WM WASTE MANAGEMENT INC

Overview and Growth

Fiscal 2025 results for WASTE MANAGEMENT INC combined $25.20B of revenue with net income of $2.71B and an operating cash inflow of $6.04B. Revenue of $25.20B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $22.06B in fiscal 2024, revenue recorded a 14.2% year-over-year increase. On a per-share basis, diluted EPS was $6.70, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 1.6% decrease from fiscal 2024 diluted EPS of $6.81. Asset turnover was 0.55x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $10.19B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 40.4% of revenue, showing how much of the top line remained after direct costs. Operating income was $4.31B, the earnings remaining from reported operations after the company’s recognized operating cost structure. Relative to revenue, operating income represented 17.1%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $2.71B for the fiscal year. Measured against reported revenue, net income produced a 10.7% margin after operating costs and the remaining recognized items. The earnings statement records $3.43B of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 13.6% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $717.00M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 20.9%, quantifying the portion of pre-tax earnings paid in income tax. Return on period-end equity was 27.1%, relating annual net income to the equity capital on the balance sheet. Return on period-end assets was 5.9%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

The company held $45.84B of assets against $35.84B of liabilities and $9.99B of equity, revealing how the asset base was financed. At period end, current assets of $4.91B compared with current liabilities of $5.52B, defining the company’s short-term resource position. The current ratio was 0.89x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. The company held $201.00M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 3.6% of current liabilities, showing how much near-term coverage came from cash alone. Relative to total assets, liabilities measured 78.2%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 0.4% of total assets, showing the liquid cash component within the company’s broader resource base. Total assets were 2.8% higher than fiscal 2024 assets of $44.57B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $6.04B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 2.23x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $3.23B, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 53.4% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $2.82B, leaving a positive amount after capital expenditures. Free cash flow represented 11.2% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 6.1% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.