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WM Earnings & Revenues Beat Estimates in Q2, Increase Y/Y

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Key Takeaways

  • WM posted Q2 earnings of $1.92 per share, up 5.5% y/y and beating estimates by 1.6%.
  • Quarterly revenues rose 19% to $6.4B, beating estimates on strong gains in the Landfill and Energy segments.
  • The yearly revenue guidance was cut due to lower recycled prices, and Collection and Disposal volumes.

WM (WM - Free Report) reported impressive second-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate.

WM’s quarterly adjusted earnings of $1.92 per share surpassed the consensus mark by 1.6% and gained 5.5% year over year. Total revenues of $6.4 billion beat the consensus mark by 1.4% and increased 19% from the year-ago quarter.

Thestock has rallied 13% in the year-to-date period, outperforming 10.7% growth of its industry andthe 8.2% rise of the Zacks S&P 500 Composite.

Waste Management, Inc. Price, Consensus and EPS Surprise

 

Waste Management, Inc. Price, Consensus and EPS Surprise

Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote

WM’s Quarterly Numbers in Detail

The Collection segment recorded revenues of $4.4 billion, a 5.2% increase from the year-ago quarter and missing our estimate of $4.7 billion. The Landfill segment’s top line grew 14.5% year over year to $1.4 billion and met our prediction. Total revenues in the Transfer segment increased 10.2% to $681 million, missing our estimate of $692.5 million. The Recycling Processing and Sales segment’s revenues rose 1.5% to $482 million. The metric failed to surpass our estimated $535.8 million.

WM Renewable Energy reported revenues of $115 million, a 64.3% surge from the same quarter last year and surpassing our estimate of $95.3 million. WM Healthcare Solutions Corporate and Other generated $647 million, up marginally from the year-ago quarter’s actual, beating our estimate of $291.1 million. These figures are before the adjustment of intercompany eliminations.

The adjusted operating EBITDA was $1.9 billion, which met our anticipated figure. The adjusted operating EBITDA margin decreased 10 basis points to 29.9% from the year-ago quarter and beat our estimate of 29.5%.

Cash Flow of WM

WM generated $1.5 billion in cash from operating activities in the reported quarter, while capital expenditure was $732 million. The free cash flow was $818 million. In the second quarter of 2025, $333 million in cash dividends were distributed to shareholders.

WM’s 2025 Outlook

The recent decline in recycled commodity prices, coupled with decreased Collection and Disposal volumes in the first quarter of 2025, led the company to lower the revenue guidance to $25.27-$25.47 from the preceding quarter’s view of $25.55-$25.80. The guided range is lower than the consensus mark of $25.53 billion. Adjusted operating EBITDA is anticipated to be $7.47-$7.62 billion, whereas the company reported $7.45-$7.65 billion in the preceding quarter.

WM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

IQVIA Holdings Analytics Inc. (IQV - Free Report) reported impressive second-quarter 2025 results.

IQV’s adjusted earnings were $2.81 per share, beating the Zacks Consensus Estimate by 1.8% and rising 6.4% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by 1.5% and grew 5.3% from the year-ago quarter.

The Interpublic Group of Companies, Inc. (IPG - Free Report) posted impressive second-quarter 2025 results.

IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year and outpaced the Zacks Consensus Estimate of $2.2 billion.


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