WASTE MANAGEMENT INC Annual Report, Year Ended Dec 31, 2025

Waste Management, Inc. (WM) reported solid financial results for the fiscal year ending December 31, 2025, driven by strong performance in its core Collection and Disposal segment and continued integration of the Stericycle acquisition. Total revenues increased by 14.2% to $25.2 billion, primarily due to the Stericycle acquisition, higher yield in Collection and Disposal services, and increased volumes in landfill, renewable energy, and recycling businesses. The company demonstrated improved operating expense management, reducing operating expenses as a percentage of revenue to 59.6%, reflecting efficiency gains and cost controls. Despite a slight decrease in net income attributable to higher interest expenses from debt financing the Stericycle acquisition, free cash flow saw a significant increase of $620 million to $2.9 billion, underscoring the company's ability to generate robust cash flows. WM also announced a planned 14.5% increase in its quarterly dividend for 2026 and resumed share repurchases, signaling confidence in its financial stability and commitment to returning value to shareholders. The company continues to invest strategically in its growth initiatives, particularly in the Renewable Energy and Recycling Processing and Sales segments, aiming to enhance automation and operational efficiency. The integration of Stericycle into the Healthcare Solutions segment is progressing, expanding WM's environmental solutions portfolio into medical waste and secure information destruction services. Management remains focused on executing its strategy of focused differentiation and continuous improvement, leveraging its extensive asset network to drive customer experience and growth, while navigating a dynamic industry landscape influenced by economic conditions, regulatory changes, and evolving customer sustainability demands.