WM reports higher cash flow and margin expansion in 2025
Operating efficiencies and pricing gains drive stronger cash flow across collection, disposal, and healthcare segments
WM's financial results for the fourth quarter and full year ended Dec. 31, 2025, show higher margins and increased cash flow compared with 2024.
EBITDA and margins
Total company operating EBITDA increased 13.3 percent in 2025, or 15.5 percent on an adjusted basis. Adjusted operating EBITDA margin exceeded 30 percent for the first time, reflecting lower operating expenses as a share of revenue.
Collection and disposal performance
Revenue growth in the collection and disposal business was driven by core price increases of 6.3 percent and yield growth of 3.8 percent. Adjusted operating EBITDA margin in the legacy business rose to 31.5 percent, up from the prior year.
Healthcare solutions
The Healthcare Solutions segment reported improved profitability as integration activities continued. Adjusted operating EBITDA margin increased to 16.9 percent in 2025, compared with low single-digit margins in 2024. SG&A expenses as a percentage of revenue declined year over year.
Cash flow and investment
Operating cash flow totaled $6.04 billion in 2025, an increase of 12.1 percent from 2024. Free cash flow increased 26.8 percent to $2.94 billion. WM invested approximately $400 million in solid waste and recycling acquisitions during the year.
2026 outlook
For 2026, WM expects revenue growth in its collection and disposal business to be driven primarily by pricing and yield. The company also anticipates higher contributions from recycling, renewable energy, and healthcare solutions, while planning to return approximately $3.5 billion to shareholders through dividends and share repurchases.
