Waste Management Reports 30% EBITDA Margin, $25.2B Revenue and 30% FCF Growth Guidance
Waste Management generated $25.204 billion in 2025 revenue, up 14.2% year-over-year, and achieved a 30% adjusted EBITDA margin for the first time with 6.3% core price growth. Management forecasts nearly 30% free cash flow growth in 2026, driven by its domestic solid waste network and recycling and renewable investments.
1. Record 2025 Financial Performance
Waste Management reported $25.204 billion in full-year 2025 revenue, a 14.2% increase year-over-year, and delivered an adjusted EBITDA margin of 30% for the first time. Core pricing rose 6.3%, reflecting strong pricing power across its domestic waste collection network.
2. 2026 Free Cash Flow Growth Guidance
Management expects nearly 30% free cash flow growth in 2026, driven by its unreplicable solid waste network and targeted investments in recycling and renewable energy projects. The company’s tariff immunity underpins its stable cash flow outlook despite macro uncertainties.
3. Recycling Segment Headwinds
Recycled commodity prices fell to $62 per ton in Q4 2025 from $87 per ton a year earlier, pressuring the recycling business. While core pricing and network scale mitigate margin erosion, continued volatility in commodity markets poses an ongoing risk to segment profitability.