AI Takeaway
WM delivered strong FY2025 revenue growth of 14.2% to $25.2B, driven largely by its acquisition of Stericycle, though net income dipped 1.4% to $2.71B as higher SG&A and D&A costs weighed on profitability.
Revenue
$25.2B
++14.24% YoY
EPS (Basic)
$6.72
-1.75% YoY
Operating Income
$4.31B
++6.03% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue surged 14.2% year-over-year to $25.2B in FY2025 (from $22.1B in FY2024), with the Stericycle acquisition being a primary contributor to the step-up in scale alongside organic collection and disposal growth.
Source: Source: 10-K Income Statement
SG&A expenses increased 20.2% to $2.72B, outpacing revenue growth and contributing to a contraction in operating margin from 18.4% to 17.1%. Integration costs and expanded corporate infrastructure related to the Stericycle deal likely drove this increase.
Source: Source: 10-K Income Statement
Operating cash flow grew 12.1% to $6.04B, demonstrating the business's strong cash generation capability. D&A also rose 26.3% to $2.86B, reflecting the expanded asset base from the acquisition.
Source: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockWM completed a major acquisition of Stericycle, significantly expanding its revenue base and asset footprint. Integration complexity, including systems, personnel, and operational alignment, could result in cost overruns or failure to achieve anticipated synergies. The 20.2% spike in SG&A and 26.3% rise in D&A reflect early integration burdens.
Source: Source: 10-K Income Statement & Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.93 versus the $2.00 analyst consensus — a -3.5% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $25.2B | $22.06B | +14.24% |
Cost of Revenue | $15.01B | $13.38B | +12.17% |
Operating Income | $4.31B | $4.06B | +6.03% |
Net Income | $2.71B | $2.75B | -1.38% |
EPS (Basic) | $6.72 | $6.84 | -1.75% |
EPS (Diluted) | $6.70 | $6.81 | -1.62% |
SG&A Expense | $2.72B | $2.26B | +20.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $45.84B | $44.57B | +2.85% |
Current Assets | $4.91B | $4.77B | +2.85% |
Total Liabilities | $35.84B | $36.31B | -1.29% |
Current Liabilities | $5.52B | $6.26B | -11.73% |
Stockholders' Equity | $9.99B | $8.25B | +21.06% |
Cash & Equivalents | $201M | $414M | -51.45% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $6.04B | $5.39B | +12.12% |
Investing Cash Flow | $-3.57B | $-10.6B | +66.36% |
Financing Cash Flow | $-2.67B | $5.16B | -151.85% |
D&A | $2.86B | $2.27B | +26.29% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.1% | 18.4% | -1.32% |
Net Margin | 10.7% | — | — |
ROE | 27.1% | — | — |
ROA | 5.9% | — | — |
Current Ratio | $0.889 | — | — |
Debt to Equity | $3.588 | — | — |
Other companies in Environmental & Facilities Services
WM's revenue grew 14.2% year-over-year to $25.2B in FY2025, up from $22.1B in FY2024. The growth was primarily driven by the consolidation of Stericycle following its acquisition, along with continued organic expansion in WM's core waste collection and disposal operations.
WM's net income declined 1.4% to $2.71B in FY2025 even as revenue rose 14.2%, because SG&A expenses surged 20.2% to $2.72B and depreciation & amortization jumped 26.3% to $2.86B — both reflecting costs tied to the Stericycle acquisition. Higher interest expense from acquisition-related debt likely also weighed on the bottom line.
WM's financial health is broadly solid but carries notable leverage risk, with a debt-to-equity ratio of 3.59 and total liabilities of $35.8B. On the positive side, operating cash flow is strong at $6.04B, stockholders' equity grew 21.1% to $10.0B, and the company remains profitable with a net margin of approximately 10.7%.
The key takeaways from WM's FY2025 results are: revenue grew strongly to $25.2B (+14.2%) driven by the Stericycle acquisition; operating cash flow hit $6.04B (+12.1%); but net income dipped to $2.71B (-1.4%) and diluted EPS fell to $6.70 as integration costs and higher depreciation pressured profitability. Operating margin narrowed from 18.4% to 17.1%.
Based on the financial data, WM's key risks in FY2025 include integration challenges from the Stericycle acquisition (reflected in surging SG&A and D&A), high financial leverage with a debt-to-equity ratio of 3.59, and a current ratio below 1.0 at 0.89, indicating current liabilities exceed current assets. Margin compression from rising operating costs is also a concern if pricing power weakens.