Waste Management (WM) Stifel 2025 Investor Summit at WasteExpo summary

Strategic capital allocation and investment focus

• Emphasis on intentional, high-return capital deployment, especially in renewable natural gas and recycling, which are top opportunities across the portfolio.

• Over $7 billion invested to acquire Stericycle, expanding presence in the healthcare segment, historically underrepresented.

• Projected to generate nearly $10 billion in free cash flow over the next three years after all major investments.

• Focus on scaling, customer-centricity, technology leadership, and preparing for the next decade of growth.

• M&A strategy remains active, with over $500 million expected in tech and solid waste deals this year, even as leverage is reduced.

Cross-selling and healthcare market expansion

• Healthcare solid waste services currently represent low single-digit market share, with significant upside for cross-selling.

• Stericycle acquisition opens opportunities to leverage existing customer relationships and technology for growth.

• WM's sustainability brand and data capabilities are highly valued by healthcare customers, driving engagement.

Sustainability, recycling, and technology advancements

• Sustainability defined as advancing environmental protection and service, with a focus on scaling recycling capacity and value creation.

• Only 15 million tons of recycled content managed versus 122 million tons landfilled annually, highlighting growth potential.

• Technology investments have improved recycling profitability, reduced labor dependency, and increased product quality.

• New facilities, like Elkridge, demonstrate that community education and advanced technology can boost participation and throughput.