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Jun 30, 2025
Waste Management Q2 2025 Earnings Report
WM reported strong Q2 2025 results driven by robust EBITDA growth and contributions from its sustainability initiatives.
Key Takeaways
Waste Management delivered solid Q2 results with strong revenue growth and a significant increase in operating cash flow, supported by performance in core Collection and Disposal, Recycling, and WM Renewable Energy segments.
Revenue rose to $6.43 billion, reflecting growth across legacy and healthcare operations.
Adjusted EPS reached $1.92, boosted by operational efficiencies and cost control.
Free cash flow reached $1.29 billion for the quarter, reflecting strong EBITDA and disciplined capex.
WM Healthcare Solutions contributed $646 million in revenue as a new segment.
Revenue by Segment
Forward Guidance
WM reaffirmed its EBITDA guidance and raised free cash flow outlook despite minor revenue guidance adjustments.
Positive Outlook
- Free cash flow guidance raised to $2.8–$2.9B due to tax changes.
- Operating EBITDA guidance narrowed and reaffirmed midpoint at $7.55B.
- Adjusted EBITDA margin revised up to 29.6%–29.9%.
- Cross-selling in Healthcare Solutions expected to generate $300M EBITDA run-rate by 2027.
- Progress made on renewable gas and recycling facility expansion plans.
Challenges Ahead
- Revenue guidance lowered due to soft commodity pricing in recycling.
- Winter weather negatively impacted volumes in early 2025.
- Recycling brokerage business remains low-margin and volatile.
- Higher cash interest outflows related to acquisition funding.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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