Waste Management’s first quarter results came in below Wall Street’s revenue expectations, though the company delivered strong non-GAAP profitability. Management credited operational execution in its core collection and disposal segment, as well as early contributions from the recently acquired WM Healthcare Solutions business and investments in sustainability. CEO Jim Fish stated, “We had a strong start to the year...driven by solid operational performance, meaningful contributions from WM Healthcare Solutions and increases in our sustainability businesses largely related to our growth investments.” The quarter was also shaped by challenging winter weather in several regions, which management said offset some volume gains.
Is now the time to buy WM? Find out in our full research report (it’s free).
Waste Management (WM) Q1 CY2025 Highlights:
- Revenue: $6.02 billion vs analyst estimates of $6.11 billion (16.7% year-on-year growth, 1.4% miss)
- Adjusted EPS: $1.67 vs analyst estimates of $1.59 (5.2% beat)
- Adjusted EBITDA: $1.72 billion vs analyst estimates of $1.71 billion (28.5% margin, in line)
- Operating Margin: 16.8%, down from 19.7% in the same quarter last year
- Market Capitalization: $93.32 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Waste Management’s Q1 Earnings Call
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Bryan Burgmeier (Citi) asked about margin seasonality and healthcare segment trends. CFO Devina Rankin clarified that margin improvement would accelerate in Q2 and Q3, driven by synergy capture rather than seasonal revenue patterns in healthcare.
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Kevin Chiang (CIBC) inquired about variability in yield and pricing strategies across business lines. Rankin explained that recent softness was largely weather-related and that commercial pricing remained strong, with ongoing optimization in residential and industrial segments.
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Tyler Brown (Raymond James) questioned the pace of synergy realization and sustainability project contributions. Executive Rafael Carrasco detailed that most healthcare synergies would be realized in the second half, while RNG and recycling investments were tracking as planned with no tariff-related delays.
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Toni Kaplan (Morgan Stanley) asked about the company’s resilience in economic downturns and potential impacts from tariffs on fleet costs. CEO Jim Fish emphasized Waste Management’s recession resistance and noted that proactive equipment procurement limited tariff exposure for 2025.
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Noah Kaye (Oppenheimer) sought commentary on regulatory changes and commodity price impacts. Management highlighted that “passive receiver” exemptions in new EPA rules could benefit the industry, and that exposure to recycled commodity prices was being managed through diversification and process improvements.
Catalysts in Upcoming Quarters
In the quarters ahead, our team will watch (1) the pace of synergy capture and operational improvements in WM Healthcare Solutions, (2) the ramp-up and profitability of new recycling and renewable energy projects, and (3) the scale and integration of new tuck-in acquisitions. Execution on pricing strategies and adaptability to evolving regulations will also be important indicators of Waste Management’s ability to sustain margin and growth targets.
Waste Management currently trades at $232.02, up from $228.85 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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