Waste Management Stock Earnings Reports

WM delivered a strong start to 2026 with Q1 operating EBITDA up ~6% year-over-year, driven by Collection & Disposal, Sustainability (renewable natural gas and recycling automation), and improved Healthcare Solutions margins. The company generated $1.5 billion in operating cash flow and $920 million of free cash flow in Q1, returning roughly $730 million to shareholders via dividends and buybacks while resuming a $2 billion buyback program for the year. Collection & Disposal saw 6.4% EBITDA growth, robust pricing (core price ~6.3%, yield ~3.9%), and margin expansion (~110 bps), offsetting a weather-driven volume shortfall early in the year. Sustainability investments are showing returns: RNG EBITDA more than doubled and recycling EBITDA rose despite commodity price declines due to automation and higher processed volumes; the company expects to substantially complete its sustainability capex plan in 2026. Healthcare Solutions progressed toward scalable, accretive growth with ~12% EBITDA growth in Q1, improving SG&A and synergy capture, and management expects revenue inflection in H2 as the ERP stabilizes. Balance sheet and capital allocation: leverage returned to the 2.5x–3.0x target (2.94x), production tax credit clarity materially lowers near-term tax rate assumptions (boost to cash flow), and management plans balanced capital deployment—heavy shareholder returns this year while remaining opportunistic on tuck-in M&A.