Waste Management reported fourth-quarter 2025 revenue of $6.31 billion, up 7.1% year-over-year, but earnings per share of $1.83 on a reported basis missed consensus estimates of $1.93. Adjusted operating EBITDA reached $1.97 billion, representing a margin of 31.3%, compared with 28.9% in the prior year. Income from operations on an adjusted basis was $1.20 billion, reflecting disciplined cost management and strategic price increases in core collection and disposal services. Net income climbed to $780 million on an adjusted basis, a 13.4% increase over Q4 2024 adjusted net income of $688 million.

The Legacy Business generated $5.70 billion in revenue, growing 3.8% versus Q4 2024, with core price and yield gains of 6.3% and 3.8%, respectively. Legacy adjusted operating EBITDA expanded 10.1% year-over-year to $1.87 billion, lifting its margin by 150 basis points to 31.5%. Healthcare Solutions delivered $615 million in revenue and achieved adjusted operating EBITDA of $105 million, a 17.1% margin, up 180 basis points on integration efficiencies. Collection volumes rose 0.3% on a work-day-adjusted basis, including a 0.5% contribution from wildfire cleanup activities.

In 2025, the company generated $6.04 billion of net cash from operating activities, a 12.1% increase over the prior year, resulting in free cash flow of $2.94 billion, up 26.8%. Capital expenditures totaled $2.35 billion, including approximately $400 million invested in strategic solid waste and recycling acquisitions. WM completed seven renewable natural gas facilities and nine recycling automation projects, expanding its sustainability infrastructure. The board authorized returning $3.5 billion to shareholders in 2026 via dividends and share repurchases, targeting a leverage ratio of 2.5x–3.0x by year end.

Management projects 2026 revenue of $26.43 billion to $26.63 billion, representing growth of about 5.2%, driven by core price of 5.4%–5.8%, yield of 3.2%–3.6% and modest volume gains of 0.2%–0.6%. Adjusted operating EBITDA is forecast at $8.15 billion to $8.25 billion, implying margin expansion to roughly 31.0% on a comparable basis. Free cash flow is expected to increase by nearly 29% to $3.75 billion–$3.85 billion. The board plans a $0.48 per share dividend increase to $3.78 annually and up to $200 million in 2026 sustainability growth capital, while maintaining disciplined acquisition spending of $100 million–$200 million.