WM Reports Record Operating Efficiency in 2025 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Operational Efficiency Improvement: WM achieved record low operating expenses as a percentage of revenue for both Q4 and the full year 2025, with operating EBITDA growing by 13.3%, demonstrating exceptional performance in cost control and efficiency, which is expected to enhance market competitiveness further.
- Significant Cash Flow Growth: In 2025, WM's cash flow from operations increased by over 12% to $6.04 billion, reflecting the company's success in operational efficiency and revenue growth, with expectations of nearly 30% growth in free cash flow in 2026, providing strong support for future investments.
- Sustainability Investments: WM completed the construction of seven renewable natural gas facilities and nine recycling automation projects in 2025, significantly enhancing its sustainability capabilities, with these investments expected to yield substantial returns in the coming years.
- Shareholder Return Plan: WM plans to return approximately $3.5 billion to shareholders through dividends and share repurchases in 2026, reflecting the company's commitment to shareholder value while also indicating its strong financial position and growth potential.
Analyst Views on WM
Wall Street analysts forecast WM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WM is 247.61 USD with a low forecast of 223.00 USD and a high forecast of 266.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 231.340
Low
223.00
Averages
247.61
High
266.00
Current: 231.340
Low
223.00
Averages
247.61
High
266.00
About WM
Waste Management, Inc. is a provider of environmental solutions. The Company provides collection, recycling, and disposal services to millions of residential, commercial, industrial, and municipal customers throughout the United States and Canada. Its segments include East Tier, West Tier, Recycling Processing and Sales, WM Renewable Energy, and WM Healthcare Solutions. East Tier primarily consists of geographic areas located in the Eastern U.S., the Great Lakes region and all of Canada. The West Tier primarily includes geographic areas located in the Western U.S., including the upper Midwest region and British Columbia, Canada. Recycling Processing and Sales includes the processing and sales of materials collected from residential, commercial, and industrial customers. WM Renewable Energy develops, operates, and promotes projects for the beneficial use of landfill gas. WM Healthcare Solutions includes Regulated Waste and Compliance Services and Secure Information Destruction services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
