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Waste Management (WM) Up 5.9% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Waste Management (WM - Free Report) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Waste Management due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

WM Misses Q3 Earnings Estimates

WM 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.

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. Adjusted operating EBITDA is expected to be $7.475-$7.625 billion.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Waste Management has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Waste Management has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Waste Management is part of the Zacks Waste Removal Services industry. Over the past month, Waste Connections (WCN - Free Report) , a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended September 2025 more than a month ago.

Waste Connections reported revenues of $2.46 billion in the last reported quarter, representing a year-over-year change of +5.1%. EPS of $1.44 for the same period compares with $1.35 a year ago.

Waste Connections is expected to post earnings of $1.30 per share for the current quarter, representing a year-over-year change of +12.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.

Waste Connections has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.


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