Strong Q1 Performance: WM reported a first quarter operating EBITDA growth of over 12% compared to Q1 2024, driven by solid operational performance in collection and disposal, significant contributions from WM Healthcare Solutions, and growth in sustainability-related businesses. This reflects the company's ability to deliver predictable performance and confidence in achieving its 2025 financial guidance.
Sustainability Investments: Combined operating EBITDA from recycling and renewable energy grew by more than 20% year-over-year. WM is advancing construction on additional recycling facilities and RNG plants, contributing to expected full-year targets and showcasing the potential for high-return growth through sustainability investments.
Margin Expansion: The legacy business achieved a 30% margin for the fourth consecutive quarter, up 40 basis points YoY, with improvements driven by effective pricing strategies and a favorable price-to-cost spread. However, there was a 30 basis point drag from the expiration of alternative fuel tax credits, indicating exposure to regulatory changes.