WM reports revenue, earnings growth in Q4 and full-year 2025

During WM’s recent financial update and earnings call, the company reported higher revenue, operating earnings and cash flow for the fourth quarter and full year of 2025 than in 2024.

The Houston-based waste and environmental services company posted $6.31 billion in revenue for the fourth quarter, up from $5.89 billion during the same period in 2024. Full-year revenue reached $25.2 billion, compared with $22.1 billion in 2024.

Operating income for the fourth quarter totaled $1.15 billion, up from $919 million a year earlier. Full-year operating income rose to $4.31 billion, compared with $4.06 billion in 2024. Net income for the year was $2.71 billion, compared with $2.75 billion the prior year.

WM says operating performance improved access across the business, with full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) increasing 13.3 percent to $7.17 billion. On an adjusted basis, the full-year adjusted operating EBITDA margin exceeded 30 percent for the first time, the company says.

“2025 was a year of disciplined execution for WM,” Jim Fish, CEO of WM, says. “We delivered record performance in operating expenses as a percentage of revenue for both the fourth quarter and the full year, resulting in our best full-year adjusted operating EBITDA margin. Our investments in technology and automation continue to generate meaningful efficiencies, contributing to structurally enhanced margins and stronger cash generation. We are also building momentum in the strategic growth of our recycling, renewable energy and health care solutions businesses as we position WM as the leading provider of comprehensive environmental solutions.”

WM attributes revenue growth in its legacy solid waste business to pricing gains and cost optimization, while its health care solutions segment saw margin improvement as integration efforts progressed.

The company also says it continued to invest in sustainability projects, completing seven renewable natural gas facilities and nine recycling automation and growth projects in 2025.

Looking ahead to 2026 projections, WM says it expects continued growth across its solid waste, health care and sustainability businesses. The company projects revenue between $26.4 billion and $26.6 billion and free cash flow of $3.75 billion to $3.85 billion, representing 29.4 percent growth year over year.

Fish says WM plans to return approximately $3.5 billion to shareholders in 2026 through dividends and share repurchases while continuing to invest in recycling, renewable energy and fleet upgrades.

“Our results highlight the strength and momentum we built in our business model through operational excellence, scaling sustainability businesses and integration of health care solutions,” Fish says. “As we look ahead to 2026, we are confident in our ability to sustain this momentum, to continue delivering operational excellence and to generate long-term value for our shareholders.”