# WM (WM) Q2 2025 Financial Results Summary
Houston— July 28, 2025— WM (NYSE: WM) today announced financial results for the quarter ended June 30, 2025.
## Summary of Q2 2025 Financial Results
– **Revenue**:
– Q2 2025: **$6,430 million**
– Q2 2024: **$5,402 million**
– **Growth**: **19.0%** vs. Q2 2024
– **Income from Operations**:
– Q2 2025: **$1,151 million**
– Q2 2024: **$1,009 million**
– **Growth**: **14.0%** vs. Q2 2024
– **Operating EBITDA**:
– Q2 2025: **$1,859 million**
– Q2 2024: **$1,552 million**
– **Growth**: **20.0%** vs. Q2 2024
– Operating EBITDA Margin:
– Q2 2025: **28.9%**
– Q2 2024: **28.7%**
– **Net Income**:
– Q2 2025: **$726 million**
– Q2 2024: **$680 million**
– **Growth**: **6.8%** vs. Q2 2024
– **Diluted EPS**:
– Q2 2025: **$1.80**
– Q2 2024: **$1.69**
– **Growth**: **6.5%** vs. Q2 2024
– **Operating Expenses**:
– Q2 2025: **$3,839 million**
– Q2 2024: **$3,291 million**
– **Change**: Increased by **16.6%**.
– Operating Expenses as a percentage of revenue improved from **60.9%** in Q2 2024 to **59.7%** in Q2 2025, indicating improved operational efficiency.
– **SG&A Expenses**:
– Q2 2025: **$696 million**
– Q2 2024: **$501 million**
– **Growth**: **38.8%**
– SG&A Margin improved from **9.3%** in Q2 2024 to **10.8%** in Q2 2025.
– **Cash Flow**:
– Cash generated from operating activities for the first half of the year was **$2.75 billion**, with free cash flow at **$1.29 billion**.
– **Dividend**:
– Quarterly dividends declared amounted to **$669 million**, an increase from **$608 million** in Q2 2024, reflecting a growth of **10.0%**.
– **Share Repurchase**:
– No common stock was repurchased in Q2 2025.
## Operational Insights
– **Organic Revenue Growth**:
– The Collection and Disposal business achieved a **4.1%** organic revenue growth, driven by an increase in core prices by **6.4%**.
– **WM Healthcare Solutions**:
– This segment generated **$110 million** in adjusted operating EBITDA, meeting expectations with a focus on generating significant synergies in 2025.
– **Sustainability Initiatives**:
– Released its **2025 Sustainability Report**, which showcased a **22%** reduction in greenhouse gas emissions since 2021.
– Invested in new sustainability projects, including:
– A renewable natural gas facility in Illinois.
– A recycling automation project in Pennsylvania.
– A new market recycling facility in Oregon.
– **Operational Improvements**:
– The operating EBITDA margin for the WM Legacy Business improved from **28.7%** in Q2 2024 to **30.7%** in Q2 2025, attributed to disciplined cost management and optimized business mix.
## Future Outlook
– **Revised Earnings Forecast**:
– The company reaffirmed its target for adjusted operating EBITDA to be between **$7.475 billion and $7.625 billion** for the full year.
– Free cash flow is projected to be between **$2.8 billion and $2.9 billion**, reflecting a **$125 million** increase from initial guidance, primarily due to tax policy changes allowing for full bonus depreciation.
– **Challenges**:
– The company anticipates revenue to be between **$25.275 billion and $25.475 billion**, slightly reduced due to declining recycled commodity prices and weather-related impacts on collection and disposal volumes.
WM’s Q2 2025 performance reflects robust growth in revenues and improved operational efficiency, driven by strategic investments and strong operational performance.
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |
|---|---|---|---|---|
| Operating revenues | $6,430 | $5,402 | $12,448 | $10,561 |
| Costs and expenses: | ||||
| Operating | $3,839 | $3,291 | $7,486 | $6,431 |
| Selling, general and | $696 | $501 | $1,383 | $992 |
| administrative | ||||
| Depreciation, depletion and | $708 | $543 | $1,364 | $1,057 |
| amortization | ||||
| Restructuring | $12 | $— | $25 | $— |
| (Gain) | ||||
| loss from divestitures, asset | $24 | $58 | $26 | $56 |
| impairments and unusual items, | ||||
| net | ||||
| $5,279 | $4,393 | $10,284 | $8,536 | |
| Income from operations | $1,151 | $1,009 | $2,164 | $2,025 |
| Other income (expense): | ||||
| Interest expense, net | $(232) | $(136) | $(464) | $(266) |
| Equity in net income (loss) of | $2 | $22 | $7 | $3 |
| unconsolidated entities | ||||
| Other, net | $7 | $(1) | $9 | $1 |
| $(223) | $(115) | $(448) | $(262) | |
| Income before income taxes | $928 | $894 | $1,716 | $1,763 |
| Income tax expense | $201 | $214 | $352 | $376 |
| Consolidated net income | $727 | $680 | $1,364 | $1,387 |
| Less: Net income (loss) | ||||
| attributable to noncontrolling | $1 | $— | $1 | $(1) |
| interests | ||||
| Net income attributable to | $726 | $680 | $1,363 | $1,388 |
| Waste Management, Inc. | ||||
| Basic earnings per common share | $1.80 | $1.70 | $3.39 | $3.46 |
| Diluted earnings per common | $1.80 | $1.69 | $3.37 | $3.44 |
| share | ||||
| Weighted average basic common | 402.6 | 401.3 | 402.5 | 401.5 |
| shares outstanding | ||||
| Weighted average diluted common | 404.3 | 403.2 | 404.0 | 403.3 |
| shares outstanding |
| ASSETS | June 30, 2025 | December 31, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $440 | $414 |
| Receivables, net | $3,931 | $3,687 |
| Other | $613 | $673 |
| Total current assets | $4,984 | $4,774 |
| Property and equipment, net | $19,963 | $19,340 |
| Goodwill | $13,886 | $13,438 |
| Other intangible assets, net | $3,964 | $4,188 |
| Other | $2,925 | $2,827 |
| Total assets | $45,722 | $44,567 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable, accrued liabilities and | $4,852 | $4,899 |
| deferred revenues | ||
| Current portion of long-term debt | $964 | $1,359 |
| Total current liabilities | $5,816 | $6,258 |
| Long-term debt, less current portion | $23,056 | $22,541 |
| Other | $7,648 | $7,514 |
| Total liabilities | $36,520 | $36,313 |
| Equity: | ||
| Waste Management, Inc. stockholders’ | $9,201 | $8,252 |
| equity | ||
| Noncontrolling interests | $1 | $2 |
| Total equity | $9,202 | $8,254 |
| Total liabilities and equity | $45,722 | $44,567 |
