01—Abstract
Summary
Summary of the 10-K filed February 9, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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%b 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.
02—Key points
Key Highlights
- Revenue increased 14.2% to $25.2 billion, driven by the Stericycle acquisition and organic growth in core segments.
- Operating expenses as a percentage of revenue improved to 59.6% due to efficiency gains and cost controls.
- Free cash flow increased by $620 million to $2.9 billion, demonstrating strong cash generation.
- The company announced a planned 14.5% increase in its quarterly dividend for 2026 and resumed share repurchases.
- Investments in automation and technology are enhancing operational efficiency and reducing labor dependency.
- The integration of Stericycle into the Healthcare Solutions segment is progressing, expanding service offerings.
- Despite increased interest expense from acquisition financing, income from operations increased by $245 million to $4.3 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Waste Management Inc kept $0.11.
- Revenue$25.20B100.0%
- Cost of revenue−$15.01B59.6%
- Gross profit$10.19B40.4%
- Operating costs−$5.88B23.3%
- Operating income$4.31B17.1%
- Interest, other & tax−$1.60B6.3%
- Net income$2.71B10.7%
Where FY2025 revenue went
$25.20B- Cost of revenue: $15.01B, 60% of revenue
- Other operating costs: $3.16B, 13% of revenue
- Net income: $2.71B, 11% of revenue
- SG&A: $2.72B, 11% of revenue
- Interest, other & tax: $1.60B, 6.3% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 9, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $25.20B$22.06B | +14.2% |
| Cost of Revenue | $15.01B$13.38B | +12.2% |
| Gross Profit | $10.19B$8.68B | +17.4% |
| SG&A Expenses | $2.72B$2.26B | +20.2% |
| Operating Expenses | $20.90B$18.00B | +16.1% |
| Operating Income | $4.31B$4.06B | +6.0% |
| Net Income | $2.71B$2.75B | −1.4% |
| EPS (Basic) | $6.72$6.84 | −1.8% |
| EPS (Diluted) | $6.70$6.81 | −1.6% |
| Shares Outstanding (Basic) | 402.70M401.50M | +0.3% |
| Shares Outstanding (Diluted) | 404.20M403.40M | +0.2% |
05—Questions
Frequently Asked Questions
What was the primary driver of revenue growth in 2025?
The primary driver of revenue growth was the acquisition of Stericycle in November 2024, which expanded WM's offerings in the Healthcare Solutions segment. Additionally, higher yield in Collection and Disposal services and increased volumes in landfill, renewable energy, and recycling businesses contributed to the revenue increase.
How did the Stericycle acquisition impact the company's financial performance?
The Stericycle acquisition significantly boosted revenues and expanded WM's service portfolio. However, it also led to higher interest expenses due to acquisition financing and incurred integration costs. Despite these factors, the company reported an increase in income from operations.
What is the company's strategy for returning value to shareholders?
Waste Management remains committed to returning value to shareholders through dividend payments and share repurchases. The company announced a planned 14.5% increase in its quarterly dividend for 2026 and has resumed its share repurchase program, authorizing up to $3.0 billion for future repurchases.
What are the key areas of strategic investment for Waste Management?
WM is strategically investing in its Renewable Energy and Recycling Processing and Sales segments to enhance automation and operational efficiency. The company is also focused on integrating the Stericycle business and leveraging technology and automation across its operations to improve customer experience and reduce costs.
06—Continue