Summary
Waste Management, Inc. (WM) reported a strong financial performance for the fiscal year ending December 30, 2024, highlighted by significant revenue growth and improved profitability. The company's strategic focus on operational efficiency, technological investment, and key acquisitions has driven these positive results. Notably, the acquisition of Stericycle in November 2024 significantly expanded WM's service offerings into the healthcare waste sector, creating a new WM Healthcare Solutions segment. This strategic move is expected to contribute to long-term growth and market diversification. Financially, WM demonstrated robust revenue generation, driven by price increases (yield), strategic acquisitions, and increased volumes across its core businesses. The company also highlighted its commitment to shareholder returns through a planned 10% increase in its quarterly dividend for 2025, underscoring its consistent cash flow generation. While navigating inflationary pressures and integration costs associated with the Stericycle acquisition, WM has managed to improve operating margins through efficiency gains and cost management. The company's strong free cash flow generation provides flexibility for continued strategic investments and shareholder returns.
Financial Highlights
51 data points| Revenue | $22.06B |
| Cost of Revenue | $13.38B |
| Gross Profit | $8.68B |
| SG&A Expenses | $2.26B |
| Operating Expenses | $18.00B |
| Operating Income | $4.06B |
| Net Income | $2.75B |
| EPS (Basic) | $6.84 |
| EPS (Diluted) | $6.81 |
| Shares Outstanding (Basic) | 401.50M |
| Shares Outstanding (Diluted) | 403.40M |
Key Highlights
- 1Completed the significant acquisition of Stericycle for $7.2 billion, expanding into the healthcare waste management sector with the new WM Healthcare Solutions segment.
- 2Reported an 8.0% increase in total operating revenues to $22,063 million for 2024, primarily driven by higher yield in Collection and Disposal, acquisitions, improved recycling commodity prices, and increased volumes.
- 3Achieved a 13.7% increase in income from operations to $4,063 million, with operating margins improving to 18.4% of revenues.
- 4Announced an expected 10% increase in its quarterly dividend for 2025, signaling confidence in its financial performance and commitment to shareholder returns.
- 5Generated $5,390 million in net cash provided by operating activities and $2,317 million in free cash flow for 2024, demonstrating strong liquidity and financial flexibility.
- 6Invested $3,231 million in capital expenditures, with a significant portion dedicated to growth initiatives in Recycling Processing and Sales and WM Renewable Energy segments.
- 7Temporarily suspended share repurchases due to the Stericycle acquisition, with plans to resume once leverage returns to targeted levels.