Waste Management v poslední seanci vzrostla o 1,22 % na 221,72 USD a překonala S&P 500. Před zveřejněním výsledků trh čeká EPS 2,18 USD a tržby 6,79 miliardy USD.
Waste Management (WM - Free Report) closed at $221.72 in the latest trading session, marking a +1.22% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.06%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.4%.
Shares of the garbage and recycling hauler have depreciated by 2.35% over the course of the past month, underperforming the Business Services sector's gain of 1.35%, and the S&P 500's gain of 2.46%.
Analysts and investors alike will be keeping a close eye on the performance of Waste Management in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.18, marking a 10.1% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.79 billion, up 5.34% from the year-ago period.
WM's full-year Zacks Consensus Estimates are calling for earnings of $8.13 per share and revenue of $26.35 billion. These results would represent year-over-year changes of +8.4% and +4.54%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Waste Management. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. At present, Waste Management boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Waste Management is at present trading with a Forward P/E ratio of 26.95. This signifies a premium in comparison to the average Forward P/E of 26.39 for its industry.
We can also see that WM currently has a PEG ratio of 2.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Waste Removal Services industry was having an average PEG ratio of 2.76.
The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Waste Management po poslední výsledkové zprávě oslabil o 6,5 %. Firma zároveň snížila výhled tržeb na 26,28–26,48 miliardy USD, ale ponechala odhad upraveného EBITDA.
It has been about a month since the last earnings report for Waste Management (WM - Free Report) . Shares have lost about 6.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Waste Management due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Waste Management, Inc. before we dive into how investors and analysts have reacted as of late.
WM Beats Q2 Earnings EstimatesWM reported second-quarter 2026 adjusted earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.99 by 1.5%. Earnings increased 5.2% from the year-ago quarter’s $1.92.
Revenues rose 4% year over year to $6.68 billion but missed the consensus estimate of $6.71 billion by 0.4%. Disciplined pricing and operating efficiencies supported profitability, while Collection and Disposal volume declined 1.8%.
WM Benefits From Pricing & Cost DisciplineCore price increased 5.7% in the quarter, while Collection and Disposal yield improved 3.6%. Higher energy surcharges and increased volumes in the recycling and renewable energy businesses also supported revenue growth.
Collection and Disposal volume fell 1.8%, largely because wildfire cleanup work boosted the prior-year period. Excluding that activity, landfill volumes increased 1.7%, while Collection and Disposal volume declined 0.4%. The strategic exit from lower-margin residential contracts also weighed on volumes.
Waste Management Expands EBITDA MarginAdjusted operating EBITDA increased 5.5% year over year to $2.07 billion. Excluding wildfire cleanup contributions from the prior-year quarter, adjusted operating EBITDA growth was 9.1%.
The adjusted operating EBITDA margin expanded 40 basis points to 30.9%. The improvement came despite a 60-basis-point headwind from the comparison with wildfire cleanup work and a 40-basis-point drag from higher energy surcharges.
WM’s Collection Business Drives GrowthCollection and Disposal revenues increased 3.7% year over year to $5.48 billion. Commercial revenues rose to $1.49 billion from $1.40 billion, industrial revenues increased to $820 million from $790 million and residential revenues advanced to $911 million from $872 million.
The segment’s adjusted operating EBITDA increased $79 million to $2.12 billion. Favorable price-to-cost spread, lower frontline turnover and disciplined cost management helped offset the unfavorable comparison with wildfire cleanup contributions in the year-ago period.
Waste Management’s Sustainability Units GainRecycling Processing and Sales revenues increased to $403 million from $381 million. Renewable Energy revenues climbed to $157 million from $115 million, reflecting higher production following the completion of growth projects.
Combined adjusted operating EBITDA from the recycling and renewable energy businesses increased 32.5%, or $40 million. Higher recycling volumes, automation-related efficiencies and increased renewable natural gas production drove the improvement despite lower prices for recycled commodities, natural gas and renewable fuel credits.
WM Improves Healthcare ProfitabilityHealthcare Solutions revenues declined to $638 million from $646 million. However, the business generated adjusted operating EBITDA of $121 million, up from $110 million in the year-ago quarter.
The adjusted operating EBITDA margin expanded to 19% from 17%. Effective selling, general and administrative expense management and integration benefits from WM’s core Collection and Disposal operations supported the segment’s profitability.
Waste Management Keeps Expenses in CheckOperating expenses totaled $3.96 billion and represented 59.2% of revenues compared with 59.1% a year earlier. Cost controls and productivity initiatives largely offset higher fuel-related expenses.
Adjusted selling, general and administrative expenses declined to $662 million from $672 million. The adjusted SG&A expense ratio improved 60 basis points to 9.9%, reflecting cost discipline and continued synergy capture within Healthcare Solutions.
WM Generates Strong Cash FlowNet cash provided by operating activities increased nearly 12% to $1.73 billion. Free cash flow jumped 34.5% to $1.10 billion, driven by operating EBITDA growth and working capital improvements.
WM returned $1.04 billion to shareholders during the quarter. This included $659 million in share repurchases and $379 million in cash dividends. The company also completed three renewable natural gas facilities and a new recycling facility in Denver.
Waste Management Updates Revenue OutlookWM reduced its revenue outlook to $26.28-$26.48 billion from the preceding quarter’s view of $26.43-$26.63 billion, reflecting lower volume expectations partly offset by higher energy surcharges.
Management maintained its 2026 adjusted operating EBITDA outlook of $8.15-$8.25 billion and free cash flow projection of $3.75-$3.85 billion. The adjusted operating EBITDA margin forecast was raised by 20 basis points to 31-31.2% from the preceding quarter’s view of 30.8-31%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
VGM ScoresAt this time, Waste Management has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Waste Management has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
HOUSTON--(BUSINESS WIRE)--WM (NYSE: WM) today announced the declaration of a quarterly cash dividend of $0.945 per share payable September 25, 2026, to stockholders of record on September 11, 2026.
ABOUT WM
WM (WM.com) is North America's leading provider of comprehensive environmental solutions. Previously known as Waste Management and based in Houston, Texas, WM is driven by commitments to put people first and achieve success with integrity. WM, through its subsidiaries, provides collection, recycling and disposal services to millions of residential, commercial, industrial, medical and municipal customers throughout the U.S. and Canada. With innovative infrastructure and capabilities in recycling, organics and renewable energy, WM provides environmental solutions to and collaborates with its customers in helping them pursue their sustainability goals. In North America, WM has the largest disposal network and collection fleet, is the largest recycler and is a leader in beneficial use of landfill gas, with a growing network of renewable natural gas plants and the most landfill gas-to-electricity plants, as well as the largest heavy-duty natural gas truck fleet in the industry. WM, through its subsidiaries, also provides collection and disposal services of regulated medical waste and secure information destruction services in the U.S., Canada and Western Europe. To learn more about WM and the company's sustainability progress and solutions, visit Sustainability.WM.com.
The phrase "cash is king" translates easily to "trash is king," particularly for Waste Management (WM -0.07%), now known as just WM. The industrial company is involved in every aspect of waste management, collecting trash and recyclables, transporting them to its landfills and recycling stations, and converting landfill gas into renewable electricity and renewable natural gas (RNG).
Its shares have risen less than 2% so far this year, but there are plenty of reasons to invest in the Houston-based company, particularly with the stock trading at less than 28 times forward price to earnings, well below its traditional forward price-to-earnings (P/E) ratio.
Here are three reasons to load up on WM stock:
Image source: Getty Images.
It has a huge moat due to its integrated model WM's competitive advantage centers on its post-collection infrastructure. New landfills in North America face extreme regulatory hurdles and intense local opposition, commonly referred to as the "NIMBY" (Not In My Backyard) effect. Because landfill capacity is non-replaceable and strictly controlled, WM's extensive network of active landfills provides a durable cost and scale advantage that new competitors can't match.
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It owns 253 solid landfills, four hazardous waste landfills, and 113 recycling facilities, more than any other waste company in the U.S., and has a 34% market share.
The company's $7.2 billion purchase of Stericycle in 2024 has given the company an additional high-margin growth area: medical waste. It has 17 medical waste incinerators.
It enjoys utility-like pricing power Trash collection and disposal are non-discretionary utility-like services. Because waste removal accounts for a negligible share of total operating expenses for commercial clients and municipalities, WM has strong pricing power.
The company routinely passes through core price increases that offset inflationary pressures without triggering meaningful customer churn, generating stable, predictable operating cash flow across all economic cycles.
In the second quarter, the company reported revenue of $6.68 billion, up 4% year over year, and earnings per share (EPS) of $1.95, up 8% over the same period a year ago.
WM is forecasting full-year adjusted operating earnings before interest, taxes, depreciation, and amortization (EBITDA) between $8.15 billion and $8.25 billion, up 8.5% at the midpoint. It's also estimating for free cash flow between $3.75 billion and $3.85 billion, up 6.4% at the midpoint. Revenue is estimated to be between $26.275 billion and $26.475 billion, up 4.6% at the midpoint.
Sustainable dividend growth and good capital allocation WM has demonstrated a 23-year track record of annual dividend increases, supported by a conservative payout ratio of 49.26%. Over the past 10 years, it has increased its dividend by more than 130%. It raised its dividend by 14.5% this year to $0.945 per quarter. In the second quarter, it also had $659 in share repurchases.
The cash-generative nature of the core collection-and-disposal business allows management to simultaneously fund strategic growth initiatives, such as investments in renewable natural gas (RNG) infrastructure and automated recycling facilities, while maintaining consistent share repurchases and growing dividend returns.
WM snížila výhled výnosů na rok 2026 na 26,275–26,475 miliardy USD kvůli očekávanému poklesu objemů Collection and Disposal téměř o 1 %. Zároveň zvýšila výhled upravené marže EBITDA na 31 %–31,2 %.
Key Takeaways WM cuts 2026 revenue guidance as Collection and Disposal volumes are expected to decline nearly 1%.WM raises its adjusted EBITDA margin outlook to 31%-31.2% while keeping its EBITDA target unchanged.WM maintains $3.75-$3.85 billion in 2026 free cash flow guidance after a 56% first-half increase.
WM (WM - Free Report) lowered its 2026 revenue outlook after second-quarter results as weaker Collection and Disposal volumes became the main pressure point. The revised guidance shifts investor attention from top-line growth to the durability of margins and cash flow.
Pricing, productivity and faster-growing businesses are doing more of the work. The question is whether those levers can keep earnings momentum intact while core volumes remain soft.
WM Cuts Revenue Guidance as Volumes WeakenWM now expects 2026 revenues of $26.275-$26.475 billion, down from the prior $26.43-$26.63 billion range. Management attributed the reduction mainly to lower volume expectations, partly offset by higher energy surcharges.
Collection and Disposal volumes are expected to decline nearly 1% for the full year. Management expects relatively flat volumes in the second half, leaving volume softness as the clearest constraint on the revised outlook.
Waste Management Raises Its Margin ExpectationsThe weaker revenue forecast did not alter WM’s adjusted operating EBITDA target of $8.15-$8.25 billion. The company instead raised its adjusted operating EBITDA margin outlook by 20 basis points to 31%-31.2% from 30.8%-31%.
That combination points to confidence in pricing, cost flexibility and productivity. Maintaining the EBITDA range despite lower revenues suggests WM expects operating discipline to absorb part of the volume drag.
WM’s Second Quarter Shows the Margin PlaybookSecond-quarter revenues increased 4% year over year to $6.68 billion, supported by a 5.7% core price increase. Adjusted operating EBITDA margin expanded 40 basis points to 30.9% even as Collection and Disposal volume declined 1.8%.
Image Source: Zacks Investment Research
Adjusted earnings of $2.02 per share beat the Zacks Consensus Estimate of $1.99 by 1.5%. Collection operating costs rose less than 1.7% despite labor cost increases of about 4%, illustrating how pricing and productivity are protecting profitability.
Image Source: Zacks Investment Research
Waste Management’s Newer Businesses Add SupportCombined adjusted operating EBITDA from recycling and renewable energy increased 32.5% year over year, driven by higher recycling volumes, automation efficiencies and increased renewable natural gas production. Healthcare Solutions lifted its adjusted operating EBITDA margin to 19% from 17%.
Republic Services, Inc. (RSG - Free Report) also operates across recycling, solid waste and environmental services, while Clean Harbors, Inc. (CLH - Free Report) provides hazardous-waste, industrial and recycling services. Those business mixes show how environmental-services companies can broaden earnings sources beyond traditional collection activity.
WM’s Cash Flow Outlook Raises the StakesWM maintained 2026 free cash flow guidance of $3.75-$3.85 billion after generating $2.02 billion in the first half, up more than 56% year over year. Operating cash flow reached $3.23 billion over the same period.
Cash generation supports capital investment, integration spending and shareholder returns, but leverage remains relevant. WM ended the second quarter at 2.96 times leverage, while current debt was $1.08 billion and long-term debt was $22.28 billion.
WM’s Ratings Reflect a Balanced 2026 SetupWM’s 2026 setup remains balanced. Margin expansion and cash generation are offsetting softer volumes, but they do not remove leverage and execution risks tied to the revised revenue outlook.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Its VGM Score of B, Growth Score of B and Momentum Score of B point to favorable characteristics in those styles, while the Value Score of C is more neutral. Together, the ratings support a measured view as investors assess whether margin gains can continue to offset weaker volumes.
WM v 1. pololetí 2025 zvýšila volný cash flow o více než 56 % na 2,02 miliardy USD. Růst marží podpořilo zdražování, ale akcie se dál obchodují za prémiové ocenění.
Key Takeaways WM's adjusted EBITDA rose 5.5% as pricing offset a 1.8% decline in Collection and Disposal volume.WM trades above its sub-industry EV/EBITDA multiple, raising the execution bar for future performance.WM generated $2.02 billion in first-half free cash flow, up more than 56% year over year.
Waste Management, Inc. (WM - Free Report) combines a defensive waste-services franchise with improving profitability and rising cash generation. Second-quarter execution held up despite softer Collection and Disposal volumes, helped by pricing and operating efficiencies.
The question is whether that quality justifies a premium valuation while debt and near-term liquidity remain constraints. Investors must weigh durable earnings growth against the price already reflected in the shares.
WM’s Pricing Power Keeps Profitability Moving HigherWM’s second-quarter core price increased 5.7%, while Collection and Disposal yield improved 3.6%. Those gains helped offset a 1.8% decline in Collection and Disposal volume, partly reflecting the prior-year wildfire cleanup comparison.
Adjusted operating EBITDA rose 5.5% year over year to $2.07 billion, and the adjusted margin expanded 40 basis points to 30.9%. Excluding the prior-year wildfire contribution, adjusted operating EBITDA growth was 9.1%.
Waste Management Has More Than One Growth EngineRecycling and renewable energy are adding growth beyond the core collection network. Combined adjusted operating EBITDA from those businesses increased 32.5% year over year as recycling volumes, automation efficiencies and renewable natural gas production improved.
Healthcare Solutions’ operating EBITDA margin reached 19%, up 200 basis points year over year. Cross-selling had generated $32 million of annual operating EBITDA, adding another source of integration benefits.
WM’s Valuation Leaves Less Room for DisappointmentWM trades at 14.3X trailing 12-month enterprise value to EBITDA, above the Zacks sub-industry’s 12.5X and its own five-year median of 15X. It also carries a 25.7X forward price-to-earnings multiple and a PEG ratio of 2.57.
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
The premium raises the execution bar. Republic Services, Inc. (RSG - Free Report) offers recycling, waste and environmental solutions. Clean Harbors, Inc. (CLH - Free Report) provides hazardous and non-hazardous material management and industrial services, giving investors another environmental-services comparison.
Waste Management Still Faces Balance Sheet PressureAt June 30, 2026, WM had $22.28 billion of long-term debt and $1.08 billion of current debt against $557 million of cash. Current assets of $5.40 billion trailed current liabilities of $5.95 billion, leaving a working-capital deficit and a current ratio of 0.91.
Leverage ended the quarter at 2.96 times, within management’s 2.5-3.0 times targeted range, with a decline expected in the second half. The absolute debt load still reduces flexibility if cash generation weakens or capital needs rise.
WM’s Cash Flow Helps Support the Bull CaseFree cash flow reached $2.02 billion in the first half of 2026, up more than 56% year over year. Operating cash flow increased more than 17% to $3.23 billion, supported by earnings growth and lower capital spending.
That cash generation supports investment and shareholder returns, but competing demands remain. WM repurchased $1 billion of shares and paid $764 million in dividends during the first half while also funding acquisitions and servicing debt.
WM’s Ratings Favor Patience Over Aggressive BuyingWM’s operating quality is evident, but its valuation and balance-sheet constraints argue for patience. Pricing, broader growth platforms and cash flow support the earnings case, while the premium multiple leaves less room for execution setbacks.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Its VGM Score of B, Growth Score of B and Momentum Score of B are constructive, while the Value Score of C is less supportive. The ratings favor a measured stance rather than an aggressive new entry.
WM využívá AI a strojové učení k optimalizaci tras a snižování nákladů, což podporuje růst marží. Akvizice Stericycle navýšila čistou hotovost o 653 mil. USD a provozní zisk v roce 2025 o 245 mil. USD.
Key Takeaways WM uses AI and machine learning to optimize routes, cut costs and support margin expansion.Stericycle added $653M to WM's net cash and boosted 2025 operating income by $245M.WM's debt reached $23.3B as of June 30, 2026, while cash stood at $557M and its current ratio was 0.91. WM (WM - Free Report) shares have moved up 2.4% in the past three months. Meanwhile, the industry and the Zacks S&P 500 Composite have returned 3.8% and 3.6%, respectively.
3-Month Share Price Performance Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 revenues is pinned at $26.4 billion, suggesting 4.6% year-over-year growth. For 2027, the consensus estimate is $27.8 billion, implying a 5.4% increase from the preceding year’s actual.
Image Source: Zacks Investment Research
For EPS, the consensus mark for 2026 is pegged at $8.14, indicating 8.5% year-over-year growth. The Zacks Consensus Estimate for 2027 EPS is pegged at $9.06. The figure suggests 11.3% year-over-year growth.
Image Source: Zacks Investment Research
Factors That Augur Well for WM’s SuccessTech-Driven Efficiencies Bolster Margins: WM strengthens its margin profile utilizing tech-backed efficiencies. The SmartTruck platform, a combination of AI and machine learning, generates more than $300 million in annual run-rate EBITDA via route optimization, service upgrades, and lower operating expenses.
These innovations kept operating expenses below 60% of the top line for the sixth consecutive quarter despite headwinds. The company is expanding its tech pipeline to incorporate AI tools, autonomous long-haul vehicles and remotely operated heavy equipment to lower operating costs, improve the top line, and act as the catalyst for margin expansion.
Stericycle Buyout Boosts Cash Position: WM’s recent acquisition of Stericycle complements its business platform in medical waste, a sector with robust growth dynamics. In 2025, the company recorded a $653-million increase in net cash, driven by the recent buyout. Stericycle was responsible for a $245-million rise in income from operations during 2025.
Dividends Attract Income-Seeking Investors: WM has paid out dividends to its shareholders since 1998. In 2023, 2024 and 2025, the company paid out dividends totaling $1.1 billion, $1.2 billion and $1.3 billion, respectively. This consistency has persisted despite fluctuations in the company’s cash position, underscoring its dedication to creating long-term value for investors. Consistent dividend payments give a green light to income-seeking investors.
Risks Faced by WMHeightened Debt Load: Stericycle buyout and ongoing investments in renewable energy have significantly increased its debt load. The company has issued billions in senior notes, affecting financial flexibility and increasing the potential impacts on shareholder returns if cash flow does not grow as expected.
If WM fails to achieve the anticipated growth in cash flow, it could face challenges in maintaining its operational efficiency and meeting these financial obligations. As of June 30, 2026, the company had current debt of $1.1 billion and long-term debt of $22.2 billion against a cash and equivalent balance of $557 million.
Weak Liquidity Profile: WM's high short-term debt against its cash reserves weakens its liquidity position. At the end of the second quarter of 2026, the company reported a current ratio of 0.91, a sequential dip from 0.93. A current ratio below 1 often suggests that a company may not be well-positioned to meet its short-term obligations, which is a waving red flag for investors.
WM’s Zacks Rank & Stocks to ConsiderThe company has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Business Services sector are Coursera (COUR - Free Report) and Gartner (IT - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Coursera has a long-term earnings growth expectation of 49.6%. COUR delivered a trailing four-quarter earnings surprise of 10.9%, on average.
Gartner has a long-term earnings growth expectation of 21%. IT delivered a trailing four-quarter earnings surprise of 13.5%, on average.
Waste Management ve 2. čtvrtletí zvýšila provozní EBITDA o 5,5 % a volný cash flow o 35 %. Firma zároveň snížila celoroční výhled výnosů na 26,275 až 26,475 miliardy USD.
3 Low-Volatility Plays Quietly Making a Name For ThemselvesWaste Management NYSE: WM reported second-quarter operating EBITDA growth of 5.5%, or 9.1% excluding contributions from wildfire cleanup activity in the prior-year period, as pricing discipline, cost controls and technology investments supported profitability despite softer volume trends.
Chief Executive Officer Jim Fish said operating EBITDA margin expanded 40 basis points during the quarter, overcoming a 60-basis-point headwind from prior-year wildfire volumes and a 40-basis-point headwind tied to higher energy surcharges. Free cash flow increased 35% in the quarter, supported by earnings growth, lower capital expenditures and working-capital benefits.
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2 Stocks Built to Thrive If Inflation Refuses to FadeThe company narrowed its full-year revenue outlook to between $26.275 billion and $26.475 billion, a reduction of about 1.5%, reflecting softer-than-expected Collection and Disposal volumes, lower recycling brokerage activity and delays connecting certain renewable natural gas plants to pipelines. Management maintained its full-year operating EBITDA and free-cash-flow guidance and raised its margin outlook by 20 basis points.
Margins Expand as Collection Costs Remain Contained President John Morris said operating expenses remained below 60% of revenue for the sixth consecutive quarter, despite the combined effects of prior-year wildfires and increased fuel prices. Labor costs rose approximately 4%, but collection operating costs increased less than 1.7% from the second quarter of 2025, according to Morris.
3 Waste Stocks Turning AI Investments Into GrowthManagement attributed the cost performance to productivity initiatives, pricing actions, automation, process discipline and technology investments. Fish said WM’s Smart Truck platform, which uses technology including artificial intelligence, is generating more than $300 million in annual run-rate operating EBITDA through service upgrades, route optimization and lower operating costs.
Chief Financial Officer David Reed said Collection and Disposal improvements contributed 140 basis points of margin growth, while recycling, renewable energy and Healthcare Solutions together added 40 basis points. Those gains were partly offset by roughly 40 basis points from higher technology investments and the timing of risk-management costs in the company’s corporate and other segment.
SG&A expense improved by 60 basis points to 9.9% of revenue, returning below 10% for the first time since the company acquired its Healthcare Solutions business in 2024. Reed said WM expects full-year SG&A to be around 10% of revenue.
Volumes Softer, but Management Cites Industrial and Special-Waste Strength Collection and Disposal volumes declined 0.4% in the second quarter excluding the impact of prior-year wildfire activity. The company now expects volumes to be relatively flat in the second half and to decline by nearly 1% for the full year, or about 50 basis points excluding the 2025 wildfire-cleanup impact.
Morris said residential volume declines improved by 200 basis points sequentially to negative 2.9%, and the company expects those losses to continue moderating in coming quarters. Special-waste volumes rose 4.5% excluding wildfire activity, while industrial collection volumes showed modest growth.
Fish said the company did not see signs that broader economic weakness was driving the volume shortfall. He pointed to special-waste growth and industrial roll-off volumes that were slightly positive over the preceding four weeks. Instead, he said commercial volumes were affected primarily by lost national accounts, which management characterized as a more limited issue rather than evidence of broader competitive deterioration.
Higher energy surcharges are expected to generate about $175 million of additional 2026 revenue, Reed said, partially offsetting an estimated $250 million revenue reduction from lower Collection and Disposal volumes. The company also expects approximately $75 million less revenue from sustainability operations due to lower recycling brokerage volume and delayed RNG pipeline interconnections.
Recycling, Renewable Energy and Healthcare Solutions Contribute WM processed 12% more recyclables year over year during the quarter. Fish said recycling automation projects have delivered a sustained 30% improvement in labor cost per ton compared with legacy facilities. Chief Operating Officer Tara Hemmer said the company has completed 38 of the 39 recycling-facility projects included in its capital plan, with the final project expected to come online in 2027.
Hemmer said commodity prices were down year over year, though the company has seen improving prices for old corrugated containers and some positive movement in plastics. WM began the year using a full-year commodity-price outlook of $70 per ton; Hemmer said the full-year outlook may be somewhat higher, though that benefit could be offset by operational effects related to a fire at an Arizona facility.
The company produced an additional 1.6 million MMBtu of renewable natural gas during the quarter. However, two completed plants have not yet begun delivering gas into pipelines because of third-party interconnection work. Management said it expects the plants to be connected by year-end. Hemmer said WM has locked up 90% of its 2026 renewable identification number volume and has pre-sold roughly one-third of its expected 2027 RINs.
Healthcare Solutions expanded operating EBITDA margin by 200 basis points to 19%. Morris said SG&A expense in the segment declined 15% and improved 290 basis points as a percentage of revenue. Fish said the business is now integrated following the Stericycle acquisition, with days sales outstanding improving and customer credits declining after peaking in the fourth quarter.
Cross-selling initiatives have generated $32 million of annual operating EBITDA to date, and WM remains on track to deliver more than $300 million in total synergies by the end of 2027. Management expects core pricing in Healthcare Solutions to exit 2026 above 5.5%.
Cash Flow, Capital Allocation and Outlook For the first six months of 2026, operating cash flow rose more than 17% to $3.23 billion, while capital spending declined more than 18%. Free cash flow increased more than 56% to $2.02 billion, representing operating EBITDA conversion approaching 52%.
WM used $1 billion for share repurchases and paid $764 million in dividends during the first half. The company ended the quarter with leverage of 2.96 times, within its targeted range of 2.5 times to 3 times, and expects leverage to decline in the second half.
Fish said WM closed $235 million of solid-waste tuck-in acquisitions during the quarter and expects to increase core acquisition activity after returning leverage to its targeted range following the Stericycle purchase. The company also raised its 2026 operating EBITDA margin expectation to between 31% and 31.2%.
About Waste Management (NYSE:WM)Waste Management, Inc NYSE: WM is a leading provider of integrated waste management and environmental services in North America. The company offers end-to-end solutions that span collection, transfer, disposal and recycling, along with landfill operations and related infrastructure. Headquartered in Houston, Texas, Waste Management serves a broad customer base that includes residential, commercial, industrial and municipal clients.
Core services include curbside and commercial waste collection, roll-off and temporary container services, materials recovery and recycling, and engineered landfill disposal.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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For the quarter ended June 2026, Waste Management (WM - Free Report) reported revenue of $6.68 billion, up 4% over the same period last year. EPS came in at $2.02, compared to $1.92 in the year-ago quarter.
The reported revenue represents a surprise of -0.42% over the Zacks Consensus Estimate of $6.71 billion. With the consensus EPS estimate being $1.99, the EPS surprise was +1.51%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Waste Management performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Internal Revenue Growth - Period-to-Period Change - Total - As a % of Total Company: 4% compared to the 4.6% average estimate based on four analysts.Internal Revenue Growth - Period-to-Period Change - Volume - As a % of Total Company: -0.3% versus -0.5% estimated by three analysts on average.Internal Revenue Growth - Period-to-Period Change - Acquisitions - As a % of Total Company: 0.5% versus 0.4% estimated by two analysts on average.Internal Revenue Growth - Period-to-Period Change - Total average yield - As a % of Total Company: 4.3% compared to the 4.2% average estimate based on two analysts.Internal Revenue Growth - Period-to-Period Change - Internal revenue growth - As a % of Total Company: 3.5% versus 4.1% estimated by two analysts on average.Net Operating revenues- Renewable Energy: $157 million versus the three-analyst average estimate of $169.01 million. The reported number represents a year-over-year change of +36.5%.Net Operating revenues- Recycling Processing and Sales: $403 million compared to the $396.54 million average estimate based on three analysts. The reported number represents a change of +5.8% year over year.Net Operating revenues- Healthcare Solutions: $638 million versus the three-analyst average estimate of $647.15 million. The reported number represents a year-over-year change of -1.2%.View all Key Company Metrics for Waste Management here>>>
Shares of Waste Management have returned +6.5% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
WM čeká ve 2. čtvrtletí tržby 6,7 miliardy USD, což je meziročně o 4,4 % více, a EPS 1,99 USD. Nejrychleji má růst segment obnovitelné energie, o 47 %.
Key Takeaways WM's Q2 revenues are expected to rise 4.4% y/y to $6.7 billion, with EPS up 3.7% to $1.99.Collection and disposal revenues are projected at $5.5 billion, nearly 82% of WM's quarterly sales.WM's renewable energy revenues are expected to rally 47%, helped by RNG, automation and new markets. WM (WM - Free Report) is scheduled to release second-quarter 2026 results on July 28, 2026, after market close.
WM surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average earnings surprise being 0.6%.
WM’s Q2 ExpectationsThe Zacks Consensus Estimate for revenues is pegged at $6.7 billion, implying a 4.4% gain from the year-ago quarter’s actual. The top line is expected to have been driven by solid momentum across the total collection and disposal segment, contributing toward the majority of the top line. The remaining segments are anticipated to have contributed meaningfully to the top line as well.
The consensus estimate for total collection and disposal segment revenue is set at $5.5 billion, suggesting a 3.9% year-over-year rise. This segment is expected to account for nearly 82% of the top line in the second quarter of 2026. Revenue gains in this segment are likely to have stemmed from a focus on customer lifetime value, continuous operational improvement and network advantages.
For the recycling processing and sales segment, the consensus estimate for revenues is $397 million. This represents a 4.2% increase from the year-ago quarter’s actual. The Zacks Consensus Estimate for the WM renewable energy segment’s revenues is $169 million, suggesting a 47% year-over-year jump. Key drivers of recycling and renewable segments’ expansion likely include investments in renewable natural gas facilities, recycling automation and new market projects.
The consensus estimate for the WM healthcare solutions revenues hints at marginal year-over-year growth to $647 million. For the corporate and other segment, the Zacks Consensus Estimate is pinned at $7 million, suggesting no change from the year-ago quarter’s reported figure.
The consensus estimate for earnings per share is pegged at $1.99, hinting at a 3.7% increase from the year-ago quarter’s actual. Bottom-line growth is anticipated to have been driven by operational efficiencies and expanding margins across segments, capturing the growth momentum. Automation and AI-fueled technological support are expected to have been the prominent growth drivers as well.
What Our Model Predicts About WMOur proven model does not conclusively predict an earnings beat for WM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
WM currently has an Earnings ESP of -1.31% and a Zacks Rank #3.
Stocks to ConsiderHere are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Clean Harbors (CLH - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pinned at $1.6 billion, indicating 4.8% year-over-year growth. For earnings, the consensus estimate is pegged at $2.73 per share, implying a 15.7% jump from the year-ago quarter’s actual. The company beat the consensus estimate in three of the four quarters and missed once, with an average negative surprise of 0.02%.
CLH has an Earnings ESP of +3.82% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to declare second-quarter 2026 results on July 29.
Veralto Corporation (VLTO - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $1.4 billion, suggesting a 4.9% year-over-year rise. For earnings, the consensus estimate is kept at a dollar per share, gaining 7.5% from the year-ago quarter’s actual. The company beat the consensus estimate in the trailing four quarters, with an average surprise of 4.9%.
VLTO has an Earnings ESP of +0.77% and a Zacks Rank of 3 at present. The company is scheduled to declare second-quarter 2026 results on July 28.
