Company Reports

WM's second-quarter results were in line with the themes affecting the waste industry. Pricing gains and energy surcharges supported yield and margins, while volume and commodity prices remained key headwinds. The firm reported $2.02 in adjusted earnings per share, 5.2% higher year over year.

Waste collection and disposal industry leader WM enjoys a leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given the immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which was the fourth-largest player in the industry. In November 2024, WM entered the adjacent medical waste disposal business with its acquisition of Stericycle.

Waste Management's first-quarter results met our expectations as it reported adjusted EPS of $1.81 per share, 8.4% higher on a year-over-year basis. Margin expansion, pricing discipline, and contributions from sustainability businesses lead to 5.8% year-over-year growth in adjusted EBITDA.

Waste collection and disposal industry leader WM enjoys a leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given the immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which was the fourth-largest player in the industry. In November 2024, WM entered the adjacent medical waste disposal business with its acquisition of Stericycle.

WM's fourth-quarter results were largely in line with our expectations as the firm reported adjusted EPS of $1.93 per share, 13.5% higher on a year-over-year basis. Organic revenue growth during the quarter came in at 3.1%, with a 2.3% contribution from average yield and 0.7% volume growth.

The competitive positioning of fully integrated waste haulers continues to strengthen as the industry consolidates. These firms leverage a vast network of collection routes, transfer stations, and landfills, which bestows significant control over the waste stream and higher internalization rates.

Waste collection and disposal industry leader WM enjoys a leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given the immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which was the fourth-largest player in the industry. In November 2024, WM entered the adjacent medical waste disposal business with its acquisition of Stericycle.

Despite ongoing top-line pressure from lower prices for recycled commodities and renewable energy credits, Waste Management reported 3.0% organic revenue growth. Adjusted EBITDA margin edged 10 basis points higher year over year to 30.6%. WM targets a full-year adjusted EBITDA margin of 29.6%-30.2%.

Waste collection and disposal industry leader WM enjoys leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which had been the fourth-largest publicly traded waste collection and disposal company in the United States. In November 2024, WM entered the adjacent medical waste disposal business with its acquisition of Stericycle.

Waste collection and disposal industry leader WM enjoys leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which had been the fourth-largest publicly traded waste collection and disposal company in the United States. In November 2024, WM entered the adjacent medical waste disposal business with its acquisition of Stericycle.

Even with top-line pressure from lower prices for recycled commodities and renewable energy credits, Waste Management still reported 5.4% organic revenue growth. Adjusted EBITDA margin only slipped 10 basis points to 29.9% even with meaningful margin dilution from the Stericycle acquisition.

Waste Management held an investor day on June 24 where management detailed its strategic vision and revealed 2027 targets for revenue, adjusted EBITDA, and free cash flow. Management now sees $300 million in total synergies from the Stericycle acquisition (now WM Healthcare Solutions).

Waste Management's first-quarter revenue increased 16.7% year over year, due to acquisitions (primarily Stericycle), which contributed 13.5 points of growth, and higher pricing, which added 3.4 points of growth. Adjusted EBITDA margin of 28.5% declined 110 basis points year over year.

Waste Management's fourth-quarter revenue grew 13% year over year to $5.9 billion and adjusted EBITDA margin narrowed 100 basis points to 28.9%. Much of the sales growth and margin dilution came from the recent Stericycle acquisition. WM doubled its deal synergy target to $250 million.

Waste collection and disposal industry leader WM enjoys leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which had been the fourth-largest publicly traded waste collection and disposal company in the United States. In November 2024, WM entered the adjacent medical waste disposal business with its acquisition of Stericycle.

Waste collection and disposal industry leader WM enjoys leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which had been the fourth-largest publicly traded waste collection and disposal company in the United States. In November 2024, WM entered the adjacent medical waste disposal business with its acquisition of Stericycle.

Waste collection and disposal industry leader WM enjoys leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which had been the fourth-largest publicly traded waste collection and disposal company in the United States.

WM's third-quarter revenue grew 8% year over year to $5.6 billion, about $0.1 billion above our forecast. Adjusted earnings per share of $1.96 (up 20% year over year) easily topped our $1.82 estimate. Management now sees full-year financial results at or above the high end of guidance.

Waste collection and disposal industry leader WM enjoys leading market share and unmatched dominance in landfill ownership, which is nearly impossible to replicate given immense regulatory hurdles. This leadership position expanded after the firm's October 2020 acquisition of Advanced Disposal, which had been the fourth-largest publicly traded waste collection and disposal company in the United States.

Waste Management’s stock price slid 8% on July 25 after the wide-moat-rated waste collection and disposal leader reported second-quarter revenue and adjusted earnings per share that fell short of FactSet consensus estimates. Revenue grew 5.5% year over year to $5.4 billion, and adjusted EPS increased 20% to $1.82, but both metrics fell 0.5% shy of consensus.