WM posts higher sales in third quarter of 2025 while net and operating income fall

WM shared its financial results for the quarter ended September 30, 2025. Highlights from the report include a 14.9 percent increase in total company revenue, which reached $6.443 billion, and an adjusted operating EBITDA margin of 30.6 percent. In keeping with current issues with market prices for recycled commodities, the Recycling Processing and Sales segment saw a shortage of roughly $60 million. However, the Collection and Disposal business achieved a record-setting margin. 

WM continues to progress its strategic investments in recycling and renewable natural gas facilities that drive economic and environmental value. During the quarter, four growth projects commenced operations, including new renewable natural gas facilities in Texas and California, a new recycling facility in Texas, and a recycling automation project in California. These additions bring total renewable natural gas projects completed to 10 out of the original 20 planned facilities and total recycling automation and new market projects completed to 31 out of the original 39 planned.

During the quarter, the company progressed its integration of the people and operations of WM Healthcare Solutions into the management and operating structure of its 16 geographic areas, advancing process optimization and alignment across the business.

The 2025 outlook remains optimistic for 2026 with a free cash flow between $2.8 and $2.9 billion. As well, total company revenue is now expected to be slightly lower at approximately $25.275 billion due to a further decline in recycled commodity pricing and modestly lower revenue expectations from WM Healthcare Solutions. 

Voices from leadership 

"Our third quarter results highlight momentum in WM's earnings growth and free cash flow conversion, which is driven by our strong operating platform, diverse, and growing customer base, and expanding sustainability businesses," said Jim Fish, WM's CEO. "Our Collection and Disposal business delivered record-setting margins this quarter, underscoring the strength of our industry-leading asset network, strategic investments in technology, and disciplined pricing programs. We also achieved adjusted operating EBITDA growth in both our Recycling Processing and Sales and Renewable Energy segments despite commodity price headwinds, underscoring the value of our sustainability investments. Additionally, we continued to advance the integration of WM Healthcare Solutions, enhancing the breadth and value of services we offer to our customers. Strong results across all aspects of our business reinforce our confidence in achieving our full-year earnings and free cash flow guidance, as well as our long-term financial objectives and strategic priorities."

Fish concluded, "We are pleased with our results in the first three quarters of the year across our business segments, which position us to deliver another year of double-digit adjusted operating EBITDA growth with record margin in our Collection and Disposal business and expanding free cash flow conversion. Looking ahead, 2026 is setting up to be a year of outsized free cash flow growth, with results expected to approach $3.8 billion next year. Our disciplined approach to capital allocation remains unchanged, and we are committed to translating this performance into strong shareholder returns."