- WM’s adjusted operating EBITDA margin exceeded expectations with a margin of 29.9%, surpassing the estimate of 29.6%.
- Adjusted EPS reached $1.92, compared to $1.82 in the previous year.
- EPS increased to $1.80 from $1.69 year-over-year.
- Operating revenue grew by 19% year-over-year, totaling $6.43 billion.
- Adjusted operating EBITDA also grew by 19% to $1.92 billion.
- Capital expenditure amounted to $572 million.
- Free cash flow saw a significant increase of 54% year-over-year, reaching $818 million.
- Gross collection revenue was $4.39 billion, an increase of 5.2% year-over-year.
- Gross landfill revenue grew by 12%, totaling $1.45 billion.
- Gross transfer revenue increased by 10% to $681 million.
- Gross recycling revenue saw a modest increase of 1.5%, reaching $482 million.
- The company maintains confidence in meeting its full-year outlook for adjusted operating EBITDA and exceeding its initial free cash flow target.
- WM is on course to reach the upper end of its $80 to $100 million synergy targets by 2025.
- The company expects strong performance in the latter half of 2025, aiming to meet its guidance and enhance shareholder value.
- Analyst ratings include 15 buys, 9 holds, and 1 sell.
Waste Management on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have provided positive coverage of Waste Management Inc. in their recent reports. One report titled “Waste Management Inc. Locks In Profits with Smart RNG Deals Amid Renewable Energy Surge!” commends the company on its strong first quarter 2025 earnings, exceeding expectations and showcasing a robust performance. Waste Management‘s total operating EBITDA saw an impressive increase of over 12% compared to the same period in 2024, driven by solid performances in various business segments and growth in sustainability initiatives.
Another report by Baptista Research titled “Waste Management: An Insight Into Its Healthcare Solutions” delves into the company’s substantial operational and financial performance improvements in 2024. Waste Management‘s focus on top-line growth strategies and cost management has led to significant achievements, including a 30% operating EBITDA margin — the highest in its history. These insights highlight Waste Management‘s operational capabilities and strategic positioning in the market, garnering positive sentiment from analysts.
A look at Waste Management Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| 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 positioned for a positive long-term outlook based on Smartkarma Smart Scores. With a Growth score of 4, the company is expected to continue expanding its operations and seizing opportunities for development in the waste management industry. This growth potential is complemented by solid Resilience and Momentum scores of 3, indicating the company’s ability to withstand challenges and sustain its positive trajectory over time.
While Waste Management‘s Value score is at 2, indicating room for improvement in terms of valuation, the company’s Dividend score of 3 suggests a moderate level of dividend payment to its investors. Overall, Waste Management, Inc. is well-positioned to capitalize on growth opportunities while maintaining its operational resilience in providing waste management services across North America.
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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