WM reports mixed results for Q3

WM has reported increased sales for the third quarter of 2025, but both net income and operating income decreased.

Sales increased to $3.83 billion for the third quarter compared with $3.99 billion in 2024. For the nine-month period ending Sept. 30, WM reports sales of $18.8 billion, an increase compared with $16.1 billion during the same period through 2024.

Income from operations decreased to $989 million for the third quarter compared with $1.11 billion in 2024, but overall operating income increased to $3.15 billion for the nine months compared with $3.14 billion in 2024.

Net income decreased for the third quarter and the full nine months to $603 million and $1.96 billion, respectively, compared with $760 million and $2.14 billion in their respective 2024 periods.

WM’s revenue growth was driven by its legacy collection and disposal business, which grew by 0.2 percent in volume compared with the third quarter of 2024. Growth was driven by strong landfill volumes and an increase in individual collection volumes. The company added that this growth was offset partially by a decline in residential collection volumes because of its strategic exit of lower-margin contracts.

“Our collection and disposal business continues to be the engine behind our growth, contributing more than half of the year-over-year increase in operating EBITDA [earnings before interest, taxes, depreciation and amortization] businesses drove strong organic revenue growth and we’re particularly pleased with our ability to attract robust disposal volumes to our network,” WM CEO Jim Fish said during the firm’s third-quarter earnings call Oct. 28.

Fish added that even though recycled commodity prices declined nearly 35 percent compared with 2024, WM’s recycling segment operating EBITDA grew by 18 percent, which Fish described as a “phenomenal result.” However, the drop in prices caused WM to experience a $60 million revenue decline in its recycling processing and sales segment compared to 2024.

WM, based in Houston, continues to advance the integration of its health care solutions business. Fish said the strategic value of the medical waste platform is “more evident than ever.” The company successfully integrated the people and operations of health care solutions into the existing management and operating structure.

Its health care solutions revenue came in slightly below expectations, but the company says it is taking a “disciplined approach to customer engagement and prioritizing customer lifetime value, resulting in the deferral of some planned price increases.” The unit only represents 10 percent of WM’s overall business.

“If you look at the legacy business, or the core solid waste business, with margins over 38 percent and kind of a soft revenue quarter at 9 percent, there’s a lot of strength in the legacy and core business. And we think that’s going to continue to perform well through the balance of the year,” John Morris, WM president and chief operating officer, said on the call.

Fish added that the company is optimistic regarding the future potential for its health care solutions business.

“The secular trends absolutely support this,” Fish said. “It’s hard to read an article these days about the next 10 years of economic growth in the United States without reading something about lower birth rates or aging population here. And all of that supports this business. We know that what happens as we get older is that there is higher demand for health care services, and the market position of this business is incredible there.”

Fish also thanked WM CFO Devina Rankin for her 23 years of service during the call. Rankin plans to retire in November and will remain as an executive advisor to ensure an effective transition through March 2026. The company named David Reed her successor in August.