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 strength, Sustainability (renewable natural gas and recycling automation) and improved Healthcare Solutions profitability. Collection & Disposal saw 6.4% operating EBITDA growth, robust pricing (core price 6.3%, yield 3.9%) and margin expansion (~110 bps). Sustainability results were notable: Renewable Energy operating EBITDA more than doubled as new RNG facilities came online, and Recycling EBITDA grew despite a 27% decline in single-stream commodity prices due to automation and higher processed volumes. Healthcare Solutions reported ~12% operating EBITDA growth and meaningful synergy capture, with a revenue inflection expected in H2 as ERP-related issues stabilize. Volumes were softer in Q1 largely due to severe winter weather and the lapping of last year’s wildfire volumes; management expects volumes and margins to improve in the back half of the year. Operating cash flow was $1.5 billion and free cash flow nearly doubled to $920 million in Q1, enabling ~$730 million returned to shareholders (dividends + repurchases); management resumed buybacks and targets $2 billion repurchases for the year while keeping leverage within a 2.5x–3.0x target. Tax benefits from clarified IRS treatment of RNG production tax credits improve near-term effective tax rate assumptions (~23% for 2026) and add ~$30–35 million annually through 2029. Management remains confident in achieving full-year guidance and highlighted continued opportunities for tuck-in M&A, technology/AI-driven efficiency gains, and further realization of Healthcare synergies toward a $300M target (possibly higher).