Waste Management (WM) 46th Annual William Blair Growth Stock Conference summary

Business overview and strategic positioning

• Operates the largest environmental services network in North America, with hard-to-replicate assets and a highly diversified customer base.

• Over 80% of revenue comes from collection and disposal, with additional growth in healthcare, recycling, and renewable energy.

• Asset network includes 253 active landfills, strategically positioned in major metropolitan areas, providing a significant competitive moat.

• Customer base diversity and local market focus provide resilience against economic fluctuations and single-event risks.

• Recent acquisition of Stericycle expands healthcare solutions and enhances cross-selling opportunities.

Financial performance and capital allocation

• Achieved over $25 billion in revenue and $6.6 billion in adjusted EBITDA last year, with 60,000 employees.

• Free cash flow conversion expected at 46%-47% EBIT for the year, with a pathway for further improvement.

• Share repurchase program resumed and dividend increased after leverage returned to targeted range.

• Investments in sustainability and automation total $3 billion over the past four to five years.

Asset network optimization and logistics

• Strategic management of landfill airspace and logistics, including use of rail for long-distance waste transport, optimizes asset value.

• Rail-served landfills and complex logistics capabilities enable absorption of incremental volumes and new customer opportunities.

• Scarcity of post-collection assets, such as medical waste incineration, strengthens the service platform and growth potential.