Waste Management Reaffirms 2025 EBITDA Outlook After Q3 Margin Gains

Analysts say proof of revenue progress tied to Stericycle will determine upside.

Overview

Collection and Disposal showed solid momentum in Q3, aided by roughly 6% core pricing and steady industrial volumes despite softer recycled commodity prices.
Operating margin expanded by 160 basis points, and free cash flow for the first nine months rose 13.5% year over year to $2.11 billion.
The company reiterated full-year adjusted EBITDA guidance of $7.475 billion to $7.625 billion.
CIBC cut its price target to $231 and maintained a Neutral rating, citing the need for consistent revenue growth to validate Stericycle-driven expectations.
Jim Cramer advised adding to positions in stages due to recent share volatility.