On January 30, 2025, Waste Management Inc (WM, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. As the largest integrated provider of traditional solid waste services in the United States, WM operates 263 active landfills and approximately 332 transfer stations, serving a diverse range of markets including residential, commercial, industrial, and medical sectors. The company is also a leading recycler in North America.
Performance Overview and Challenges
Waste Management Inc (WM, Financial) reported a revenue of $5,893 million for the fourth quarter of 2024, surpassing the analyst estimate of $5,767.61 million. This represents a significant increase from the $5,217 million reported in the same quarter of the previous year. For the full year, WM achieved a revenue of $22,063 million, exceeding the annual estimate of $21,966.89 million. The company's growth was driven by a core price increase of 6.7%, strategic acquisitions, and higher market prices for recycled commodities.
Despite these achievements, WM faces challenges in integrating its recent acquisition of Stericycle, the largest provider of medical waste services in North America. The company is actively working to optimize this acquisition for growth, expecting $250 million in synergies. The integration process is crucial for maintaining momentum and achieving projected revenue and earnings growth in 2025.
Financial Achievements and Industry Impact
WM's financial achievements are noteworthy, particularly in the context of the waste management industry. The company reported a record full-year operating EBITDA of $6,330 million, with a margin of 28.7%. This performance underscores WM's ability to optimize costs and execute disciplined pricing strategies, which are vital in an industry characterized by high operational expenses and regulatory challenges.
Key Financial Metrics
WM's income from operations for the fourth quarter was $919 million, with an adjusted figure of $1,054 million. The net income for the quarter stood at $598 million, with a diluted EPS of $1.48, which is below the estimated EPS of $1.78. However, the adjusted EPS was $1.70, closer to the estimate. For the full year, the company reported a net income of $2,746 million and a diluted EPS of $6.81, slightly below the annual estimate of $7.10. The adjusted EPS for the year was $7.23, surpassing the estimate.
| Metric | Q4 2024 | Full Year 2024 |
|---|---|---|
| Revenue | $5,893 million | $22,063 million |
| Net Income | $598 million | $2,746 million |
| Diluted EPS | $1.48 | $6.81 |
| Adjusted EPS | $1.70 | $7.23 |
Analysis and Future Outlook
WM's strong performance in 2024 is a testament to its strategic focus on expanding its core business and sustainability platforms. The company's acquisition of Stericycle and the commissioning of four renewable natural gas facilities in the fourth quarter are expected to significantly enhance its revenue and earnings in 2025. WM's commitment to sustainability and innovation positions it well for continued growth in the evolving waste management landscape.
“The WM team achieved another year of exceptional results by continuously improving our core business, expanding our sustainability platforms, and adding medical waste and secure information destruction solutions for our customers,” said Jim Fish, WM’s President and CEO.
Looking ahead, WM anticipates a step change in its revenue and earnings for 2025, driven by the integration of WM Healthcare Solutions and increased contributions from sustainability growth investments. The company's strong balance sheet and cash flow outlook support its strategic investments and shareholder value initiatives, including a planned dividend increase.
Explore the complete 8-K earnings release (here) from Waste Management Inc for further details.
