Summary
Waste Management, Inc. (WM) reported its third-quarter and year-to-date results for the period ending September 29, 2025. The company saw a significant increase in revenue, primarily driven by the acquisition of Stericycle in November 2024, which established the new WM Healthcare Solutions segment. Despite revenue growth, reported net income attributable to Waste Management, Inc. decreased year-over-year, impacted by a substantial $152 million impairment charge for a plastic film recycling business, a $45 million landfill closure charge, and higher integration costs and interest expenses related to the Stericycle acquisition. Operating expenses increased due to the Stericycle acquisition and inflationary pressures, though operating expenses as a percentage of revenue slightly decreased due to efficiency gains and price increases. The company's core Collection and Disposal businesses showed resilience with revenue growth from yield and special waste volumes, while the WM Renewable Energy segment experienced a mixed performance with higher volumes but lower RINs pricing. Free cash flow improved year-over-year, reflecting strong operating cash flows partially offset by planned capital investments in sustainability projects.
Financial Highlights
50 data points| Revenue | $6.44B |
| Cost of Revenue | $3.83B |
| Gross Profit | $2.61B |
| SG&A Expenses | $665.00M |
| Operating Expenses | $5.45B |
| Operating Income | $989.00M |
| Net Income | $603.00M |
| EPS (Basic) | $1.50 |
| EPS (Diluted) | $1.49 |
| Shares Outstanding (Basic) | 403.00M |
| Shares Outstanding (Diluted) | 404.30M |
Key Highlights
- 1Revenue increased by 14.9% to $6.44 billion in Q3 2025, largely due to the Stericycle acquisition, which contributed to the new WM Healthcare Solutions segment.
- 2Net income attributable to Waste Management, Inc. decreased to $603 million ($1.49/diluted share) from $760 million ($1.88/diluted share) in Q3 2024.
- 3The company recorded significant impairment and closure charges totaling $197 million in Q3 2025, including $152 million for a plastic film recycling business and $45 million for a landfill closure.
- 4Operating expenses as a percentage of revenue improved slightly to 59.5% from 60.6% year-over-year, despite increased costs from acquisitions and inflation.
- 5Free cash flow increased to $821 million in Q3 2025 from $618 million in Q3 2024, benefiting from higher operating cash flows.
- 6Debt levels remain substantial, with total debt at $23.4 billion as of September 30, 2025, with approximately $3.9 billion maturing within the next 12 months.
- 7The company has temporarily suspended share repurchases following the Stericycle acquisition and plans to resume once leverage returns to targeted levels.