- WM’s adjusted earnings per share (EPS) for Q4 2025 decreased slightly to $1.70 from $1.74 the previous year.
- The reported EPS increased significantly to $1.48 compared to $1.22 year-over-year.
- Operating revenue grew by 13% year-over-year, reaching $5.89 billion.
- Adjusted operating EBITDA rose by 9.5% year-over-year to $1.71 billion.
- The adjusted operating EBITDA margin slightly decreased from 29.9% to 28.9% year-over-year.
- Capital expenditures amounted to $736 million, reflecting a 9% increase year-over-year.
- Free cash flow saw a substantial increase of 30% year-over-year, totaling $455 million.
- Gross collection revenue climbed 3.8% year-over-year to $4.28 billion.
- Gross landfill revenue increased by 3.2% year-over-year, totaling $1.23 billion.
- Gross transfer revenue rose to $629 million, marking a 9.6% year-over-year growth.
- Gross recycling revenue experienced a significant 13% increase, reaching $476 million.
- WM anticipates revenue growth driven by core price adjustments of 5.8% to 6.2%, yield of 4.0% to 4.2%, and volume growth between 0.25% and 0.75% in 2025.
- Analyst ratings include 14 buys, 10 holds, and 1 sell recommendation.
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Waste Management on Smartkarma
Analyst coverage on Waste Management by Baptista Research on Smartkarma reveals a bullish sentiment towards the company’s operational efficiency and cost optimization strategies. Waste Management, Inc. (WM) showed strong performance in the third quarter of 2024, attributing its success to focused efforts on cost optimization, disciplined pricing, and sustainable investments. The company’s operating EBITDA displayed significant growth, reaching a record margin of 30.5%, positioning it well to achieve its full-year target of around $6.5 billion. Baptista Research delves into various factors that could impact the company’s stock price in the near future and aims to provide an independent valuation using Discounted Cash Flow (DCF) analysis.
A look at Waste Management Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Waste Management, Inc. is poised for a positive long-term outlook based on the Smartkarma Smart Scores. With a strong score in Growth and Momentum, the company is showing robust potential for expansion and continuous progress. Additionally, the respectable score in Dividend indicates a good outlook for income-seeking investors, providing a stable return in the long run.
However, the company’s scores in Value and Resilience, though not the highest, still point towards a solid foundation and moderate stability. With its wide range of waste management services and diverse customer base across North America, Waste Management is well-positioned to sustain its operations and navigate through challenges in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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