Waste Management Inc delivered a solid QQ2 2025 performance characterized by resilient top-line growth, expanding margins, and meaningful free cash flow generation. Revenue totaled $6.430 billion, up 19.0% year over year and up 6.85% quarter over quarter, supported by price realization and volume stability in its North American waste collection and disposal operations. Gross profit reached $1.883 billion, a gross margin of 29.28%, with EBITDA of $1.904 billion and operating income of $1.187 billion (operating margin ~18.46%). Net income was $726 million, yielding diluted earnings per share of $1.80. Free cash flow was $813 million, underpinned by operating cash flow of $1.545 billion and capital expenditures of $732 million. The balance sheet remains leverage-heavy, with total debt of $24.02 billion and net debt of $23.58 billion, and liquidity metrics showing a current ratio near 0.86 and a cash position of roughly $440 million at quarter end. Management commentary on pricing, cost discipline, and long-cycle asset investments—along with strong FCF—supports a constructive but disciplined investment stance.
Key Performance Indicators
Revenue
Increasing
6.43B
QoQ: 6.85% | YoY: 19.03%
Gross Profit
Increasing
1.88B
29.28% margin
QoQ: 9.80% | YoY: 20.09%
Operating Income
Increasing
1.19B
QoQ: 15.47% | YoY: 11.25%
Net Income
Increasing
726.00M
QoQ: 13.97% | YoY: 6.76%
EPS
Increasing
1.80
QoQ: 13.92% | YoY: 6.51%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $6.430B in QQ2 2025; YoY +19.0%, QoQ +6.85%.
Gross Profit: $1.883B; Gross Margin 29.28%; YoY +20.1%, QoQ +9.8%.
EBITDA: $1.904B; EBITDA Margin ~29.6% (EBITDARatio 0.2961).
Operating Income: $1.187B; Operating Margin ~18.46% (OperatingIncomeRatio 0.1846).
Net Income: $726M; Net Margin ~11.29% (NetIncomeRatio 0.1129).
EPS (Diluted): $1.80; YoY +6.51%, QoQ +13.92%.
Cash Flow: Operating cash flow $1.545B; CapEx $732M; Free cash flow $813M (FCF per share $2.02).
Liquidity & Balance Sheet: Cash & equivalents $440M; Total Assets $45.722B; Total Liabilities $36.520B; Shareholders’ Equity $9.201B.
Debt & Leverage: Total debt $24.020B; Net debt $23.58B; Debt to capitalization ~72.3%; Interest coverage ~5.12x.
Liquidity Ratios: Current ratio 0.857; Quick ratio 0.818; Cash ratio 0.0757.
Capital Allocation: Payout ratio ~45.9%; Dividend yield shown as ~0.18% (per dataset).
Efficiency: DSO ~55 days; DIO ~4.43 days; DPO ~40.08 days; CCC ~59.46 days; Asset turnover 0.141; Fixed asset turnover 0.322.
Valuation Context: P/E ~31.7x; P/BV ~10.01x; P/Sales ~14.33x; EV/EBITDA ~60.77x; Price to Free Cash Flows ~113.31x (as per latest disclosed metrics).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.43B
19.03%
6.85%
Gross Profit
1.88B
20.09%
9.80%
Operating Income
1.19B
11.25%
15.47%
Net Income
726.00M
6.76%
13.97%
EPS
1.80
6.51%
13.92%
Key Financial Ratios
Gross Profit Margin
Fair
29.30%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
18.50%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
11.30%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.59%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
7.89%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
0.86
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
2.61
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Growth
31.72x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
10.01x
Very high premium suggests asset-light business model or lofty expectations
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