10-QPeriod: Q2 FY2026

WASTE MANAGEMENT INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 29, 2026For Securities:WM

Summary

Waste Management, Inc. (WM) reported solid financial results for the second quarter and first half of 2026, demonstrating continued growth and operational strength. Total operating revenues increased by 4.0% year-over-year for the quarter, driven by higher yield in the Collection and Disposal business, increased energy surcharges, and volume growth in Recycling Processing and Sales and Renewable Energy segments. Despite some volume declines in Healthcare Solutions and a reduction in recycled commodity prices, the company managed operating expenses effectively, with operating income growing by 8.9% to $1,253 million. Net income attributable to Waste Management, Inc. also saw a healthy increase to $785 million ($1.95 per diluted share) for the quarter. The company highlighted strong free cash flow generation of $1,104 million for the quarter, underscoring its ability to return capital to shareholders and invest in strategic initiatives. Shareholder returns were robust, with significant common stock repurchases and increased dividend payments. Key operational highlights include continued yield growth in the landfill business and strategic investments in sustainability projects. The company is navigating inflationary pressures through pricing strategies and efficiency improvements, while also benefiting from synergies realized from recent acquisitions, particularly Stericycle. Management remains focused on leveraging its extensive asset network, investing in technology, and driving profitable growth across its diverse service offerings, positioning Waste Management for continued long-term value creation.

Key Highlights

  • 1Operating revenues increased 4.0% to $6,684 million in Q2 2026 compared to Q2 2025, driven by higher pricing and energy surcharges.
  • 2Income from operations rose 8.9% to $1,253 million in Q2 2026, reflecting effective cost management and revenue growth.
  • 3Net income attributable to Waste Management, Inc. increased to $785 million ($1.95 per diluted share) in Q2 2026, up from $726 million ($1.80 per diluted share) in Q2 2025.
  • 4Free cash flow generation was strong, reaching $1,104 million in Q2 2026, an increase from $818 million in the prior year period, supporting capital allocation.
  • 5The company repurchased $1.0 billion of common stock in the first six months of 2026 and paid $764 million in cash dividends.
  • 6The Renewable Energy and Recycling Processing and Sales segments showed volume growth, contributing to overall company performance despite some commodity price volatility.
  • 7Synergies from the Stericycle acquisition are beginning to materialize, contributing to lower selling, general, and administrative expenses.

Frequently Asked Questions

The primary drivers of revenue growth in the second quarter of 2026 were higher yield (pricing) in the Collection and Disposal business, increases in energy surcharges due to higher fuel prices, and volume growth in the Recycling Processing and Sales and Renewable Energy segments. These were partially offset by lower collection and disposal volumes in certain areas and a reduction in recycled commodity prices.

Operating expenses increased by $152 million year-over-year, primarily due to higher fuel prices, annual employee wage increases, and higher employee medical costs, as well as growth in the Renewable Energy segment. However, the company was able to mitigate these increases through flexing spending with lower collection volumes, special waste volumes, and continued operating efficiency and cost control initiatives.

Waste Management demonstrated a strong commitment to shareholder returns. In the first six months of 2026, the company repurchased $1.0 billion of common stock and paid $764 million in cash dividends, an increase from the prior year. The company has $2.0 billion remaining authorization for future share repurchases.

While the company faces various legal and environmental matters, including Superfund site involvement and specific environmental orders, management does not currently believe that the eventual outcome of any of these known matters will have a material adverse effect on the Company's business, financial condition, results of operations or cash flows. Specific details on environmental matters and litigation are disclosed in Note 6 of the financial statements.