Waste Management, Inc. Earnings Recaps
Q2 2026
Jul 31, 2026
Shares declined 5.5% as investors reacted negatively to meaningful margin pressure and a cautious outlook, despite management’s assertions of operational strength and ongoing investment in growth areas.
Key takeaways
- Operating EBITDA grew 5.5% (9.1% ex-wildfire cleanup), but margins faced a 100 basis point combined headwind from wildfire-related volume comparisons and higher energy surcharges, limiting expansion to only 40 basis points.
- The core collection and disposal business showed some profit improvement through pricing discipline and cost controls, yet these gains were partially offset by external margin pressures.
- Recycling and renewable energy initiatives drove a 33% operating EBITDA growth in those segments, contributing a modest 30 basis point uplift to company-wide margin.
- Healthcare Solutions expanded operating EBITDA margins by 200 basis points, benefiting from cross-selling and cost synergies, but remain a smaller portion of total earnings.
- Management highlighted disciplined capital allocation and $235 million in tuck-in solid waste acquisitions, but cautious commentary around acquisition cadence and leverage targets signals restrained growth expectations.
Q1 2026
Apr 30, 2026
WM reported first quarter 2026 results that were broadly in line with market expectations, with shares closing up 2.3% following the announcement. Management reiterated confidence in the full-year outlook, supported by healthy operating EBITDA growth and solid free cash flow.
Key takeaways
- Q1 operating EBITDA grew nearly 6% year-over-year, led by the Collection and Disposal business and contributions from Sustainability investments.
- Free cash flow reached $920 million in the quarter, almost doubling versus prior year, enabling $730 million in capital returns to shareholders.
- Sustainability business operating EBITDA benefited from the completion of seven new renewable natural gas facilities, while Recycling delivered 18% operating EBITDA growth despite a 27% decline in pricing.
- Healthcare Solutions saw operating EBITDA growth of nearly 12%, though revenue remained impacted by prior year volume losses; management expects revenue inflection in H2 2026.
- Operating expenses as a percentage of revenue improved by 70 basis points to under 60%; Collection and Disposal margins expanded approximately 110 basis points year-over-year.
Q3 2025
Oct 29, 2025
Our strong third quarter performance was underscored by significant operating EBITDA growth of over 15% and a notable free cash flow increase of nearly 33%, reflecting the resilience of our business model and strategic investments.
Key takeaways
- Operating EBITDA growth exceeded 15%, driven by robust performance in our collection and disposal segment, which contributed over half of the year-over-year increase.
- Free cash flow surged nearly 33%, with an early outlook for 2026 suggesting it could approach $3.8 billion.
- Growth in municipal solid waste (MSW) and special waste volumes each increased by 5%, bolstered by new event work and enhanced pricing strategies.
- Strong performance in the recycling segment resulted in an 18% increase in operating EBITDA, despite recycled commodity prices declining significantly.
- Successful integration of WM Healthcare Solutions is creating cross-selling opportunities, exemplified by a $5 million increase in annual spend from a major hospital client.