Truckers discuss weather and tariff effects in first quarter

Leaders of the biggest publicly traded garbage and recycling companies in North America recently discussed the impacts of winter weather and tariffs during the first quarter of the year. Despite challenging weather conditions affecting their first-quarter earnings, these hauling companies reported increases in revenue in comparison to the same period in 2024.

Economic uncertainty loomed large during the early months of the year, with executives like Jim Fish, president, and CEO of WM, noting lower activity levels in January and February. However, a positive turnaround was seen in March and April, indicating that the slowdown could be attributed to weather-related disruptions rather than a broader economic downturn. The other CEOs from Republic Services, Casella Waste Systems, GFL Environmental, and Waste Connections also reported similar trends of a dip followed by a recovery in their respective investor calls.

WM, in particular, observed a net recycling revenue of $384 million in the first quarter of 2025, representing a 4.3% increase compared to the previous year. The company’s recycling segment saw positive growth in earnings before interest, taxes, depreciation, and amortization, and highlighted the strong performance of its newly acquired business, Stericycle. While landfill, recycling, and renewable energy business volumes were up, industrial and residential collection volumes experienced declines.

The ongoing tariffs were highlighted as a potential positive factor for WM’s non-fiber materials, such as aluminum and steel. It was noted in an investor call that tariffs could benefit the company’s domestic materials, while also acknowledging potential retaliatory tariffs on OCC and fiber materials shipped to markets in Southeast Asia and India.

Capital expenditures increased for WM in the first quarter of 2025, with a focus on recycling facilities. The company’s investment in automated recycling plants yielded promising results, and plans to open more “next-gen” recycling plants in California and Texas are underway. Despite minor impacts from tariffs on equipment costs, WM remained proactive in securing necessary equipment ahead of time to mitigate financial risks.

Republic Services reported a recycling processing and commodity sales revenue of $108 million in Q1 2025, showing a 13.1% increase from the prior year. The company emphasized its ability to navigate through economic volatility and focus on improving recycling processing and commodity sales revenue through increased volumes and the reopening of a recycling center on the West Coast.

In the realm of waste and recycling capital expenditures, Republic allocated $241 million in Q1 2025, signaling a decrease from the previous year. With net revenue from waste and recycling combined amounting to about $3.6 billion in the first quarter of 2025, Republic reaffirmed its strong performance even amidst economic uncertainties.