Improved cash flow and increased margins for WM in 2025

In 2025, WM experienced a surge in its cash flow from operations, amounting to a growth of over 12 percent. WM’s latest financial outcomes for the fourth quarter and full-year ending on December 31, 2025, reveal an escalation in margins and cash flow compared to figures from 2024. The company saw total operating EBITDA increase by 13.3 percent, or a more significant 15.5 percent on an adjusted basis. Notably, WM achieved an adjusted operating EBITDA margin surpassing 30 percent for the first time, reflecting reduced operating expenses as a percentage of revenue.

The collection and disposal business at WM experienced revenue growth primarily due to core price increments of 6.3 percent and yield growth of 3.8 percent. This translated into an increase in the adjusted operating EBITDA margin within the legacy business to 31.5 percent, demonstrating an improvement from the previous year. Positive strides were also witnessed in the Healthcare Solutions segment, showcasing enhanced profitability as integration activities unfolded. The adjusted operating EBITDA margin in this segment soared to 16.9 percent in 2025, marking a significant rise from the low single-digit margins in 2024. Additionally, SG&A expenses as a percentage of revenue saw a decline year-over-year.

The operation cash flow for WM surged to $6.04 billion in 2025, marking a 12.1 percent increase from the figures reported in 2024. Furthermore, the free cash flow also experienced a notable growth, rising by 26.8 percent to reach $2.94 billion. Over the course of the year, WM earmarked approximately $400 million for investments in solid waste and recycling acquisitions. Looking forward to 2026, WM predicts that revenue growth in the collection and disposal business will be primarily propelled by pricing and yield enhancements. The company also anticipates a larger contribution from recycling, renewable energy, and healthcare solutions. Moreover, WM plans to return around $3.5 billion to shareholders through dividends and share repurchases in the coming year.

These robust financial metrics and projections for the future signify a positive trajectory for WM and underscore its commitment to sustained growth and shareholder value appreciation. Overall, WM’s emphasis on operating efficiencies, pricing strategies, and strategic investments has yielded tangible results, placing the company on a solid footing for continued success in the waste management industry.