Waste Management (WM) risk factors, FY2025 10-K

Waste Management's FY2025 10-K, filed Feb 09, 2026, lists 32 risk factors in 3 groups. Against the prior year's 37: 5 new, 10 dropped, 18 substantially reworded.

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Risk factors listed
323 groups
New this year
5vs 37 last year
Dropped
10since the prior 10-K
Substantially reworded
18of those kept
Section length
12k wordsItem 1A

What the changes say

  • Waste Management highlights workforce competition and labor costs, risks to greenhouse gas reduction and sustainability targets, exposure to recyclable commodity price fluctuations, regulatory risks affecting renewable fuel policies and tax credits, and stringent requirements for environmental liability insurance and financial assurance.

What changed since the prior 10-K

New

  • New

    If we are unable to attract, hire, develop and retain key team members and a high-quality workforce, and comply with applicable employment regulations, it could result in business and strategic disruption and increased costs, negatively impacting our results of operations

    We face intense competition to attract and retain over 60,000 employees, including commercial truck drivers, digital technology teams, and business leaders, which could increase our costs and disrupt operations.

  • New

    We may not be able to achieve our sustainability-related goals, including reduction of our greenhouse gas ("GHG") emissions, or achieve the results and benefits anticipated from our sustainability-related investments and initiatives within planned timelines or anticipated budget

    We may fail to achieve our greenhouse gas reduction and sustainability goals within planned timelines or budgets, potentially harming our public perception and drawing aggressive investor pressure.

  • New

    the increase in market prices in 2024 for recyclable commodities resulted in a year-over-year increase in revenue of $245 million

    Market price increases for recyclable commodities boosted 2024 revenue by $245 million, but increased automation investments and international trade regulations heighten our exposure to commodity price volatility.

  • NewLegal, Regulatory and Compliance Risks

    Changes to federal and state renewable fuel policies could affect the financial performance of our Renewable Energy segment

    Changes to federal and state renewable fuel policies, including IRS tax credits and the federal RFS program, could impair the financial performance of our Renewable Energy segment.

  • NewFinancial Risks

    The amount of insurance we are required to maintain for environmental liability is governed by statutory requirements

    Stricter statutory insurance requirements, potential inadequate coverage, and higher costs for letters of credit or surety bonds could adversely affect our financial results and environmental remediation obligations.

Dropped

  • Dropped

    Damage to our reputation and the value of our brand would negatively impact our business

  • Dropped

    Weakness in the economy may expose us to credit risk of governmental entities and municipalities and other major customers, which could negatively impact our financial results

  • Dropped

    Purchasers of our recycling commodities can be particularly vulnerable to financial difficulties in times of commodity price volatility. The inability of our customers to pay us in a timely manner or to pay increased rates, particularly large national accounts, could negatively affect our operating results

  • Dropped

    Large-scale disruption of social and commercial activity and financial markets may have a material adverse impact on our business, financial condition, results of operations and cash flows

  • DroppedTechnology and Information Security Risks

    Developments in technology could trigger a fundamental change in our industry, as waste streams are increasingly viewed as a resource, which may adversely impact volumes at our landfills and our profitability

  • DroppedTechnology and Information Security Risks

    new and emerging laws and regulations and/ or expanded or novel interpretations of existing laws. Additionally, customers and regulators may seek to hold us responsible for the actions of third parties we work with, such as sub-processors, vendors, or developers

  • DroppedLegal, Regulatory and Compliance Risks

    Our sustainability growth strategy includes significant planned and ongoing investments in our WM Renewable Energy segment; changes to federal and state renewable fuel policies could affect our financial performance, and such investments may not yield the results anticipated

    Damage to our reputation and brand could negatively impact our business.

  • DroppedLegal, Regulatory and Compliance Risks

    We could be subject to significant fines and penalties, and our reputation could be adversely affected, if we or third parties with whom we have a relationship fail to comply with U.S. or foreign laws or regulations

  • DroppedFinancial Risks

    Increases in the costs of obtaining adequate financial assurance, or the inadequacy of our insurance coverages, could negatively impact our liquidity and increase our liabilities

  • DroppedFinancial Risks

    We could face significant liabilities for withdrawal from Multiemployer Pension Plans

Reworded

  • 89% rewritten

    Our revenues, earnings and cash flows fluctuate based on changes in commodity prices and demand and may fluctuate substantially without notice in the future

    Updated to reflect a 2025 recyclable commodity price decline resulting in a year-over-year revenue decrease of $166 million, compared to the 2024 increase.

  • 71% rewrittenTechnology, Intellectual Property and Information Security Risks

    Increasing regulatory focus on privacy and data protection issues and expanding laws could negatively impact our business, subject us to criticism and expose us to increased liability

    Expanded to detail increased scrutiny from regulators, privacy advocates, and class action attorneys regarding our collection and storage of personal data.

  • 70% rewritten

    The seasonal nature of our business, severe weather events resulting from climate change and event driven projects cause our results to fluctuate, and prior performance may not be indicative of our future results

    Retitled and updated to emphasize the seasonal nature of our business, event-driven projects, and severe weather events resulting from climate change.

  • 62% rewrittenLegal, Regulatory and Compliance Risks

    The timing of the final resolutions to these types of matters is often uncertain. Additionally, the possible outcomes or resolutions to these matters could include adverse judgments or settlements, either of which could require substantial payments, adversely affecting our liquidity

    Revised to clarify that legal disputes and investigations regarding noncompliance with the Controlled Substances Act stem from the acquired Stericycle Domestic Environmental Solutions business.

  • 55% rewritten

    General economic conditions and consumer trends can directly and adversely affect revenues for our services, our income from operations margins and our overall financial results

    Broadened economic risk factors to explicitly include consumer preferences and priorities alongside consumer confidence, inflation, and interest rates.

    Was: General economic conditions can directly and adversely affect revenues for our services and our income from operations margins

  • 53% rewritten

    We may not realize the strategic benefits, revenue and earnings growth, or cost synergies anticipated from the Stericycle acquisition

    Updated integration risks for the Stericycle acquisition, now renamed Healthcare Solutions, highlighting ERP billing and collection issues, customer loss, and delayed pricing growth.

    Was: We may not realize the strategic benefits and cost synergies anticipated from the Stericycle acquisition

  • 52% rewritten

    If we fail to implement our business strategy, our financial performance and our growth could be materially and adversely affected

    Added a warning that our unwillingness to pursue lower margin volumes under our yield management strategy may negatively affect our cash flows.

  • 52% rewritten

    We may be unable to obtain or maintain required permits for our operations or expand existing permitted capacity at our landfills, due to land scarcity, public opposition or otherwise, which can require us to identify disposal alternatives, resulting in decreased revenue and increased costs

    Retained core land scarcity and permitting risks for landfills and transfer stations without altering specific numerical thresholds.

  • 50% rewritten

    Market disruption, including labor shortages, external strikes, supply chain constraints and major external events, and macroeconomic pressures, including inflation, have recently had, and may in the future have, an adverse impact on our business and results of operations

    Was: Market disruption, including labor shortages, external strikes, and supply chain constraints, and macroeconomic pressures, including inflation, have recently had, and may in the future have, an adverse impact on our business and results of operations

  • 44% rewrittenTechnology, Intellectual Property and Information Security Risks

    We are increasingly dependent on technology, and if our technology fails, our business would be adversely affected

    Was: We are dependent on technology, and if our technology fails, our business would be adversely affected

  • 43% rewritten

    Focus on, and regulation of, sustainability performance and disclosure can result in increased costs, risk of noncompliance, damage to our reputation and related adverse effects

  • 40% rewrittenTechnology, Intellectual Property and Information Security Risks

    Significant cybersecurity incidents may negatively impact our business and our relationships with customers, vendors and employees and expose us to increased liability

  • 38% rewrittenLegal, Regulatory and Compliance Risks

    Failure to maintain an effective system of internal control over financial reporting, due to technology issues, difficulties integrating Stericycle’s operations and systems, or otherwise, could adversely affect our ability to provide accurate and timely financial statements, which may harm our business and reputation

  • 37% rewrittenTechnology, Intellectual Property and Information Security Risks

    If we are not able to develop new service offerings and protect intellectual property, or if a competitor develops or obtains exclusive rights to a breakthrough technology, our financial results may suffer

  • 34% rewrittenTechnology, Intellectual Property and Information Security Risks

    Inability to adapt to and manage the benefits and risks of artificial intelligence could expose us to liability or put us at a disadvantage

  • 32% rewrittenFinancial Risks

    Our capital requirements and our business strategy could increase our expenses, cause us to change our growth and development plans, or result in an inability to maintain our desired credit profile

  • 32% rewritten

    Increases in our labor costs as a result of unions organizing, Multiemployer Pension Plan withdrawals, changes in regulations related to labor unions or increases in minimum wages, could adversely affect our future results

    Was: Increases in our labor costs as a result of labor unions organizing, changes in regulations related to labor unions or increases in employee minimum wages, could adversely affect our future results

  • 21% rewrittenLegal, Regulatory and Compliance Risks

    The impact of climate change, and the adoption of climate change legislation or regulations restricting emissions of GHGs, could increase our costs to operate

All 32 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01If we fail to implement our business strategy, our financial performance and our growth could be materially and adversely affected52% rewritten
  2. 02We may not realize the strategic benefits, revenue and earnings growth, or cost synergies anticipated from the Stericycle acquisition53% rewritten
  3. 03Our business is subject to operational and safety risks, including the risk of injury to employees and others
  4. 04We may be unable to obtain or maintain required permits for our operations or expand existing permitted capacity at our landfills, due to land scarcity, public opposition or otherwise, which can require us to identify disposal alternatives, resulting in decreased revenue and increased costs52% rewritten
  5. 05If we are unable to attract, hire, develop and retain key team members and a high-quality workforce, and comply with applicable employment regulations, it could result in business and strategic disruption and increased costs, negatively impacting our results of operationsNew
  6. 06Increases in our labor costs as a result of unions organizing, Multiemployer Pension Plan withdrawals, changes in regulations related to labor unions or increases in minimum wages, could adversely affect our future results32% rewritten
  7. 07The seasonal nature of our business, severe weather events resulting from climate change and event driven projects cause our results to fluctuate, and prior performance may not be indicative of our future results70% rewritten
  8. 08We may not be able to achieve our sustainability-related goals, including reduction of our greenhouse gas ("GHG") emissions, or achieve the results and benefits anticipated from our sustainability-related investments and initiatives within planned timelines or anticipated budgetNew
  9. 09Focus on, and regulation of, sustainability performance and disclosure can result in increased costs, risk of noncompliance, damage to our reputation and related adverse effects43% rewritten
  10. 10Market disruption, including labor shortages, external strikes, supply chain constraints and major external events, and macroeconomic pressures, including inflation, have recently had, and may in the future have, an adverse impact on our business and results of operations50% rewritten
  11. 11The environmental services industry is highly competitive, and if we cannot successfully compete in the marketplace, our business, financial condition and operating results may be materially adversely affected
  12. 12Our revenues, earnings and cash flows fluctuate based on changes in commodity prices and demand and may fluctuate substantially without notice in the future89% rewritten
  13. 13the increase in market prices in 2024 for recyclable commodities resulted in a year-over-year increase in revenue of $245 millionNew
  14. 14Increasing customer preference for alternatives to landfill disposal and bans on certain types of waste could reduce our landfill volumes and cause our revenues and operating results to decline
  15. 15General economic conditions and consumer trends can directly and adversely affect revenues for our services, our income from operations margins and our overall financial results55% rewritten
  16. 16Reduction in volumes of medical waste, controlled substances wastes, and personal and confidential information, and changing conditions in the healthcare industry could adversely affect our financial results
  17. 17Changes to applicable tax laws and regulation or interpretation thereof or the imposition of new or increased taxes may increase our tax liabilities and could adversely affect our operating results and cash flows
  18. 18Shortages in diesel fuel supply or increases in diesel fuel prices will increase our operating expenses

Technology, Intellectual Property and Information Security Risks

  1. 19If we are not able to develop new service offerings and protect intellectual property, or if a competitor develops or obtains exclusive rights to a breakthrough technology, our financial results may suffer37% rewritten
  2. 20We are increasingly dependent on technology, and if our technology fails, our business would be adversely affected44% rewritten
  3. 21Inability to adapt to and manage the benefits and risks of artificial intelligence could expose us to liability or put us at a disadvantage34% rewritten
  4. 22Significant cybersecurity incidents may negatively impact our business and our relationships with customers, vendors and employees and expose us to increased liability40% rewritten
  5. 23Increasing regulatory focus on privacy and data protection issues and expanding laws could negatively impact our business, subject us to criticism and expose us to increased liability71% rewritten

Legal, Regulatory and Compliance Risks

  1. 24Our operations are subject to environmental, health and safety laws and regulations, as well as contractual obligations that may result in significant liabilities
  2. 25Changes to federal and state renewable fuel policies could affect the financial performance of our Renewable Energy segmentNew
  3. 26The impact of climate change, and the adoption of climate change legislation or regulations restricting emissions of GHGs, could increase our costs to operate21% rewritten
  4. 27Failure to maintain an effective system of internal control over financial reporting, due to technology issues, difficulties integrating Stericycle’s operations and systems, or otherwise, could adversely affect our ability to provide accurate and timely financial statements, which may harm our business and reputation38% rewritten
  5. 28Currently pending or future litigation or governmental proceedings could result in material adverse consequences, including judgments or settlements
  6. 29The timing of the final resolutions to these types of matters is often uncertain. Additionally, the possible outcomes or resolutions to these matters could include adverse judgments or settlements, either of which could require substantial payments, adversely affecting our liquidity62% rewritten

Financial Risks

  1. 30Our capital requirements and our business strategy could increase our expenses, cause us to change our growth and development plans, or result in an inability to maintain our desired credit profile32% rewritten
  2. 31The amount of insurance we are required to maintain for environmental liability is governed by statutory requirementsNew
  3. 32We may record material charges against our earnings due to impairments to our assets

Other Waste Management 10-Ks

  • FY2024 10-K risk factors
    37 risks

    Integration risks and performance dependencies related to the Stericycle acquisition heavily influence our operations and financial outlook.

    Filed Feb 19, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.