WM Q3 Earnings Miss Estimates Despite Strong Margins, Revenues Up Y/Y

WM WM delivered dismal third-quarter 2025 results despite a strong segmental performance and margin expansion.

The earnings and revenues miss disappointed the market as the company’s shares declined 49.3% since the release of results on Oct. 27.

WM’s adjusted earnings per share of $1.98 missed the consensus mark by 1.5% and rose 1% year over year. Total revenues of $6.4 billion missed the consensus estimate by a slight margin but gained 14.9% on a year-over-year basis.

Waste Management, Inc. Price, Consensus and EPS Surprise

 

Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote

The Collection segment recorded revenues of $3.9 billion, a 3.5% increase from the year-ago quarter. This falls short of our estimate of $4.1 billion. The Landfill segment’s top line increased 7.8% year over year to $995 million. This exceeds our estimate of $986.5 million.

The Transfer segment revenues increased 8.5% year over year to $396 million. This is above our estimate of $391.5 million. The Recycling Processing and Sales segment’s revenues declined 13.9% from the year-ago quarter to $372 million. This missed our estimate of $432.3 million.

The adjusted operating EBITDA was $2 billion, increasing 15.1% from the year-ago quarter. This missed our projection of $1.9 billion. The adjusted operating EBITDA margin increased 10 basis points to 30.6% from the year-ago quarter. This metric beat our estimate of 30.1%.

Currently, WM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Equifax Inc. EFX reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

EFX posted adjusted earnings of $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter.

Total revenues amounted to $1.5 billion, which surpassed the consensus estimate by 1.5% and grew 6.9% on a year-over-year basis.

Waste Connections, Inc. WCN registered impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

Waste Connections posted adjusted earnings of $1.44 per share, surpassing the Zacks Consensus Estimate by 4.4% and increasing 6.7% year over year.

Revenues amounted to $2.5 billion, which beat the consensus estimate marginally and grew 5.1% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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