Waste Management Inc

Latest Results (28.08.2026):

Waste Management Inc — Fourth Quarter and Full‑Year 2025: WM reported solid Q4 and full‑year 2025 results with revenue of $6.313 billion for Q4 and $25.204 billion for the year; Q4 net income was $742 million (diluted EPS $1.83) and full‑year net income was $2.708 billion (diluted EPS $6.70). Adjusted operating EBITDA was $1.974 billion in Q4 (adjusted margin 31.3%) and $7.582 billion for the full year (adjusted margin 30.1%). The company generated $6.043 billion of operating cash flow in 2025 and free cash flow of $2.937 billion.

Revenue & earnings (Q4 & FY2025)

Q4 2025 revenue: $6.313B (up from $5.893B a year ago). Full‑year 2025 revenue: $25.204B (vs $22.063B in 2024). Q4 net income attributable to Waste Management Inc: $742M (diluted EPS $1.83). Full‑year net income: $2.708B (diluted EPS $6.70).

Operating EBITDA and margins

As‑reported and adjusted operating EBITDA strengthened: Q4 adjusted operating EBITDA $1.974B (31.3% adjusted margin). Full‑year adjusted operating EBITDA $7.582B (30.1% adjusted margin). Total company operating EBITDA grew 13.3% in 2025; adjusted operating EBITDA grew ~15.5% year‑over‑year.

Cash flow & free cash flow

Net cash provided by operating activities: $6.043B in 2025 (up 12.1% y/y). Free cash flow: $2.937B (up 26.8% y/y). WM also reported ~$400M of 2025 acquisition spend.

Cost discipline and expense trends

Operating expenses and SG&A improved: Legacy Business operating expense as a % of revenue improved by ~150 bps in 2025; adjusted SG&A for the Legacy Business was ~9.2% of revenue for the year. Management highlighted “best‑ever” operating expense as a percent of revenue for Q4 and FY2025 driven by retention, fleet investments and mix optimization.

Healthcare Solutions integration

Healthcare Solutions margin expanded materially — income statement margin improved to 13.5% (adjusted margin 16.9%) for 2025 from about 1.0% in 2024. WM completed the targeted integration in Q4 and expects further SG&A synergies and operating improvements in 2026.

Sustainability growth progress

WM completed seven renewable natural gas (RNG) facilities and nine recycling automation/growth projects in 2025. The company expects six more RNG plants and four recycling projects in 2026 and forecasts incremental combined contributions from recycling, renewable energy and landfill gas royalties of ~$235–$255M in 2026.

2026 outlook & capital allocation

WM expects revenue growth of roughly 5.2% in 2026 and adjusted operating EBITDA growth ~6.2% on a comparable basis, with adjusted operating EBITDA margin guided to ~30.8–31.0% (comparable expansion ~30 bps). Free cash flow is expected to grow ~29.4% at the midpoint. The company plans $100–$200M of solid waste acquisitions, intends a Board‑announced dividend increase of $0.48 to $3.78 annualized for 2026, and expects to resume share repurchases — roughly $2 billion of buybacks targeted for 2026 while managing leverage toward 2.5x–3.0x.