Waste Management Inc.
10/27/2026 | Press release | Distributed by Public on 10/27/2026 14:39
Business/Financial Results (Form 8-K)
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.
| Three Months Ended | Three Months Ended | ||||
|
September 30, 2026 (in millions, except per share amounts) |
September 30, 2025 (in millions, except per share amounts) |
||||
| As Reported | As Adjusted(a) | As Reported | As Adjusted(a) | ||
| Revenue | $6,846 | $6,846 | $6,443 | $6,443 | |
| Income from Operations | $1,279 | $1,329 | $989 | $1,241 | |
| Operating EBITDA(b) (c) | $2,071 | $2,121 | $1,753 | $2,005 | |
| Operating EBITDA Margin | 30.3% | 31.0% | 27.2% | 31.1% | |
| Net Income(d) | $820 | $858 | $603 | $801 | |
| Diluted EPS | $2.05 | $2.15 | $1.49 | $1.98 | |
"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."(a)
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) |
| (a) | The information labeled as adjusted in this press release, as well as free cash flow, are non-GAAP measures. Please see "Non-GAAP Financial Measures" below and the reconciliations in the accompanying schedules for more information. |
| (b) | Management defines operating EBITDA as GAAP income from operations before depreciation, depletion, amortization and accretion; this measure may not be comparable to similarly titled measures reported by other companies. |
| (c) | Beginning in 2026, landfill accretion expense was moved from operating expenses to depreciation, depletion, 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. |
| (d) | For purposes of this press release, all references to "Net income" refer to the financial statement line item "Net income attributable to Waste Management, Inc." |
| (e) | 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 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. |
| (f) | 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 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 visiting investors.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 should register 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.
Waste Management Inc. published this content on October 27, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 27, 2026 at 20:39 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]