Waste Management Reports 8% Revenue Growth to $22.063 Billion in 2024

Waste Management, Inc. (WM) reported revenues of $22.063 billion for the year ended December 31, 2024, an 8% increase compared to $20.426 billion in 2023. This increase stemmed from higher yields in Collection and Disposal businesses (4.5%), acquisitions (net of divestitures), increased commodity prices in Recycling and Sales and WM Renewable Energy segments, and increased volumes. These gains were partially offset by lower revenue from the energy surcharge program due to decreased fuel prices. Operating expenses were $13.383 billion in 2024 (60.7% of revenue), compared to $12.606 billion (61.7% of revenue) in 2023, representing an improvement in operating expense as a percentage of revenue. The increase in operating expenses was primarily due to acquisitions, inflationary pressures, higher recycling customer rebates, volume growth in the Strategic Business Solutions segment, increased landfill operating costs, and higher risk management spending. These were partially offset by lower diesel fuel prices and increased gains on asset sales.

Net income attributable to Waste Management, Inc. was $2.746 billion, or $6.81 per diluted share, in 2024, compared to $2.304 billion, or $5.66 per diluted share, in 2023. The increase in net income was primarily driven by increased income from operations and lower income tax expense due to benefits from low-income housing investments and federal tax credits from RNG investments, partially offset by higher interest expense. Net cash provided by operating activities increased to $5.39 billion in 2024 from $4.719 billion in 2023, primarily due to higher earnings in Collection and Disposal, favorable working capital changes, and lower incentive compensation payments, partially offset by higher interest and tax payments. Free cash flow increased to $2.317 billion in 2024 from $1.902 billion in 2023.

On November 4, 2024, WM completed its acquisition of Stericycle, Inc., creating a new WM Healthcare Solutions segment. Stericycle operates approximately 361 facilities worldwide, including 69 autoclave or alternative medical waste treatment facilities, 18 medical waste incinerator facilities, and 107 secure information destruction processing facilities. The acquisition added operations in parts of Western Europe. As of December 31, 2024, 35 WM Healthcare Solutions locations were classified as held for sale. WM incurred approximately $160 million in acquisition and integration costs during 2024. The company also completed other acquisitions in 2024 totaling $790 million, primarily in solid waste and recycling businesses.

WM employed approximately 61,700 full-time employees as of December 31, 2024, with approximately 54,300 in the U.S. and 7,400 outside the U.S. Approximately 9,900 employees are covered by collective bargaining agreements. The company's total recordable incident rate (TRIR) was 3.23 as of December 31, 2024. WM's Board of Directors approved a 10% increase in the quarterly dividend, from $0.75 to $0.825 per share, effective in 2025. The company temporarily suspended share repurchases due to the Stericycle acquisition, projecting a resumption in approximately 18 months. WM anticipates continued investment in automation and optimization to improve operational efficiency and reduce its cost to serve.