Waste Management stock holds outlook as healthcare margins improve

Published on 11/09/2026 at 15:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Waste Management stock faces a mixed operating picture after third-quarter revenue growth. Management expects 2026 revenue and free cash flow at the high end of its ranges.

Healthcare gains meet volume pressure

Waste Management increased third-quarter revenue by 6.3 percent and adjusted operating EBITDA by 5.8 percent.
Healthcare Solutions revenue rose 3.7 percent, while operating EBITDA grew by more than 30 percent.
Lower collection volumes and higher fuel costs remain key risks for margins and the outlook.

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Waste Management posted 6.3 percent revenue growth in the third quarter ended September 30, 2026, while reaffirming its full-year outlook. The update, released on October 27 and covered by Waste360 on October 28, points to stronger healthcare profitability but also persistent pressure on collection volumes and fuel costs.

Pricing supports the third quarter

Adjusted operating EBITDA increased 5.8 percent. Waste360 attributed the revenue advance to 5.8 percent core pricing, 3.4 percent yield growth in Collection and Disposal, higher energy surcharges, and increased volumes in recycling and renewable energy.

Collection and Disposal volume declined 0.4 percent, or 0.5 percent on a workday-adjusted basis. The company linked the decline to its continued exit from lower-margin residential business and commercial weakness associated largely with earlier national-account broker losses.

Healthcare integration gains traction

Healthcare Solutions revenue increased 3.7 percent, while operating EBITDA grew by more than 30 percent. The segment, expanded through Waste Management's Stericycle acquisition, is becoming an important part of the margin story as pricing, integration and cost controls offset weaker volume trends.

Management also highlighted stronger cash generation. Operating cash flow for the first nine months reached 4.87 billion US dollars, up 12 percent from the prior-year period, while free cash flow rose more than 42 percent to 3.01 billion US dollars. Waste Management returned 957 million US dollars to shareholders in the third quarter through share repurchases and dividends.

Guidance stays at the high end

For 2026, Waste Management continues to target revenue of 26.275 billion to 26.475 billion US dollars. Adjusted operating EBITDA is expected at 8.15 billion to 8.25 billion US dollars, and free cash flow at 3.75 billion to 3.85 billion US dollars. Management expects revenue and free cash flow to finish toward the high end of those ranges.

The outlook depends on maintaining pricing discipline while improving the acquired healthcare operation. Softer residential and commercial volumes, fuel expenses and execution of the integration remain the main issues for investors. The leadership transition is another upcoming milestone: CEO Jim Fish is scheduled to retire, with John Morris set to take over in early 2027.

Waste Management stock traded at 211.10 euros on Lang & Schwarz at 3:18 p.m. CET on Monday, November 9, 2026, 0.05 percent below the Xetra close of Friday, November 6.