WM's third-quarter 2025 results fall short of estimates despite a 15% y/y revenue jump, lifted by strong landfill and renewable energy gains.
Waste Management (WM) came out with quarterly earnings of $1.98 per share, missing the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $1.96 per share a year ago.
Waste Management missed on both EPS and revenue, cutting full-year guidance to the low end amid recycling weakness.
Waste Management (WM) remains a 'buy' due to strong growth, industry leadership, and attractive valuation relative to peers despite recent share price underperformance. WM's revenue surged 19% year-over-year, primarily driven by the Stericycle acquisition, with continued growth expected from organic expansion and further investments. Management projects robust future growth, targeting $28.5–$29.25 billion in revenue and $8.85–$9.15 billion in EBITDA by 2027, supported by recycling and RNG investments.
WM gears up to report Q3 results, with revenues projected to rise 15.7%, led by gains across core business segments.
In the most recent trading session, Waste Management (WM) closed at $216.91, indicating a -1.35% shift from the previous trading day.
WM drives profitability with pricing discipline and cost control, while the Stericycle buyout adds growth potential but strains liquidity.
Shares of Waste Management Inc. (NYSE: WM) have retreated from a $242.58 all-time high in June and are down 7.3% since then.
Waste Management is a proven compounder with accelerating revenue growth, strong cash flows, and robust business fundamentals, making it an attractive long-term investment. Despite modest dividend yield and limited buybacks, strong free cash flow and prudent capital allocation suggest future shareholder returns or reinvestment potential. 2025 guidance shows significant acceleration in both adjusted operating EBITDA and free cash flow, supporting a bright outlook for continued growth.
I rate Waste Management, Inc. a Buy with a $245 fair value, due to disciplined pricing, targeted volume growth, and a resilient business model. The Stericycle acquisition expands WM's healthcare market presence and should deliver significant synergies, supporting long-term growth and margin expansion. WM's consistent organic and M&A-driven revenue growth, plus strong capital allocation, make it attractive for dividend investors seeking stability.
WM reports 19% y/y revenue growth and a 5.5% EPS rise in second-quarter 2025 despite lowering the yearly revenue guidance.
Waste Management, Inc.'s strong cash flow, resilient core business, and successful Stericycle acquisition support its premium valuation despite an elevated multiple. Healthcare expansion, landfill growth, and automation initiatives drive credible free cash flow targets, with management aiming for $10.50/share by 2027. Debt reduction and synergy realization position WM for future buybacks, while recent tax law changes boost near-term free cash flow.