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Investing.com -- Waste Management Inc. (NYSE:WM) reported first-quarter results that fell short of analyst expectations, sending shares down 1.6% in early trading.
The Houston-based waste collection and disposal company posted adjusted earnings per share of $1.67 for the quarter ended March 31, 2025, missing the analyst consensus of $1.69. Revenue came in at $6.02 billion, below estimates of $6.15 billion but up 16.7% YoY.
WM’s core business, excluding its new healthcare solutions segment, saw revenue grow 4.7% to $5.4 billion. The company cited core price increases of 6.5% and collection and disposal yield of 4.0% as key drivers.
"Our first quarter results reflect the strong track record of the WM team as we started the year delivering on each of our strategic priorities," said Jim Fish, WM’s President and CEO. "We continue to deliver disciplined revenue growth and cost optimization in our core business, while advancing our sustainability growth investments and driving value from the Stericycle (NASDAQ:SRCL) acquisition."
The newly acquired WM Healthcare Solutions business contributed $619 million in revenue and $95 million in adjusted operating EBITDA for the quarter.
Operating EBITDA for the legacy business grew 6.0% to $1.62 billion, with margins holding steady at 30% for the fourth consecutive quarter.
WM maintained its full-year 2025 outlook, expressing confidence in achieving its targets based on Q1 performance and business model resilience.
The company generated $1.21 billion in cash from operations and $475 million in free cash flow during the quarter. It also invested $128 million in sustainability growth projects, including two recycling automation initiatives in key markets.
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