Waste Management maintains resilience, despite revenue deceleration, with strong margin expansion and robust cash flow supporting a reiterated buy rating. Their Healthcare Solutions segment delivered 53% YoY revenue growth, validating management's strategic diversification amid legacy business sluggishness. Efficiency improvements drove Q4 adjusted EBITDA margin to 31.3%, up 240 bps YoY, and supported 14% adjusted EPS growth, despite macro headwinds.
Shares of Waste Management Inc. (NYSE: WM) reached a $242.58 all-time high last June.
Economic activity is solid, consumption is high, and that means lots of garbage, which is a profitable business and an industry expected to continue growing.
Waste Management, Inc. (WM) Q4 2025 Earnings Call Transcript
WM fourth-quarter 2025 earnings and revenue miss estimates despite y/y growth in both metrics, with a mixed segment performance and upbeat cash flow results.
The headline numbers for Waste Management (WM) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Waste Management (WM) came out with quarterly earnings of $1.93 per share, missing the Zacks Consensus Estimate of $1.95 per share. This compares to earnings of $1.7 per share a year ago.
Waste Management is rated Buy, with risk-reward attractive as headwinds fade and valuation sits below historical and peer levels. WM's organic growth should accelerate in 2026, driven by industrial recovery, easing residential headwinds, healthcare stabilization, and ramping renewable natural gas production. Margins are poised to expand through strong pricing, automation, improved business mix, and normalization in healthcare, supporting double-digit EPS growth in FY26 and FY27.
WM heads into fourth-quarter 2025 earnings with revenues seen up 14.5% to $6.4B and EPS at $1.95, as Collection and Healthcare drive growth.
Waste Management (WM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
WM outperforms its industry, supported by essential services, pricing discipline and a long history of dividends.
Waste Management remains a buy, demonstrating robust revenue growth, operational health, and consistent capital returns, despite recent underperformance versus the market. WM's acquisition of Stericycle drove significant top-line expansion, while core businesses also benefited from price increases and operational scale. Management increased the dividend by 14.5% and authorized a new $3 billion buyback, reflecting confidence in leverage reduction and ongoing cash flow strength.