WM reports positive Q1 earnings

WM reported mostly positive first-quarter 2025 earnings, with revenue of $6.02 billion, up 16.7 percent over the first quarter of 2024, and adjusted operating earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.7 billion, up 12.2 percent year over year.

The Houston-based company reports strong operational performance as contributing to WM Legacy Business growth of 6 percent and internal revenue growth of 3.5 percent, led by high collection and disposal margins and lower-than-expected corporate expenses.

WM reported a Q1 net income of $637 million. The company generated $1.2 billion in cash from operating activities in the reported quarter, with $831 million in capital expenditures. Free cash flow was $475 million.

WM says it continued to progress its investments in sustainability growth projects during the first quarter, investing $128 million and completing two recycling automation projects in key markets during the first quarter and has plans for seven more facilities to open later in 2025.

“Our first quarter results reflect the strong track records of the WM team as we started the year delivering on each of our strategic priorities,” WM President and CEO Jim Fish says. “We continue to deliver disciplined revenue growth and cost optimization in our core business, while advancing our sustainability growth investments and driving value from the Stericycle acquisition. This led to first quarter revenue growth of 16.7 percent and adjusted operating EBITDA growth of 12.2 percent compared to the prior year period.

"These solid first quarter results, as well as the strength and resiliency of our business model, give us confidence we are on pace to achieve our 2025 outlook.”

The company’s collection segment, up 4.7 percent from Q1 2024, led the way in driving revenue growth in the WM Legacy Business. Revenues of $4.3 billion were driven by organic revenue growth from price, disciplined cost initiatives and a continued focus on optimizing business mix, the company says.

Workday adjusted volumes in the collection and disposal business were flat in the quarter, with growth in landfill volumes offset by the company’s strategic exit from low-margin residential collection business. Additionally, volume was negatively impacted by 30 basis points from winter weather events in the eastern U.S., WM reports.

The company’s landfill segment’s revenue gained 3.6 percent year over year to $1.2 billion, while total revenues in the transfer segment increased 5.7 percent to $592 million.

Recycling processing and sales revenues rose 6.7 percent to $465 million, while renewable energy reached revenues of $92 million, rising 31.4 percent from Q1 2023. Renewable energy growth was fueled by new renewable natural gas plants that came online late in 2024, the company says.

WM Healthcare Solutions, a new division created after the company's acquisition of Stericycle, contributed $95 million in adjusted operating EBITDA, which the company says was in line with its expectations.

“Our new medical waste and secure information destruction businesses, together referred to as WM Healthcare Solutions, performed well in the first quarter as part of WM," Fish says. "Integration efforts are advancing and keeping us on track to achieve our full year synergy targets."