Despite capital intensity reaching 20.0% of revenue in 2023Q4, the company maintains stable cash generation with an OCF/NI ratio of 2.08 as of 2026Q1, though free cash flow margins remain sensitive to lumpy capital expenditures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 6.34B | 6.04B | 5.39B | 4.72B | 4.54B | 4.34B | 3.4B | 3.87B | 3.57B | 3.18B | 3B | 2.5B | 2.33B | 2.46B | 2.29B | 2.47B | 2.27B | 2.36B | 2.58B | 2.44B | 2.54B | 2.39B | 2.22B | 1.93B | 2.15B | 2.35B | 2.13B | 1.69B | 1.5B | 452.8M | 205.2M |
| Operating CF Margin % | - | 23.98% | 24.43% | 23.1% | 23.03% | 24.19% | 22.36% | 25.07% | 23.94% | 21.95% | 22.07% | 19.27% | 16.65% | 17.56% | 16.81% | 18.46% | 18.18% | 20.03% | 19.23% | 18.32% | 19.01% | 18.29% | 17.72% | 16.64% | 19.32% | 20.8% | 17.01% | 12.87% | 11.82% | 17.32% | 15.62% |
| Operating CF Growth % | 87.74% | 12.12% | 14.22% | 4.03% | 4.56% | 27.48% | -12.16% | 8.52% | 12.26% | 5.89% | 20.22% | 7.16% | -5.05% | 6.97% | -7.05% | 8.53% | -3.68% | -8.27% | 5.58% | -3.98% | 6.23% | 7.8% | 15.16% | -10.54% | -8.58% | 10.82% | 25.77% | 12.49% | 231.71% | 120.66% | 678.03% |
| Net Income | 2.79B | 2.71B | 2.75B | 2.28B | 2.24B | 1.82B | 1.5B | 1.67B | 1.92B | 1.95B | 1.18B | 752M | 1.34B | 130M | 860M | 1.01B | 1B | 1.06B | 1.09B | 1.16B | 1.15B | 1.18B | 939M | 630M | 822M | 503M | -97M | -395.1M | -766.8M | 273.3M | 32.9M |
| Depreciation & Amortization | 3.2B | 3B | 1.47B | 1.33B | 1.28B | 2B | 1.67B | 1.57B | 1.48B | 1.38B | 1.3B | 1.25B | 1.29B | 1.33B | 1.3B | 1.23B | 1.19B | 1.17B | 1.24B | 1.26B | 1.33B | 1.36B | 1.34B | 1.26B | 1.22B | 1.37B | 1.43B | 1.61B | 1.5B | 303.2M | 153.2M |
| Stock-Based Compensation | -48M | 0 | 118M | 93M | 84M | 108M | 94M | 86M | 89M | 101M | 90M | 72M | 65M | 58M | 29M | 45M | 36M | 30M | 48M | -26M | -45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 337M | 363M | 124M | 83M | 49M | -77M | 165M | 100M | 25M | -251M | 73M | 30M | -118M | -149M | 67M | 198M | 154M | -94M | 150M | 70M | -23M | -61M | 156M | 363M | 319M | 131M | 65M | 317.8M | -450.2M | 72.8M | 2.9M |
| Other Non-Cash Items | 245M | 480M | 962M | 1.19B | 1.02B | 365M | 304M | 363M | 85M | 206M | 282M | 777M | 19M | 1.16B | 260M | 160M | 119M | 166M | 141M | 54M | 144M | 228M | 106M | 120M | -41M | 387M | 782M | 15.5M | -70.8M | 34.3M | 60M |
| Working Capital Changes | -189M | -513M | -31M | -251M | -145M | 126M | -327M | 80M | -29M | -201M | 77M | -378M | -265M | -80M | -218M | -172M | -230M | 34M | -89M | -81M | -19M | -319M | -319M | -452M | -169M | -37M | -54M | -719.6M | -219.4M | -224.5M | -38.7M |
| Change in Receivables | -209M | -511M | -313M | -161M | -329M | 28M | -179M | -53M | -16M | -271M | -78M | -178M | -268M | 44M | -131M | -110M | -159M | 29M | -22M | -22M | 12M | -102M | -223M | -79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 59M | 0 | -234M | 216M | -243M | -30M | -16M | 352M | 9M | 3M | -3M | -67M | -23M | 47M | -4M | 134M | -13M | 23M | -224M | 333M | 786M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -179M | 41M | 281M | 90M | 393M | 206M | -37M | 243M | 203M | 126M | -112M | -112M | 117M | -27M | 65M | 65M | -57M | 51M | -88M | -51M | -45M | -187M | -43M | -415M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -3.47B | -3.57B | -10.6B | -3.09B | -3.06B | -1.89B | -4.85B | -2.38B | -2.17B | -1.62B | -1.93B | -1.61B | 995M | -1.9B | -1.83B | -2.19B | -1.61B | -1.25B | -1.18B | -761M | -788M | -1.06B | -863M | -1.08B | -962M | -1.23B | 1.07B | -2.02B | -4.56B | -2.03B | -577.5M |
| Capital Expenditures | -3.05B | -3.23B | -3.23B | -2.9B | -2.59B | -1.9B | -1.63B | -1.82B | -1.69B | -1.51B | -1.34B | -1.23B | -1.15B | -1.27B | -1.51B | -1.32B | -1.1B | -1.18B | -1.22B | -1.21B | -1.33B | -1.18B | -1.26B | -1.2B | -1.29B | -1.33B | -1.31B | -2.62B | -3.6B | -2.26B | -348.4M |
| CapEx % of Revenue | 11.99% | 12.8% | 14.64% | 14.17% | 13.13% | 10.62% | 10.72% | 11.76% | 11.36% | 10.42% | 9.84% | 9.51% | 8.22% | 9.09% | 11.06% | 9.9% | 8.82% | 10% | 9.12% | 9.1% | 9.95% | 9.03% | 10.05% | 10.37% | 11.55% | 11.73% | 10.51% | 19.93% | 28.32% | 86.28% | 26.53% |
| Acquisitions | -379M | -395M | -7.49B | -92M | -350M | 21M | -3.2B | -472M | -252M | -198M | -568M | -409M | 2.19B | -619M | -283M | -831M | -363M | -253M | -280M | 188M | 208M | -142M | -130M | -337M | -162M | -116M | -231M | 650.5M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -112M | 56M | 118M | -104M | -126M | -11M | -15M | -86M | -223M | 87M | -4M | 34M | -39M | -10M | -37M | 125M | 34M | 182M | 134M | 78M | 211M | 555M | 525M | 453M | 487M | 212M | 10M | -20.5M | -1.01B | 223.8M | -229.1M |
| Cash from Financing | -2.96B | -2.67B | 5.16B | -1.52B | -1.22B | -2.9B | -1.56B | 1.96B | -1.51B | -1.36B | -1.08B | -2.15B | -2.07B | -687M | -530M | -566M | -1.27B | -457M | -1.26B | -1.95B | -1.8B | -1.09B | -1.13B | -973M | -1.66B | -485M | -3.28B | 426.2M | 2.96B | 1.6B | 374.7M |
| Debt Issued (Net) | -1.24B | -1.33B | 6.71B | 912M | 1.36B | -456M | -209M | 3.15B | 313M | 85M | 375M | -427M | -751M | 155M | 122M | 698M | -204M | 414M | -260M | -256M | -500M | -11M | -386M | -456M | -697M | -510M | -3.29B | 259M | 2B | 237.7M | 448.4M |
| Equity Issued (Net) | -336M | 61M | -262M | -1.33B | -1.54B | -1.28B | -339M | -181M | -952M | -750M | -662M | -523M | -600M | -239M | 0 | -575M | -447M | -226M | -410M | -1.28B | -777M | -577M | -303M | -498M | -955M | 50M | 20M | 176M | 1.08B | -341.2M | -354.3M |
| Dividends Paid | -1.38B | -1.33B | -1.21B | -1.14B | -1.08B | -970M | -927M | -876M | -802M | -750M | -726M | -695M | -693M | -683M | -658M | -696M | -604M | -619M | -531M | -495M | -476M | -449M | -432M | -6M | -6M | -6M | -6M | -6.2M | -93.8M | 0 | 0 |
| Share Repurchases | -344M | 0 | -262M | -1.3B | -1.5B | -1.35B | -402M | -248M | -1B | -750M | -725M | -600M | -600M | -239M | -575M | -575M | -501M | -226M | -410M | -1.42B | -1.07B | -706M | -496M | -550M | -982M | 0 | 0 | 0 | 0 | -1B | -473.6M |
| Other Financing | 1M | -67M | -81M | 33M | 40M | -190M | -84M | -128M | -67M | 54M | -71M | -510M | -28M | 80M | 6M | -52M | -18M | -26M | -55M | 84M | -50M | -53M | -9M | -26M | 70M | -19M | 0 | -3M | -23M | -341.5M | 588.9M |
| Net Change in Cash | -109M | -190M | -65M | 107M | 251M | -454M | -3B | 3.46B | -110M | -10M | 55M | -1.27B | 1.25B | -136M | -64M | -281M | -601M | 660M | 132M | -266M | -52M | 242M | 226M | -129M | -466M | 636M | -87M | 94.5M | -103.1M | 25.1M | 2.4M |
| Free Cash Flow | 3.29B | 2.82B | 2.16B | 1.82B | 1.95B | 2.43B | 1.77B | 2.06B | 1.88B | 1.67B | 1.62B | 1.26B | 1.18B | 1.18B | 785M | 1.15B | 1.17B | 1.18B | 1.35B | 1.23B | 1.21B | 1.21B | 960M | 726M | 866M | 1.03B | 812M | -926.4M | -2.1B | -1.8B | -143.2M |
| FCF Margin % | 12.95% | 11.17% | 9.79% | 8.93% | 9.89% | 13.57% | 11.64% | 13.3% | 12.58% | 11.54% | 11.91% | 9.76% | 8.43% | 8.47% | 5.75% | 8.56% | 9.36% | 10.03% | 10.11% | 9.23% | 9.06% | 9.26% | 7.67% | 6.27% | 7.77% | 9.07% | 6.5% | -7.06% | -16.5% | -68.96% | -10.9% |
| FCF Growth % | 79.1% | 30.43% | 18.37% | -6.41% | -19.93% | 37.44% | -13.86% | 9.59% | 12.27% | 3.08% | 28.14% | 7.2% | -0.34% | 50.83% | -31.44% | -2.22% | -1.01% | -12.63% | 10.26% | 1.4% | 0% | 26.15% | 32.23% | -16.17% | -15.68% | 26.48% | 187.65% | 55.8% | -16.27% | -1158.73% | -19.23% |
| FCF per Share | 8.14 | 6.97 | 5.35 | 4.48 | 4.70 | 5.76 | 4.17 | 4.81 | 4.34 | 3.78 | 3.63 | 2.77 | 2.53 | 2.52 | 1.69 | 2.43 | 2.43 | 2.40 | 2.73 | 2.35 | 2.22 | 2.14 | 1.65 | 1.22 | 1.40 | 1.63 | 1.34 | -1.51 | -3.59 | -8.23 | -1.03 |
| FCF Conversion (FCF/Net Income) | 1.18x | 2.23x | 1.96x | 2.05x | 2.03x | 2.39x | 2.27x | 2.32x | 1.85x | 1.63x | 2.54x | 3.32x | 1.80x | 25.05x | 2.81x | 2.57x | 2.39x | 2.38x | 2.37x | 2.10x | 2.21x | 2.02x | 2.36x | 3.06x | 2.62x | 4.68x | -21.91x | -4.25x | -1.95x | 1.70x | 6.24x |
| Interest Paid | 0 | 0 | 530M | 447M | 348M | 387M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 656M | 636M | 736M | 370M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory and remediation liabilities
As reported in financial statements, WM consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio peaking at 2.80 in 2023Q4, which suggests that non-cash charges like depreciation and amortization are the primary drivers of the company's reported cash generation capabilities.
The persistent gap between net income and operating cash flow indicates that headline earnings are heavily influenced by non-cash accounting entries rather than pure cash-based profitability. Investors should monitor whether this divergence reflects genuine capital-intensive efficiency or an over-reliance on accounting estimates for landfill closure and remediation costs.
Based on quarterly data, free cash flow margins have fluctuated between 6.3% and 13.7% over the last ten quarters, reflecting the lumpy nature of capital expenditures and the impact of large-scale acquisitions on the company's ability to convert operational success into sustainable shareholder returns.
The inconsistency in FCF margins suggests that the company's cash trajectory is highly sensitive to the timing of major infrastructure investments and M&A activity. This volatility warrants caution, as it implies that free cash flow may not be as predictable as the company's defensive business model might otherwise suggest.
According to recent SEC filings, WM's capital intensity, measured by CapEx as a percentage of revenue, reached as high as 20.0% in 2023Q4, highlighting the heavy reinvestment requirements necessary to maintain landfill airspace and modernize the company's logistics fleet for long-term operational efficiency.
The high level of capital expenditure appears to be a permanent feature of the business model rather than a temporary phase, given the ongoing need for landfill cell construction and fleet automation. Analysts should interpret this as a structural drag on cash flow that limits the company's flexibility during periods of economic contraction.
Based on reported figures, WM has maintained a consistent dividend payout profile while simultaneously funding significant acquisitions, such as the $6.6 billion outlay in 2024Q4, which indicates a management strategy focused on balancing immediate investor yield with long-term inorganic growth and market consolidation.
The company's commitment to dividends and buybacks, even during periods of heavy acquisition spending, suggests a high degree of confidence in its underlying cash generation. However, investors should monitor whether these capital allocation priorities may eventually constrain the balance sheet if acquisition premiums fail to deliver expected synergies.
Quick answers to the most common questions about buying WM stock.
Waste Management, Inc. (WM) generated $6.04B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Waste Management, Inc. (WM) generated $2.82B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Waste Management, Inc. (WM) spent $3.23B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Waste Management, Inc. (WM) returned $1.33B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.