Waste Management, Inc. Q1 2026 Earnings Recap

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.