Waste Management Inc.
WMBusiness Overview
ticker: WM step: 01 generated: 2026-05-12 source: quick-research
Waste Management, Inc. (WM) — Business Overview
Business Description
Waste Management is North America's largest integrated environmental solutions company, providing solid waste collection, transfer, recycling, resource recovery, disposal, renewable natural gas (RNG), and (since November 2024) healthcare waste solutions via the $7.2B Stericycle acquisition. Vertically integrated network with the largest landfill + collection fleet + recycling + RNG infrastructure in the industry.
Revenue Model
$22.5B FY2024 revenue ($25.5-25.8B FY2025) across five segments: Collection & Disposal (70%, core solid waste), Healthcare Solutions ($2.5B, Stericycle), Recycling, Renewable Energy/RNG, and Other. ~90%+ recurring contractual revenue. Pricing escalators in long-term contracts + landfill scarcity = exceptional pricing power.
Products & Services
- Solid Waste Collection — Residential, commercial, industrial; 28M customers; fleet 18,000+ vehicles
- Landfills — 254 active landfills; largest network in NA; irreplaceable competitive moat
- Transfer Stations — 343 stations (network density advantage)
- Recycling — Single-stream + commodity recycling; AI-powered MRFs; 27 of 39 planned high-tech facilities online
- Renewable Natural Gas (RNG) — 8 of 20 planned facilities online; 11-12M MMBtu in 2025 → 21-22M MMBtu in 2026
- Healthcare Solutions (Stericycle) — Medical waste, hazardous waste, secure document destruction across NA + Europe
Customer Base & Go-to-Market
28M residential, commercial, industrial customers. Long-term municipal contracts (5-10 years). Healthcare segment serves 80%+ of US hospitals + medical facilities. Geographic mix: 95% North America (US + Canada + Mexico) + Western Europe (post-Stericycle).
Competitive Position
#1 North American waste services company by revenue + market cap. Competes with Republic Services (RSG), GFL, Waste Connections. Differentiation: largest landfill network (irreplaceable due to permitting difficulty), highest network density, leading recycling + RNG technology investments, and now #1 medical waste post-Stericycle.
Key Facts
- Founded: 1968
- Headquarters: Houston, TX
- Employees: ~50,000 (post-Stericycle)
- Exchange: NYSE (WM)
- Sector / Industry: Industrials / Environmental Services
- Market Cap: ~$85B
Financial Snapshot
ticker: WM step: 04 generated: 2026-05-12 source: quick-research
Waste Management (WM) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY (25) |
|---|---|---|---|---|---|
| Revenue | $19.7B | $20.4B | $22.5B | $25.7B | +14.2% |
| Adj Operating EBITDA Margin | 28.1% | 28.8% | 30.0% | 29.0% | |
| Collection/Disposal EBITDA Margin | 35.3% | 36.5% | 37.2% | 38.4% | |
| Operating Income | $3.5B | $3.8B | $4.5B | $5.3B | +18% |
| Net Income | $2.24B | $2.49B | $3.16B | $3.6B | +14% |
| Adjusted EPS | $5.40 | $5.66 | $7.10 | $7.85 | +11% |
FY24 Legacy Business EBITDA +10%; achieved 30% margin first time. FY25 revenue $25.7B includes Stericycle. Collection & Disposal margin reached 38.4% in Q3 2025 (all-time high).
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$5.4B |
| Free Cash Flow | $2.32B |
| Capex (incl. sustainability) | ~$3.0B |
| Cash & Equivalents | ~$0.4B |
| Total Debt | ~$24B (post-Stericycle) |
| Net Debt/EBITDA | ~3.5x (deleveraging) |
Key Ratios (approximate)
- P/E: ~28x | EV/EBITDA: ~15x | FCF Yield: ~3.0%
- Revenue Growth (TTM): ~14% | Op Margin: ~21%
- Dividend Yield: ~1.6% | 22-year consecutive dividend growth
Growth Profile
Long-term algorithm: 5-7% organic revenue growth + EBITDA margin expansion ~50bps annually + 6-9% adj EPS growth + 10%+ FCF growth. Sustainability investments (RNG + Recycling) drive incremental EBITDA + FCF beyond 2026. Stericycle synergies $250M over 3 years. 2027 revenue target $29B with healthcare + RNG fully ramped.
Forward Estimates
- FY 2026: Revenue $26-27B; adj op EBITDA $7.85-8.10B; FCF $3.76B (~28% growth)
- FY 2027: Revenue ~$29B; full Stericycle synergies + RNG volume doubling
- 6 more RNG facilities online in 2026 → 21-22M MMBtu volume = $300M+ incremental EBITDA
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $WM.