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)
(MORE TO FOLLOW) Dow Jones Newswires
April 29, 2025 14:35 ET (18:35 GMT)
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