WM (WM) Q3 2025 Financial Results Summary
On October 27, 2025, WM (NYSE: WM) released its financial results for the quarter ended September 30, 2025. The report outlines various financial metrics that reflect the company’s performance relative to the same quarter a year earlier.
Key Highlights for Q3 2025
- Revenue
- Total revenue: $6,443 million, up 14.9% from $5,609 million in Q3 2024.
-
Revenue growth in the WM Legacy Business of 3.7% year-over-year, reaching $5,815 million.
-
Income Metrics
- Income from operations: $989 million, down 11.6% from $1,119 million in Q3 2024.
- Operating EBITDA: $1,718 million, a drop of 13.0% from $1,677 million in Q3 2024.
-
Operating EBITDA margin: 26.7%, compared to 29.9% in the same quarter last year.
-
Net Income and Earnings Per Share
- Net income: $603 million, compared to $760 million in Q3 2024, reflecting a 20.7% decrease.
-
Diluted EPS: $1.49, down from $1.88, a decrease of 20.7%.
-
Dividends and Share Repurchases
- WM paid cash dividends of $1,001 million during the quarter.
- There was no common stock repurchase program reported in this quarter.
Operational Highlights
- Collection and Disposal Business
- Achieved an operating EBITDA margin of 37.5% (or 38.4% adjusted), showcasing effective pricing strategies and operational improvements.
-
Volumes in Collection and Disposal grew by 0.2%, influenced by increased landfill and industrial collection volumes, though partially countered by reduced residential collection volumes due to strategic exits from low-margin contracts.
-
Recycling Processing and Sales
-
Faced a revenue decline of $60 million due to lower pricing for recycled commodities, with blended average prices down by nearly 35% compared to Q3 2024.
-
Healthcare Solutions
- Generated $628 million in revenue, incorporating strategic pricing due to a conservative approach in customer engagement.
Cost and Expense Overview
- Operating Expenses
-
Total operating expenses: $3,833 million, reflecting a marginal increase compared to $3,399 million in Q3 2024, leading to an operating expense margin improvement to 59.5% from 60.6%.
-
SG&A Expenses
- Total SG&A expenses increased to $665 million. The SG&A margin stood at 10.3%, demonstrating improved cost management.
Cash Flow Insights
- Cash Flow from Operations
-
Net cash provided by operating activities: $4.35 billion, marking an increase of 12.0% compared to the same period last year.
-
Free Cash Flow
- Recorded at $2.11 billion for the first nine months of 2025, a 13.5% increase year-over-year.
Outlook for 2025
- WM affirmed its full-year adjusted operating EBITDA guidance between $7.475 billion and $7.625 billion.
- Anticipated free cash flow remains between $2.8 billion to $2.9 billion.
- Total company revenue is projected to reach approximately $25.275 billion for 2025, primarily in line with prior guidance, despite lower expectations in recycled commodity pricing and modest decreases in Healthcare Solutions.
Conclusion
WM continues to strengthen its operational capabilities and sustain investments in renewable energy projects. As the company progresses through 2025, it remains focused on achieving its strategic priorities, shareholder returns, and maintaining operational efficiencies within its service segments.
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions, Except per Share Amounts)
(Unaudited)
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |
|---|---|---|---|---|
| Operating revenues | $6,443 | $5,609 | $18,891 | $16,170 |
| Costs and expenses: | ||||
| Operating | 3,833 | 3,399 | 11,319 | 9,830 |
| Selling, general and administrative | 665 | 525 | 2,048 | 1,517 |
| Depreciation, depletion and amortization | 729 | 558 | 2,093 | 1,615 |
| Restructuring | 14 | 2 | 39 | 2 |
| (Gain) loss from divestitures, asset impairments and unusual items, net | 213 | 6 | 239 | 62 |
| 5,454 | 4,490 | 15,738 | 13,026 | |
| Income from operations | 989 | 1,119 | 3,153 | 3,144 |
| Other income (expense): | ||||
| Interest expense, net | (225) | (131) | (689) | (397) |
| Equity in net income (loss) of unconsolidated entities | 4 | 1 | 11 | 4 |
| Other, net | 7 | 6 | 16 | 7 |
| (214) | (124) | (662) | (386) | |
| Income before income taxes | 775 | 995 | 2,491 | 2,758 |
| Income tax expense | 172 | 235 | 524 | 611 |
| Consolidated net income | 603 | 760 | 1,967 | 2,147 |
| Less: Net income (loss) attributable to noncontrolling interests | — | — | 1 | (1) |
| Net income attributable to Waste Management, Inc. | $603 | $760 | $1,966 | $2,148 |
| Basic earnings per common share | $1.50 | $1.89 | $4.88 | $5.35 |
| Diluted earnings per common share | $1.49 | $1.88 | $4.87 | $5.33 |
| Weighted average basic common shares outstanding | 403.0 | 401.5 | 402.6 | 401.5 |
| Weighted average diluted common shares outstanding | 404.3 | 403.2 | 404.0 | 403.2 |
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
| ASSETS | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $175 | $414 |
| Receivables, net | 4,017 | 3,687 |
| Other | 647 | 673 |
| Total current assets | 4,839 | 4,774 |
| Property and equipment, net | 20,069 | 19,340 |
| Goodwill | 13,894 | 13,438 |
| Other intangible assets, net | 3,873 | 4,188 |
| Other | 2,933 | 2,827 |
| Total assets | $45,608 | $44,567 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable, accrued liabilities and deferred revenues | $4,857 | $4,899 |
| Current portion of long-term debt | 880 | 1,359 |
| Total current liabilities | 5,737 | 6,258 |
| Long-term debt, less current portion | 22,482 | 22,541 |
| Other | 7,869 | 7,514 |
| Total liabilities | 36,088 | 36,313 |
| Equity: | ||
| Waste Management, Inc. stockholders’ equity | 9,519 | 8,252 |
| Noncontrolling interests | 1 | 2 |
| Total equity | 9,520 | 8,254 |
| Total liabilities and equity | $45,608 | $44,567 |
