We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WM Q3 Earnings Miss Estimates Despite Strong Margins, Revenues Up Y/Y
Read MoreHide Full Article
Key Takeaways
WM's Q3 adjusted EPS of $1.98 missed estimates but rose 1% y/y.
Revenues of $6.4B lagged estimates but grew 14.9% y/y.
Margins improved, with EBITDA rising 15.1% and the EBITDA margin expanding to 30.6%.
WM (WM - Free Report) delivered dismal third-quarter 2025 results despite a strong segmental performance and margin expansion.
The earnings and revenues miss disappointed the market as the company’s shares declined 49.3% since the release of results on Oct. 27.
WM’s adjusted earnings per share of $1.98 missed the consensus mark by 1.5% and rose 1% year over year. Total revenues of $6.4 billion missed the consensus estimate by a slight margin but gained 14.9% on a year-over-year basis.
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. This falls short of our estimate of $4.1 billion. The Landfill segment’s top line increased 7.8% year over year to $995 million. This exceeds our estimate of $986.5 million.
The Transfer segment revenues increased 8.5% year over year to $396 million. This is above our estimate of $391.5 million. The Recycling Processing and Sales segment’s revenues declined 13.9% from the year-ago quarter to $372 million. This missed our estimate of $432.3 million.
The adjusted operating EBITDA was $2 billion, increasing 15.1% from the year-ago quarter. This missed our projection of $1.9 billion. The adjusted operating EBITDA margin increased 10 basis points to 30.6% from the year-ago quarter. This metric beat our estimate of 30.1%.
Image: Shutterstock
WM Q3 Earnings Miss Estimates Despite Strong Margins, Revenues Up Y/Y
Key Takeaways
WM (WM - Free Report) delivered dismal third-quarter 2025 results despite a strong segmental performance and margin expansion.
The earnings and revenues miss disappointed the market as the company’s shares declined 49.3% since the release of results on Oct. 27.
WM’s adjusted earnings per share of $1.98 missed the consensus mark by 1.5% and rose 1% year over year. Total revenues of $6.4 billion missed the consensus estimate by a slight margin but gained 14.9% on a year-over-year basis.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote
The Collection segment recorded revenues of $3.9 billion, a 3.5% increase from the year-ago quarter. This falls short of our estimate of $4.1 billion. The Landfill segment’s top line increased 7.8% year over year to $995 million. This exceeds our estimate of $986.5 million.
The Transfer segment revenues increased 8.5% year over year to $396 million. This is above our estimate of $391.5 million. The Recycling Processing and Sales segment’s revenues declined 13.9% from the year-ago quarter to $372 million. This missed our estimate of $432.3 million.
The adjusted operating EBITDA was $2 billion, increasing 15.1% from the year-ago quarter. This missed our projection of $1.9 billion. The adjusted operating EBITDA margin increased 10 basis points to 30.6% from the year-ago quarter. This metric beat our estimate of 30.1%.
Currently, WM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Equifax Inc. (EFX - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
EFX posted adjusted earnings of $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter.
Total revenues amounted to $1.5 billion, which surpassed the consensus estimate by 1.5% and grew 6.9% on a year-over-year basis.
Waste Connections, Inc. (WCN - Free Report) registered impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Waste Connections posted adjusted earnings of $1.44 per share, surpassing the Zacks Consensus Estimate by 4.4% and increasing 6.7% year over year.
Revenues amounted to $2.5 billion, which beat the consensus estimate marginally and grew 5.1% from the year-ago quarter.