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WM Earnings Miss Estimates in Q3, Revenues Appreciate 15% Y/Y
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Key Takeaways
WM's Q3 earnings and revenues missed estimates, though both improved year over year.
The landfill and renewable energy segments delivered notable double-digit revenue growth.
WM generated $1.6B in operating cash flow and guided revenues of $25.275B for 2025.
WM (WM - Free Report) reported dismal third-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate.
WM’s quarterly adjusted earnings of $1.98 per share missed the consensus mark by 1.5% but moved up 1% year over year. Total revenues of $6.4 billion missed the consensus mark by a slight margin but grew 14.9% from the year-ago quarter.
The stock has gained 6% in the year-to-date period, outperforming 5.6% growth of its industry, while falling short ofthe 16.7% rally of the Zacks S&P 500 Composite.
Waste Management, Inc. Price, Consensus and EPS Surprise
The Collection segment recorded revenues of $3.9 billion, a 3.5% increase from the year-ago quarter and missing our estimate of $4.1 billion. The Landfill segment’s top line increased 7.8% year over year to $995 million and surpassed our projection of $986.5 billion. Total revenues in the Transfer segment increased 8.5% to $396 million, beating our estimate of $391.5 million. The Recycling Processing and Sales segment’s revenues declined 13.9% to $372 million, missing our estimation of $432.3 million.
WM Renewable Energy registered revenues of $115 million, rising 32.2% from the year-ago quarter and outpacing our estimate of $103 million. WM Healthcare Solutions, and Corporate and Other recorded $635 million in revenues, missing our projection of $444.3 million. The figures are after the alignment of the intercompany adjustment.
The adjusted operating EBITDA was $2 billion, which missed our estimate of $1.9 billion and rose 15.1% from the year-ago quarter. The adjusted operating EBITDA margin increased 10 basis points to 30.6% from the year-ago quarter and surpassed our estimate of 30.1%.
Cash Flow of WM
WM generated $1.6 billion in cash from operating activities in the reported quarter, while capital expenditure was $635 million. The free cash flow was $821 million. In the third quarter of 2025, $332 million in cash dividends were distributed to shareholders.
WM’s 2025 Outlook
The company expects revenues of $25.275 billion for 2025. The guided figure is lower than the Zacks Consensus Estimate of $25.36 billion. Adjusted operating EBITDA is expected to be $7.475-$7.625 billion.
Waste Connections’ adjusted earnings (excluding 33 cents from non-recurring items) of $1.44 per share surpassed the Zacks Consensus Estimate by 4.4% and increased 6.7% year over year. Revenues of $2.5 billion beat the consensus estimate marginally and grew 5.1% from the year-ago quarter.
EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.5% and grew 6.9% on a year-over-year basis.
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WM Earnings Miss Estimates in Q3, Revenues Appreciate 15% Y/Y
Key Takeaways
WM (WM - Free Report) reported dismal third-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate.
WM’s quarterly adjusted earnings of $1.98 per share missed the consensus mark by 1.5% but moved up 1% year over year. Total revenues of $6.4 billion missed the consensus mark by a slight margin but grew 14.9% from the year-ago quarter.
The stock has gained 6% in the year-to-date period, outperforming 5.6% growth of its industry, while falling short ofthe 16.7% rally of the Zacks S&P 500 Composite.
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 $3.9 billion, a 3.5% increase from the year-ago quarter and missing our estimate of $4.1 billion. The Landfill segment’s top line increased 7.8% year over year to $995 million and surpassed our projection of $986.5 billion. Total revenues in the Transfer segment increased 8.5% to $396 million, beating our estimate of $391.5 million. The Recycling Processing and Sales segment’s revenues declined 13.9% to $372 million, missing our estimation of $432.3 million.
WM Renewable Energy registered revenues of $115 million, rising 32.2% from the year-ago quarter and outpacing our estimate of $103 million. WM Healthcare Solutions, and Corporate and Other recorded $635 million in revenues, missing our projection of $444.3 million. The figures are after the alignment of the intercompany adjustment.
The adjusted operating EBITDA was $2 billion, which missed our estimate of $1.9 billion and rose 15.1% from the year-ago quarter. The adjusted operating EBITDA margin increased 10 basis points to 30.6% from the year-ago quarter and surpassed our estimate of 30.1%.
Cash Flow of WM
WM generated $1.6 billion in cash from operating activities in the reported quarter, while capital expenditure was $635 million. The free cash flow was $821 million. In the third quarter of 2025, $332 million in cash dividends were distributed to shareholders.
WM’s 2025 Outlook
The company expects revenues of $25.275 billion for 2025. The guided figure is lower than the Zacks Consensus Estimate of $25.36 billion. Adjusted operating EBITDA is expected to be $7.475-$7.625 billion.
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
Waste Connections, Inc. (WCN - Free Report) reported impressive third-quarter 2025 results.
Waste Connections’ adjusted earnings (excluding 33 cents from non-recurring items) of $1.44 per share surpassed the Zacks Consensus Estimate by 4.4% and increased 6.7% year over year. Revenues of $2.5 billion beat the consensus estimate marginally and grew 5.1% from the year-ago quarter.
Equifax Inc. (EFX - Free Report) posted impressive third-quarter 2025 results.
EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.5% and grew 6.9% on a year-over-year basis.