From The Motley Fool · Motley Fool Transcribing · · 2m
WM Q3 2026 Earnings Results
Waste Management reports 6.3% revenue growth and strong cash flow as CEO retires.
In brief
Waste Management reports 6.3% revenue growth and strong cash flow as CEO retires. Waste Management Inc. achieved 6.3% revenue growth and $3.01 billion free cash flow through Q3 2026 with CEO Jim Fish retiring in January 2027. Originally reported by The Motley Fool.
Q3 2026 Results
Waste Management reported 6.3% revenue growth and 5.8% core price increase in Q3 2026.
Adjusted EBITDA Growth
Adjusted operating EBITDA rose 5.8% to $2.121 billion with healthcare solutions contributing 33% year-over-year growth.
CEO Transition
Jim Fish will retire as CEO in January 2027 with John Morris named as successor after deliberate succession planning.
Healthcare Solutions
Healthcare Solutions revenue reached $752 million with 5.5% core price and 15.2% SG&A ahead of schedule targets.
Free Cash Flow
Free cash flow reached $3.01 billion through nine months of 2026, a 42% increase from prior year.
Tuck-in Acquisitions
Completed $239 million in tuck-in acquisitions through nine months with $140 million expected to close in Q4.
Renewable Energy
Renewable natural gas production reached 40% of 2027 production contracted with 18 facilities completed since 2022.
Cost Management
SG&A expenses decreased to 9.3% of revenue, a 70 basis point improvement from prior year.
Pricing Strategy
Core price reached 5.8% in collection and disposal operations with 3.4% collection and disposal yield.
Q4 Guidance
Full-year revenue guidance of $26.275 billion to $26.475 billion with focus on high-end execution.
RIN Pricing
Renewable Identification Numbers pricing slightly lower than prior year despite 35% EBITDA growth.
Risk Management
Risk management costs increased 40 basis points year-over-year due to actuarial adjustments.
Commercial Volume
Commercial volume down 1.3% due to national account broker losses expected to lap by Q1 2027.
Residential Volume
Residential volume down 2.6% with improvement from 3.5% decline through nine months.
Capital Expenditures
Capital expenditures declined 17% to $1.937 billion through nine months of 2026.
Shareholder Returns
$2.72 billion returned through nine months via $1.58 billion share repurchases and $1.14 billion dividends.
The key point
Waste Management Inc. achieved 6.3% revenue growth and $3.01 billion free cash flow through Q3 2026 with CEO Jim Fish retiring in January 2027.
