What’s going on here?
Waste Management posted third-quarter revenue of $6.44 billion—a nearly 15% jump from last year—but still narrowly missed analyst estimates, leaving some disappointed despite its top-line growth.
What does this mean?
Despite coming in about $60 million below consensus, the company showed operational strength where it mattered most. Waste Management hit record margins in its Collection and Disposal segment, thanks to smart pricing strategies and new automation technology. Its sustainability business, including recycling and renewable natural gas projects, made steady progress, even though weak commodity prices dampened profitability. And while the WM Healthcare Solutions segment lagged, management held firm on full-year EBITDA and free cash flow targets—showing faith in the company’s long-term trajectory. Most analysts are staying optimistic: ‘buy’ ratings remain, with many viewing Waste Management’s consistent execution and green investments as strong signals for future growth.
Why should I care?
For markets: Resilience behind the numbers.
Waste Management’s shares held steady, highlighting investor confidence in the company’s guidance and growth strategy. The stock trades at 26 times expected earnings, down from 28 earlier this year, making it look a bit more attractive valuation-wise. With a median 12-month target about 15% higher than today’s price and strong optimism across the sector, markets remain upbeat.
The bigger picture: Sustainability leads the way.
Major recycling and renewable energy investments signal long-term growth as the world leans further into sustainability. Waste Management’s use of technology and disciplined pricing is helping to keep margins high even during commodity weakness. If the push for green waste solutions builds, the firm’s focus on expansion and innovation may cement its leadership for years to come.
