Waste Management Sees M&A-Backed Growth Into 2027

Published: 2025-06-24 08:23:08 ET WM

Published on 06/24/2025 at 08:23, updated on 06/24/2025 at 08:24

By Adriano Marchese

Waste Management has set its growth targets through 2027, backed by mergers and acquisitions.

The waste management and environmental services company said in its investor day presentation that it expects revenue to grow at 9.4% a year compounded annually.

This represents a growth in revenue to $28.88 billion in 2027 from $22.06 billion in 2024. Analysts on FactSet expect revenue to reach $28.17 billion in 2027.

Waste Management said that it expects 5% to 6% revenue growth from its Healthcare Solutions unit, and 14% to 15% growth at its sustainability business. From collection and disposal, it expects 3% to 5% revenue from yield, up to 1% growth from volume and 0.5% to 1% growth from tuck-in M&A.

In the same timeframe, Waste Management expects adjusted operating earnings before interest, taxes, depreciation and amortization to grow at 11.1% a year compounded annually, representing a growth to $9 billion from $6.56 billion in 2024. Wall Street expects a rise to $8.62 billion in 2027.

Free cash flow too is expected to grow. It expects 7.9% compounded annual growth rate. In 2027, it expects to generate $4.1 billion, from $3.27 billion in 2024. According to consensus estimates, projected $3.55 billion in 2027.

Write to Adriano Marchese at [email protected]

(END) Dow Jones Newswires

06-24-25 0822ET