Waste Management (WM) Q4 2024 earnings summary

Executive summary

• Achieved record operational and financial performance in 2024, driven by top-line growth, cost discipline, and investments in technology, automation, and sustainability.

• Completed the $7.2 billion Stericycle acquisition, expanding into healthcare and secure information destruction markets, now integrated as WM Healthcare Solutions.

• Advanced sustainability initiatives, commissioning five renewable natural gas facilities and automating up to 12 recycling facilities in 2024.

• 2025 expected to deliver a significant step change in revenue and earnings, with double-digit adjusted operating EBITDA growth projected.

Financial highlights

• Q4 2024 revenue was $5.89 billion (up 13% year-over-year); full-year 2024 revenue reached $22.06 billion (up 8%).

• Operating EBITDA in the legacy business grew over 10% year-over-year, with a 30% full-year margin, a company record.

• Cash flow from operations rose 14% to $5.39 billion; free cash flow before sustainability investments increased 22.5% to $3.27 billion.

• Returned $1.47 billion to shareholders, including $1.2 billion in dividends.

• Full-year 2024 adjusted net income was $2.92 billion; adjusted diluted EPS was $7.23.

Outlook and guidance

• 2025 revenue projected at $25.55–$25.8 billion, up 16.4% at midpoint (5.7% organic, 10.7% acquisition growth).

• 2025 guidance targets 15% total company operating EBITDA growth, or nearly $1 billion, with collection and disposal EBITDA up over 7% despite a $63 million CNG tax credit headwind.

• Sustainability investments expected to add $190 million in incremental EBITDA in 2025.

• Free cash flow guidance for 2025: $2.68–$2.78 billion (17.6% growth), with $220 million in investment tax credits anticipated.

• Capital expenditures for 2025 set at $2.58–$2.63 billion for business support, $600–$650 million for sustainability, and $225 million for healthcare.