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Waste Management Buys Stericycle for $7.2B
25 Nov, 2025
Summary
- Waste Management acquired Stericycle for $7.2 billion last year.
- The company expects 20% unit profitability growth.
- Waste Management is expanding its landfill gas-to-energy strategy.
Waste Management, Inc. (WM) is demonstrating robust growth strategies, highlighted by its significant acquisition of Stericycle for $7.2 billion last year, bolstering its presence in the healthcare waste sector. The company forecasts a notable 20% rise in unit profitability and a 40% enhancement in free cash conversion over the next two years, attributed to advantageous pricing trends and the culmination of major capital projects.
Furthermore, Waste Management is actively pursuing its landfill gas-to-energy initiative, converting methane emissions into carbon-neutral renewable natural gas. This forward-thinking approach aligns with environmental sustainability goals while creating a new revenue stream. The company's core operations encompass the full waste management lifecycle, from collection and recycling to final disposal.
With third-quarter revenues reaching $6.4 billion, a 15% increase year-over-year, WM continues to see rising demand for its essential services. Despite a recent dip in operating income due to non-cash expenses, the company's strategic acquisitions and focus on renewable energy position it for sustained long-term performance.
