Waste Management’s fourth quarter was marked by a negative market reaction, as both revenue and non-GAAP profit per share fell short of Wall Street’s expectations. Management attributed the results to ongoing cost optimization, disciplined pricing, and operational improvements in its core collection and disposal business. CEO James Fish highlighted that lower labor and maintenance costs, driven by investments in fleet and technology, improved operating leverage even as residential volume declined due to intentional shedding of low-margin accounts. The integration of Healthcare Solutions also contributed to margin gains, with Fish noting, “Customer service scores have improved to levels above our Legacy Business.”
Is now the time to buy WM? Find out in our full research report (it’s free for active Edge members).
Waste Management (WM) Q4 CY2025 Highlights:
- Revenue: $6.31 billion vs analyst estimates of $6.39 billion (7.1% year-on-year growth, 1.3% miss)
- Adjusted EPS: $1.93 vs analyst expectations of $1.95 (0.9% miss)
- Adjusted EBITDA: $1.97 billion vs analyst estimates of $1.93 billion (31.3% margin, 2.2% beat)
- EBITDA guidance for the upcoming financial year 2026 is $8.2 billion at the midpoint, above analyst estimates of $8.10 billion
- Operating Margin: 18.3%, up from 15.6% in the same quarter last year
- Market Capitalization: $90.68 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Waste Management’s Q4 Earnings Call
-
Sabahat Khan (RBC Capital Markets) asked about macroeconomic expectations for industrial and construction volumes. CEO James Fish said the company is “optimistic about the macro economy,” noting that industrial volumes, previously soft, are now stabilizing and residential volumes are expected to improve.
-
Bryan Burgmeier (Citi) inquired about the temporary pause in providing detailed 2027 targets. Fish clarified that long-term estimates are subject to volatility in commodity prices and macro conditions, emphasizing, “Our business typically about as far out as we can look is 12 months.”
-
Trevor Romeo (William Blair) questioned the extent and timing of Healthcare Solutions cost synergies. Fish and COO John Morris stated that SG&A improvements exceeded targets in 2025, with further reductions expected as integration continues, and cross-selling opportunities showing early success with large customers.
-
Toni Kaplan (Morgan Stanley) pressed for clarity on resolving Healthcare Solutions’ credit memo and billing issues. Fish responded that back-office challenges are being isolated from the customer experience, with major improvements in invoicing and customer service already visible.
-
Faiza Alwy (Deutsche Bank) asked about Q4 volume softness, particularly in collection and disposal. Fish cited negative weather impacts on municipal solid waste and industrial lines, while Morris noted that residential volume declines are moderating and expected to turn positive by year-end.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) execution of Healthcare Solutions integration and the pace of synergy capture, (2) progress in scaling renewable natural gas and recycling businesses amid commodity price fluctuations, and (3) sustained margin expansion from continued cost optimization and automation. Additional focus will be on adoption of new technology platforms and the effectiveness of cross-selling efforts.
Waste Management currently trades at $225, down from $231.60 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
