - Internal Revenue Growth (Volume) was 0.8%, exceeding the average estimate of 0.4% from four analysts [4] - Internal Revenue Growth (Internal) was 3%, below the average estimate of 4.9% from four analysts [4] - Internal Revenue Growth (Acquisitions) was 11.9%, surpassing the average estimate of 10.5% from three analysts [4] - Total average yield was 2.2%, significantly lower than the average estimate of 5.6% from two analysts [4] Segment Performance - Operating revenues from WM Renewable Energy were $115 million, below the average estimate of $129.5 million, but showed a year-over-year increase of 32.2% [4] - Operating revenues from WM Healthcare Solutions reached $628 million, exceeding the estimated $587.33 million [4] - Operating revenues from Recycling Processing and Sales were $372 million, falling short of the estimated $395.44 million, representing a year-over-year decline of 13.9% [4] - Operating revenues from Corporate and Other were $7 million, above the average estimate of $5.7 million, with a year-over-year increase of 16.7% [4] Stock Performance - Shares of Waste Management have returned -1.8% over the past month, while the Zacks S&P 500 composite increased by 2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Waste Management, Inc. (NYSE:WM) has garnered significant hedge fund interest and is trending on Reddit, earning a place on the list of the 10 Best Non-Tech Stocks to Buy According to Reddit [1] - Stifel initiated coverage on Waste Management, Inc. with a Buy rating and a price target of $252, anticipating strong free cash flow growth in 2026 and 2027 driven by recycling and renewable gas projects, lower capital intensity, and cost synergies from the Stericycle acquisition [2] - The company's business strategy focuses on delivering steady shareholder returns through share repurchases and increases in per-share metrics, with Stifel predicting free cash flow to compound at an upper 5% annual rate beyond 2027 [3] Group 2 - Waste Management, Inc. provides a diverse range of environmental services, including WM Renewable Energy, WM Healthcare Solutions, Recycling Processing and Sales, as well as Collection and Disposal, positioning it as one of the Best Non-Tech Stocks [4]

Core Insights - Waste Management Inc reported better-than-expected earnings for Q2, with earnings of $1.92 per share, surpassing the analyst consensus estimate of $1.89 per share, and quarterly sales of $6.430 billion, exceeding the estimate of $6.369 billion [1][2] Financial Performance - The company achieved robust organic revenue growth and margin expansion in its Collection and Disposal business, reaching the best-ever operating expense margin [2] - Operating EBITDA grew by double digits in both Recycling Processing and Sales and WM Renewable Energy segments, indicating strong earnings contributions from sustainability investments [2] Guidance and Analyst Ratings - Waste Management lowered its FY2025 sales guidance from a range of $25.550 billion-$25.800 billion to $25.275 billion-$25.475 billion [2] - Following the earnings announcement, analysts adjusted their price targets: Oppenheimer raised it from $260 to $265, UBS from $260 to $265, and BMO Capital from $245 to $248, while maintaining their respective ratings [3][5]

Summary of Waste Management (WM) 2025 Investor Day Company Overview - **Company**: Waste Management (WM) - **Event**: 2025 Investor Day - **Date**: June 24, 2025 - **Key Speaker**: Jim Fish, CEO Core Industry Insights - **Industry**: Waste Management and Environmental Services - **Market Position**: WM is positioned as a leader in the waste management industry with a unique asset network and materials management expertise [19][24][34] Key Financial Metrics - **2024 Revenue**: $22.1 billion [19] - **2024 EBITDA**: $6.6 billion [19] - **Historical Performance**: - 3% revenue growth during the pandemic - 7% adjusted operating EBITDA growth during the pandemic - 14% free cash flow growth during the pandemic - 6% top-line growth from 2022 to 2024 - 9% EBITDA growth from 2022 to 2024 - 13% free cash flow growth from 2022 to 2024 [20][21] Strategic Focus Areas - **People First Leadership**: Emphasis on valuing employees and fostering a dynamic leadership team [17][18] - **Long-term Growth Strategy**: Focus on sustainable value creation through disciplined capital allocation and operational excellence [18][64] - **Customer-Centric Approach**: Commitment to customer service and satisfaction as a core business principle [32][34] Operational Excellence - **Cost Management**: Operating expenses as a percentage of revenue reduced from 65% to 60% [31][69] - **Technology Integration**: Implementation of advanced technologies to improve operational efficiency and safety [74][80] - **Fleet Optimization**: Use of telematics and real-time data to enhance fleet management and reduce downtime [84][86] Growth Platforms - **Sustainability Initiatives**: Planned investment of $3 billion in recycling and renewable natural gas (RNG) plants, with expected incremental free cash flow of $600 million to $630 million from these investments [45][46] - **Healthcare Solutions**: Expansion into healthcare waste management, leveraging demographic trends and increasing healthcare spending [47][54] Market Trends and Challenges - **Labor Market**: Addressing labor shortages through technology and automation, including the transition to automated side loaders and autonomous vehicles [58][62] - **Landfill Capacity**: Anticipating a reduction in landfill capacity over the next 20 years, while maintaining a competitive disposal network [36][38] Competitive Landscape - **Consolidation Opportunities**: Potential for tuck-in acquisitions within the industry, with a focus on expanding operations in underserved areas [42][44] - **Regulatory Expertise**: Leveraging regulatory knowledge to navigate industry challenges and enhance service offerings [34] Conclusion - **Investment Thesis**: WM is positioned for sustained growth through a combination of strong leadership, operational excellence, and strategic investments in sustainability and healthcare solutions [64]

Financial Performance and Targets - WM's 2024 adjusted operating EBITDA was $6.6 billion[24], and revenue was $22.1 billion[24] - The company is targeting $28.5 billion to $29.25 billion in revenue by 2027[330] - WM expects $8.85 billion to $9.15 billion in adjusted operating EBITDA by 2027[330] - The company anticipates $4.025 billion to $4.175 billion in free cash flow (before sustainability growth investments) by 2027[330] Sustainability Initiatives - WM has allocated approximately $1.4 billion in investments towards 39 new or automated recycling facilities[63] - These recycling investments are projected to add 2.8 million tons of annual recycling capability[63] - The company has invested ~$1.6 billion in RNG projects, aiming for the generation of 25 million incremental MMBtu annually[63] WM Healthcare Solutions (Stericycle Acquisition) - WM anticipates $250 million in annual run-rate cost synergies from the Stericycle acquisition by 2027[67, 297], doubling original expectations - The National Accounts segment has grown from $1.4 billion to $2.4 billion over the last five years[174] Operational Improvements and Market Dynamics - The company has achieved a core price spread to inflation of >300 bps[39, 162] - WM's frontline wages have increased by >29% over the past 5 years[73]

Core Insights - Waste Management Inc. reported earnings with EPS of $1.67, exceeding forecasts by $0.08, while revenue was $6.02 billion, falling short of the expected $6.14 billion but showing a 16.7% year-over-year increase [1][9] - The stock dipped about 1% post-report but quickly recovered, nearing its all-time high set in early April [2] - The company is recognized for its resilience against tariffs, being a leading provider of waste management services [3] Financial Performance - WM Healthcare Solutions, a key growth sector, contributed approximately 10% to the company's revenue in Q1, with a reported margin increase of about 20% [4] - Waste Management generated $475 million in free cash flow (FCF) for the quarter, maintaining a full-year FCF outlook of $2.68 billion to $2.78 billion [8] - The company's P/E ratio stands at 34.35, aligning with its historical averages, indicating consistent valuation trends [7] Growth Initiatives - The company launched two new automated recycling projects in Q1 and plans to open seven additional next-generation recycling plants in 2025, along with eight renewable natural gas facilities this year [5][6] - Waste Management's commitment to sustainability is evident in its initiatives that enhance the circular economy [6] Market Position - Analysts have a Moderate Buy rating on Waste Management, with a 12-month price target of $243.29, suggesting a potential upside of 4.15% [7][10] - The stock is currently viewed as being within the Neutral range on the Relative Strength Index, having reached overbought levels in April [10]

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]