Waste Management faces risks from fluctuating commodity prices (recycling, fuel), inflation impacting operating costs, potential environmental liabilities (landfills, remediation), litigation risks (personal injury, property damage, securities), and regulatory changes (environmental, tax). The pending Stericycle acquisition carries legal and integration risks. Economic downturns and supply chain disruptions also pose threats. Uncertainties exist in estimating landfill and environmental remediation liabilities.
Financial Upside
Waste Management anticipates revenue growth from higher average yield in collection and disposal, increased recycling commodity prices, and renewable energy projects (RNG). The pending Stericycle acquisition is expected to expand into the healthcare market and create synergies. Debt financing and capital expenditures are planned to support growth. Tax credits from renewable energy investments and low-income housing projects are expected to reduce tax expense.
