Waste Management 2025 Q1 Earnings Revenue Surges Amid Net Income Decline
Wednesday, Apr 30, 2025 5:05 am ET
26min read Waste Management (WM), ranking 84th by market capitalization, reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. The company's first-quarter results showed a revenue increase of 16.7%, reaching $6.02 billion, though net income declined by 9.9% to $637 million. This performance missed revenue expectations but adjusted EPS beat estimates. WM maintained its full-year guidance, anticipating targeted synergies of $80 to $100 million. The company remains optimistic about achieving its 2025 outlook, supported by ongoing investments in sustainability initiatives and operational efficiencies.
Revenue
Waste Management reported a substantial 16.7% increase in total revenue, achieving $6.02 billion for Q1 2025 compared to $5.16 billion in Q1 2024. The collection segment led the growth, with revenues of $3.75 billion, including commercial collection at $1.38 billion, industrial collection at $741 million, and residential collection at $872 million. Other collection services contributed $753 million. The landfill segment generated $840 million, while transfer services added $336 million. Recycling processing and sales reached $384 million, WM Renewable Energy brought in $91 million, and WM Healthcare Solutions contributed $619 million. Corporate and other revenues accounted for $2 million.
Earnings/Net Income
Waste Management's earnings per share (EPS) declined by 10.2% to $1.58 in Q1 2025 from $1.76 in Q1 2024. The company's net income decreased by 9.9% to $637 million in Q1 2025, down from $707 million in the previous year.
Post Earnings Price Action Review
Waste Management's earnings report has historically been a catalyst for positive short-to-medium-term stock performance. Following earnings disclosures, the stock exhibits a favorable trend, with a 3-Day win rate of 57.14%, a 10-Day win rate of 76.19%, and a 30-Day win rate of 80.95%. These statistics suggest that the stock often enjoys gains shortly after earnings announcements. The maximum return observed over a 30-day period was 6.55%, indicating the potential for significant price appreciation in the aftermath of earnings reports. This pattern underscores a consistent post-earnings strength that investors may consider as a positive signal.
CEO Commentary
"Our first quarter results reflect the strong track record of the WM team as we started the year delivering on each of our strategic priorities," said Jim Fish, President and CEO of WM. He emphasized disciplined revenue growth and cost optimization in the core business while advancing sustainability investments and leveraging the Stericycle acquisition. The results yielded a 16.7% increase in revenue and a 12.2% rise in adjusted operating EBITDA year-over-year. Fish expressed confidence in achieving the 2025 outlook, highlighting the successful integration of WM Healthcare Solutions and progress towards synergy targets.
Guidance
WM anticipates maintaining its positive momentum, with expectations set to achieve targeted synergies of $80 to $100 million in 2025. The company is on track to deliver continued growth, supported by ongoing investments in sustainability initiatives and operational efficiencies. Management's outlook remains optimistic, bolstered by the resilience of the business model and strategic prioritization of core operations.
Additional News
Waste Management continues to focus on strategic acquisitions, with plans to spend over $500 million on solid waste acquisitions in 2025, reflecting a decrease from the $800 million spent in 2024. The company expects incremental tuck-in acquisition revenue between $80 million and $125 million, a rise from previous guidance. CEO Jim Fish highlighted the firm's strong operational performance amid challenges like severe weather, emphasizing their progress in integrating Stericycle. The company also announced the opening of two new Material Recovery Facilities (MRFs) in California and Texas, with plans for additional facilities later this year. WM remains committed to advancing its sustainability growth investments, ensuring minimal impact from recent tariff uncertainties.
Revenue
Waste Management reported a substantial 16.7% increase in total revenue, achieving $6.02 billion for Q1 2025 compared to $5.16 billion in Q1 2024. The collection segment led the growth, with revenues of $3.75 billion, including commercial collection at $1.38 billion, industrial collection at $741 million, and residential collection at $872 million. Other collection services contributed $753 million. The landfill segment generated $840 million, while transfer services added $336 million. Recycling processing and sales reached $384 million, WM Renewable Energy brought in $91 million, and WM Healthcare Solutions contributed $619 million. Corporate and other revenues accounted for $2 million.
Earnings/Net Income
Waste Management's earnings per share (EPS) declined by 10.2% to $1.58 in Q1 2025 from $1.76 in Q1 2024. The company's net income decreased by 9.9% to $637 million in Q1 2025, down from $707 million in the previous year.
Post Earnings Price Action Review
Waste Management's earnings report has historically been a catalyst for positive short-to-medium-term stock performance. Following earnings disclosures, the stock exhibits a favorable trend, with a 3-Day win rate of 57.14%, a 10-Day win rate of 76.19%, and a 30-Day win rate of 80.95%. These statistics suggest that the stock often enjoys gains shortly after earnings announcements. The maximum return observed over a 30-day period was 6.55%, indicating the potential for significant price appreciation in the aftermath of earnings reports. This pattern underscores a consistent post-earnings strength that investors may consider as a positive signal.
CEO Commentary
"Our first quarter results reflect the strong track record of the WM team as we started the year delivering on each of our strategic priorities," said Jim Fish, President and CEO of WM. He emphasized disciplined revenue growth and cost optimization in the core business while advancing sustainability investments and leveraging the Stericycle acquisition. The results yielded a 16.7% increase in revenue and a 12.2% rise in adjusted operating EBITDA year-over-year. Fish expressed confidence in achieving the 2025 outlook, highlighting the successful integration of WM Healthcare Solutions and progress towards synergy targets.
Guidance
WM anticipates maintaining its positive momentum, with expectations set to achieve targeted synergies of $80 to $100 million in 2025. The company is on track to deliver continued growth, supported by ongoing investments in sustainability initiatives and operational efficiencies. Management's outlook remains optimistic, bolstered by the resilience of the business model and strategic prioritization of core operations.
Additional News
Waste Management continues to focus on strategic acquisitions, with plans to spend over $500 million on solid waste acquisitions in 2025, reflecting a decrease from the $800 million spent in 2024. The company expects incremental tuck-in acquisition revenue between $80 million and $125 million, a rise from previous guidance. CEO Jim Fish highlighted the firm's strong operational performance amid challenges like severe weather, emphasizing their progress in integrating Stericycle. The company also announced the opening of two new Material Recovery Facilities (MRFs) in California and Texas, with plans for additional facilities later this year. WM remains committed to advancing its sustainability growth investments, ensuring minimal impact from recent tariff uncertainties.
