Trash and the Hunger for Power: How Waste Management, Zefiro Methane, and NextEra Energy Are Doing Good - and Making Money

Waste Management: Medical Waste as a New Growth Market

Waste Management (WM) is now North America's largest waste management company. With a market capitalization of around USD 90 billion, the Texas-based company has risen to become the country's leading provider. At first glance, Waste Management appears to be a traditional waste management company. Waste is collected from households or businesses, sorted, and disposed of in its own landfills. However, high-tech solutions are employed in the process, making it a highly technologically advanced environmental service provider and energy producer today. Artificial intelligence is used, for example, in the sorting of waste. With its broad positioning and defensive business model, Waste Management is a relatively stable investment in a broadly diversified portfolio. This allows the company not only to cover the entire value chain but also to maintain the necessary infrastructure: from garbage trucks to its own landfills.

Nevertheless, the company's stock also suffered from the war in the Persian Gulf, albeit moderately. The shares have lost about 10% of their value since early March. Yet Waste Management possesses more than just defensive qualities. In 2025, the company saw revenue grow by 14% and increased profits to USD 2.71 billion. Furthermore, free cash flow (FCF) rose to approximately USD 2.94 billion, up 27%. In addition to solid growth in its core business, the company prepared for its next major steps. In November 2024, it acquired Stericycle, a leading provider of medical waste disposal services, for USD 7.2 billion. Waste Management expects not only synergy effects (USD 125 million per year) from this acquisition but also a growth area outside its core business.

In the current market environment, the stock should be supported by the buyback program (USD 3 billion). Long-term, the stock is known as a dividend payer, with dividends paid reliably for 22 years. However, the yield is not particularly high at around 1.7% currently.

Zefiro Methane: Where the Wells Leak

More than 150 years of industrialization and an almost insatiable appetite for energy have not left the US unscathed. Across the country, there are countless abandoned or orphaned oil and gas wells. In many cases, former operators simply walked away, went bankrupt, or failed to properly seal the wells, leaving the rest of society to deal with the consequences. Methane escapes from these wells, and it is one of the most potent greenhouse gases, with a heat-trapping effect up to 80 times stronger than that of carbon dioxide. The causes are varied: corrosion in aging steel casings, cement sheaths that fail to perform as intended (cement is brittle), or simply poor sealing practices during decommissioning.

Zefiro Methane Corp. has focused specifically on this problem. There is a lot of work to be done here - there are an estimated 2.2 million abandoned oil and gas wells in the US alone. According to the company, the market volume is estimated at USD 400 to 600 billion. And the US is now taking action: the government has allocated a total of USD 4.7 billion through the states to seal these wells! Zefiro is well-positioned to benefit from the extensive and growing portfolio of government-funded projects. To date, the company has won approximately 25% of the government-initiated contracts in its core regions. The company's focus is on the Appalachian region, where a particularly large number of abandoned wells are located. In the state of New York, Zefiro is currently the only service provider offering this solution.

Zefiro Methane takes an integrated approach that combines environmental remediation with opportunities in the financial markets. In addition to its core business of plugging abandoned wells, the company is also focusing on CO₂ credits. This is because avoided emissions can now be monetized. Buyers of these credits are companies seeking to achieve their net-zero goals. Not least, the company has begun licensing its own technology to third-party providers.

If management successfully leverages the technology's potential, Zefiro Methane is poised for a growth cycle. In the past 12 months alone, the company has sealed 413 wells. If the company grows large enough, it could also become an attractive segment for major oilfield service providers. Two institutional investors from Europe also appear to see more upside than risk. They recently invested CAD 4.5 million in Zefiro through a capital increase. With the fresh funds, the company aims to accelerate growth and potentially acquire profitable businesses.

NextEra Energy: Solid and AI-Driven Attractive

Everything related to artificial intelligence was hyped on the stock markets in 2025. This led investors to realize that all those data centers also require enormous amounts of energy, bringing NextEra Energy's stock into focus. Despite the challenging environment, the stock has gained a solid 20% since the start of the year. With a market capitalization of around USD 198 billion, it is certainly no lightweight.

NextEra Energy is actually a run-of-the-mill utility company. Its primary segment consists of Florida Power & Light (FPL), the largest regulated utility in the US. FPL supplies electricity to Florida and effectively holds a government-approved monopoly. Returns on investments in the power grid and generation are virtually guaranteed and have historically averaged over 10% on capital employed. Currently, the company is also benefiting from Florida's high population growth. Furthermore, it plans to implement a massive investment program by 2032, investing up to USD 100 billion in modernization and solar and storage capacity. In this business, NextEra Energy generates predictable cash flows.

The second segment is more volatile. NextEra Energy Resources (NEER) is the group's growth engine. It is the world's largest operator of wind and solar farms as well as battery storage facilities. Here, once projects are completed, electricity is sold to industrial customers under long-term contracts. The supercycle among AI hyperscalers, who plan to invest hundreds of billions in data centers, is driving this segment. As of the end of the first quarter of 2026, the order backlog for new projects stands at a record high of around 33 gigawatts. Now, the company even aims to push forward with the restart of the Duane Arnold nuclear power plant to provide baseload power for AI centers. Management traditionally shares the company's success with shareholders through dividends. The current dividend yield of around 2% is respectable for a rapidly growing company.

With Waste Management, investors are betting on an established, broadly diversified company that should continue to generate profits even during recessions. Zefiro Methane is a high-growth small-cap company tapping into a massive US market by plugging orphaned oil and gas wells. NextEra Energy has a solid foothold in Florida and can benefit from the high energy demand driven by the data center boom.