Waste Management’s second quarter results were met positively by investors, underpinned by robust growth in its core collection and disposal business and continued synergy realization from its Healthcare Solutions acquisition. Management pointed to strong landfill volumes, aided by wildfire cleanup efforts in California, as well as efficiency gains from technology investments in routing and fleet management. CEO James Fish emphasized, “Landfill volumes were particularly strong in the quarter, demonstrating the value of our advantaged disposal network.” Additionally, the company benefited from margin-enhancing performance in sustainability businesses, despite softer recycled commodity prices.

Is now the time to buy WM? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Waste Management’s Q2 Earnings Call

• Bryan Burgmeier (Citi) asked about the cadence of margin improvement for the remainder of the year. CFO Devina Rankin explained that margin expansion should moderate in the second half, with less pressure from Healthcare Solutions and seasonal benefits in collection and disposal.
• Toni Kaplan (Morgan Stanley) inquired about the drivers behind strong volume outside of wildfire cleanups and the impact of a lost residential contract. COO John Morris clarified that MSW and C&D volumes were robust, and the residential contract loss improved business quality.
• Sabahat Khan (RBC Capital Markets) requested updates on the residential business improvement journey and remaining optimization efforts. Morris stated that 70% of residential revenue now meets margin targets and expects volume losses to moderate by year-end.
• Noah Kaye (Oppenheimer) sought details on Healthcare Solutions synergy realization and run-rate expectations. EVP Rafael Carrasco and Rankin indicated that synergy capture is on track, with internalization benefits accelerating in the back half of 2025.
• Trevor Romeo (William Blair) asked about the sustainability of increased landfill internalization rates. Morris highlighted that internalization gains reflect network investments and are expected to continue, further differentiating Waste Management from competitors.

Catalysts in Upcoming Quarters

Going forward, our analyst team will track (1) the pace and impact of Healthcare Solutions synergy capture and integration, (2) the execution and ramp-up of new renewable energy and recycling automation projects, and (3) volume stabilization in residential and industrial segments following recent optimization efforts. Progress on SG&A reduction and potential new acquisitions will also be important markers for future performance.

Waste Management currently trades at $233.94, up from $228.04 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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