Executive Summary
Waste Management Inc delivered a solid QQ2 2025 performance characterized by resilient top-line growth, expanding margins, and meaningful free cash flow generation. Revenue totaled $6.430 billion, up 19.0% year over year and up 6.85% quarter over quarter, supported by price realization and volume stability in its North American waste collection and disposal operations. Gross profit reached $1.883 billion, a gross margin of 29.28%, with EBITDA of $1.904 billion and operating income of $1.187 billion (operating margin ~18.46%). Net income was $726 million, yielding diluted earnings per share of $1.80. Free cash flow was $813 million, underpinned by operating cash flow of $1.545 billion and capital expenditures of $732 million. The balance sheet remains leverage-heavy, with total debt of $24.02 billion and net debt of $23.58 billion, and liquidity metrics showing a current ratio near 0.86 and a cash position of roughly $440 million at quarter end. Management commentary on pricing, cost discipline, and long-cycle asset investments—along with strong FCF—supports a constructive but disciplined investment stance.
Key Performance Indicators
Key Insights
Revenue: $6.430B in QQ2 2025; YoY +19.0%, QoQ +6.85%.
Gross Profit: $1.883B; Gross Margin 29.28%; YoY +20.1%, QoQ +9.8%.
EBITDA: $1.904B; EBITDA Margin ~29.6% (EBITDARatio 0.2961).
Operating Income: $1.187B; Operating Margin ~18.46% (OperatingIncomeRatio 0.1846).
Net Income: $726M; Net Margin ~11.29% (NetIncomeRatio 0.1129).
EPS (Diluted): $1.80; YoY +6.51%, QoQ +13.92%.
Cash Flow: Operating cash flow $1.545B; CapEx $732M; Free cash flow $813M (FCF per share $2.02).
Liquidity & Balance Shee...
Financial Highlights
Revenue: $6.430B in QQ2 2025; YoY +19.0%, QoQ +6.85%.
Gross Profit: $1.883B; Gross Margin 29.28%; YoY +20.1%, QoQ +9.8%.
EBITDA: $1.904B; EBITDA Margin ~29.6% (EBITDARatio 0.2961).
Operating Income: $1.187B; Operating Margin ~18.46% (OperatingIncomeRatio 0.1846).
Net Income: $726M; Net Margin ~11.29% (NetIncomeRatio 0.1129).
EPS (Diluted): $1.80; YoY +6.51%, QoQ +13.92%.
Cash Flow: Operating cash flow $1.545B; CapEx $732M; Free cash flow $813M (FCF per share $2.02).
Liquidity & Balance Sheet: Cash & equivalents $440M; Total Assets $45.722B; Total Liabilities $36.520B; Shareholders’ Equity $9.201B.
Debt & Leverage: Total debt $24.020B; Net debt $23.58B; Debt to capitalization ~72.3%; Interest coverage ~5.12x.
Liquidity Ratios: Current ratio 0.857; Quick ratio 0.818; Cash ratio 0.0757.
Capital Allocation: Payout ratio ~45.9%; Dividend yield shown as ~0.18% (per dataset).
Efficiency: DSO ~55 days; DIO ~4.43 days; DPO ~40.08 days; CCC ~59.46 days; Asset turnover 0.141; Fixed asset turnover 0.322.
Valuation Context: P/E ~31.7x; P/BV ~10.01x; P/Sales ~14.33x; EV/EBITDA ~60.77x; Price to Free Cash Flows ~113.31x (as per latest disclosed metrics).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
6.43B |
19.03% |
6.85% |
| Gross Profit |
1.88B |
20.09% |
9.80% |
| Operating Income |
1.19B |
11.25% |
15.47% |
| Net Income |
726.00M |
6.76% |
13.97% |
| EPS |
1.80 |
6.51% |
13.92% |
Key Financial Ratios
operatingProfitMargin
18.5%
operatingCashFlowPerShare
$3.84
freeCashFlowPerShare
$2.02
dividendPayoutRatio
45.9%
Management Commentary
Transcript data not provided in the dataset. No management quotes or call-out themes are available for QQ2 2025. If the transcript becomes available, quote extraction can be added by theme (strategy, execution, market conditions, cost management, and capital allocation).
Transcript unavailable.
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Transcript unavailable.
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Forward Guidance
No explicit forward guidance is included in the provided data. Given the quarter’s results—robust revenue growth, solid EBITDA and operating margins, and strong free cash flow—an investor-friendly trajectory would hinge on: (1) sustained pricing ability and volume stability in core collection and disposal activities; (2) continued capital investment in transformative assets (landfills, MRFs, energy-from-waste projects) to support long-run margin durability; (3) deleveraging optionality balanced against ongoing capex and dividend commitments. Key factors to monitor include commodity price cycles affecting recycling revenue, regulatory changes affecting landfill economics, wage/inflation pressure on operating costs, and the pace of debt reduction versus capital expenditure plans.