WM reports strong Q4 earnings

WM has reported $5.89 billion in revenue for the fourth quarter of 2024, up 13 percent over the same quarter in 2023, with $403 million coming from Stericycle. The Houston-based waste and recycling company’s reported full-year 2024 revenue is $22.06 billion, up 8 percent over the year prior.

The company achieved 30 percent margin for the first time in the company’s history, according to its earnings report. WM attributes these results to its collection and disposal business, driven by organic revenue growth from price, disciplined cost initiatives and a continued focus on optimizing business mix.

The company touts its $7.2 billion acquisition of Stericycle, saying it expands its comprehensive environmental solutions into the growing healthcare market while advancing its recycling platform. WM says it will report the medical waste and secure information destruction businesses together as WM Healthcare Solutions.

“The WM team achieved another year of exceptional results by continuously improving our core business, expanding our sustainability platforms and adding medical waste and secure information destruction solutions for our customers,” says Jim Fish, WM president and CEO. “We delivered over 11 percent growth in adjusted operating EBITDA for the year as we advanced cost optimization efforts across our operations and executed on disciplined pricing programs in the collection and disposal business. The year also saw the advancement of our sustainability growth investments, expansion of our solid waste business through tuck-in acquisitions and the acquisition of Stericycle, the largest provider of medical waste services in North America. The momentum across all of these areas is WM’s foundation for success in 2025.”

WM grew its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by 11 percent in 2024. Adjusted operating EBITDA for its WM Legacy Business, which includes operations unrelated to Stericycle, grew more than 10 percent in 2024. 

Outsized revenue growth of 8 percent across the total company in 2024 is contributed to an increase in completed acquisitions, including Stericycle, and higher market prices for recycled commodities, the company says.

WM says it expects synergies from its Stericycle acquisition to reach about $250 million over a period of three years, which is double the company’s original estimate.

WM spent about $800 million on additional tuck-in acquisitions in 2024, largely for solid waste businesses, expanding its traditional solid waste and recycling footprint and contributing about $150 million of revenue growth in 2024. It says it expects $100 million to $200 million of investment in solid waste acquisitions in 2025.

During 2024, WM continued to advance its investments in sustainability growth projects, completing five renewable natural gas (RNG) facilities and 12 recycling automation and growth projects, bringing total RNG projects completed to seven out of 20 planned facilities and total recycling automation and new market projects completed to 25 out of 39 planned.

The company’s 2025 outlook includes a significant step change in revenue and earnings driven by continued growth in the solid waste business, the addition of WM Healthcare Solutions and increased contribution from sustainability growth investments. Projected year-over-year revenue growth is 16.4 percent, including 5.7 percent organic growth and 10.7 percent acquisition growth, according to the report.

“We expect to deliver a second consecutive year of double-digit growth in adjusted operating EBITDA in 2025,” Fish says. “This year has started off strong and we are confident in our ability to maintain this trajectory as we continue to focus on strong operational performance and service delivery, strategic investments in growth and delivering superior value to our shareholders.”