Waste Management FY 2025 Earnings: Slower Top Line, Tighter Margins

Waste Management (WM) has wrapped up FY 2025 with fourth quarter revenue of US$6.3b, basic EPS of US$1.84 and net income of US$742m. This comes against a backdrop where trailing twelve month revenue was US$25.2b and EPS was US$6.72. Over recent periods the company has seen revenue move from US$5.9b and EPS of US$1.49 in Q4 2024 to US$6.4b with EPS of US$1.80 in Q2 2025. Revenue of US$6.4b and EPS of US$1.50 in Q3 2025 sit between those bookends, with net margin compression and slower 5.1% revenue growth challenging investors to weigh the earnings profile against how resilient those margins look from here.

See our full analysis for Waste Management.

With the headline numbers on the table, the next step is to see how this earnings story lines up with the widely followed narratives around Waste Management's growth, profitability and risk profile, and where those stories start to get pushed back by the data.

Margins Softer With 10.7% Net Profit

• On a trailing basis, WM earned US$2.7b on US$25.2b of revenue, which works out to a 10.7% net profit margin compared with 12.4% a year earlier in the dataset.
• Consensus narrative expects margin improvement over time, and the current 10.7% level creates a contrast:
• The narrative talks about technology and automation helping margins, while the reported margin has shifted from 12.4% to 10.7% on trailing numbers.
• It also highlights high return sustainability and renewable energy projects, yet the FY 2025 net profit of US$2.7b is slightly below the US$2.7b to US$2.8b range seen a year earlier, so investors may want to see how those projects feed into future filings.

5.1% Revenue Growth Versus Market 10.4%

• WM's revenue growth rate of 5.1% per year sits below the 10.4% per year pace cited for the broader US market, even though trailing twelve month revenue moved from US$22.1b to US$25.2b in the data provided.
• Consensus narrative points to acquisitions, healthcare integration and sustainability projects as key growth drivers, and the 5.1% revenue growth rate gives investors a concrete yardstick:
• The narrative references a path to US$29.4b of revenue by about 2028, so the current US$25.2b base and 5.1% annual growth rate frame how much acceleration would be needed from deals and new projects.
• Forecast revenue growth of about 5.1% per year also contrasts with the 7.0% annual growth figure mentioned in the assumptions, which suggests investors may want to check how future reports line up with those expectations.

Earnings Growth Versus Richer 34.5x P/E

• Over the last five years, earnings grew about 11.2% per year and are forecast around 11.7% per year, while the stock trades on a 34.5x P/E, higher than the 25.7x US Commercial Services average but below the 47x peer average, and the current share price of US$231.72 compares to a DCF fair value of about US$296.36.
• Analysts' consensus view links that earnings profile to an implied price target of US$251.64, and the current numbers both support and test that story:
• The combination of 11.2% five year earnings growth and an 11.7% forecast aligns with the idea of earnings expansion, while the trailing margin move from 12.4% to 10.7% reminds investors that profit quality matters as much as the growth rate.
• The DCF fair value of roughly US$296.36 and a target of US$251.64 both sit above the current US$231.72 share price, so readers may want to understand what assumptions around margins and growth are baked into those estimates.

On these numbers, many investors will want to know how the story behind WM's growth, margins and debt fits together with different valuation views, and 📊 Read the full Waste Management Consensus Narrative. can help you see how that broader narrative compares with the latest filing.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Waste Management on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Take a quick look through the data, test your own view, then turn it into a concise narrative in minutes: Do it your way.

A great starting point for your Waste Management research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

WM is working with softer 10.7% net margins, a 5.1% revenue growth rate below the broader US market and a relatively rich 34.5x P/E.

If that mix of slower growth and premium pricing feels tight for your comfort, check out 51 high quality undervalued stocks to hunt for companies where the earnings profile may better justify the current valuation.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.