Waste Management, Inc. Earnings Recaps
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.