Executive Summary
Waste Management Inc. delivered a robust QQ1 2025 with clear top-line momentum and maintenance of healthy margins, underscored by strong operating cash flow and a disciplined approach to capital expenditure. Revenue reached USD 6.018 billion, up 16.65% year-over-year, supported by favorable price/mix dynamics and volume, while gross margin stood around 28.5% and operating margin near 17.1%. Net income of USD 0.637 billion and EPS of USD 1.58 reflect solid profitability against a backdrop of substantial capital investment and ongoing debt obligations. The company generated USD 1.208 billion in operating cash flow and USD 0.377 billion in free cash flow, allocating cash to dividends and debt management while continuing to fund capex. Balance sheet highlights include total assets of USD 44.49 billion and total liabilities USD 35.84 billion, with a heavy but manageable debt stack (net debt ~USD 23.62 billion) and a debt-to-capitalization ratio of ~0.734. Management commentary was not provided in the data set; as a result, the analysis relies on disclosed metrics and standard industry interpretation to assess trajectory and risk.
Key Performance Indicators
Key Insights
Revenue: USD 6.018 billion in Q1 2025, YoY +16.65%, QoQ +2.12%. Gross profit: USD 1.715 billion, gross margin ≈ 28.50%, YoY +13.95%, QoQ +1.60%. Operating income: USD 1.028 billion, margin ≈ 17.08%, YoY +1.38%, QoQ +9.25%. Net income: USD 0.637 billion, margin ≈ 10.58%, YoY −10.03%, QoQ +6.52%. EPS: USD 1.58, YoY −10.23%, QoQ +6.04%. EBITDA: USD 1.711 billion, EBITDA margin ≈ 28.43%. Operating cash flow: USD 1.208 billion; free cash flow: USD 0.377 billion. Capex: USD 0.831 billion; ...
Financial Highlights
Revenue: USD 6.018 billion in Q1 2025, YoY +16.65%, QoQ +2.12%. Gross profit: USD 1.715 billion, gross margin ≈ 28.50%, YoY +13.95%, QoQ +1.60%. Operating income: USD 1.028 billion, margin ≈ 17.08%, YoY +1.38%, QoQ +9.25%. Net income: USD 0.637 billion, margin ≈ 10.58%, YoY −10.03%, QoQ +6.52%. EPS: USD 1.58, YoY −10.23%, QoQ +6.04%. EBITDA: USD 1.711 billion, EBITDA margin ≈ 28.43%. Operating cash flow: USD 1.208 billion; free cash flow: USD 0.377 billion. Capex: USD 0.831 billion; cash at end of period: USD 0.331 billion. Balance sheet highlights include total assets USD 44.486 billion, total liabilities USD 35.835 billion, long-term debt USD 22.883 billion, net debt USD 23.621 billion, and equity USD 8.65 billion. Liquidity ratios: current 0.833x, quick 0.792x, cash ratio 0.0404x. Leverage metrics show debt-to-capitalization ≈ 0.734, debt-to-equity ≈ 2.76, interest coverage ≈ 4.43x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.02B |
16.65% |
2.12% |
| Gross Profit |
1.72B |
13.95% |
1.60% |
| Operating Income |
1.03B |
1.38% |
9.25% |
| Net Income |
637.00M |
-10.03% |
6.52% |
| EPS |
1.58 |
-10.23% |
6.04% |
Key Financial Ratios
operatingProfitMargin
17.1%
operatingCashFlowPerShare
$3
freeCashFlowPerShare
$0.94
dividendPayoutRatio
52.7%
Management Commentary
Note: Earnings transcript data were not provided in the supplied dataset. As a result, there are no management quotes or thematic highlights to quote directly. The following synthesis is based on disclosed financial results and typical management emphasis in the sector: (1) Growth velocity: Revenue acceleration supports a favorable view of volume and pricing power in core North American waste services; (2) Cash flow discipline: Operating cash flow strength relative to capex underscores the ability to fund expansive asset networks while returning capital to shareholders; (3) Leverage and capital allocation: Significant long-term debt remains a central consideration; management commentary on deleveraging tempo and potential capital allocation pivots would be key to monitoring.
Forward Guidance
No explicit forward guidance was provided in the data. Based on QQ1 2025 fundamentals and industry dynamics, the forward outlook should hinge on: (a) sustained revenue growth from price/mix and recycling/upcycling initiatives, (b) continued capital investments in landfill gas-to-energy projects and MRFs to improve throughput and recovery, (c) consistent free cash flow generation that supports dividend stability and debt reduction over time. The key factors investors should monitor include: debt maturity profile and leverage trajectory (net debt to EBITDA), capex cadence and return on invested capital from newer facilities, regulatory changes affecting landfill operations or recycling markets, and inflationary pressures on operating costs (labor, energy, and transportation). Judgement call: without formal guidance, a conservative view assumes mid-single-digit revenue growth in the near term, with margin stability aided by efficiency gains and scale.