WM CEO Jim Fish Retires In Early January After 10 Years, Hands Company To John Morris
Fish's farewell on the earnings call turned on a skeptical investor and a target to push SG&A below 9% of revenue.
WM Chief Executive Officer Jim Fish said on the company's third-quarter earnings call that he will retire in early January after 10 years in the job, with President John Morris taking over as CEO. Fish used his last call to tell analysts he expects selling and administrative costs to fall below 9% of revenue, from 9.3% in the quarter.
The investor who didn't believe him
Fish, speaking on the call, recalled his first investor meeting as incoming chief financial officer in San Francisco. He told Charles Elwine of Capital World that WM had a plan to cut SG&A (selling and administrative costs) to 11% of revenue, from what he thought was 12.7% then.
Elwine's reply, as Fish told it: "I don't believe you. I'll believe it when I see it." A couple of years later, when SG&A reached 11%, Elwine phoned to say he had been proved wrong. Fish said no other investor call meant more to him.
SG&A now stands at 9.3%, and Fish said he expects it "to drop below 9% at some point down the road."
A handover to Morris, Hemmer and Reed
Fish described Morris's promotion as the result of a "thoughtful, deliberate succession planning process" by the board. He thanked a team of 60,000 people and said he is leaving with confidence in Morris, Tara Hemmer, David Reed and the rest of the leadership. He called himself "a shareholder for the long term."
A Wells Fargo analyst congratulated both men and noted the stock is up 6x since Fish was appointed CFO. Fish closed by saying Morris, Hemmer and Reed will talk to investors next quarter. Morris said on the call he does not expect big shifts in strategy.
WM, which collects, recycles and disposes of waste across the US and Canada and runs a healthcare waste unit, is valued at $94.3 billion, per Wednesday's market data.
The quarter Fish is leaving behind
Fish said operating EBITDA grew 5.8% and revenue 6.3%, with operating EBITDA margin holding at 31% despite higher fuel costs, and free cash flow rose 20%. Revenue and free cash flow are expected at the high end of their ranges for the year.
He said the healthcare solutions business, built through an acquisition, grew revenue year over year for the first time since the deal, while its operating EBITDA rose 33%.
Morris said management will not give 2027 guidance until next quarter's call.
Morris takes over as CEO in early January, and the first call under his leadership comes next quarter, when WM is due to give its 2027 outlook.
Sources
- Waste Management Logs Higher 3Q Profit, Revenue — MarketWatch
- Compared to Estimates, Waste Management (WM) Q3 Earnings: A Look at Key Metrics — Yahoo Finance
- Waste Management (WM) Lags Q3 Earnings Estimates — Yahoo Finance
- Waste Management falls as quarterly earnings miss estimates, costs rise (WM:NYSE) | Seeking Alpha — seekingalpha.com
- WM Announces Third Quarter 2026 Earnings — businesswire.com
