01—Abstract
Summary
Summary of the 10-K filed February 19, 2025. Cited figures are marked; the original filing is the authoritative source.
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%a 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.
02—Key points
Key Highlights
- Completed the significant acquisition of Stericycle for $7.2 billion, expanding into the healthcare waste management sector with the new WM Healthcare Solutions segment.
- Reported 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.
- Achieved a 13.7% increase in income from operations to $4,063 million, with operating margins improving to 18.4% of revenues.
- Announced an expected 10% increase in its quarterly dividend for 2025, signaling confidence in its financial performance and commitment to shareholder returns.
- Generated $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.
- Invested $3,231 million in capital expenditures, with a significant portion dedicated to growth initiatives in Recycling Processing and Sales and WM Renewable Energy segments.
- Temporarily suspended share repurchases due to the Stericycle acquisition, with plans to resume once leverage returns to targeted levels.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Waste Management Inc kept $0.12.
- Revenue$22.06B100.0%
- Cost of revenue−$13.38B60.7%
- Gross profit$8.68B39.3%
- Operating costs−$4.62B20.9%
- Operating income$4.06B18.4%
- Interest, other & tax−$1.32B6.0%
- Net income$2.75B12.4%
Where FY2024 revenue went
$22.06B- Cost of revenue: $13.38B, 61% of revenue
- Net income: $2.75B, 12% of revenue
- SG&A: $2.26B, 10% of revenue
- Other operating costs: $2.35B, 11% of revenue
- Interest, other & tax: $1.32B, 6.0% of revenue
Kept 12% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 19, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $22.06B$20.43B | +8.0% |
| Cost of Revenue | $13.38B$12.61B | +6.2% |
| Gross Profit | $8.68B$7.82B | +11.0% |
| SG&A Expenses | $2.26B$1.93B | +17.5% |
| Operating Expenses | $18.00B$16.85B | +6.8% |
| Operating Income | $4.06B$3.58B | +13.7% |
| Net Income | $2.75B$2.30B | +19.2% |
| EPS (Basic) | $6.84$5.69 | +20.2% |
| EPS (Diluted) | $6.81$5.66 | +20.3% |
| Shares Outstanding (Basic) | 401.50M404.90M | −0.8% |
| Shares Outstanding (Diluted) | 403.40M406.90M | −0.9% |
05—Questions
Frequently Asked Questions
What was the impact of the Stericycle acquisition on Waste Management's business?
The acquisition of Stericycle in November 2024 was a significant event for Waste Management, creating a new WM Healthcare Solutions segment. This segment provides regulated waste and compliance services (RWCS) and secure information destruction (SID) services, expanding WM's environmental solutions portfolio into the healthcare and specialized waste sectors. The acquisition is expected to enhance long-term growth and diversification.
How did Waste Management perform financially in 2024?
Waste Management delivered strong financial results in 2024. Total operating revenues increased by 8.0% to $22,063 million, driven by higher pricing, acquisitions, improved commodity prices in recycling, and increased volumes. Income from operations rose by 13.7% to $4,063 million, with operating margins improving to 18.4%. The company also generated robust free cash flow of $2,317 million.
What is Waste Management's outlook on shareholder returns, specifically dividends and share repurchases?
Waste Management has demonstrated a strong commitment to returning value to shareholders. The company announced an expected 10% increase in its quarterly dividend for 2025, marking its 22nd consecutive year of dividend increases. Share repurchases were temporarily suspended due to the Stericycle acquisition but are expected to resume once the company's leverage returns to targeted levels, projected to be about 18 months post-acquisition.
How is Waste Management investing in growth and sustainability?
Waste Management is strategically investing in growth areas, particularly its Recycling Processing and Sales and WM Renewable Energy segments. The company is expanding its recycling infrastructure with advanced technology and investing in renewable energy projects to capture methane from landfills and convert it into renewable natural gas and electricity. These investments align with their sustainability goals and capitalize on growing market demand for circular economy solutions and renewable fuels.
06—Continue