Waste Management (NYSE:WM) Beats Q2 Sales Targets

July 28, 2025 at 18:02 PM EDT

WM Cover Image

Waste management services provider Waste Management (NYSE: WM) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 19% year on year to $6.43 billion. On the other hand, the company’s full-year revenue guidance of $25.38 billion at the midpoint came in 0.5% below analysts’ estimates. Its non-GAAP profit of $1.92 per share was 1.6% above analysts’ consensus estimates.

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Waste Management (WM) Q2 CY2025 Highlights:

Revenue: $6.43 billion vs analyst estimates of $6.36 billion (19% year-on-year growth, 1.1% beat)
Adjusted EPS: $1.92 vs analyst estimates of $1.89 (1.6% beat)
Adjusted EBITDA: $1.92 billion vs analyst estimates of $1.87 billion (29.9% margin, 2.6% beat)
EBITDA guidance for the full year is $7.55 billion at the midpoint, in line with analyst expectations
Operating Margin: 17.9%, in line with the same quarter last year
Free Cash Flow Margin: 11.1%, up from 9.8% in the same quarter last year
Market Capitalization: $92.42 billion

“As we described at our recent Investor Day, WM is building distinctive platforms to drive competitive differentiation and fuel a powerful, long-term growth engine to create shareholder value. Our second quarter results are a strong demonstration of our progress on all fronts,” said Jim Fish, WM’s CEO.

Company Overview

Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Waste Management grew its sales at a solid 9.7% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Waste Management’s annualized revenue growth of 9.4% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. Waste Management Year-On-Year Revenue Growth

This quarter, Waste Management reported year-on-year revenue growth of 19%, and its $6.43 billion of revenue exceeded Wall Street’s estimates by 1.1%.

Looking ahead, sell-side analysts expect revenue to grow 9.6% over the next 12 months, similar to its two-year rate. This projection is particularly healthy for a company of its scale and indicates the market is forecasting success for its products and services.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Waste Management’s operating margin might fluctuated slightly over the last 12 months but has generally stayed the same, averaging 17.4% over the last five years. This profitability was elite for an industrials business thanks to its efficient cost structure and economies of scale. This is seen in its fast historical revenue growth and healthy gross margin, which is why we look at all three data points together.

Looking at the trend in its profitability, Waste Management’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

Waste Management Trailing 12-Month Operating Margin (GAAP)

In Q2, Waste Management generated an operating margin profit margin of 17.9%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Waste Management’s solid 11.6% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

Waste Management Trailing 12-Month EPS (Non-GAAP)

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Waste Management, its two-year annual EPS growth of 13% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q2, Waste Management reported EPS at $1.92, up from $1.82 in the same quarter last year. This print beat analysts’ estimates by 1.6%. Over the next 12 months, Wall Street expects Waste Management’s full-year EPS of $7.25 to grow 11.7%.

Key Takeaways from Waste Management’s Q2 Results

It was encouraging to see Waste Management beat analysts’ revenue, EPS, and EBITDA expectations this quarter. On the other hand, its full-year revenue guidance slightly missed. Overall, this print had some key positives. The stock remained flat at $229.25 immediately after reporting.

Big picture, is Waste Management a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.

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