Waste Management Inc. reported first‑quarter 2026 revenue of $6.227 billion, falling short of the consensus estimate of $6.29 billion by $63 million. Diluted earnings per share were $1.79, beating the $1.75 estimate by $0.04 and reflecting disciplined cost control that offset the revenue shortfall.
Operating earnings before interest, taxes, depreciation, amortization and accretion rose to $1.848 billion, a 5.9% increase from the same period last year. The adjusted operating‑EBITDA margin expanded 70 basis points to 29.7%, driven by a 110‑basis‑point lift in the Collection and Disposal segment and strong pricing execution across the business.
Cash flow from operations climbed 24% to $1.5 billion, and free cash flow nearly doubled to $920 million, underscoring the company’s ability to generate and deploy capital. Management returned $730 million to shareholders—$385 million in dividends and $344 million in share repurchases—demonstrating a continued commitment to returning free cash flow.
Segment performance highlighted that the Collection and Disposal business grew over 6% year‑over‑year, while the Recycling and Renewable Energy segments added to EBITDA growth, with renewable‑energy EBITDA more than doubling thanks to new RNG facilities. The Healthcare Solutions segment, bolstered by the recent Stericycle acquisition, contributed to the overall margin expansion.
Management reaffirmed the full‑year outlook, citing disciplined pricing, cost optimization, and contributions from sustainability growth projects as key drivers of the quarter’s performance. CEO Jim Fish said, "Our ability to generate robust cash flow and expand margins despite external challenges showcases the strength of our business model." CFO Devina Rankin noted that the majority of free cash flow was allocated to shareholder returns.
The Stericycle acquisition, completed on November 4, 2024, for $7.2 billion including debt, is expected to generate over $125 million in annual run‑rate synergies and enhance earnings and cash flows. The integration has already contributed to margin expansion and positioned Waste Management as a leading provider in the healthcare waste market.
Headwinds included severe winter weather that reduced volumes and the intentional shedding of lower‑margin residential business. Tailwinds were disciplined pricing, cost optimization through fleet modernization and recycling automation, and strong demand in sustainability‑focused businesses. Together, these factors explain the mixed results—an EPS beat driven by cost discipline and a revenue miss driven by weather‑related volume declines.
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