speaker
Tara
SVP, Brokerage

That includes domestic, and it includes a whole host of markets across the entire world, so we're in a good spot.

speaker
Jim Fisk
President and CEO

I'm not sure, Tara, whether it was precocious or just luck, but the fact that not that long ago, five years ago, all of ROCC was going to China, and now virtually none of it is going to China. whether it was lock or whether it was whether it was, you know, intentional, we'll take it.

speaker
Tara
SVP, Brokerage

Yeah. And you know, our brokerage team, I can't say enough positive things about them. It's a true differentiator for WM.

speaker
Jim Fisk
President and CEO

We'll chalk it up to good foresight. Thank you.

speaker
Tara
SVP, Brokerage

Appreciate it.

speaker
Operator
Conference Operator

Thank you. Now our next question coming from the lineup. James Schoen with TD Collin. Your line is now open.

speaker
James Schoen
Analyst, TD Cowen

Hey, thanks and good morning, everyone. Davina, it's clear on the SG&A opportunity getting down to 15% after three years, but is there anything structurally different about Stericycle such that you would not be able to get SG&A down to more of your corporate level of 9% or 10% over maybe several years or years? If you know what. So what's the ultimate destination here on the timing there.

speaker
Davina
Chief Financial Officer

Yeah, it's a great question. And, you know, the, the nine and a half percent call it for WM total company that we've talked about would definitely be the ultimate goal. So we've also talked about if you think about Sarah cycle and the WM healthcare solutions business more like one of our geographic areas. where ultimately we should have a corporate back office for WM Healthcare Solutions, just the same way that we have a back office that serves our Florida area. That means that the roadway should be to an even lower SG&A as a percentage of revenue. And for context, those businesses operate in sub 5% territory. Structurally, the one thing that is fundamentally going to be different for those two businesses is that they run on their own ERP system and they won't be integrated for some time for the foreseeable future into the WM ERP system. There will be two distinct systems. So that is the one structural difference that I think is important as we've evaluated all other elements we really do think that a total path to realizing an optimized cost structure should exist, and we're working hard to get there.

speaker
James Schoen
Analyst, TD Cowen

Got it. Thank you. And then, so just on the longer-term outlook for the star cycle or healthcare or really, you know, Stericycle businesses, their outlook was longer-term revenue growth of 3% to 5% on the top line and EBITDA growth of 13% to 17% annually. I know those were their targets, but they were in your slides. Are those something that we should look at, or how are you guys thinking about that?

speaker
Jim
Head of WM Healthcare Solutions

We don't think that there's anything wrong or different with those targets. Obviously, The first opportunity that we are taking on is the reduction of the operating expenses and the SG&A. So on the cost side, you're beginning to see that show up a lot sooner. We've talked about the fact that we're still framing the cross-selling opportunities. We think those are going to be vast. I kind of framed for you a little bit of what the shared wallet looks like today. I think to look at it a little bit differently, if you look at the at the percentage of revenue from our collection and disposal business that comes from the same customer base. It's about 5% low single digits, so a lot of opportunity there. I think it's important also to remember that some of what has inhibited sort of the top line growth here has to do with the ERP implementation, what it should be facilitating better delivery of the service. it actually took them backwards. And so now we're kind of unraveling and solving foundationally for that. That's going to unlock a lot of opportunity. I'll give you one interesting example. As we kind of developed the contract data mark for the WM Healthcare Solutions business, we've now added every single customer with over $50,000 in annual revenue. And we're seeing a vast opportunity of over 1,000 contracts, almost $200 million in revenue that has lagging PIs or overlooked PIs, for example.

speaker
Davina
Chief Financial Officer

Jim, one thing that I just want to clarify really quickly is in terms of confirming or clarifying what our long-range outlooks, both for top line and EBITDA growth of the business in the next three to five years, we plan to really outline that at the investor day. So at this point in time, we don't want to confirm or adopt the previous stericycle EBITDA growth. We will instead give you specifics about what we see that being in the next three to five years when we're together in June.

speaker
James Schoen
Analyst, TD Cowen

Okay, great. Understood. Thank you very much.

speaker
Operator
Conference Operator

Thank you. Our next question, coming from the lineup, Stephanie Moore with Jefferies. Your line is now open. Hi.

speaker
Stephanie Moore
Analyst, Jefferies

Thank you. Just one for me. I wanted to touch on this. maybe progress you're making on the labor force. I know it's been a multi-year initiative, all in the backdrop of what's been a pretty challenging labor force or labor environment. So if you could talk a little bit about, you know, where labor turnover stands today, you know, an update on your journey of kind of optimizing labor, I believe through attrition and other, and the implementation of technology. So, you know, kind of give us an update on the labor journey and then maybe at the same token, you know, what technology or any other technology you've rolled out to help you achieve your targets. Thanks.

speaker
John
COO

Yeah, Stephanie, this is John. A couple of questions there. One, specifically, to date, we've reduced about 2,600 rolls or the need to refill 2,600 rolls. And that's important because what we've done is done this, as Jim has said, I've said, Davina said at different points, we've done this through natural attrition. And for 2025, we look to have the same repeat to the tune of about 940 roles that we won't replace as we go through 2025. And the majority of that's going to come through the efforts of Tara's team in automating some of the recycling facilities and another large contingent will come from the continued automation of our residential business. Those are two of the big buckets. But I think when you look further out about what we're doing with technology, I won't bore you with all the details, but there's a lot going on. For instance, in fleet planning and scheduling, we're bringing some technology to bear. That's going to allow us to more efficiently move our assets in and out of the repair facilities to improve efficiency, reduce labor dependency. We're using technology to help augment some of the skill gaps as we upskill some of these employees and using technology, for instance, to be able to help our technical folks work collectively across the network to be able to make some of the repairs. So I would tell you we're very excited about what's going on on the technology front that's going to further augment this effort around reducing labor dependency.

speaker
Stephanie Moore
Analyst, Jefferies

Great. Thank you so much.

speaker
Operator
Conference Operator

Thank you. And I'm showing up for the questions on the Q&A queue at this time. I will now turn the call back over to Mr. Jim Fisk, resident and CEO, for any closing remarks.

speaker
Jim Fisk
President and CEO

Okay. Thank you all for your questions this morning. The themes we really wanted to convey today, I think we did a good job of getting them across. We wanted to convey that we were that we were consistent with our performance and have been for quite a long time, and that didn't change this quarter, and we're certainly on track for our guidance for the year. We were encouraged by what we saw in terms of volume in March and April after a couple of pretty tough months in January and February. Relatively little impact in 2025. Single digits, John, right, on tariffs. Very low. definitely on track for our sustainability investments and our WM Healthcare Solutions. So hopefully that all came across. Thank you all for joining us this morning. We look forward to seeing you in June, hopefully at our New York City Investor Day.

speaker
Operator
Conference Operator

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

Disclaimer

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