Waste Management (WM) 2025 Global Agriculture & Materials Conference summary

Financial performance and growth outlook

• Projecting 16%-17% revenue growth, 15% EBITDA growth, and 17%-18% free cash flow growth for 2025, following 11% EBITDA growth in 2024.

• Growth is driven by both organic performance and M&A, with sustainability investments and Stericycle integration contributing significantly.

• Focus on high-return segments, price discipline, and operational efficiency has led to outpacing historical growth targets.

• Investor Day scheduled for June 24 to update long-term outlook.

• Targeting long-term EBITDA to free cash flow conversion approaching 50%, with 30% operating margins achieved in 2024.

Pricing, volume, and operational strategy

• Strong pricing execution has been the main driver of recent growth, with disciplined cost management and automation supporting margin expansion.

• Residential collection volume has been intentionally reduced, focusing on higher-margin landfill and recycling volumes.

• Churn rates have decreased, and customer lifetime value has increased due to data-driven pricing and service strategies.

• Margin expansion in residential business achieved by prioritizing safety, automation, and selective contract participation.

• SG&A as a percentage of sales has dropped below 10% through technology, discipline, and cultural alignment.

Cost management and labor

• Labor is the largest cost category, with wage inflation at 4%-5% in 2024; improved turnover rates have helped offset inflation.

• Automation and digitalization have reduced cost to serve and improved customer experience, with further runway for efficiency gains.

• Continuous improvement and technology adoption are expected to further lower SG&A over time.