Waste Management Reports 16.7% Revenue Growth to $6.018 Billion in Q1 2025

Waste Management, Inc. reported a significant increase in financial performance for the first quarter of 2025, with operating revenues reaching $6.018 billion, a 16.7% increase from $5.159 billion in the same period last year. This growth was primarily driven by the acquisition of Stericycle, higher yields in the Collection and Disposal segment, and increased volumes in landfill, recycling, and renewable energy operations. However, net income attributable to Waste Management decreased to $637 million, or $1.58 per diluted share, down from $708 million, or $1.75 per diluted share, in the prior year, largely due to increased interest expenses associated with the acquisition financing.

The company’s operating expenses rose to $3.647 billion, accounting for 60.6% of revenues, compared to 60.9% in the previous year. The increase in expenses was attributed to the impact of recent acquisitions and inflationary pressures, although these were partially offset by improved operational efficiencies and a reduction in industrial and residential collection volumes. Selling, general, and administrative expenses also increased to $687 million, reflecting costs related to the Stericycle acquisition and higher labor costs.

In terms of operational metrics, Waste Management's customer base remained stable, with 402.4 million shares of common stock outstanding as of April 25, 2025. The company continues to focus on integrating Stericycle into its operations, which has been categorized under the new WM Healthcare Solutions segment. The acquisition is expected to enhance Waste Management's service offerings in regulated waste and compliance services, further solidifying its market position.

Looking ahead, Waste Management anticipates continued growth driven by its strategic initiatives, including investments in technology and automation to enhance operational efficiency. The company is also focused on sustainability efforts, particularly in its WM Renewable Energy and Recycling Processing segments. Despite facing challenges such as inflation and fluctuating commodity prices, Waste Management remains committed to delivering long-term value to its shareholders while adapting to evolving market conditions.