10-Q · April 29, 2026
Waste Management (WM) reported a strong Q1 2026 with revenues of $6.227 billion, reflecting a 3.5% increase from the prior year. The company achieved an EPS of $1.79, up from $1.58 a year ago, bolstered by improved…
Earnings analysis · 10-Q
WM earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
WM delivered a solid Q2: revenue rose 4.0% year over year to $6.684 billion, operating margin expanded 80 basis points to 18.7%, and GAAP EPS increased to $1.95 from $1.80. Cash generation strengthened, with free cash…
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WM delivered a solid Q2: revenue rose 4.0% year over year to $6.684 billion, operating margin expanded 80 basis points to 18.7%, and GAAP EPS increased to $1.95 from $1.80. Cash generation strengthened, with free cash flow increasing 35.0% to $1.104 billion as capex declined. Offsetting the favorable pricing, margin and cash-flow trends, collection/special-waste volumes remained soft, Healthcare Solutions revenue declined, and recycled-commodity and RNG pricing weakened.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.95
What stood out
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Revenue rose 4.0% year over year
Q2 revenue increased $254 million, or 4.0%, year over year to $6.684 billion and rose 7.3% from Q1 revenue of $6.230 billion. Growth was led by Collection and Disposal yield, energy surcharges and Recycling/Renewable Energy volume.
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Margins expanded materially
Operating income rose $102 million, or 8.9%, to $1.253 billion; operating margin expanded 80 basis points year over year to 18.7% from 17.9%. Gross margin was 40.8%, up 50 basis points from 40.3% a year ago.
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GAAP EPS increased to $1.95
GAAP net income attributable to WM increased $59 million to $785 million, and diluted EPS increased 8.3% to $1.95 from $1.80. EPS also rose from $1.79 in Q1 2026.
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Core Collection and Disposal grew
Collection and Disposal net operating revenue grew $198 million to $5.479 billion, while Collection and Disposal operating income increased 6.1% to $1.550 billion. The business delivered 3.6% average-yield growth.
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Free cash flow rose 35.0%
Operating cash flow increased $181 million to $1.726 billion and free cash flow rose $286 million to $1.104 billion. Quarterly capex declined $102 million to $630 million, or 9.4% of revenue, from $732 million.
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Capex intensity is declining
First-half operating cash flow increased $474 million to $3.227 billion, while capital expenditures fell $283 million to $1.280 billion. Management attributed lower spending to fewer collection-vehicle purchases and a planned transition from peak sustainability-project construction to harvesting returns.
What to watch
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Core volumes remain slightly negative
Internal volume declined $22 million, or 0.3%, in Q2 as lower collection and special-waste volumes offset Recycling and Renewable Energy growth. Management cited intentional shedding of lower-margin residential business and the prior-year benefit from wildfire cleanup activity.
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Commodity and RNG pricing pressure
Average market prices for single-stream recycled commodities fell about 10% year over year in Q2, reducing Recycling Processing and Sales yield by $2 million. Renewable Energy yield also declined $4 million, primarily from lower RNG pricing.
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Near-term refinancing requirements
WM had approximately $3.8 billion of debt maturing within the next 12 months as of June 30, 2026, including $2.0 billion of tax-exempt bonds and $1.1 billion of commercial paper. Total debt was $23.356 billion, up from $22.907 billion at December 31, 2025.
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No material risk-factor updates
Item 1A reports 0 material changes to risk factors disclosed in the 2025 Form 10-K. The filing nevertheless notes that a roughly 50% increase in diesel prices drove higher Q2 energy-surcharge revenue and higher fuel-related costs.
Management's outlook
The 10-Q does not provide explicit quantitative full-year revenue or EPS guidance; outlook was deferred to other company communications. MD&A expects a $400 million-$425 million cumulative Section 48 tax-credit benefit, with $309 million recognized through 2025 and the remainder anticipated in 2026-2027; it also expects up to $150 million of cumulative Section 45Z clean-fuel-production-tax-credit benefit through 2029.
Earlier filings 4
10-K · February 9, 2026
Waste Management (10-K for year ended Dec 31, 2025) emphasizes a ‘‘focused differentiation’’ strategy that leverages the company’s scale in collection, disposal, recycling and landfill-gas renewable energy while…
10-Q · October 28, 2025
Waste Management reported Q3 2025 revenue of $6,443 million, up $834 million or 14.9% versus Q3 2024, driven largely by acquisitions (Stericycle) and yield/volume in Collection & Disposal. Despite higher revenue and…
10-Q · July 25, 2024
Waste Management reported Q2 2024 revenue of $5,402 million, up 5.5% from $5,119 million a year ago, with income from operations rising to $1,009 million (18.7% of revenue) from $944 million (18.4%). Operating cash flow…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.