What was the primary driver of revenue growth in the quarter?

The primary driver of revenue growth was the acquisition of Stericycle, Inc., which contributed significantly to the top line through its WM Healthcare Solutions segment. Additionally, higher volumes in landfill, recycling, and WM Renewable Energy businesses also contributed to the revenue increase.

How are the integration costs of Stericycle impacting the company's expenses?

The integration of Stericycle has led to increased operating expenses and selling, general, and administrative (SG&A) expenses. These increases are attributed to labor costs from acquired employees, consulting fees for integration support, and other associated operational adjustments. While these costs impact profitability in the short term, the company expects to realize synergies and cost efficiencies in the long run.

What is the company's outlook on its debt levels following the Stericycle acquisition?

The Stericycle acquisition was financed with a significant amount of debt, leading to an increase in interest expense. The company's leverage has increased, and it has temporarily suspended its share repurchase program. Waste Management expects to resume share repurchases once its leverage returns to targeted levels, which is currently projected for the second quarter of 2026.

Are there any significant environmental or legal matters that investors should be aware of?

The company is involved in several environmental matters and litigation, including those related to Superfund sites and past operations of Stericycle. While the company does not currently believe the ultimate outcome of these matters will have a material adverse effect on its financial condition, results of operations, or cash flows, these are ongoing situations that warrant monitoring. Stericycle's deferred prosecution agreement with the DOJ was terminated early in April 2025, which is a positive development.

WM 10-Q Quarterly Report Q2 FY2025 — Revenue, Net Income, EPS

Summary

Waste Management, Inc. (WM) reported a solid financial performance for the quarter ending June 30, 2025, demonstrating revenue growth and improved operating income, largely driven by the recent acquisition of Stericycle, Inc. (now WM Healthcare Solutions segment) and continued strength in its core Collection and Disposal businesses. Revenue increased significantly year-over-year, primarily due to the inclusion of Stericycle's operations and higher volumes across landfill, recycling, and renewable energy segments, albeit partially offset by lower residential volumes and recycled commodity prices. Despite increased operating expenses and SG&A, largely attributable to integration costs and labor from acquisitions, Waste Management successfully grew its operating income. Net income and diluted earnings per share also saw a healthy increase, reflecting strong operational execution and favorable tax impacts. The company also reported a substantial increase in net cash provided by operating activities and free cash flow, indicating robust liquidity, though increased interest expenses due to acquisition financing were noted. Overall, WM shows resilience and strategic progress, with the Stericycle integration appearing to be a key driver of recent financial results.

Financial Highlights

50 data points

Beta

Revenue

$6.43B

0.4% Gross Margin

Net Income

$726.00M

0.1% Net Margin

EPS (Diluted)

$1.80

Total Assets

$45.72B

Cash & Equivalents

$440.00M

Free Cash Flow

$1.54B

Financial Statements

Beta

Revenue	$6.43B
Cost of Revenue	$3.84B
Gross Profit	$2.59B
SG&A Expenses	$696.00M
Operating Expenses	$5.28B
Operating Income	$1.15B
Net Income	$726.00M
EPS (Basic)	$1.80
EPS (Diluted)	$1.80
Shares Outstanding (Basic)	402.60M
Shares Outstanding (Diluted)	404.30M

Key Highlights

1Total revenue surged by 19.0% to $6,430 million in Q2 2025, largely driven by the Stericycle acquisition and increased volumes in landfill, recycling, and renewable energy segments.
2Operating income increased by 14.1% to $1,151 million, demonstrating effective cost management and revenue growth, despite higher operating expenses.
3Net income attributable to Waste Management, Inc. rose to $726 million ($1.80 per diluted share), up from $680 million ($1.69 per diluted share) in the prior year period.
4Net cash provided by operating activities increased by $232 million to $2,753 million for the first six months of 2025, signaling strong cash generation.
5Free cash flow improved significantly to $818 million in Q2 2025, supporting dividend payments and strategic investments.
6The integration of Stericycle into the new WM Healthcare Solutions segment is progressing, contributing to revenue growth but also increasing SG&A and operating expenses due to associated costs.
7The company's effective income tax rate decreased due to federal tax credits from renewable energy and low-income housing investments.

WASTE MANAGEMENT INC Quarterly Report for Q2 Ended Jun 30, 2025

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions