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Dec 31, 2025
Waste Management Q4 2025 Earnings Report
Waste Management reported solid Q4 2025 results with strong growth in EPS, revenue, and operating performance.
Key Takeaways
WM delivered a strong Q4 driven by disciplined cost execution, improved operating margins, and strategic momentum in recycling and healthcare. Adjusted EPS rose to $1.93, while net income reached $742M.
WM posted record Q4 adjusted operating margin of 31.3%.
Free cash flow rose to $823M, a significant increase year-over-year.
Revenue grew 7.1% YoY to $6.31B, supported by solid pricing and healthcare expansion.
Adjusted EPS increased to $1.93, reflecting strong operational leverage.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
WM expects continued growth in earnings and cash flow for FY 2026, supported by disciplined pricing, cost optimization, and investments in sustainability and healthcare.
Positive Outlook
- FY 2026 revenue projected at $26.425B to $26.625B.
- Adjusted operating EBITDA forecasted at $8.15B to $8.25B.
- Free cash flow expected to increase nearly 30% to ~$3.8B.
- Sustainability businesses projected to contribute $235M–$255M in EBITDA growth.
- Dividend expected to rise to $3.78/share and $2B in share repurchases planned.
Challenges Ahead
- Lower sustainability growth capital projected due to reduced investments.
- Commodity price volatility could affect recycling and renewable segments.
- Integration of healthcare operations still presents synergy risks.
- Volume growth outlook modest at 0.2%–0.6%, with wildfire cleanup boost ending.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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