CORRECTING and REPLACING WM Announces First Quarter 2025 Earnings
Strong Operational Performance Combined with WM Healthcare Solutions Results Deliver Outsized Growth
WM Adds Two Recycling Automation Projects in Key Markets During the Quarter
HOUSTON--(BUSINESS WIRE)--April 29, 2025--
In the SG&A Expenses table, in the WM Legacy Business(d) row of the release dated April 28, 2025, the third figure should read 517 (instead of 5177).
The updated release reads:
WM ANNOUNCES FIRST QUARTER 2025 EARNINGS
Strong Operational Performance Combined with WM Healthcare Solutions Results Deliver Outsized Growth
WM Adds Two Recycling Automation Projects in Key Markets During the Quarter
WM $(WM)$ today announced financial results for the quarter ended March 31, 2025.
Three Months Ended Three Months Ended
March 31, 2025 (in millions, March 31, 2024 (in millions,
except per share amounts) except per share amounts)
----------------------------- -----------------------------
As As
As Reported Adjusted(a) As Reported Adjusted(a)
Revenue $6,018 $6,018 $5,159 $5,159
Income from
Operations $1,013 $1,059 $1,016 $1,014
Operating
EBITDA(b) $1,669 $1,715 $1,530 $1,528
Operating
EBITDA
Margin 27.7% 28.5% 29.7% 29.6%
Net Income(c) $637 $673 $708 $706
Diluted EPS $1.58 $1.67 $1.75 $1.75
"Our first quarter results reflect the strong track record of the WM team as we started the year delivering on each of our strategic priorities," said Jim Fish, WM's President and CEO. "We continue to deliver disciplined revenue growth and cost optimization in our core business, while advancing our sustainability growth investments and driving value from the Stericycle acquisition. This led to first quarter revenue growth of 16.7% and adjusted operating EBITDA growth of 12.2% compared to the prior year period.(a) These solid first quarter results, as well as the strength and resiliency of our business model, give us confidence we are on pace to achieve our 2025 outlook."
Fish continued, "Our new medical waste and secure information destruction businesses, together referred to as WM Healthcare Solutions, performed well in the first full quarter as part of WM. Integration efforts are advancing and keeping us on track to achieve our full year synergy targets."
KEY HIGHLIGHTS FOR THE FIRST QUARTER OF 2025
Operating First Quarter 2025 First Quarter 2024
EBITDA ($ in millions) ($ in millions)
----------------------------------- -----------------------------------
Total Company Total Company
Breakout As Adjusted(a) Breakout As Adjusted(a)
---------------- ----------------- ---------------- -----------------
Amount Margin Amount Margin Amount Margin Amount Margin
------ -------- ------- -------- ------ -------- ------- --------
WM Legacy
Business(d) $1,593 29.5% $ 1,620 30.0% $1,530 29.7% $ 1,528 29.6%
WM Healthcare
Solutions 76 12.3% 95 15.3% - - - -
----- ------ ----- ------
Total
Company $1,669 27.7% $ 1,715 28.5% $1,530 29.7% $ 1,528 29.6%
-- Adjusted operating EBITDA for the WM Legacy Business grew 6.0% and margin
achieved 30% for the fourth consecutive quarter.(a) The Company's
Collection and Disposal business led the way, driven by organic revenue
growth from price, disciplined cost initiatives, and a continued focus on
optimizing business mix. The Company's Recycling Processing and Sales and
WM Renewable Energy businesses together contributed $18 million to
operating EBITDA growth, primarily due to sustainability growth projects.
-- WM Healthcare Solutions contributed $95 million of adjusted operating
EBITDA, in line with expectations.(a) The Company is on track to achieve
its targeted synergies of $80 to $100 million in 2025.
______
First Quarter 2025 First Quarter 2024
Revenue ($ in millions) ($ in millions)
------------------------ ------------------------
Amount Growth Amount Growth
----------- ----------- ------------- ---------
WM Legacy
Business(d) $ 5,399 4.7% $ 5,159 5.5%
WM Healthcare
Solutions 619 N/A - -
------- ---------
Total Company $ 6,018 16.7% $ 5,159 5.5%
-- Revenue growth of 4.7% in the WM Legacy Business was driven by core price
of 6.5% and Collection and Disposal yield of 4.0% as the Company
continues its focus on maximizing customer lifetime value.(e)
-- 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.
-- Volume was negatively impacted by 30 basis points from winter weather
events in the Company's Eastern Tier.
______
Operating First Quarter 2025 First Quarter 2024
Expenses ($ in millions) ($ in millions)
----------------------------------- -----------------------------------
Total Company Total Company
Breakout As Adjusted(a) Breakout As Adjusted(a)
---------------- ----------------- ---------------- -----------------
Amount Margin Amount Margin Amount Margin Amount Margin
------ -------- ------- -------- ------ -------- ------- --------
WM Legacy
Business(d) $3,269 60.5% $ 3,262 60.4% $3,140 60.9% $ 3,140 60.9%
WM Healthcare
Solutions 378 61.1% 378 61.1% - - - -
----- ------ ----- ------
Total
Company $3,647 60.6% $ 3,640 60.5% $3,140 60.9% $ 3,140 60.9%
-- Adjusted operating expenses as a percentage of revenue for the WM Legacy
Business improved 50 basis points, reflecting the Company's disciplined
cost focus driven by a people-first culture, technology adoption, and
strategic exit from low-margin residential business.(a)
______
SG&A First Quarter 2025 First Quarter 2024
Expenses ($ in millions) ($ in millions)
------------------------------------ -----------------------------------
Total Company Total Company
Breakout As Adjusted(a) Breakout As Adjusted(a)
------------------ ---------------- ---------------- -----------------
Amount Margin Amount Margin Amount Margin Amount Margin
-------- -------- ------ -------- ------ -------- ------- --------
WM Legacy
Business(d) $ 531 9.8% $ 517 9.6% $ 491 9.5% $ 491 9.5%
WM Healthcare
Solutions 156 25.2% 146 23.6% - - - -
---- ----- ----- ------
Total
Company $ 687 11.4% $ 663 11.0% $ 491 9.5% $ 491 9.5%
-- SG&A results in the WM Legacy Business demonstrate the Company's
continued focus on cost discipline and optimization.
-- Adjusted SG&A as a percentage of revenue for WM Healthcare Solutions
improved 70 basis points sequentially, reflecting the contribution of
synergies from the Company's efforts to integrate and streamline its
sales and back-office processes.(a)
______
Cash Flow and Investments
-- The Company generated $1.21 billion of net cash provided by operating
activities, with strong operating EBITDA growth more than offset by
working capital timing differences and higher cash interest related
primarily to the funding of the Stericycle acquisition. Free cash flow
was $475 million, which was in line with the Company's expectations.(a)
-- During the quarter, the Company continued to progress its investments in
sustainability growth projects, investing $128 million in these growth
platforms and completing two recycling automation projects in key
markets.(f)
Fish concluded, "2025 is off to a strong start, and our team remains focused on driving further improvements in operational efficiency and maximizing growth opportunities from acquisitions and sustainability investments. Our first quarter performance sets us up for another year of robust financial growth."
(a) The information labeled as adjusted in this press release, as well
as free cash flow, are non-GAAP measures. Please see "Non-GAAP
Financial Measures" below and the reconciliations in the
accompanying schedules for more information.
(b) Management defines operating EBITDA as GAAP income from operations
before depreciation, depletion and amortization; this measure may
not be comparable to similarly titled measures reported by other
companies.
(c) For purposes of this press release, all references to "Net income"
refer to the financial statement line item "Net income attributable
to Waste Management, Inc."
(d) Management defines WM Legacy Business as total Company GAAP results
excluding the WM Healthcare Solutions segment and net of
intercompany eliminations.
(e) Core price is a performance metric used by management to evaluate
the effectiveness of our pricing strategies; it is not derived from
our financial statements and may not be comparable to measures
presented by other companies. Core price is based on certain
historical assumptions, which may differ from actual results, to
allow for comparability between reporting periods and to reveal
trends in results over time.
(f) The Company's blended average price received for single stream
recycled commodities sold during the quarter was about $88 per ton
compared to about $84 per ton in the prior year period. The average
price received for Renewable Fuel Standard credits was $2.59 during
the quarter compared to $3.01 in the prior year period. The average
price received for natural gas was $3.93 per MMBtu during the
quarter compared to $2.27 per MMBtu in the prior year period. The
average price received for renewable electricity was about $73 per
megawatt hour in the quarter compared to about $62 per megawatt
hour in the prior year period.
The Company will host a conference call at 10 a.m. ET on April 29, 2025, to discuss the first quarter 2025 results. Information contained within this press release will be referenced and should be considered in conjunction with the call.
Listeners can access a live audio webcast of the conference call by visiting investors.wm.com and selecting "Events & Presentations" from the website menu. A replay of the audio webcast will be available at the same location following the conclusion of the call.
Conference call participants should register to obtain their dial in and passcode details. This streamlined process improves security and eliminates wait times when joining the call.
ABOUT WM
WM (WM.com) is North America's leading provider of comprehensive environmental solutions. Previously known as Waste Management and based in Houston, Texas, WM is driven by commitments to put people first and achieve success with integrity. The company, through its subsidiaries, provides collection, recycling and disposal services to millions of residential, commercial, industrial, medical and municipal customers throughout the U.S. and Canada. With innovative infrastructure and capabilities in recycling, organics and renewable energy, WM provides environmental solutions to and collaborates with its customers in helping them pursue their sustainability goals. WM has the largest disposal network and collection fleet in North America, is the largest recycler of post-consumer materials and is a leader in beneficial use of landfill gas, with a growing network of renewable natural gas plants and the most landfill gas-to-electricity plants in North America. WM also has the largest heavy-duty natural gas truck fleet in the industry in North America. WM Healthcare Solutions provides collection and disposal services of regulated medical waste, as well as secure information destruction services, in the U.S., Canada and Western Europe. To learn more about WM and the company's sustainability progress and solutions, visit Sustainability.WM.com.
FORWARD-LOOKING STATEMENTS
The Company, from time to time, provides estimates or projections of financial and other data, comments on expectations relating to future periods and makes statements of opinion, view or belief about current and future events, circumstances or performance. This press release contains a number of such forward-looking statements, including all statements regarding future performance and results of our business; achievement of targets, financial guidance or outlook; growth and optimization of our business; integration of the Stericycle business and related contributions, results and benefits, including amount and timing of synergies; amount and timing of sustainability investments, upgrades and project completions and related returns, contributions, and benefits; future capital allocation and acquisition spending; drivers of performance, including pricing programs and volume; and assumptions regarding commodity prices, natural gas production, tax credits and renewable fuel programs. You should view these statements with caution. They are based on the facts and circumstances known to the Company as of the date the statements are made. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those set forth in such forward-looking statements, including but not limited to, failure to implement our optimization, automation, growth, and cost savings initiatives and overall business strategy; failure to obtain the results anticipated from strategic initiatives, investments, acquisitions, or new lines of business; failure to identify acquisition targets, consummate and integrate acquisitions, including our ability to integrate the acquisition of Stericycle and achieve the anticipated benefits therefrom, including synergies; legal, regulatory and other matters that may affect the costs and timing of our ability to integrate and deliver all of the expected benefits of the Stericycle acquisition; failure to maintain an effective system of internal control over financial reporting; existing or new environmental and other regulations, including developments related to emerging contaminants, gas emissions, renewable energy, extended producer responsibility and our natural gas fleet; significant environmental, safety or other incidents resulting in liabilities or brand damage; failure to obtain and maintain necessary permits due to land scarcity, public opposition or otherwise; diminishing landfill capacity, resulting in increased costs and the need for disposal alternatives; exposure to different regulatory, legal, financial and economic conditions in international jurisdictions; failure to attract, hire and retain key team members and a high quality workforce; increases in labor costs due to union organizing activities or changes in wage- and labor-related regulations; disruption and costs resulting from severe weather and destructive climate events; failure to achieve our sustainability goals or execute on our sustainability-related strategy and initiatives, including within planned timelines or anticipated budgets due to disruptions, delays, cost increases or changes in environmental or tax regulations and incentives; focus on, and regulation of, environmental and sustainability-related disclosures, which could lead to increased costs, risk of non-compliance, brand damage and litigation risk related to our sustainability efforts; macroeconomic conditions, geopolitical conflict and large-scale market disruption resulting in labor, supply chain and transportation constraints, inflationary cost pressures and fluctuations in commodity prices, fuel and other energy costs; increased competition; pricing actions; impacts from international trade restrictions and tariffs; competitive disposal alternatives, diversion of waste from landfills and declining waste volumes; changing conditions in the healthcare industry; weakness in general economic conditions and capital markets; instability of financial institutions; adoption of new tax legislation; fuel shortages; failure to develop and protect new technology; failure of technology to perform as expected; failure to prevent, detect and address cybersecurity incidents or comply with privacy regulations; inability to adapt and manage the benefits and risks of artificial intelligence; negative outcomes of litigation or governmental proceedings, including those acquired through transactions; and operational or management decisions or developments that result in impairment charges. Please also see the Company's filings with the SEC, including Part I, Item 1A of the Company's most recently filed Annual Report on Form 10-K, as updated by subsequent Quarterly Reports on Form 10-Q, for additional information regarding these and other risks and uncertainties applicable to its business. The Company assumes no obligation to update any forward-looking statement, including financial estimates and forecasts, whether as a result of future events, circumstances or developments or otherwise.
NON-GAAP FINANCIAL MEASURES
To supplement its financial information, the Company has presented, and/or may discuss on the conference call, adjusted measures including adjusted earnings per diluted share, adjusted net income, adjusted income from operations and margin, adjusted operating EBITDA and margin, adjusted operating expense and margin, and adjusted SG&A expenses and margin. All adjusted measures and free cash flow are non-GAAP financial measures, as defined in Regulation G of the Securities Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP but believes that also discussing non-GAAP measures provides investors with (i) financial measures the Company uses in the management of its business and (ii) additional, meaningful comparisons of current results to prior periods' results by excluding items that the Company does not believe reflect its fundamental business performance and are not representative or indicative of its results of operations.
The Company discusses free cash flow and provides a projection of free cash flow because the Company believes that it is indicative of its ability to pay its quarterly dividends, repurchase common stock, fund acquisitions and other investments and, in the absence of refinancings, to repay its debt obligations. The Company believes free cash flow gives investors useful insight into how the Company views its liquidity, but the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that the Company has committed to, such as declared dividend payments and debt service requirements. The Company defines free cash flow as net cash provided by operating activities, less capital expenditures, plus proceeds from divestitures of businesses and other assets (net of cash divested); this definition may not be comparable to similarly-titled measures reported by other companies.
The quantitative reconciliations of non-GAAP measures to the most comparable GAAP measures are included in the accompanying schedules. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP.
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions, Except per Share Amounts)
(Unaudited)
Three Months Ended
March 31,
------------------------
2025 2024
------------ ----------
Operating revenues $ 6,018 $ 5,159
------- ------
Costs and expenses:
Operating 3,647 3,140
Selling, general and administrative 687 491
Depreciation, depletion and amortization 656 514
Restructuring 13 --
(Gain) loss from divestitures, asset
impairments and unusual items, net 2 (2)
------- ------
5,005 4,143
------- ------
Income from operations 1,013 1,016
------- ------
Other income (expense):
Interest expense, net (232) (130)
Equity in net income (loss) of
unconsolidated entities 5 (19)
Other, net 2 2
------- ------
(225) (147)
------- ------
Income before income taxes 788 869
Income tax expense 151 162
------- ------
Consolidated net income 637 707
Less: Net income (loss) attributable to
noncontrolling interests -- (1)
------- ------
Net income attributable to Waste Management,
Inc. $ 637 $ 708
======= ======
Basic earnings per common share $ 1.58 $ 1.76
======= ======
Diluted earnings per common share $ 1.58 $ 1.75
======= ======
Weighted average basic common shares
outstanding 402.3 401.7
======= ======
Weighted average diluted common shares
outstanding 403.9 403.5
======= ======
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
March 31, December 31,
2025 2024
----------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $ 216 $ 414
Receivables, net 3,588 3,687
Other 651 673
------- ----------
Total current assets 4,455 4,774
Property and equipment, net 19,553 19,340
Goodwill 13,529 13,438
Other intangible assets, net 4,015 4,188
Other 2,934 2,827
------- ----------
Total assets $ 44,486 $ 44,567
======= ==========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable, accrued liabilities
and deferred revenues $ 4,393 $ 4,899
Current portion of long-term debt 954 1,359
------- ----------
Total current liabilities 5,347 6,258
Long-term debt, less current portion 22,883 22,541
Other 7,605 7,514
------- ----------
Total liabilities 35,835 36,313
------- ----------
Equity:
Waste Management, Inc. stockholders'
equity 8,650 8,252
Noncontrolling interests 1 2
------- ----------
Total equity 8,651 8,254
------- ----------
Total liabilities and equity $ 44,486 $ 44,567
======= ==========
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)
Three Months Ended
March 31,
------------------------
2025 2024
------------ ----------
Cash flows from operating activities:
Consolidated net income $ 637 $ 707
Adjustments to reconcile consolidated net
income to net cash provided by operating
activities:
Depreciation, depletion and amortization 656 514
Other 152 137
Change in operating assets and
liabilities, net of effects of
acquisitions and divestitures (237) 9
------- ------
Net cash provided by operating activities 1,208 1,367
------- ------
Cash flows from investing activities:
Acquisitions of businesses, net of cash
acquired (3) (11)
Capital expenditures (831) (668)
Proceeds from divestitures of businesses
and other assets, net of cash divested 98 15
Other, net (93) (91)
------- ------
Net cash used in investing activities (829) (755)
------- ------
Cash flows from financing activities:
New borrowings 4,993 4,412
Debt repayments (5,163) (4,570)
Common stock repurchase program -- (250)
Cash dividends (336) (307)
Exercise of common stock options 25 32
Tax payments associated with equity-based
compensation transactions (45) (48)
Other, net (10) (6)
------- ------
Net cash used in financing activities (536) (737)
------- ------
Effect of exchange rate changes on cash,
cash equivalents and restricted cash and
cash equivalents 1 (2)
------- ------
Decrease in cash, cash equivalents and
restricted cash and cash equivalents (156) (127)
Cash, cash equivalents and restricted cash
and cash equivalents at beginning of
period 487 552
------- ------
Cash, cash equivalents and restricted cash
and cash equivalents at end of period $ 331 $ 425
======= ======
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Operating Revenues by Line of Business
Three Months Ended
March 31,
------------------------------------------------------------------------------------------
2025 2024
------------------------------------------ ----------------------------------------------
Gross Intercompany Net Gross Intercompany Net
Operating Operating Operating Operating Operating Operating
Revenues Revenues Revenues Revenues(a) Revenues(a) Revenues
----------- ---------------- ----------- ------------- ---------------- -------------
Commercial $ 1,594 $ (214) $ 1,380 $ 1,501 $ (185) $ 1,316
Industrial 940 (199) 741 934 (187) 747
Residential 894 (22) 872 876 (22) 854
Other collection 825 (72) 753 751 (53) 698
------- ------- ------- --- -------- ------- -------
Total
collection 4,253 (507) 3,746 4,062 (447) 3,615
Landfill(a) 1,193 (353) 840 1,152 $(360.AU)$ 792
Transfer 592 (256) 336 560 (251) 309
------- ------- ------- -------- ------- -------
Total
Collection
and
Disposal(a) $ 6,038 $ (1,116) $ 4,922 $ 5,774 $ (1,058) $ 4,716
Recycling
Processing and
Sales 465 (81) 384 436 (68) 368
WM Renewable
Energy 92 (1) 91 70 (1) 69
WM Healthcare
Solutions 627 (8) 619 -- -- --
Corporate and
Other(a) 10 (8) 2 11 (5) 6
------- ------- ------- --- -------- ------- -------
Total(a) $ 7,232 $ (1,214) $ 6,018 $ 6,291 $ (1,132) $ 5,159
======= ======= ======= === ======== ======= =======
_________________________
(a) Beginning in the fourth quarter of 2024, the Company adjusted gross and
intercompany operating revenues to reflect the 15% royalty paid by WM
Renewable Energy to Collection and Disposal and Corporate and Other
businesses for the purchase of landfill gas. There was no change to net
operating revenues. Prior periods were recast to conform to current year
presentation.
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Internal Revenue Growth
Period-to-Period Change for the
Three Months Ended
March 31, 2025 vs. 2024
------------------------------------------------------
As a % of As a % of
Related Total
Amount Business(a) Amount Company(b)
------------- ------------- ------ ------------
Collection and
Disposal $ 178 4.0 %
Recycling
Processing and
Sales and WM
Renewable
Energy(c) 1 0.1
Energy surcharges
and mandated
fees (2) (0.9)
--- ----
Total average
yield(d) $ 177 3.4 %
Volume(e) 4 0.1
---- ------ ----
Internal
revenue
growth 181 3.5
Acquisitions 694 13.5
Divestitures (4) (0.1)
Foreign
currency
translation (12) (0.2)
---- ------ ---
Total $ 859 16.7 %
==== ====== ====
Period-to-Period Change for the
Three Months Ended
March 31, 2025 vs. 2024
-----------------------------------
As a % of Related Business(a)
-----------------------------------
Yield Volume(f)
---------- -----------------
Commercial 5.8% 0.1%
Industrial 3.2 (1.5)
Residential 5.2 (3.4)
Total collection 4.7 (1.1)
MSW 4.0 3.5
Transfer 5.7 (4.1)
Total collection and disposal 4.0% 0.0%
_________________________
(a) Calculated by dividing the increase or decrease for the current year
period by the prior year period's related business revenue adjusted to
exclude the impacts of divestitures for the current year period.
(b) Calculated by dividing the increase or decrease for the current year
period by the prior year period's total Company revenue adjusted to
exclude the impacts of divestitures for the current period.
(c) Includes combined impact of commodity price variability in both our
Recycling Processing and Sales and WM Renewable Energy segments, as well
as changes in certain recycling fees charged by our collection and
disposal operations.
(d) The amounts reported herein represent the changes in our revenues
attributable to average yield for the total Company.
(e) Includes activities from our Corporate and Other businesses.
(f) Workday adjusted volume impact.
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Free Cash Flow(a) Three Months Ended
March 31,
----------------------
2025 2024
------------ --------
Net cash provided by operating activities $ 1,208 $ 1,367
Capital expenditures to support the
business (703) (502)
Proceeds from divestitures of businesses
and other assets, net of cash divested 98 15
------- ------
Free cash flow before sustainability
growth investments 603 880
Capital expenditures - sustainability
growth investments (128) (166)
------- ------
Free cash flow $ 475 $ 714
======= ======
Three Months Ended
March 31,
------------------------
2025 2024
---------- -------
Supplemental Data
Internalization of waste, based on
disposal costs 70.7 % 68.3 %
Landfill depletable tons (in millions) 29.3 29.0
Acquisition Summary(b)
Gross annualized revenue acquired $ 11 $ 1
Total consideration, net of cash
acquired 7 3
Cash paid for acquisitions consummated
during the period, net of cash
acquired 7 2
Cash paid for acquisitions including
contingent consideration and other
items from prior periods, net of cash
acquired 13 18
Landfill Amortization and Accretion Expenses:
Three Months Ended
March 31,
------------------------
2025 2024
------------ ----------
Landfill depletion expense:
Cost basis of landfill assets $ 150 $ 146
Asset retirement costs 33 30
--- ------- ------
Total landfill depletion expense(c) 183 176
Accretion expense 35 33
--- ------- ------
Landfill depletion and accretion
expense $ 218 $ 209
=== ======= ======
_________________________
(a) The summary of free cash flow has been prepared to highlight and
facilitate understanding of the principal cash flow elements. Free cash
flow is not a measure of financial performance under generally accepted
accounting principles and is not intended to replace the consolidated
statement of cash flows that was prepared in accordance with generally
accepted accounting principles.
(b) Represents amounts associated with business acquisitions consummated
during the applicable period except where noted.
(c) The increase in landfill depletion cost for the three months ended March
31, 2025 as compared to the quarter ended March 31, 2024 was driven by
increased volumes, particularly at higher cost sites.
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions, Except Per Share Amounts)
(Unaudited)
Three Months Ended March 31, 2025
-------------------------------------------------------------------------
Diluted Per
Income from Pre-tax Tax Net Share
Operations Income Expense Income(a) Amount
-------------- --------- --------- ------------- -----------
As reported amounts $ 1,013 $ 788 $ 151 $ 637 $ 1.58
Adjustments:
Stericycle
acquisition and
integration-related
costs(b) 33 33 7 26
Loss from asset
impairments, unusual
items and other,
net(c) 13 13 3 10
------ ---- ----- ---- ---
46 46 10 36 0.09
------ ---- ----- ---- --- -----
As adjusted amounts $ 1,059 $ 834 $ 161 (d) $ 673 $ 1.67
==== ===== ==== === =====
Depreciation,
depletion and
amortization 656
------
As adjusted operating
EBITDA $ 1,715
======
Adjusted operating
EBITDA margin 28.5 %
Three Months Ended March 31, 2024
-------------------------------------------------------------------------
Diluted Per
Income from Pre-tax Tax Net Share
Operations Income Expense Income(a) Amount
-------------- --------- --------- ------------- -----------
As reported amounts $ 1,016 $ 869 $ 162 $ 708 $ 1.75
Adjustment:
Gain from asset
impairments, unusual
items and other,
net (2) (2) -- (2) --
------ ---- ----- ---- -----
As adjusted amounts $ 1,014 $ 867 $ 162 (d) $ 706 $ 1.75
==== ===== ==== === =====
Depreciation,
depletion and
amortization 514
------
As adjusted operating
EBITDA $ 1,528
======
Adjusted operating
EBITDA margin 29.6 %
_________________________
(a) For purposes of this press release table, all references to "Net income"
refer to the financial statement line item "Net income attributable to
Waste Management, Inc."
(b) Includes acquisition and integration related costs, severance and
retention, and WM Healthcare Solutions Enterprise Resource Planning
(ERP) system costs.
(c) Primarily due to a legacy loss contingency reserve adjustment and other
restructuring costs.
(d) The Company calculates its effective tax rate based on actual dollars.
When the effective tax rate is calculated by dividing the Tax Expense
amount in the table above by the Pre-tax Income amount, differences
occur due to rounding, as these items have been rounded in millions. The
first quarter 2025 and 2024 adjusted effective tax rates were 19.2% and
18.6%, respectively.
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions)
(Unaudited)
Quarter Ended March 31, 2025
--------------------------------------------------------------------------------------------------------------------
Recycling
Processing WM Total WM
Collection and and Renewable Corporate and Legacy WM Healthcare Total
Disposal(a)(b) Sales(a) Energy(b) Other Business Solutions WM
------------------ ----------- ---------- ------------- ----------- -------------- -------
Adjusted Operating
EBITDA and Adjusted
Operating EBITDA
Margin
Operating revenues, as
reported $ 4,922 $ 384 $ 91 $ 2 $5,399 $ 619 $ 6,018
Income from Operations,
as reported $ 1,328 $ 18 $ 19 $ (327) $1,038 $ (25) $ 1,013
Depreciation,
depletion and
amortization 477 39 15 24 555 101 656
------ ------ ---------- --------- ---- --- ----- --- ----- --- ------
Operating EBITDA, as
reported $ 1,805 $ 57 $ 34 $ (303) $1,593 $ 76 $ 1,669
Adjustments:
Stericycle
acquisition and
integration-related
costs(c) -- -- -- 14 14 19 33
Loss from asset
impairments,
unusual items and
other, net(d) 2 4 -- 7 13 -- 13
------ ------ ---------- --------- ---- --- ----- --- ----- --- ------
2 4 -- 21 27 19 46
------ ------ ---------- --------- ---- --- ----- --- ----- --- ------
Adjusted operating
EBITDA $ 1,807 $ 61 $ 34 $ (282) $1,620 $ 95 $ 1,715
====== ====== ========== ========= ==== ===== === ===== === ======
Operating EBITDA
margin, as reported 36.7 % 14.8% 37.4% N/A 29.5 % 12.3 % 27.7%
Adjusted operating
EBITDA margin 36.7 % 15.9% 37.4% N/A 30.0 % 15.3 % 28.5%
Quarter Ended March 31, 2024
---------------------------------------------------------------------------------------
Recycling
Processing WM
Collection and and Renewable Corporate and
Disposal(a)(b) Sales(a) Energy(b) Other Total WM
------------------ ----------- ---------- ------------- -----------
Adjusted Operating
EBITDA and Adjusted
Operating EBITDA
Margin
Operating revenues, as
reported $ 4,716 $ 368 $ 69 $ 6 $5,159
Income from Operations,
as reported $ 1,279 $ 19 $ 21 $ (303) $1,016
Depreciation,
depletion and
amortization 450 29 8 27 514
------ ------ ---------- --------- ---- --- ----- ---
Operating EBITDA, as
reported $ 1,729 $ 48 $ 29 $ (276) $1,530
Adjustment:
Gain from asset
impairments,
unusual items and
other, net (2) -- -- -- (2)
------ ----- ---------- --------- ---- --- -----
Adjusted operating
EBITDA $ 1,727 $ 48 $ 29 $ (276) $1,528
====== ====== ========== ========= ==== ===== ===
Operating EBITDA
margin, as reported 36.7 % 13.0% 42.0% N/A 29.7 %
Adjusted operating
EBITDA margin 36.6 % 13.0% 42.0% N/A 29.6 %
_________________________
(a) Certain fees related to the processing of recycled material we collect
are included within our Collection and Disposal businesses. The total
amount of such fees in income from operations for the three months ended
March 31, 2025 and 2024 is $20 million and $22 million, respectively.
(b) WM Renewable Energy pays a 15% intercompany royalty to our Collection
and Disposal businesses for landfill gas. The total amount of royalties
in income from operations for the three months ended March 31, 2025 and
2024 is $14 million and $10 million, respectively.
(c) Includes acquisition and integration related costs, severance and
retention, and WM Healthcare Solutions Enterprise Resource Planning
(ERP) system costs.
(d) Primarily due to a legacy loss contingency reserve adjustment and other
restructuring costs.
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions, Except Per Share Amounts)
(Unaudited)
Three
Months
Three Months Ended Ended
March
31,
March 31, 2025 2024
--------------------------------------- ------
WM WM
Legacy Healthcare
Total Total
Business Solutions WM WM
-------- ------------ ------- ------
Adjusted Operating
Expenses and Adjusted
Operating Expenses
Margin
Operating revenues, as
reported $ 5,399 $ 619 $6,018 $5,159
Operating expenses, as
reported $ 3,269 $ 378 $3,647 $3,140
As a % of revenues 60.5 % 61.1 % 60.6 % 60.9 %
Adjustment:
Legacy loss
contingency reserve (7) -- (7)
------ --- ------ -----
Operating expenses, as
adjusted $ 3,262 $ 378 $3,640
====== === ====== =====
As a % of revenues 60.4 % 61.1 % 60.5 %
Three
Months
Three Months Ended Ended
March
31,
March 31, 2025 2024
--------------------------------------- ------
WM WM
Legacy Healthcare
Total Total
Business Solutions WM WM
-------- ------------ ------- ------
Adjusted SG&A Expenses
and Adjusted SG&A
Expenses Margin
Operating revenues, as
reported $ 5,399 $ 619 $6,018 $5,159
SG&A expenses, as
reported $ 531 $ 156 $ 687 $ 491
As a % of revenues 9.8 % 25.2 % 11.4 % 9.5 %
Adjustment:
Stericycle
acquisition and
integration-related
costs (14) (10) (24)
------ --- ------ -----
As adjusted SG&A
expenses $ 517 $ 146 $ 663
====== === ====== =====
9.6 % 23.6 % 11.0 %
2025 Projected Free
Cash Flow Scenario
Reconciliation(a) 1 Scenario 2
-------- ------------
Net cash provided by
operating activities $ 5,750 $ 5,900
Capital expenditures to
support the business (2,575) (2,625)
Proceeds from
divestitures of
businesses and other
assets, net of cash
divested 100 150
------ --- ------
Free cash flow before
sustainability growth
investments $ 3,275 $ 3,425
Capital expenditures -
sustainability growth
investments $(600.SI)$ (650)
------ --- ------
Free cash flow $ 2,675 $ 2,775
====== === ======
_________________________
(a) The reconciliation includes two scenarios that illustrate our projected
free cash flow range for 2025. The amounts used in the reconciliation
are subject to many variables, some of which are not under our control
and, therefore, are not necessarily indicative of actual results.
WASTE MANAGEMENT, INC. SUPPLEMENTAL INFORMATION PROVIDED FOR
ILLUSTRATIVE PURPOSES ONLY (In Millions) (Unaudited) Diversity in the
structure of recycling contracts results in different accounting
treatment for commodity rebates. In accordance with revenue
recognition guidance, our Company records gross recycling revenue and
records rebates paid to customers as cost of goods sold. Other
contract structures allow for netting of rebates against revenue.
Additionally, there are differences in whether companies adjust for
accretion expense in their calculation of EBITDA. Our Company does not
adjust for landfill accretion expenses when calculating operating
EBITDA, while other companies do adjust it for the calculation of
their EBITDA measure. The table below illustrates the impact that
differing contract structures and treatment of accretion expense has
on the Company's adjusted operating EBITDA margin results. This
information has been provided to enhance comparability and is not
intended to replace or adjust GAAP reported results.
Three Months Ended March 31,
----------------------------------------------------
2025 2024
------------------------- -------------------------
Change in Change in
Adjusted Adjusted
Operating Operating
Amount EBITDA Margin Amount EBITDA Margin
-------- --------------- -------- ---------------
Recycling
commodity
rebates $ 238 1.2% $ 191 1.2% Accretion expense $ 35 0.6% $ 33 0.6%
View source version on businesswire.com: https://www.businesswire.com/news/home/20250428950137/en/
CONTACT:
FOR MORE INFORMATION
WM
Website
www.wm.com
Analysts
Ed Egl
713.265.1656
eegl@wm.com
Media
Toni Werner
media@wm.com
(END) Dow Jones Newswires
April 29, 2025 14:35 ET (18:35 GMT)
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