Waste Management Inc.
WMFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$6.2B
Q1 2026 · +3.5% YoY
TTM ROIC
8.1%
FY2025 · NOPAT / Invested Capital (Equity + Net Debt + adjustments) · WACC ~4.5% · Moat spread +3.6pp
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.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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