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Sep 30, 2025
Waste Management Q3 2025 Earnings Report
Waste Management reported solid Q3 2025 results with strong cash generation and record margins in its Collection and Disposal segment.
Key Takeaways
WM posted a strong quarter driven by disciplined pricing, cost optimization, and growth in sustainability businesses. Despite headwinds in recycled commodity pricing, the company maintained momentum with increased free cash flow and adjusted EBITDA.
Net income for the quarter was $603 million, with adjusted EPS at $1.98.
Revenue rose to $6.443 billion, supported by contributions from WM Healthcare Solutions.
Adjusted operating EBITDA margin for the quarter was 30.6%.
Two new renewable natural gas facilities and two recycling projects were completed during the quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
WM reaffirmed its guidance for 2025, with adjusted operating EBITDA expected between $7.475B and $7.625B and free cash flow between $2.8B and $2.9B.
Positive Outlook
- Adjusted operating EBITDA margin guidance increased to 29.6%-30.2%.
- 2026 free cash flow expected to approach $3.8 billion.
- Expansion of renewable natural gas and recycling projects continues.
- Healthcare Solutions integration progressing well.
- Cost discipline and margin improvement remain strong.
Challenges Ahead
- Revenue guidance revised to low end due to weaker recycled commodity pricing.
- Healthcare Solutions revenue slightly below expectations.
- Blended average recycled commodity price down ~35% YoY.
- Stericycle integration-related costs impacted margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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