Waste Management (WM) Q4 2024 earnings summary

Executive summary

• Achieved record operational and financial performance in 2024, with strong top-line growth, cost discipline, and solid waste business expansion driving over 10% operating EBITDA growth and a 30% full-year operating EBITDA margin for the first time.

• Completed the $7.2 billion Stericycle acquisition, expanding into healthcare and secure information destruction markets, with integration underway and $250 million in targeted synergies over three years.

• Advanced sustainability initiatives, commissioning five renewable natural gas facilities and automating up to 12 recycling facilities in 2024, with production expected to more than double in 2025.

• Positioned for continued outpaced growth in 2025, focusing on pricing, cost management, scaling sustainability and healthcare solutions, and delivering a significant step change in revenue and earnings.

Financial highlights

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

• Full-year 2024 adjusted operating EBITDA was $6.56 billion (margin 29.7%), with over 10% growth in the legacy business and a record 30% margin.

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

• Returned $1.47 billion to shareholders in 2024, including $1.2 billion in dividends.

• Core price growth was 6.7%, with strong organic revenue growth in collection and disposal.

Outlook and guidance

• 2025 revenue projected at $25.55–$25.8 billion, up 16.4% at midpoint, with 15% total company operating EBITDA growth expected ($7.45–$7.65 billion) and margin of 29.2%–29.7%.

• Free cash flow guidance for 2025 is $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 growth, and $225 million for healthcare solutions.

• Dividend payments estimated at $1.3 billion, with a planned increase to $3.30 per share; share buybacks paused to prioritize deleveraging, targeting leverage of 3.1x by year-end.

• WM Healthcare Solutions expected to grow EBITDA by 9% in 2025, with $100 million in synergies targeted for 2025 and $250 million run-rate by 2027.