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HOUSTON - Waste Management Inc (NYSE:WM) reported third-quarter adjusted earnings that fell short of analyst expectations, with shares dropping 2% following the announcement as both earnings and revenue missed estimates.
The waste collection and disposal company posted adjusted earnings per share of $1.98, missing the analyst estimate of $2.03, while revenue came in at $6.44 billion versus the consensus estimate of $6.5 billion. Despite the miss, revenue grew 14.9% YoY from $5.61 billion in the same quarter last year.
WM’s adjusted operating EBITDA for its legacy business grew 8.7% to $1.86 billion, with the Collection and Disposal business achieving a record adjusted operating EBITDA margin of 38.4%. The company’s core price in the Collection and Disposal business was 6.0% with yield of 3.8%.
"Our third quarter results highlight momentum in WM’s earnings growth and free cash flow conversion, which is driven by our strong operating platform, diverse and growing customer base, and expanding sustainability businesses," said Jim Fish, WM’s CEO.
The company maintained its full-year adjusted operating EBITDA guidance of between $7.475 billion and $7.625 billion, while free cash flow guidance remains between $2.8 billion and $2.9 billion. However, WM lowered its total company revenue expectation to approximately $25.275 billion, at the low end of its prior guidance range, citing further declines in recycled commodity pricing and modestly lower revenue expectations from WM Healthcare Solutions.
The company’s Recycling Processing and Sales segment saw a $60 million revenue decline driven by lower market prices for recycled commodities, with blended average prices for single stream commodities declining nearly 35% from the prior year quarter.
Through the first nine months of 2025, WM generated $4.35 billion in cash from operating activities, a 12% increase from the prior year, while free cash flow rose 13.5% to $2.11 billion.
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