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Waste Management 2025 Q2 Earnings Beats Expectations with Net Income Growth of 6.9%
Generated by AI AgentAinvest Earnings Report Digest
Monday, Jul 28, 2025 11:04 pm ET2min read
Aime SummaryWaste Management (WM), ranking 158th by market capitalization, reported its fiscal 2025 Q2 earnings on Jul 28th, 2025. The company exceeded revenue expectations with a 19.0% increase, reaching $6.43 billion compared to $5.40 billion in 2024 Q2. WM raised its guidance and anticipates achieving the upper end of its targeted synergies of $80 to $100 million in 2025, driven by core pricing and improvements in Collection and Disposal.
Revenue
Waste Management reported a significant rise in total revenue, reaching $6.43 billion for Q2 2025, marking a 19.0% increase from the previous year's $5.40 billion. The Collection segment contributed majorly, with $3.86 billion, including $1.40 billion from Commercial, $790 million from Industrial, $872 million from Residential, and $796 million from Other Collection. The Landfill segment generated $1.04 billion, while Transfer services provided $389 million. Recycling Processing and Sales added $381 million, and WM Renewable Energy contributed $115 million. WM Healthcare Solutions reported $646 million, alongside $7 million from Corporate and Other.
Earnings/Net Income
Waste Management's earnings per share (EPS) grew by 5.9%, reaching $1.80 in Q2 2025 from $1.70 in Q2 2024. This marks a continued rise in earnings, with net income increasing by 6.9% to $727 million from the previous $680 million. The improved EPS reflects positive financial performance.
Price Action
The stock price of edged down 0.48% during the latest trading day, edged up 1.15% during the most recent full trading week, and edged down 0.30% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Waste Management shares following its revenue surpassing expectations on earnings release day and holding them for 30 days has yielded strong returns over the past three years. This approach delivered a 123.85% return, outperforming the benchmark return of 88.74% and generating an excess return of 35.11%. With a Sharpe ratio of 0.96 and no maximum drawdown, the strategy demonstrated robust risk-adjusted performance and minimal volatility, establishing itself as a reliable choice for investors seeking both growth and stability. The consistent excess return over the benchmark highlights the effectiveness of this strategy, making it an attractive option for those aiming for substantial gains while minimizing risk exposure.
CEO Commentary
"As we described at our recent Investor Day, WM is building distinctive platforms to drive competitive differentiation and fuel a powerful, long-term growth engine to create shareholder value," said Jim Fish, CEO of WM. The company experienced robust organic revenue growth and margin expansion in its Collection and Disposal business, achieving its best-ever operating expense margin. The Recycling Processing and Sales, along with WM Renewable Energy segments, also saw double-digit operating EBITDA growth, supported by sustainability investments. WM Healthcare Solutions continues to integrate and contribute positively to customer relationships and financial results.
Guidance
WM anticipates achieving the upper end of its targeted synergies of $80 to $100 million in 2025. The company expects continued revenue growth driven by core pricing and improvements in the Collection and Disposal business. WM aims to sustain its focus on customer lifetime value and further enhance margins through disciplined cost management and strategic investments in sustainability initiatives.
Additional News
In recent developments, Waste Management announced the release of its second-quarter financial results after the market closure on July 28. The company projects a significant revenue target of $29 billion by 2027, driven primarily by innovations in recycling and renewable natural gas (RNG), as well as strategic landfill recalibration. Additionally, Waste Management named John Morris as President on May 14, 2025, signaling a key leadership change aimed at further strengthening its executive team. These strategic moves underscore WM's commitment to advancing its operational efficiency and sustainability initiatives, positioning itself as a leader in the waste management industry.
Revenue
Waste Management reported a significant rise in total revenue, reaching $6.43 billion for Q2 2025, marking a 19.0% increase from the previous year's $5.40 billion. The Collection segment contributed majorly, with $3.86 billion, including $1.40 billion from Commercial, $790 million from Industrial, $872 million from Residential, and $796 million from Other Collection. The Landfill segment generated $1.04 billion, while Transfer services provided $389 million. Recycling Processing and Sales added $381 million, and WM Renewable Energy contributed $115 million. WM Healthcare Solutions reported $646 million, alongside $7 million from Corporate and Other.
Earnings/Net Income
Waste Management's earnings per share (EPS) grew by 5.9%, reaching $1.80 in Q2 2025 from $1.70 in Q2 2024. This marks a continued rise in earnings, with net income increasing by 6.9% to $727 million from the previous $680 million. The improved EPS reflects positive financial performance.
Price Action
The stock price of edged down 0.48% during the latest trading day, edged up 1.15% during the most recent full trading week, and edged down 0.30% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Waste Management shares following its revenue surpassing expectations on earnings release day and holding them for 30 days has yielded strong returns over the past three years. This approach delivered a 123.85% return, outperforming the benchmark return of 88.74% and generating an excess return of 35.11%. With a Sharpe ratio of 0.96 and no maximum drawdown, the strategy demonstrated robust risk-adjusted performance and minimal volatility, establishing itself as a reliable choice for investors seeking both growth and stability. The consistent excess return over the benchmark highlights the effectiveness of this strategy, making it an attractive option for those aiming for substantial gains while minimizing risk exposure.
CEO Commentary
"As we described at our recent Investor Day, WM is building distinctive platforms to drive competitive differentiation and fuel a powerful, long-term growth engine to create shareholder value," said Jim Fish, CEO of WM. The company experienced robust organic revenue growth and margin expansion in its Collection and Disposal business, achieving its best-ever operating expense margin. The Recycling Processing and Sales, along with WM Renewable Energy segments, also saw double-digit operating EBITDA growth, supported by sustainability investments. WM Healthcare Solutions continues to integrate and contribute positively to customer relationships and financial results.
Guidance
WM anticipates achieving the upper end of its targeted synergies of $80 to $100 million in 2025. The company expects continued revenue growth driven by core pricing and improvements in the Collection and Disposal business. WM aims to sustain its focus on customer lifetime value and further enhance margins through disciplined cost management and strategic investments in sustainability initiatives.
Additional News
In recent developments, Waste Management announced the release of its second-quarter financial results after the market closure on July 28. The company projects a significant revenue target of $29 billion by 2027, driven primarily by innovations in recycling and renewable natural gas (RNG), as well as strategic landfill recalibration. Additionally, Waste Management named John Morris as President on May 14, 2025, signaling a key leadership change aimed at further strengthening its executive team. These strategic moves underscore WM's commitment to advancing its operational efficiency and sustainability initiatives, positioning itself as a leader in the waste management industry.
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