Q1 25 EPS
$1.67
BEAT +5.22%
Est. $1.59
Q1 25 Revenue
$6.02B
MISS 1.42%
Est. $6.10B
vs S&P Since Q1 25
-27.3%
TRAILING MARKET
WM +2.7% vs S&P +30.0%
Market Reaction
Did WM Beat Earnings? Q1 2025 Results
Waste Management posted a mixed but largely encouraging first quarter for 2025, delivering an earnings beat on the bottom line even as revenue fell modestly short of Wall Street's expectations. Adjusted diluted EPS came in at $1.67, clearing the $1.5… Read more Waste Management posted a mixed but largely encouraging first quarter for 2025, delivering an earnings beat on the bottom line even as revenue fell modestly short of Wall Street's expectations. Adjusted diluted EPS came in at $1.67, clearing the $1.59 consensus by 5.22%, while total revenue of $6.02 billion, up 16.6% year-over-year, missed the $6.10 billion estimate by 1.42%. The top-line shortfall was largely offset by the narrative driving the quarter: the first full contribution from WM Healthcare Solutions, the segment built around the late-2024 Stericycle acquisition, which added $619 million in revenue and helped reshape WM's scale. The legacy waste business held its own, growing 4.7% to $5.40 billion on 6.5% core pricing and a 30.0% adjusted EBITDA margin for the fourth consecutive quarter. Despite investor concerns following results, management reaffirmed its full-year 2025 free cash flow outlook of $2.68 billion to $2.78 billion, citing Stericycle integration synergies of $80 million to $100 million on track for the year.
Key Takeaways
- • Core price of 6.5% and Collection and Disposal yield of 4.0% driving organic revenue growth
- • Adjusted operating EBITDA margin for WM Legacy Business achieved 30% for the fourth consecutive quarter
- • Disciplined cost focus driven by people-first culture, technology adoption, and strategic exit from low-margin residential business
- • Recycling Processing and Sales and WM Renewable Energy together contributed $18 million to operating EBITDA growth from sustainability projects
- • WM Healthcare Solutions contributed $95 million of adjusted operating EBITDA in its first full quarter
- • Recycled commodity prices improved to ~$88/ton from ~$84/ton year-over-year
- • Natural gas prices improved to $3.93/MMBtu from $2.27/MMBtu year-over-year
WM YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
WM Revenue by Segment
With YoY comparisons, source: SEC Filings
“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. We continue to deliver disciplined revenue growth and cost optimization in our core business, while advancing our sustainability growth investments and driving value from the Stericycle acquisition. This led to first quarter revenue growth of 16.7% and adjusted operating EBITDA growth of 12.2% compared to the prior year period. These solid first quarter results, as well as the strength and resiliency of our business model, give us confidence we are on pace to achieve our 2025 outlook.”
— Jim Fish, Q1 2025 Earnings Press Release
WM Earnings Trends
WM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
WM EPS Trend
Earnings per share: estimate vs actual
WM Revenue Trend
Quarterly revenue: estimate vs actual
WM Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $1.81 | — | $6.23B | -0.95% |
| Q4 25 MISS FY | $1.95 | $1.93 | -1.03% | $6.31B | — |
| FY Full Year | $7.51 | $7.50 | -0.10% | $25.20B | -0.36% |
| Q3 25 MISS | $2.01 | $1.98 | -1.62% | $6.44B | -0.85% |
| Q2 25 BEAT | $1.89 | $1.92 | +1.61% | $6.43B | +1.08% |
| Q1 25 BEAT | $1.59 | $1.67 | +5.22% | $6.02B | -1.42% |