WM invests $3 billion in recycling and RNG facilities

HOUSTON - WM (NYSE: WM), a leading North American environmental solutions provider with a market capitalization of $94 billion, has announced a significant investment in sustainability, with plans to spend around $3 billion from 2022 to 2026. The investment aims to expand the company’s recycling and renewable natural gas (RNG) infrastructure, enhancing its position in the industry. According to InvestingPro data, WM is a prominent player in the Commercial Services & Supplies industry, with revenue reaching $22.06 billion in the last twelve months.

This week, WM is celebrating the grand openings of four key projects, including recycling facilities near Baltimore and in Central Texas, as well as RNG facilities in the Chicago and Philadelphia areas. These openings represent a portion of the company’s broader initiative, with more than $323 million already invested in these sites. The company’s strategic expansion comes amid strong financial performance, with InvestingPro analysis showing an 8.01% revenue growth in the last twelve months.

WM’s President and CEO, Jim Fish, emphasized the company’s commitment to meeting customer needs and investing in long-term community infrastructure. The Mesquite Creek Recycling Facility in New Braunfels, Texas, and the Elkridge Recycling Facility near Baltimore, which boasts the highest hourly processing capacity in WM’s network, are among the completed projects. Additionally, the Fairless RNG Facility outside Philadelphia is now the largest RNG facility owned by WM.

To date, WM has finished eight RNG facilities and 27 recycling facilities, with plans to continue the expansion throughout 2025. Once all projects are completed, the company expects to add over 2.8 million tons of annual recycling capacity and 25 million MMBtu of RNG production each year.

The new and upgraded recycling facilities incorporate advanced technology, including artificial intelligence and automation, to enhance material recovery. Meanwhile, the RNG facilities convert landfill gas into high-quality renewable natural gas, furthering WM’s role as an energy partner for communities.

Furthering its commitment to sustainability, WM has acquired Blue Sky Resources and the AirLogic analytics platform, enhancing its ability to monitor and mitigate landfill emissions. The company’s strong financial position is reflected in its dividend history, having maintained dividend payments for 28 consecutive years with a recent dividend yield of 1.41%. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and over 1,400 other top US stocks.

Tara Hemmer, WM’s Chief Sustainability Officer, highlighted the role of technology and innovation in the company’s strategy, aiming to improve material capture and convert landfill gas into renewable energy. This initiative could potentially power up to 1.7 million homes by 2026 and aligns with WM’s goal to use RNG in its natural gas collection fleet.

This press release statement details WM’s ongoing investments in sustainability and infrastructure development, as the company continues to lead in environmental solutions and recycling advancements.

In other recent news, Waste Management’s financial performance and strategic initiatives have garnered attention from multiple analyst firms. Jefferies recently raised its price target for Waste Management shares to $257, citing the company’s robust financial quarter with revenue and EBITDA surpassing consensus expectations. Stifel maintained a Buy rating with a target of $252, following Waste Management’s strong fourth-quarter performance and optimistic forecast for 2025. Erste Group upgraded Waste Management’s stock rating to Buy, highlighting expected revenue and operating income growth of approximately 16% and 15% in 2025, respectively.

Raymond James maintained its Outperform rating, emphasizing Waste Management’s significant investments in sustainability, which are projected to contribute an additional $800 million to EBITDA by 2027. Oppenheimer also reaffirmed an Outperform rating, focusing on the company’s growth in landfill pricing and volume, and positive conditions for renewable natural gas economics. Waste Management’s strategic moves, including the integration of WM Healthcare Solutions, have been noted as potential drivers for future growth.

Analysts have highlighted Waste Management’s ability to capture synergies, particularly from its relationship with Stericycle, which is expected to yield $250 million in synergies. The company is also anticipated to benefit from mid-single-digit percentage growth in pricing and improving margins. These developments reflect a strong market confidence in Waste Management’s growth trajectory and its commitment to sustainability and innovation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.