Waste Management, Inc 8-K
PositiveEarningsGuidance lowered
Lower volume expectations cut revenue guidance as Collection and Disposal softens; pricing and productivity support a higher adjusted EBITDA margin outlook.
Filed 2026-07-28 16:42 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with revised FY2026 guidance. Revenue increased 4.0% and operating cash flow nearly 12%, while adjusted operating EBITDA grew 5.5%. WM lowered its FY2026 revenue range on lower volume expectations, but raised its adjusted operating EBITDA margin outlook and maintained its EBITDA and free cash flow ranges.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $6.68B | $6.43B | 4.0% |
| Income from operations | $1.25B | $1.15B | 8.9% |
| Operating EBITDA (non-GAAP) | $2.03B | $1.90B | 7.1% |
| Adjusted operating EBITDA (non-GAAP) | $2.07B | $1.96B | 5.5% |
| Net income attributable to Waste Management, Inc. | $785M | $726M | 8.1% |
| Diluted EPS | $1.95 | $1.80 | 8.3% |
| Adjusted diluted EPS (non-GAAP) | $2.02 | $1.92 | 5.2% |
| Net cash provided by operating activities | $1.73B | $1.55B | 11.7% |
| Free cash flow (non-GAAP) | $1.10B | $818M | 34.5% |
- Revenue growth was driven by 5.7% core price, 3.6% Collection and Disposal yield, higher energy surcharges, and recycling and renewable energy volumes. Collection and Disposal volume fell 1.8%, primarily against prior-year wildfire cleanup activity; excluding that activity, the decline was 0.4%, while landfill volumes grew 1.7%.
- Adjusted operating EBITDA margin expanded 40 bp to 30.9%; growth reflected pricing-to-cost spread and productivity. Operating cash flow growth was driven mainly by operating EBITDA growth and working capital improvements.
- WM returned $1.04B to shareholders: $659M in repurchases and $379M in dividends. Weighted-average diluted shares were 402.4M vs 404.3M, down 0.5%.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | FY2026 | $26.275B-$26.475B | — | Lowered; ≈0.6% reduction |
| Adjusted operating EBITDA (non-GAAP) | FY2026 | $8.15B-$8.25B | — | Reaffirmed |
| Free cash flow (non-GAAP) | FY2026 | $3.75B-$3.85B | — | Reaffirmed |
| Adjusted operating EBITDA margin (non-GAAP) | FY2026 | 31.0%-31.2% | — | Raised by 20 bp |
Investor Takeaways
- Collection and Disposal and residential volume trends will test the lower volume assumptions behind the reduced FY2026 revenue outlook.
- Delivery against the adjusted EBITDA and free cash flow ranges will show whether cost flexibility and productivity offset revenue pressure.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3