Waste Management (WM) Q2 2025 Earnings Outlook: Financial Performance and Sustainable Development Impact

This report outlines the financial expectations for Waste Management (WM) for the quarter ending June 2025, with a significant focus on the company’s role in advancing the United Nations Sustainable Development Goals (SDGs). The company’s performance is a key indicator of progress in the environmental services sector, which is integral to achieving global sustainability targets.

Q2 2025 Financial Projections

Consensus estimates indicate strong year-over-year growth for Waste Management, reflecting increased demand for essential environmental services.

• Expected Earnings Per Share (EPS): $1.89, representing a 3.9% increase year-over-year.
• Expected Revenues: $6.34 billion, representing a 17.4% increase from the year-ago quarter.

The consensus EPS estimate has undergone a minor downward revision of 0.69% over the last 30 days.

Alignment with Sustainable Development Goals (SDGs)

Waste Management’s core operations and financial growth are directly linked to progress on several key SDGs. The projected revenue increase signifies an expansion of services critical to global sustainability.

• SDG 11: Sustainable Cities and Communities: As a primary provider of waste collection and recycling, WM’s services are fundamental to the environmental management infrastructure required for clean, safe, and resilient cities.
• SDG 12: Responsible Consumption and Production: The company’s recycling and waste diversion efforts are central to creating circular economies, reducing landfill dependency, and promoting sustainable production patterns. Revenue growth in this segment indicates a scaling of these crucial activities.
• SDG 13: Climate Action: By managing waste, recovering materials for recycling, and potentially capturing landfill gas, the company plays a role in mitigating greenhouse gas emissions, a primary objective of climate action initiatives.
• SDG 8: Decent Work and Economic Growth: The company’s financial health and expansion contribute to economic growth and job creation within the burgeoning green economy.

Predictive Analysis and Historical Performance

Analytical models provide insight into the probability of the company meeting or exceeding market expectations.

Earnings Surprise Prediction

1. Zacks Earnings ESP (Expected Surprise Prediction): Waste Management has a positive Earnings ESP of +0.25%. This metric suggests that the most recent analyst estimates are more bullish than the broader consensus, often a precursor to an earnings beat.
2. Zacks Rank: The stock currently holds a Zacks Rank #3 (Hold).
3. Predictive Conclusion: The combination of a positive Earnings ESP and a Zacks Rank of #1, #2, or #3 has historically indicated a high probability of a positive earnings surprise. Therefore, it is likely that Waste Management will beat the consensus EPS estimate.

Surprise History

• The company has surpassed consensus EPS estimates two times over the last four quarters.
• For the last reported quarter, WM posted an EPS of $1.67 against an expectation of $1.65, delivering a +1.21% surprise.

Industry Context and Broader SDG Impact

A comparative analysis with other firms in the sector provides a broader view of the industry’s contribution to sustainability.

H2O America (HTO) Outlook

H2O America, another company in the environmental services industry, provides a point of comparison and highlights the sector’s connection to other critical goals, such as SDG 6 (Clean Water and Sanitation).

• Expected EPS: $0.66, indicating no change from the year-ago quarter.
• Expected Revenue: $183.26 million, an increase of 4% year-over-year.
• Predictive Analysis: HTO has a negative Earnings ESP of -6.53% and a Zacks Rank #3 (Hold). This combination makes it difficult to conclusively predict an earnings beat.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

Based on a thorough analysis of the provided article, no Sustainable Development Goals (SDGs) are addressed or connected to the issues highlighted. The article’s content is exclusively focused on the financial performance of the company “Waste Management (WM).”

• Primary Focus: The text discusses financial metrics such as earnings per share (EPS), revenue forecasts, stock price, and analyst estimates (e.g., “quarterly earnings of $1.89 per share,” “Revenues are expected to be $6.34 billion”).
• Lack of Sustainability Content: Although the company’s name is “Waste Management” and it is described as a “garbage and recycling hauler,” the article does not contain any information about its waste management practices, recycling rates, environmental impact, or contributions to sustainable cities or responsible consumption. The issues discussed are purely financial and related to investment analysis.

2. What specific targets under those SDGs can be identified based on the article’s content?

No specific SDG targets can be identified from the article’s content. Since the article does not address any SDGs, it consequently does not mention or allude to any of the associated targets. The text is devoid of information related to:

• Waste reduction, prevention, recycling, or reuse (relevant to SDG 12, Target 12.5).
• Management of municipal or other waste (relevant to SDG 11, Target 11.6).
• Environmentally sound management of chemicals and all wastes throughout their life cycle (relevant to SDG 12, Target 12.4).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

No, there are no indicators mentioned or implied in the article that can be used to measure progress towards any SDG targets. The indicators present in the text are strictly financial and used for investment analysis. These include:

• Earnings Per Share (EPS): “post quarterly earnings of $1.89 per share”
• Revenue: “Revenues are expected to be $6.34 billion”
• Earnings ESP (Expected Surprise Prediction): “an Earnings ESP of +0.25%”
• Zacks Rank: “Zacks Rank of #3”

These metrics measure the financial health and stock market prospects of the company, not its performance or impact on sustainable development objectives.

4. Table of SDGs, Targets, and Indicators

Source: finance.yahoo.com