"Waste Management expanded its footprint dramatically with its early 2025 acquisition of Stericycle, adding a healthcare waste segment generating over $600 million per quarter."
"Both companies benefited from the simple fact that waste never stops being produced, recession or not."
"The planned dividend increase to $3.78 per share annually and $2 billion in share repurchases signal confidence."
"Risks remain if recycled commodity prices keep falling, which could impact future profitability."
Waste Management and Republic Services have effectively increased shareholder wealth over the past decade by leveraging pricing power, long-term contracts, and sustainability efforts. Waste Management's acquisition of Stericycle has added a significant healthcare waste segment, while Republic Services has focused on strategic acquisitions and expanding its Environmental Solutions segment. Both companies have outperformed the S&P 500 over the long term, although recent performance has been mixed due to integration costs and labor disruptions. Future growth prospects remain strong, but risks from falling recycled commodity prices persist.
Read at 24/7 Wall St.
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