Waste Management Inc.$WM (-0,92%) ) slightly missed analysts' expectations in the first quarter of 2025, which led to a 1.6% decline in the share price after trading hours. Adjusted earnings per share (EPS) were USD 1.67 (expected: USD 1.69) and revenue was USD 6.02 billion (expected: USD 6.15 billion), although revenue still increased by 16.7% compared to the previous year.
Key findings
- EPS: USD 1.67 (below expectation of USD 1.69)
- Sales: USD 6.02 billion (below expectation of USD 6.15 billion)
- Sales growth in core business: 4.7
- Price increases in core business: 6.5
- Contribution from WM Healthcare Solutions: USD 619 million in sales, USD 95 million in operating EBITDA
Corporate performance
WM achieved solid growth in its core business, driven by disciplined price increases and efficiency measures. The newly integrated Healthcare Solutions segment made a significant contribution to sales and EBITDA growth. The operating margin of the core business remained stable at 30% and operating EBITDA increased by 6% to USD 1.62 billion.
Financial highlights
- Operating cash flow: USD 1.21 billion
- Free cash flow: USD 475 million
- Investments in sustainability projects: USD 128 million
Outlook & forecast
Waste Management confirmed its outlook for the full year 2025 and emphasized the resilience of its business model and the successful integration of new business areas. The company remains on track to achieve its strategic and financial targets.
Statements from the management
CEO Jim Fish emphasized the strong implementation of the strategic priorities and underlined the sustainable growth strategy as well as the value contribution of the Stericycle acquisition.
Risks & challenges
- Slight earnings shortfall could weigh on the share price in the short term
- Integration of Healthcare Solutions poses operational challenges
- Cost increases could impact margin potential
