Waste Management’s Target Raised to $242 as Free Cash Flow Jumps 27%
CIBC raised Waste Management’s price target to $242 from $231 after management highlighted strong volume and pricing momentum plus free cash flow priorities. In Q4 2025 free cash flow jumped 27% and the company commissioned seven renewable natural gas facilities while recycling EBITDA climbed 22%.
1. CIBC Raises Price Target
CIBC raised Waste Management’s price target to $242 from $231 and maintained a Neutral rating after discussions on the robust volume and pricing environment, the outlook for WM Healthcare, technology advantages, and free cash flow priorities tied to sustainability investments.
2. Q4 2025 Operational Results
CEO James Fish reported record operating expense efficiency relative to revenue, double-digit operating cash flow growth and a 27% rise in free cash flow, driven by steady core collection and disposal performance, Healthcare Solutions integration, a newer truck fleet and improved frontline worker retention.
3. Sustainability Investments and Renewable Energy Expansion
The company commissioned seven new renewable natural gas facilities in 2025, expanding its renewable energy network, and achieved over 22% operating EBITDA growth in its recycling segment despite a nearly 20% drop in commodity prices, reflecting operational improvements.