Waste Management Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.60%.
Did WM Beat Earnings? Q1 2026 Results
Waste Management posted a solid first quarter for fiscal 2026, beating earnings expectations while falling just short on the top line as harsh winter conditions weighed on volumes. The waste giant reported adjusted diluted EPS of $1.81, ahead of the $1.74 consensus estimate by 3.98%, even as revenue of $6.23 billion came in slightly below the $6.29 billion analyst forecast, representing 3.5% year-over-year growth. The earnings strength was anchored by the Collection and Disposal segment, where disciplined core pricing gains of 6.3% and margin expansion of 110 basis points to 38.5% more than offset a 1.5% volume decline tied to severe weather, contract shedding, and the absence of prior-year wildfire cleanup activity. Free cash flow nearly doubled to $920 million, underscoring the company's improving financial flexibility after years of heavy investment. With some analysts having questioned WM's valuation relative to its operational momentum, the quarter offered a cleaner picture of underlying execution. Management reaffirmed full-year 2026 free cash flow guidance of $3.75 billion to $3.85 billion, expressing confidence in sustaining Q1's momentum through the remainder of the year.
- Core price of 6.3% and collection and disposal yield of 3.9% drove revenue growth
- Disciplined pricing execution and operating cost control in Collection and Disposal
- Favorable price-to-cost spread with investments in frontline retention
- Technology and automation leveraged to reduce costs
- Increased renewable natural gas production from growth projects
- Higher recycling volumes and benefits from automation projects
- SG&A cost management and synergy capture in Healthcare Solutions
- Working capital improvements contributed to cash flow growth
“Strong earnings and cash flow results in the quarter achieved our expectations, reflecting the strength of the WM team and the resilience of our business model. Disciplined pricing, cost optimization and contributions from sustainability growth projects led to first quarter adjusted operating EBITDA growth of 5.9% and margin expansion of 70 basis points despite a challenging quarter of weather impacts. The momentum in our business, combined with our confidence in our ability to execute on our plan for the balance of the year, sets us up to achieve the full-year financial outlook we provided last quarter.”
Waste Management CEO, on the earnings call
Forward Guidance & Outlook
WM reaffirmed its full-year 2026 financial outlook. The company projects full-year 2026 free cash flow of $3,750 million to $3,850 million, supported by net cash provided by operating activities of $6,300 million to $6,450 million and capital expenditures to support the business of $2,450 million to $2,550 million. Sustainability growth capital expenditures are expected to be approximately $200 million. Management expressed confidence in executing on the plan for the balance of the year based on Q1 momentum.
WM YoY Financials
WM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.