WM Announces Third Quarter 2026
Strong Cash Flow from Operations Supports Return of $957 Million to Shareholders During the Quarter
Healthcare Solutions Increases Income from Operations by $41 Million Driven by 3.7% Revenue Growth and Growing Cost Improvements Houston— October 27 , 2026— WM (NYSE: WM) today announced financial results for the quarter ended September 30, 2026.
“WM delivered another quarter of solid operating and financial performance, in line with our expectations, underscoring the consistent execution of our strategy,” said Jim Fish, WM’s CEO. “Adjusted operating EBITDA increased 5.8% in the third quarter driven by strong price-to-cost spread in Collection and Disposal and growing contributions from our healthcare and sustainability businesses. Notably, Healthcare Solutions revenue grew 3.7% in the quarter and operating EBITDA increased more than 30%, driven by effective cost management, synergy capture, and pricing growth. Overall, our results reflect the earnings power of our diversified business and our ability to consistently create value for shareholders.”(
Fish continued, “The quality of our earnings is evident in the strength of our cash flow generation. Net cash flow from operations increased 12% through the first nine months of the year, reflecting disciplined operational execution and continued strong returns on investments that are improving productivity, enhancing service and supporting sustainable long-term growth. We are affirming our 2026 guidance ranges, as we remain on track to meet our financial objectives.”
Total Company revenue grew 6.3%, driven by core price of 5.8% and Collection and Disposal yield • of 3.4%. In addition to disciplined execution on pricing, revenue growth was driven by increased energy surcharges and higher volumes in the recycling and renewable energy businesses as a result of completed growth projects.(e)(f)
Collection and Disposal volume declined 0.4%, or declined 0.5% on a workday adjusted basis. Volumes • continued to be impacted by the Company’s intentional shedding of lower-margin residential business and commercial declines largely related to prior national account broker losses.
Operating expenses were 59.8% of revenue, compared to 58.9% in the prior year. Operating efficiency • in the Collection and Disposal business drove a 40-basis point improvement, which was more than offset by dilutive impacts of 130 basis points primarily related to higher fuel costs and increased risk management costs.
SG&A expenses were 9.6% of revenue, or 9.3% on an adjusted basis, an • improvement of 70 basis points both on a reported and adjusted basis from the prior year, reflecting strong cost discipline and continued synergy capture in Healthcare Solutions.(a)
Favorable price-to-cost spread in the Collection and Disposal business contributed 40 basis points to adjusted operating EBITDA margin, and Healthcare Solutions operating performance added another 30 basis points. These contributions were more than offset by 40 basis points related to higher fuel costs and 40 basis points related to increased risk management costs. Overall, adjusted operating EBITDA margin compressed by 10 basis points • compared to the prior year period. (a) ──────────────────────────────────────────────────────────────────────────────
Through the first nine months of the year, the Company generated $4.87 billion of • net cash provided by operating activities. The 12.0% increase from the prior year was driven by earnings growth and favorable working capital.
Through the first nine months of the year, free cash flow was $3.01 billion, • compared to $2.11 billion in the prior year period, an increase of more than 42%. Conversion of adjusted operating EBITDA to free cash flow was 50% in the first nine months of the year.(a)
The Company returned $957 million to shareholders in the third quarter, consisting of $580 million in share repurchases and $377 million in cash dividends, bringing returns to shareholders in the first nine months of the year to more than $2.72 billion, which is • more than 90% of free cash flow generated during the period and reflects the Company’s commitment to harvesting the benefits of its investments. Through the first nine months of the year, the Company repurchased $1.58 billion of its shares and continues to expect to repurchase a total of $2 billion of its shares in 2026.
During • the quarter, the Company began operations at a new renewable natural gas facility in New York, marking its eighteenth new facility completed since 2022.
The Company expects to achieve its full-year financial guidance, with revenue expected • to be at the high end of the guidance range of $26.275 to $26.475 billion, adjusted operating EBITDA to be within the guidance range of $8.15 to $8.25 billion, and free cash flow to be at the high end of the guidance range of $3.75 to $3.85 billion.(a)
The information labeled as adjusted in this press release, as well as free (a) cash flow, are non-GAAP measures. Please see “Non-GAAP Financial Measures” below and the reconciliations in the accompanying schedules for more information.
Management defines operating EBITDA as GAAP income from operations before (b) depreciation, depletion, amortization and accretion; this measure may not be comparable to similarly titled measures reported by other companies.
Beginning in 2026, landfill accretion expense was moved from operating expenses to depreciation, depletion, (c) amortization, and accretion. Landfill accretion expense in the three months ended September 30, 2026 and 2025 was $39 million and $35 million, respectively. For comparability purposes, 2025 actuals have been updated to reflect that change.
For (d) purposes of this press release, all references to “Net income” refer to the financial statement line item “Net income attributable to Waste Management, Inc.”
Core price is a performance metric used by management to evaluate the effectiveness of our pricing strategies; it is not derived from our financial statements and may not (e) be comparable to measures presented by other companies. Core price is based on certain historical assumptions, which may differ from actual results, to allow for comparability between reporting periods and to reveal trends in results over time.
The Company’s blended average price received for single stream recycled commodities sold during the quarter was about $82 per ton compared to about $68 per ton in the prior year period. The average price received for Renewable Fuel Standard credits was $2.32 during the quarter compared to $2.56 in the (f) prior year period. The average price received for natural gas was $2.56 per MMBtu during the quarter compared to $2.46 per MMBtu in the prior year period. The average price received for electricity was about $78 per megawatt hour in the quarter compared to about $73 per megawatt hour in the prior year period.
The Company will host a conference call at 10 a.m. ET on October 28, 2026, to discuss the third quarter 2026 results. Information contained within this press release will be referenced and should be considered in conjunction with the call.
Listeners can access a live audio webcast of the conference call by visitinginvestors.wm.com and selecting “Events & Presentations” from the website menu. A replay of the audio webcast will be available at the same location following the conclusion of the call.
Conference call participants shouldregister to obtain their dial in and passcode details. This streamlined process improves security and eliminates wait times when joining the call. about wm WM ( WM.com) is North America's leading provider of comprehensive environmental solutions. Previously known as Waste Management and based in Houston, Texas, WM is driven by commitments to put people first and achieve success with integrity. WM, through its subsidiaries, provides collection, recycling and disposal services to millions of residential, commercial, industrial, medical and municipal customers throughout the U.S. and Canada. With innovative infrastructure and capabilities in recycling, organics and renewable energy, WM provides environmental solutions to and collaborates with its customers in helping them pursue their sustainability goals. In North America, WM has the largest disposal network and collection fleet, is the largest recycler and is a leader in beneficial use of landfill gas, with a growing network of renewable natural gas plants and the most landfill gas-to-electricity plants, as well as the largest heavy-duty natural gas truck fleet in the industry. WM, through its subsidiaries, also provides collection and disposal services of regulated medical waste and secure information destruction services in the U.S., Canada and Western Europe. To learn more about WM and the company's sustainability progress and solutions, visit Sustainability.WM.com. Forward-Looking Statements The Company, from time to time, provides estimates or projections of financial and other data, comments on expectations relating to future periods and makes statements of opinion, view or belief about current and future events, circumstances or performance. This press release contains a number of such forward-looking statements, including all statements regarding financial guidance and achievement of 2026 guidance; future growth, earnings, value creation, performance, cash flow generation, outlook, and results of our business; future share repurchases; and execution, results and benefits from operational initiatives and investments. You should view these statements with caution. They are based on the facts and circumstances known to the Company as of the date the statements are made. These forward- looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those set forth in such forward-looking statements, including but not limited to, failure to implement our optimization, automation, growth, and cost savings initiatives and overall business strategy; failure to obtain the results anticipated from strategic initiatives, investments, acquisitions, or new lines of business; failure to identify acquisition targets, consummate and integrate acquisitions, including our ability to integrate the acquisition of Stericycle, Inc. (which is now presented as our Healthcare Solutions segment) and achieve the anticipated benefits therefrom, including synergies; legal, regulatory, operational, technological and other matters that may affect the costs and timing of our ability to integrate and deliver all of the expected benefits of the Stericycle, Inc. acquisition; existing or new environmental and other regulations, including developments related to emerging contaminants, gas emissions, renewable energy, recyclables, extended producer responsibility and our natural gas fleet; significant
environmental, safety or other incidents resulting in liabilities or brand damage; failure to obtain and maintain necessary permits due to land scarcity, public opposition or otherwise; diminishing landfill capacity, resulting in increased costs and the need for disposal alternatives; failure to attract, hire and retain key team members and a high quality workforce; increases in labor costs due to union organizing activities or changes in wage- and labor-related regulations; disruption and costs resulting from severe weather and destructive climate events; failure to achieve our sustainability goals or execute on our sustainability-related strategy and initiatives, including within planned timelines or anticipated budgets due to disruptions, delays, cost increases or changes in environmental or tax regulations and incentives; focus on, and regulation of, environmental and sustainability-related disclosures, which could lead to increased costs, risk of non-compliance, brand damage and litigation risk related to our sustainability efforts; macroeconomic conditions, geopolitical conflict and large-scale market disruption resulting in labor, supply chain and transportation constraints, inflationary cost pressures and fluctuations in commodity prices, fuel and other energy costs; increased competition and pricing pressure; impacts from international trade restrictions and tariffs; competitive disposal alternatives, diversion of waste from landfills and declining waste volumes; changes in general economic conditions, capital markets or consumer trends; changing conditions in the recycling industry, including impacts on demand, pricing and availability of counterparties; changing conditions in the healthcare industry; adoption of new tax legislation; fuel shortages; failure to develop and protect new technology; failure of technology to perform as expected; inability to adapt and manage the benefits and risks of artificial intelligence; failure to prevent, detect and address cybersecurity incidents or comply with privacy regulations; negative outcomes of litigation or governmental proceedings, including those acquired through transactions; failure to maintain an effective system of internal control over financial reporting; and operational or management decisions or developments that result in impairment charges. Please also see the Company’s filings with the SEC, including Part I, Item 1A of the Company’s most recently filed Annual Report on Form 10-K, as updated by subsequent Quarterly Reports on Form 10-Q, for additional information regarding these and other risks and uncertainties applicable to its business. The Company assumes no obligation to update any forward-looking statement, including financial estimates and forecasts, whether as a result of future events, circumstances or developments or otherwise. Non-GAAP Financial Measures To supplement its financial information, the Company has presented, and/or may discuss on the conference call, adjusted measures including adjusted earnings per diluted share, adjusted net income, adjusted income from operations and margin, adjusted operating EBITDA and margin, adjusted operating expense and margin, and adjusted SG&A expenses and margin. All adjusted measures and free cash flow are non-GAAP financial measures, as defined in Regulation G of the Securities Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP but believes that also discussing non-GAAP measures provides investors with (i) financial measures the Company uses in the management of its business and (ii) additional, meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance and are not representative or indicative of its results of operations.
The Company discusses free cash flow and provides a projection of free cash flow because the Company believes that it is indicative of its ability to pay its quarterly dividends, repurchase common stock, fund acquisitions and other investments and, in the absence of refinancings, to repay its debt obligations. The Company believes free cash flow gives investors useful insight into how the Company views its liquidity, but the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that the Company has committed to, such as declared dividend payments and debt service requirements. The Company defines free cash flow as net cash provided by operating activities, less capital expenditures, plus proceeds from divestitures of businesses and other assets (net of cash divested); this definition may not be comparable to similarly-titled measures reported by other companies.
The quantitative reconciliations of non-GAAP measures to the most comparable GAAP measures are included in the accompanying schedules, with the exception of projected adjusted operating EBITDA and margin. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP. FOR MORE INFORMATION
Beginning in 2026, landfill accretion expense was moved from operating expenses to depreciation, depletion, amortization and accretion. Landfill accretion expenses in the three and nine months ended September 30, (a) 2026 were $39 million and $117 million, respectively. Landfill accretion expenses in the three and nine months ended September 30, 2025 were $35 million and $106 million, respectively. For comparability purposes, 2025 actuals have been updated to reflect that change.
September December 30, 31, 2026 2025 ────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 247 $ 201 Receivables, net 4,359 4,055 Other 644 654 Total current assets 5,250 4,910 Property and equipment, net 20,849 20,378 Goodwill 14,002 13,880 Other intangible assets, net 3,544 3,767 Other 2,874 2,900 Total assets $ 46,519 $ 45,835 LIABILITIES AND EQUITY Current liabilities: Accounts payable, accrued liabilities $ 4,862 $ 4,813 and deferred revenues Current portion 1,524 711 of long-term debt Total current liabilities 6,386 5,524 Long-term debt, less current portion 21,846 22,196 Other 8,419 8,124 Total liabilities 36,651 35,844 Equity: Waste Management, Inc. stockholders’ 9,867 9,990 equity Noncontrolling 1 1 interests Total equity 9,868 9,991 Total liabilities $ 46,519 $ 45,835 and equity
Nine Months Ended Cash flows from operating September 30, activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Consolidated net income $ 2,329 $ 1,967 Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation, depletion, amortization 2,304 2,199 and accretion Other 425 662 Change in operating assets and liabilities, net (191 ) (483 ) of effects of acquisitions and divestitures Net cash provided by operating 4,867 4,345 activities Cash flows from investing activities: Acquisitions of businesses, net of (89 ) (395 ) cash acquired Capital expenditures (1,937 ) (2,339 ) Proceeds from divestitures of businesses 79 108 and other assets, net of cash divested Other, net (112 ) (73 ) Net cash used in investing (2,059 ) (2,699 ) activities Cash flows from financing activities: New borrowings 18,644 14,956 Debt repayments (18,668 ) (15,772 ) Common stock repurchase (1,583 ) — program Cash dividends (1,141 ) (1,001 ) Exercise of common stock 41 54 options Tax payments associated with equity-based (40 ) (50 ) compensation transactions Other, net (19 ) (17 ) Net cash used in financing (2,766 ) (1,830 ) activities Effect of exchange rate changes on cash, cash equivalents and (7 ) 5 restricted cash and cash equivalents Increase (decrease) in cash, cash equivalents and 35 (179 ) restricted cash and cash equivalents Cash, cash equivalents and restricted 297 487 cash and cash equivalents at beginning of period Cash, cash equivalents and restricted $ 332 $ 308 cash and cash equivalents at end of period
Includes each segment’s intercompany activity, including transactions within a segment and between segments. (a) Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.
Calculated by dividing the increase or decrease for the current year period by the prior year period’s related business revenues adjusted (a) to exclude the impacts of divestitures for the current year period. ──────────────────────────────────────────────────────────────────────────────
Calculated by dividing the increase or decrease for the current year period by the prior year period’s total Company revenues adjusted (b) to exclude the impacts of divestitures for the current year period. ──────────────────────────────────────────────────────────────────────────────
Includes combined impact of commodity price variability in both our Recycling Processing and Sales and Renewable (c) Energy segments, as well as changes in certain recycling fees charged by our collection and disposal operations.
The amounts reported herein represent the (e) change in our revenues from the combined impacts of yield and volume, and exclude energy surcharges, attributable to our Healthcare Solutions segment.
The summary of free cash flow has been prepared to highlight and facilitate understanding of the principal cash flow elements. Free cash (a) flow is not a measure of financial performance under generally accepted accounting principles and is not intended to replace the consolidated statement of cash flows that was prepared in accordance with generally accepted accounting principles.
Represents amounts associated with business (b) acquisitions consummated during the applicable period except where noted.
For purposes of this press release table, (a) all references to “Net income” refer to the financial statement line item “Net income attributable to Waste Management, Inc.”
The three months ended September 30, (b) 2026 primarily includes an $18 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier.
The Company calculates its effective tax rate based on actual dollars. When the effective tax rate is calculated by dividing the Tax Expense amount in the table above by the Pre-tax Income amount, differences occur due to rounding, as these items have been rounded in millions. The three months ended September 30, 2026 and 2025 adjusted effective tax rates are 21.5% and 21.9%, (c) respectively. ──────────────────────────────────────────────────────────────────────────────
Beginning in 2026, landfill accretion expense was moved from operating expenses to depreciation, depletion, amortization (d) and accretion. Landfill accretion expenses in the three months ended September 30, 2026 and 2025 are $39 million and $35 million, respectively. For comparability purposes, 2025 results have been updated to reflect that change.
The three months ended September 30, 2025 includes (i) a $152 million impairment charge related to the decision to suspend the operations (e) of a business; (ii) a $45 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier and (iii) an $11 million negotiated payment for early termination of a contract in our Renewable Energy segment.
Certain fees related to the processing of recyclable material we collect are included within (a) our Collection and Disposal business. The amounts in Income from Operations for the three months ended September 30, 2026 and 2025 are $21 million and $19 million, respectively.
Renewable Energy pays a 15% intercompany royalty to our Collection and Disposal business and Corporate and Other (b) for landfill gas. The total amount of royalties in Income from Operations for the three months ended September 30, 2026 and 2025, are $25 million and $17 million, respectively.
Beginning in 2026, landfill accretion expense was moved from operating expenses to depreciation, depletion, amortization and accretion. (c) Landfill accretion expenses in the three months ended September 30, 2026 and 2025 are $39 million and $35 million, respectively. For comparability purposes, 2025 results have been updated to reflect that change.
The three months ended September 30, (d) 2026 primarily includes an $18 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier.
The three months ended September 30, 2025 includes (i) a $152 million impairment charge related to the decision to suspend the operations (e) of a business; (ii) a $45 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier and (iii) an $11 million negotiated payment for early termination of a contract in our Renewable Energy segment.
Three Three Months Months Ended Ended September September 30, 2026 30, 2025⁽ᵃ⁾ ────────────────────────────────────────────────────────────────────────────── Adjusted Operating Expenses and Adjusted Operating Expenses Margin Operating revenues, $ 6,846 $ 6,443 as reported Operating expenses, $ 4,093 $ 3,798 as reported As a % of net 59.8 % 58.9 % revenues Adjustment… Collective bargaining (2 ) — agreement costs Stericycle acquisition and — (3 ) integration costs Operating expenses, $ 4,091 $ 3,795 as adjusted As a % of net 59.8 % 58.9 % revenues Three Three Months Ended Months Ended September September 30, 2026 30, 2025 Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin Operating revenues, $ 6,846 $ 6,443 as reported SG&A expenses, $ 655 $ 665 as reported As a % of net 9.6 % 10.3 % revenues Adjustment: Stericycle acquisition and (21 ) (22 ) integration costs SG&A expenses, $ 634 $ 643 as adjusted As a % of net 9.3 % 10.0 % revenues 2026 Year Projected Ended Free Cash December 31, Flow 2026 Reconcilia… Net cash provided by $ 6,500 operating activities Capital expenditur… to support (2,500 ) the business Proceeds from divestitur… of businesses 100 and other assets, net of cash divested Free cash flow without $ 4,100 sustainabi… growth investments Capital expenditur… - (250 ) sustainabi… growth investments Free cash $ 3,850 flow
Beginning in 2026, landfill accretion expense was moved from operating expenses to depreciation, depletion, amortization and accretion. (a) Landfill accretion expenses in the three months ended September 30, 2026 and 2025 are $39 million and $35 million, respectively. For comparability purposes, 2025 results have been updated to reflect that change.
The amounts used in the reconciliation are (b) subject to many variables, some of which are not under our control and, therefore, are not necessarily indicative of actual results.
(Unaudited) Diversity in the structure of recycling contracts results in different accounting treatment for commodity rebates. In accordance with revenue recognition guidance, our Company records gross recycling revenue and records rebates paid to customers as cost of goods sold. Other contract structures allow for netting of rebates against revenue.
The table below illustrates the impact that differing contract structures have on the Company’s adjusted operating EBITDA margin results. This information has been provided to enhance comparability and is not intended to replace or adjust GAAP reported results.
Full text with the tables
Exhibit 99.1
WM Announces Third Quarter 2026
Earnings
Strong Cash Flow from Operations Supports Return
of $957 Million to Shareholders During the Quarter
Healthcare Solutions Increases Income from Operations
by $41 Million
Driven by 3.7% Revenue Growth and Growing Cost Improvements
Houston— October 27 , 2026— WM (NYSE: WM) today announced financial results for
the quarter ended September 30, 2026.
September September 30,
30, 2026 2025
(in millions, (in millions,
Three except per Three except per
Months Ended share amounts) Months Ended share amounts)
──────────────────────────────────────────────────────────────────────────────
As As As As
Reported Adjusted(a) Reported Adjusted(a)
Revenue $6,846 $6,846 $6,443 $6,443
Income
from $1,279 $1,329 $989 $1,241
Operations
Operating $2,071 $2,121 $1,753 $2,005
EBITDA(b) (c)
Operating 30.3% 31.0% 27.2% 31.1%
EBITDA Margin
Net Income(d) $820 $858 $603 $801
Diluted $2.05 $2.15 $1.49 $1.98
EPS
“WM delivered another quarter of solid operating and financial performance, in
line with our expectations, underscoring the consistent execution of our
strategy,” said Jim Fish, WM’s CEO. “Adjusted operating EBITDA increased 5.8% in
the third quarter driven by strong price-to-cost spread in Collection and
Disposal and growing contributions from our healthcare and sustainability
businesses. Notably, Healthcare Solutions revenue grew 3.7% in the quarter and
operating EBITDA increased more than 30%, driven by effective cost management,
synergy capture, and pricing growth. Overall, our results reflect the earnings
power of our diversified business and our ability to consistently create value
for shareholders.”(
Fish continued, “The quality of our earnings
is evident in the strength of our cash flow generation. Net cash flow from
operations increased 12% through the first nine months of
the year, reflecting disciplined operational execution and continued strong
returns on investments that are improving productivity, enhancing
service and supporting sustainable long-term growth. We are affirming our 2026
guidance ranges, as we remain on track to meet our financial
objectives.”
KEY HIGHLIGHTS FOR the Third quarter OF 2026
Total
Company revenue grew 6.3%, driven by core price of 5.8% and Collection
and Disposal yield
• of 3.4%. In addition to disciplined execution on pricing, revenue growth
was driven by increased
energy surcharges and higher volumes in the recycling and renewable
energy businesses as
a result of completed growth projects.(e)(f)
Collection
and Disposal volume declined 0.4%, or declined 0.5% on a workday adjusted
basis. Volumes
• continued to be impacted by the Company’s intentional shedding of
lower-margin residential
business and commercial declines largely related to prior national
account broker losses.
Operating
expenses were 59.8% of revenue, compared to 58.9% in the prior year.
Operating efficiency
• in the Collection and Disposal business drove a 40-basis point
improvement, which was more
than offset by dilutive impacts of 130 basis points primarily related to
higher fuel costs and increased risk management costs.
SG&A
expenses were 9.6% of revenue, or 9.3% on an adjusted basis, an
• improvement of 70 basis points
both on a reported and adjusted basis from the prior year, reflecting
strong cost discipline
and continued synergy capture in Healthcare Solutions.(a)
Favorable
price-to-cost spread in the Collection and Disposal business contributed
40 basis points
to adjusted operating EBITDA margin, and Healthcare Solutions operating
performance added
another 30 basis points. These contributions were more than offset by 40
basis points
related to higher fuel costs and 40 basis points related to increased
risk management
costs. Overall, adjusted operating EBITDA margin compressed by 10 basis
points
• compared to the prior year period. (a)
──────────────────────────────────────────────────────────────────────────────
Through
the first nine months of the year, the Company generated $4.87 billion of
• net cash provided
by operating activities. The 12.0% increase from the prior year was
driven by earnings growth
and favorable working capital.
Through
the first nine months of the year, free cash flow was $3.01 billion,
• compared to $2.11 billion
in the prior year period, an increase of more than 42%. Conversion of
adjusted operating
EBITDA to free cash flow was 50% in the first nine months of the year.(a)
The
Company returned $957 million to shareholders in the third quarter,
consisting of $580 million
in share repurchases and $377 million in cash dividends, bringing returns
to shareholders
in the first nine months of the year to more than $2.72 billion, which is
• more than 90% of
free cash flow generated during the period and reflects the Company’s
commitment to
harvesting the benefits of its investments. Through the first nine months
of the year, the
Company repurchased $1.58 billion of its shares and continues to expect
to repurchase a total
of $2 billion of its shares in 2026.
During
• the quarter, the Company began operations at a new renewable natural gas
facility in New
York, marking its eighteenth new facility completed since 2022.
The
Company expects to achieve its full-year financial guidance, with revenue
expected
• to be at the high end of the guidance range of $26.275 to $26.475
billion, adjusted operating
EBITDA to be within the guidance range of $8.15 to $8.25 billion, and
free cash flow to be
at the high end of the guidance range of $3.75 to $3.85 billion.(a)
The
information labeled as adjusted in this press release, as well as free
(a) cash flow, are non-GAAP
measures. Please see “Non-GAAP Financial Measures” below and the
reconciliations
in the accompanying schedules for more information.
Management
defines operating EBITDA as GAAP income from operations before
(b) depreciation, depletion, amortization
and accretion; this measure may not be comparable to similarly titled
measures reported by
other companies.
Beginning
in 2026, landfill accretion expense was moved from operating expenses
to depreciation, depletion,
(c) amortization, and accretion. Landfill accretion expense in the three
months ended September
30, 2026 and 2025 was $39 million and $35 million, respectively. For
comparability purposes,
2025 actuals have been updated to reflect that change.
For
(d) purposes of this press release, all references to “Net income” refer to
the financial
statement line item “Net income attributable to Waste Management, Inc.”
Core
price is a performance metric used by management to evaluate the
effectiveness of our pricing
strategies; it is not derived from our financial statements and may not
(e) be comparable to
measures presented by other companies. Core price is based on certain
historical assumptions,
which may differ from actual results, to allow for comparability
between reporting periods
and to reveal trends in results over time.
The
Company’s blended average price received for single stream recycled
commodities sold
during the quarter was about $82 per ton compared to about $68 per ton
in the prior year
period. The average price received for Renewable Fuel
Standard credits was $2.32 during the quarter compared to $2.56 in the
(f) prior year period.
The average price received for natural gas was $2.56 per MMBtu during
the quarter compared
to $2.46 per MMBtu in the prior year period. The average price received
for electricity was about
$78 per megawatt hour in the quarter compared to about $73 per megawatt
hour in the prior
year period.
The Company will host a conference call at 10
a.m. ET on October 28, 2026, to discuss the third quarter 2026 results.
Information contained within this press release will be referenced
and should be considered in conjunction with the call.
Listeners can access a live audio webcast of the conference call by
visitinginvestors.wm.com and selecting
“Events & Presentations” from the website menu. A replay of the audio webcast
will be available at the same location
following the conclusion of the call.
Conference call participants shouldregister to obtain their dial in and passcode
details. This streamlined
process improves security and eliminates wait times when joining the call.
about wm
WM ( WM.com) is North America's leading provider of comprehensive environmental
solutions. Previously known as Waste Management and based in Houston, Texas, WM
is driven by commitments to put people first and achieve success with integrity.
WM, through its subsidiaries, provides collection, recycling and disposal
services to millions of residential, commercial, industrial, medical and
municipal customers throughout the U.S. and Canada. With innovative
infrastructure and capabilities in recycling, organics and renewable energy, WM
provides environmental solutions to and collaborates with its customers in
helping them pursue their sustainability goals. In North America, WM has the
largest disposal network and collection fleet, is the largest recycler and is a
leader in beneficial use of landfill gas, with a growing network of renewable
natural gas plants and the most landfill gas-to-electricity plants, as well as
the largest heavy-duty natural gas truck fleet in the industry. WM, through its
subsidiaries, also provides collection and disposal services of regulated
medical waste and secure information destruction services in the U.S., Canada
and Western Europe. To learn more about WM and the company's sustainability
progress and solutions, visit Sustainability.WM.com.
Forward-Looking Statements
The Company, from time to time, provides estimates
or projections of financial and other data, comments on expectations relating to
future periods and makes statements of opinion, view
or belief about current and future events, circumstances or performance. This
press release contains a number of such forward-looking
statements, including all statements regarding financial guidance and
achievement of 2026 guidance; future growth, earnings, value creation,
performance, cash flow generation, outlook, and results of our business; future
share repurchases; and execution, results and benefits
from operational initiatives and investments. You should view these statements
with caution. They are based on the facts and circumstances
known to the Company as of the date the statements are made. These forward-
looking statements are subject to risks and uncertainties
that could cause actual results to be materially different from those set forth
in such forward-looking statements, including but not
limited to, failure to implement our optimization, automation, growth, and cost
savings initiatives and overall business strategy; failure
to obtain the results anticipated from strategic initiatives, investments,
acquisitions, or new lines of business; failure to identify
acquisition targets, consummate and integrate acquisitions, including our
ability to integrate the acquisition of Stericycle, Inc. (which
is now presented as our Healthcare Solutions segment) and achieve the
anticipated benefits therefrom, including synergies; legal, regulatory,
operational, technological and other matters that may affect the costs and
timing of our ability to integrate and deliver all of the
expected benefits of the Stericycle, Inc. acquisition; existing or new
environmental and other regulations, including developments related
to emerging contaminants, gas emissions, renewable energy, recyclables, extended
producer responsibility and our natural gas fleet; significant
environmental, safety or other incidents resulting
in liabilities or brand damage; failure to obtain and maintain necessary permits
due to land scarcity, public opposition or otherwise;
diminishing landfill capacity, resulting in increased costs and the need for
disposal alternatives; failure to attract, hire and retain
key team members and a high quality workforce; increases in labor costs due to
union organizing activities or changes in wage- and labor-related
regulations; disruption and costs resulting from severe weather and destructive
climate events; failure to achieve our sustainability
goals or execute on our sustainability-related strategy and initiatives,
including within planned timelines or anticipated budgets due
to disruptions, delays, cost increases or changes in environmental or tax
regulations and incentives; focus on, and regulation of, environmental
and sustainability-related disclosures, which could lead to increased costs,
risk of non-compliance, brand damage and litigation risk
related to our sustainability efforts; macroeconomic conditions, geopolitical
conflict and large-scale market disruption resulting in
labor, supply chain and transportation constraints, inflationary cost pressures
and fluctuations in commodity prices, fuel and other
energy costs; increased competition and pricing pressure; impacts from
international trade restrictions and tariffs; competitive disposal
alternatives, diversion of waste from landfills and declining waste volumes;
changes in general economic conditions, capital markets
or consumer trends; changing conditions in the recycling industry, including
impacts on demand, pricing and availability of counterparties;
changing conditions in the healthcare industry; adoption of new tax legislation;
fuel shortages; failure to develop and protect new technology;
failure of technology to perform as expected; inability to adapt and manage the
benefits and risks of artificial intelligence; failure
to prevent, detect and address cybersecurity incidents or comply with privacy
regulations; negative outcomes of litigation or governmental
proceedings, including those acquired through transactions; failure to maintain
an effective system of internal control over financial
reporting; and operational or management decisions or developments that result
in impairment charges. Please also see the Company’s
filings with the SEC, including Part I, Item 1A of the Company’s most recently
filed Annual Report on Form 10-K, as updated by
subsequent Quarterly Reports on Form 10-Q, for additional information regarding
these and other risks and uncertainties applicable to
its business. The Company assumes no obligation to update any forward-looking
statement, including financial estimates and forecasts,
whether as a result of future events, circumstances or developments or
otherwise.
Non-GAAP Financial Measures
To supplement its financial information, the Company
has presented, and/or may discuss on the conference call, adjusted measures
including adjusted earnings per diluted share, adjusted net
income, adjusted income from operations and margin, adjusted operating EBITDA
and margin, adjusted operating expense and margin, and
adjusted SG&A expenses and margin. All adjusted measures and free cash flow are
non-GAAP financial measures, as defined in Regulation
G of the Securities Exchange Act of 1934, as amended. The Company reports its
financial results in compliance with GAAP but believes
that also discussing non-GAAP measures provides investors with (i) financial
measures the Company uses in the management of its business
and (ii) additional, meaningful comparisons of current results to prior periods’
results by excluding items that the Company does
not believe reflect its fundamental business performance and are not
representative or indicative of its results of operations.
The Company discusses free cash flow and provides
a projection of free cash flow because the Company believes that it is
indicative of its ability to pay its quarterly dividends, repurchase
common stock, fund acquisitions and other investments and, in the absence of
refinancings, to repay its debt obligations. The Company
believes free cash flow gives investors useful insight into how the Company
views its liquidity, but the use of free cash flow as a liquidity
measure has material limitations because it excludes certain expenditures that
are required or that the Company has committed to, such
as declared dividend payments and debt service requirements. The Company defines
free cash flow as net cash provided by operating activities,
less capital expenditures, plus proceeds from divestitures of businesses and
other assets (net of cash divested); this definition may
not be comparable to similarly-titled measures reported by other companies.
The quantitative reconciliations of non-GAAP measures
to the most comparable GAAP measures are included in the accompanying schedules,
with the exception of projected adjusted operating EBITDA
and margin. Non-GAAP measures should not be considered a substitute for
financial measures presented in accordance with GAAP.
FOR
MORE INFORMATION
WM
Website
www.wm.com
Analysts
Ed Egl
713.265.1656
Media
Toni Werner
###
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions, Except per Share Amounts)
(Unaudited)
Three Nine
Mont… Mont…
Ended Ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Ope… $ 6,846 $ 6,443 $ 19,7… $ 18,8…
rev…
Cos…
and
exp…
Ope… 4,093 3,798 11,7… 11,2…
Sel…
gen… 655 665 2,045 2,048
and
adm…
Dep…
dep…
amo… 792 764 2,304 2,199
and
acc…
Res… 9 14 19 39
(Ga…
loss
from
div…
ass… 18 213 2 239
imp…
and
unu…
ite…
net
5,567 5,454 16,1… 15,7…
Inc…
from 1,279 989 3,645 3,153
ope…
Oth…
inc…
(ex…
Int…
exp… (237 ) (225 ) (695 ) (689 )
net
Oth… 2 11 9 27
net
(235 ) (214 ) (686 ) (662 )
Inc…
bef… 1,044 775 2,959 2,491
inc…
tax…
Inc…
tax 224 172 630 524
exp…
Con…
net 820 603 2,329 1,967
inc…
Les…
Net
inc…
(lo… — — 1 1
att…
to
non…
int…
Net
inc…
att…
to $ 820 $ 603 $ 2,328 $ 1,966
Was…
Man…
Inc.
Bas…
ear…
per $ 2.06 $ 1.50 $ 5.80 $ 4.88
com…
sha…
Dil…
ear…
per $ 2.05 $ 1.49 $ 5.79 $ 4.87
com…
sha…
Wei…
ave…
bas… 398.9 403.0 401.2 402.6
com…
sha…
out…
Wei…
ave…
dil… 399.8 404.3 402.2 404.0
com…
sha…
out…
Beginning in 2026, landfill
accretion expense was moved from operating expenses to depreciation,
depletion, amortization
and accretion. Landfill accretion expenses in the three and nine months
ended September 30,
(a) 2026 were $39 million and $117 million, respectively. Landfill
accretion expenses in the
three and nine months ended September 30, 2025 were $35 million and
$106 million, respectively.
For comparability purposes, 2025 actuals have been updated to reflect
that change.
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
September December
30, 31,
2026 2025
──────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 247 $ 201
Receivables, net 4,359 4,055
Other 644 654
Total current assets 5,250 4,910
Property and equipment, net 20,849 20,378
Goodwill 14,002 13,880
Other intangible assets, net 3,544 3,767
Other 2,874 2,900
Total assets $ 46,519 $ 45,835
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable, accrued liabilities $ 4,862 $ 4,813
and deferred revenues
Current portion 1,524 711
of long-term debt
Total current liabilities 6,386 5,524
Long-term debt, less current portion 21,846 22,196
Other 8,419 8,124
Total liabilities 36,651 35,844
Equity:
Waste Management, Inc. stockholders’ 9,867 9,990
equity
Noncontrolling 1 1
interests
Total equity 9,868 9,991
Total liabilities $ 46,519 $ 45,835
and equity
WASTE MANAGEMENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In Millions)
(Unaudited)
Nine Months
Ended
Cash flows from operating September 30,
activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Consolidated net income $ 2,329 $ 1,967
Adjustments to reconcile
consolidated net income to
net cash
provided by operating
activities:
Depreciation, depletion,
amortization 2,304 2,199
and accretion
Other 425 662
Change in operating
assets and liabilities, net (191 ) (483 )
of effects of acquisitions
and divestitures
Net cash provided by
operating 4,867 4,345
activities
Cash flows from investing
activities:
Acquisitions of businesses,
net of (89 ) (395 )
cash acquired
Capital expenditures (1,937 ) (2,339 )
Proceeds from divestitures
of businesses 79 108
and other assets, net of
cash divested
Other, net (112 ) (73 )
Net cash used in investing (2,059 ) (2,699 )
activities
Cash flows from financing
activities:
New borrowings 18,644 14,956
Debt repayments (18,668 ) (15,772 )
Common stock repurchase (1,583 ) —
program
Cash dividends (1,141 ) (1,001 )
Exercise of common stock 41 54
options
Tax payments associated
with equity-based (40 ) (50 )
compensation transactions
Other, net (19 ) (17 )
Net cash used in financing (2,766 ) (1,830 )
activities
Effect of exchange rate
changes on cash,
cash equivalents and (7 ) 5
restricted cash and cash
equivalents
Increase (decrease) in
cash, cash equivalents and 35 (179 )
restricted
cash and cash equivalents
Cash, cash equivalents and
restricted 297 487
cash and cash equivalents
at beginning of period
Cash, cash equivalents and
restricted $ 332 $ 308
cash and cash equivalents
at end of period
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Operating Revenues by Line of Business
Th…
Mo…
En…
Se…
30,
20… 20…
Net In… Gr… Net In… Gr…
Op… Op… Op… Op… Op… Op…
Re… Re… Re… Re… Re… Re…
──────────────────────────────────────────────────────────────────────────────
C… $ 1,… $ 243 $ 1,… $ 1,… $ 223 $ 1,6…
I… 843 257 1,… 808 234 1,0…
R… 926 19 945 884 22 906
O… 878 74 952 819 69 888
c…
T… 4,… 593 4,… 3,… 548 4,4…
c…
L… 1,… 431 1,… 995 407 1,4…
T… 420 306 726 396 294 690
T…
C… $ 5,… $ 1,… $ 6,… $ 5,… $ 1,2… $ 6,5…
a…
D…
R…
P… 441 89 530 372 98 470
a…
S…
R… 167 1 168 115 1 116
E…
H… 651 101 752 628 110 738
S…
C…
a… 8 7 15 7 7 14
O…
T… $ 6,… $ 1,… $ 8,… $ 6,… $ 1,4… $ 7,9…
Ni…
Mo…
En…
Se…
30,
20… 20…
Net In… Gr… Net In… Gr…
Op… Op… Op… Op… Op… Op…
Re… Re… Re… Re… Re… Re…
──────────────────────────────────────────────────────────────────────────────
C… $ 4,… $ 708 $ 5,… $ 4,… $ 657 $ 4,8…
I… 2,… 724 3,… 2,… 656 2,9…
R… 2,… 56 2,… 2,… 66 2,6…
O… 2,… 220 2,… 2,… 209 2,5…
c…
T… 12… 1,… 13… 11… 1,5… 13,…
c…
L… 2,… 1,… 4,… 2,… 1,1… 4,0…
T… 1,… 877 2,… 1,… 842 1,9…
T…
C… $ 16… $ 3,… $ 19… $ 15… $ 3,6… $ 19,…
a…
D…
R…
P… 1,… 264 1,… 1,… 280 1,4…
a…
S…
R… 483 3 486 321 2 323
E…
H… 1,… 312 2,… 1,… 326 2,2…
S…
C…
a… 20 23 43 16 23 39
O…
T… $ 19… $ 4,… $ 24… $ 18… $ 4,2… $ 23,…
Includes each segment’s intercompany
activity, including transactions within a segment and between segments.
(a) Transactions within
and between segments are generally made on a basis intended to reflect
the market value of
the service.
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Internal Revenue Growth
… …
… …
… …
… …
… …
… …
… …
… …
… …
… …
… …
… …
──────────────────────────────────────────────────────────────────────────────
… …
a a
… % … % …
… …
… …
… …
$ … … % … …
… … 1 —
… … … …
$ … … % $ …
… … …
1 — ) …
… … …
… … …
… ) … ) ) …
… ) … ) …
$ … … % $ …
Peri… Per…
Chan… Cha…
for for
the the
Three Nine
Mont… Mon…
Ended End…
Sept… Sep…
30, 30,
2026 2026
vs. vs.
2025 2025
──────────────────────────────────────────────────────────────────────────────
As As
a % a %
of of
Rel… Rela…
Bus… Busi…
Yie… Vol… Yield Volu…
(f) (f)
Co… 4.2 % (1.3 )% 4.3 % (1.4 )%
In… 3.1 — 3.2 0.1
Re… 5.4 (2.6 ) 5.9 (3.5 )
To… 4.0 (1.2 ) 4.2 (1.4 )
co…
MSW 4.2 (1.1 ) 5.3 0.5
Tr… 2.7 1.8 3.2 (0.6 )
To…
Co… 3.4 % (0.5 )% 3.6 % (1.3 )%
and
Di…
Calculated by dividing the increase or decrease
for the current year period by the prior year period’s related business
revenues adjusted
(a) to exclude the impacts of divestitures for the current year period.
──────────────────────────────────────────────────────────────────────────────
Calculated by dividing the increase or decrease
for the current year period by the prior year period’s total Company
revenues adjusted
(b) to exclude the impacts of divestitures for the current year period.
──────────────────────────────────────────────────────────────────────────────
Includes combined impact of commodity price
variability in both our Recycling Processing and Sales and Renewable
(c) Energy segments, as
well as changes in certain recycling fees charged by our collection and
disposal operations.
(d) Includes activities from our Corporate and
Other businesses.
The amounts reported herein represent the
(e) change in our revenues from the combined impacts of yield and volume,
and exclude energy
surcharges, attributable to our Healthcare Solutions segment.
(f) Workday adjusted volume impact.
WASTE MANAGEMENT, INC.
SUMMARY DATA SHEET
(In Millions)
(Unaudited)
Free Cash Flow
Three Nine
Mont… Mont…
Ended Ended
Sept… Sept…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
pro… $ 1,640 $ 1,592 $ 4,867 $ 4,345
by
ope…
act…
Cap…
exp…
to (602 ) (635 ) (1,7… ) (1,9… )
sup…
the
bus…
Pro…
from
div…
of
bus…
and 2 5 79 108
oth…
ass…
net
of
cash
div…
Free
cash
flow
wit… 1,040 962 3,200 2,543
sus…
gro…
inv…
Cap…
exp…
- (55 ) (141 ) (191 ) (429 )
sus…
gro…
inv…
Free
cash $ 985 $ 821 $ 3,009 $ 2,114
flow
Supp…
Data
Inte…
of
wast…
based
on
disp…
costs
Land…
depl… Three Nine
tons Mont… Months
(in Ended Ended
mill… Sept… Septe…
Acqu… 30, 72.1 71.9 30, 72.3 71.4
Summ… 2026 33.8 % 2025 33.7 % 2026 96.1 % 2025 97.7 %
──────────────────────────────────────────────────────────────────────────────
Gross
annu… $ 3 $ 23 $ 126 $ 165
reve…
acqu…
Total
cons…
net 4 31 239 442
of
cash
acqu…
Cash
paid
for
acqu…
cons…
duri… 4 29 89 399
the
peri…
net
of
cash
acqu…
Cash
paid
for
acqu…
incl…
cont…
cons…
and
other 4 29 102 407
items
from
prior
peri…
net
of
cash
acqu…
Landfill Depletion and Accretion Expenses
Three
Months Nine Months
Ended Ended
Landfill September September
depletion 30, 30,
expense: 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cost basis
of $ 188 $ 182 $ 535 $ 514
landfill
assets
Asset
retirement 42 45 117 116
costs
Total
landfill 230 227 652 630
depletion
expense
Accretion 39 35 117 106
expense
Landfill
depletion
and $ 269 $ 262 $ 769 $ 736
accretion
expense
The summary of free cash flow has been prepared
to highlight and facilitate understanding of the principal cash flow
elements. Free cash
(a) flow is not a measure of financial performance under generally accepted
accounting principles
and is not intended to replace the consolidated statement of cash flows
that was prepared
in accordance with generally accepted accounting principles.
Represents amounts associated with business
(b) acquisitions consummated during the applicable period except where
noted.
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions, Except Per Share Amounts)
(Unaudited)
Thr…
Mon…
End…
Sep…
30,
2026
──────────────────────────────────────────────────────────────────────────────
Inc… Dil…
from Pre… Tax Net Per
Ope… Inc… Exp… In… Sha…
Amo…
As
re… $ 1,2… $ 1,0… $ 224 $ 820 $ 2.…
am…
Ad…
St…
ac…
and 30 30 7 23
in…
co…
Co…
ba… 2 2 — 2
ag…
co…
(G…
lo…
fr…
as…
im… 18 18 5 13
un…
it…
and
ot…
ne…
50 50 12 38 0.…
As
ad… $ 1,3… $ 1,0… $ 236 -c $ 858 $ 2.…
am…
De…
de…
am… 792
and
ac…
Ad…
op… $ 2,1…
EB…
Ad…
op… 31.0 %
EB…
ma…
Thr…
Mon…
End…
Sep…
30,
2025
──────────────────────────────────────────────────────────────────────────────
Inc… Dil…
from Pre… Tax Net Per
Ope… Inc… Exp… In… Sha…
Amo…
As
re… $ 989 $ 775 $ 172 $ 603 $ 1.…
am…
Ad…
St…
ac…
and 34 34 9 25
in…
co…
(G…
lo…
fr…
as…
im… 218 218 45 173
un…
it…
and
ot…
ne…
252 252 54 198 $ 0.…
As
ad… $ 1,2… $ 1,0… $ 226 -c $ 801 $ 1.…
am…
De…
de…
am… 764
and
ac…
Ad…
op… $ 2,0…
EB…
Ad…
op… 31.1 %
EB…
ma…
For purposes of this press release table,
(a) all references to “Net income” refer to the financial statement line
item “Net
income attributable to Waste Management, Inc.”
The three months ended September 30,
(b) 2026 primarily includes an $18 million impairment charge related to the
decision to accelerate
the closure of a landfill within our East Tier.
The Company calculates its effective tax
rate based on actual dollars. When the effective tax rate is calculated
by dividing the Tax
Expense amount in the table above by the Pre-tax Income amount,
differences occur due to
rounding, as these items have been rounded in millions. The three
months ended September
30, 2026 and 2025 adjusted effective tax rates are 21.5% and 21.9%,
(c) respectively.
──────────────────────────────────────────────────────────────────────────────
Beginning in 2026, landfill
accretion expense was moved from operating expenses to depreciation,
depletion, amortization
(d) and accretion. Landfill accretion expenses in the three months ended
September 30, 2026 and
2025 are $39 million and $35 million, respectively. For comparability
purposes, 2025 results
have been updated to reflect that change.
The three months ended September 30, 2025
includes (i) a $152 million impairment charge related to the decision
to suspend the operations
(e) of a business; (ii) a $45 million impairment charge related to the
decision to accelerate
the closure of a landfill within our East Tier and (iii) an $11 million
negotiated payment
for early termination of a contract in our Renewable Energy segment.
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions)
(Unaudited)
T…
M…
E…
S…
3…
2…
──────────────────────────────────────────────────────────────────────────────
C… R… …
a… P… … … … …
D… a… … … … …
S…
…
…
…
…
…
…
…
…
…
… $ 5… $ 4… $ … $ … $ 8 $ …
…
…
…
…
… $ 1… $ 36 $ … $ … $ … ) $ …
…
…
…
…
… 5… 55 … … … …
…
…
…
… $ 2… $ 91 $ … $ … $ … ) $ …
…
…
…
…
…
… — — — … … …
…
…
…
… 2 — — — — 2
…
…
…
…
…
…
… 18 — — — — …
…
…
…
…
…
20 — — … … …
…
… $ 2… $ 91 $ … $ … $ … ) $ …
…
…
…
… 3… % 2… % … % … % … … %
…
…
…
… 3… % 2… % … % … % … … %
…
…
T…
M…
E…
S…
3…
2…
C… R… C…
a… P… R… H… a… T…
D… a… E… S… O… WM
S…
…
…
…
…
…
…
…
…
…
… $ 5… $ 3… $ … $ … $ 7 $ …
…
…
…
…
… $ 1… $ (… ) $ … $ … ) $ … ) $ …
…
…
…
…
… 5… 47 … … … …
…
…
…
… $ 2… $ (… ) $ … $ … $ … ) $ …
…
…
…
…
…
… — — — … … …
…
…
…
…
…
…
… 47 1… … — 5 …
…
…
…
…
…
47 1… … … … …
…
… $ 2… $ 65 $ … $ … $ … ) $ …
…
…
…
… 3… % (… %) … % … % … … %
…
…
…
… 3… % 1… % … % … % … … %
…
…
Certain fees related
to the processing of recyclable material we collect are included within
(a) our Collection and
Disposal business. The amounts in Income from Operations for the three
months ended September
30, 2026 and 2025 are $21 million and $19 million, respectively.
Renewable Energy pays a 15% intercompany
royalty to our Collection and Disposal business and Corporate and Other
(b) for landfill gas.
The total amount of royalties in Income from Operations for the three
months ended September
30, 2026 and 2025, are $25 million and $17 million, respectively.
Beginning in 2026, landfill accretion expense
was moved from operating expenses to depreciation, depletion,
amortization and accretion.
(c) Landfill accretion expenses in the three months ended September 30,
2026 and 2025 are $39
million and $35 million, respectively. For comparability purposes, 2025
results have been
updated to reflect that change.
The three months ended September 30,
(d) 2026 primarily includes an $18 million impairment charge related to the
decision to accelerate
the closure of a landfill within our East Tier.
The three months ended September 30, 2025
includes (i) a $152 million impairment charge related to the decision
to suspend the operations
(e) of a business; (ii) a $45 million impairment charge related to the
decision to accelerate
the closure of a landfill within our East Tier and (iii) an $11 million
negotiated payment
for early termination of a contract in our Renewable Energy segment.
WASTE MANAGEMENT, INC.
RECONCILIATION OF CERTAIN NON-GAAP MEASURES
(In Millions)
(Unaudited)
Three
Three Months
Months Ended Ended
September September
30, 2026 30, 2025⁽ᵃ⁾
──────────────────────────────────────────────────────────────────────────────
Adjusted
Operating
Expenses
and
Adjusted
Operating
Expenses
Margin
Operating
revenues, $ 6,846 $ 6,443
as reported
Operating
expenses, $ 4,093 $ 3,798
as reported
As a % of
net 59.8 % 58.9 %
revenues
Adjustment…
Collective
bargaining (2 ) —
agreement
costs
Stericycle
acquisition
and — (3 )
integration
costs
Operating
expenses, $ 4,091 $ 3,795
as adjusted
As a % of
net 59.8 % 58.9 %
revenues
Three Three
Months Ended Months Ended
September September
30, 2026 30, 2025
Adjusted
SG&A
Expenses
and
Adjusted
SG&A
Expenses
Margin
Operating
revenues, $ 6,846 $ 6,443
as reported
SG&A
expenses, $ 655 $ 665
as reported
As a % of
net 9.6 % 10.3 %
revenues
Adjustment:
Stericycle
acquisition
and (21 ) (22 )
integration
costs
SG&A
expenses, $ 634 $ 643
as adjusted
As a % of
net 9.3 % 10.0 %
revenues
2026 Year
Projected Ended
Free Cash December 31,
Flow 2026
Reconcilia…
Net cash
provided by $ 6,500
operating
activities
Capital
expenditur…
to support (2,500 )
the
business
Proceeds
from
divestitur…
of
businesses 100
and other
assets, net
of cash
divested
Free cash
flow
without $ 4,100
sustainabi…
growth
investments
Capital
expenditur…
- (250 )
sustainabi…
growth
investments
Free cash $ 3,850
flow
Beginning in 2026, landfill accretion expense
was moved from operating expenses to depreciation, depletion,
amortization and accretion.
(a) Landfill accretion expenses in the three months ended September 30,
2026 and 2025 are $39
million and $35 million, respectively. For comparability purposes, 2025
results have been
updated to reflect that change.
The amounts used in the reconciliation are
(b) subject to many variables, some of which are not under our control and,
therefore, are not
necessarily indicative of actual results.
WASTE MANAGEMENT, INC.
SUPPLEMENTAL INFORMATION PROVIDED FOR ILLUSTRATIVE
PURPOSES ONLY
(In Millions)
(Unaudited)
Diversity in the structure
of recycling contracts results in different accounting treatment for commodity
rebates. In accordance with revenue recognition guidance,
our Company records gross recycling revenue and records rebates paid to
customers as cost of goods sold. Other contract structures allow
for netting of rebates against revenue.
The table below illustrates
the impact that differing contract structures have on the Company’s adjusted
operating EBITDA margin results. This information
has been provided to enhance comparability and is not intended to replace or
adjust GAAP reported results.
Three Septe… Septe…
Months 30, 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Change Chan…
in in
Amount Adjus… Amount Adju…
Opera… Oper…
EBITDA EBIT…
Margin Marg…
Recy…
comm… $ 215 1.0 % $ 177 0.8 %
reba…
Nine Septe… Septe…
Months 30, 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Change Chan…
in in
Amount Adjus… Amount Adju…
Opera… Oper…
EBITDA EBIT…
Margin Marg…
Recy…
comm… $ 558 0.9 % $ 554 0.9 %
reba…