WM · Waste Management, Inc.

Waste Management's Q1 2026 results demonstrated resilient performance with revenue up 3.5% to $6,227 million, propelled by 6.3% core pricing and volume gains in recycling and renewable energy despite 1.5% collection and disposal volume decline from harsh weather, low-margin shedding, and prior-year wildfire activity. Adjusted operating EBITDA expanded 5.9% to $1,853 million, with margins improving 70 basis points to 29.8%, driven by favorable price-cost spreads, frontline retention, technology, and automation efficiencies. Collection and Disposal led with $118 million adjusted EBITDA growth and 110 bps margin expansion, while Recycling and Renewable Energy added $49 million adjusted, bolstered by higher RNG production, recycling volumes, and automation, despite softer commodity prices (single stream at $65/ton vs. $88 prior). Healthcare Solutions grew adjusted EBITDA 11.6% via SG&A management and Stericycle synergies. CEO Jim Fish highlighted disciplined execution and business model strength, noting weather challenges were offset by sustainability investments. Cash generation excelled with $1.5 billion operating cash flow (up 24%) and $920 million free cash flow (nearly double prior year), enabling $729 million shareholder returns ($385M dividends, $344M repurchases) and leverage returning to 2.5-3.0x target. New recycling facilities in Ontario, Detroit, and South Florida added 300,000 tons capacity. The reaffirmation of full-year outlook underscores confidence in strategic execution across recycling, RNG, medical waste, and fleet modernization amid economic resilience.