Tue, Apr 29, 6:48 PM (23 days ago)
**Waste Management, Inc. (WM) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $6,018 million, up 16.7% YoY, driven by the Stericycle acquisition, higher yield in Collection and Disposal, and increased volumes in landfill, recycling, and WM Renewable Energy. - **Operating Income:** $1,013 million, down 0.3% YoY, due to increased Corporate and Other costs from Stericycle integration and higher depreciation and amortization. - **Net Income:** $637 million, down 10.3% YoY, primarily due to increased interest expense from Stericycle acquisition funding. - **Earnings per Share (EPS):** $1.58, down from $1.75 YoY. - **Cash Flow from Operations:** $1,208 million, down from $1,367 million YoY, due to higher cash interest and working capital changes. - **Free Cash Flow:** $475 million, down from $714 million YoY, due to decreased operating cash flow and increased capital spending. **Profit Margins:** - **Operating Margin:** 16.8% of revenues, down from 19.7% YoY. - **Net Margin:** 10.6% of revenues, down from 13.7% YoY. **Segment Performance:** - **Collection and Disposal:** Increased income from operations by $49 million, driven by pricing and efficiency improvements. - **Recycling Processing and Sales:** Flat income from operations, benefiting from automation and new facilities. - **WM Renewable Energy:** Decreased income from operations due to lower RINs value, partially offset by higher energy prices. - **WM Healthcare Solutions:** Generated a loss of $25 million, primarily due to depreciation, amortization, and integration expenses. - **Corporate and Other:** Decreased income from operations due to integration-related consulting fees and increased risk management expenses. **Trends and Uncertainties:** - **Acquisitions:** Completed the Stericycle acquisition, expanding offerings in regulated waste and compliance services. - **Capital Expenditures:** Increased to $831 million, driven by investments in trucks, landfills, equipment, and WM Healthcare Solutions. - **Debt:** $23.8 billion, with $3.8 billion maturing within the next 12 months, but $2.8 billion classified as long-term due to refinancing plans. - **Seasonal Trends:** Expect seasonal increases in revenues during the summer months. - **Weather Impact:** Extreme weather events can affect revenues and margins, both positively and negatively. **Future Operations Impact:** - **Integration:** Ongoing integration of Stericycle, focusing on service delivery, process optimization, and asset utilization. - **Sustainability:** Continued investment in WM Renewable Energy and Recycling Processing and Sales to drive environmental value. - **Technology:** Focus on automation and digitalization to enhance operational efficiency and customer experience. - **Inflation:** Proactive steps to manage inflationary cost pressures through pricing and cost control initiatives.