Waste Management stock weighs healthcare gains against volume pressure
Published on 11/12/2026 at 14:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSHealthcare gains meet volume pressure
- Third-quarter revenue rose as pricing, energy surcharges and sustainability projects supported growth.
- Healthcare Solutions improved profitability through pricing, cost management and integration synergies.
- Management expects 2026 revenue and free cash flow at the high end of its guidance ranges.
Waste Management released its third-quarter results on Tuesday, October 27, 2026, for the period ended September 30. The company reported stronger revenue and cash generation, while weaker collection volumes and higher cost pressure kept profitability in focus. The WM earnings release said quarterly revenue increased 6.3 percent to 6.846 billion US dollars.
Pricing supports third-quarter revenue
Core price rose 5.8 percent, while Collection and Disposal yield increased 3.4 percent. Higher energy surcharges and stronger volumes in recycling and renewable energy also contributed to growth after completed expansion projects. Collection and Disposal volume nevertheless fell 0.4 percent, or 0.5 percent on a workday-adjusted basis. WM attributed the pressure to the deliberate exit from lower-margin residential business and earlier losses of national account broker relationships.
Adjusted operating EBITDA increased 5.8 percent to 2.121 billion US dollars. The adjusted margin was 31.0 percent, down from 31.1 percent a year earlier. A favorable price-to-cost spread in Collection and Disposal contributed 40 basis points, while Healthcare Solutions added 30 basis points. Higher fuel costs and risk management costs each reduced the margin by 40 basis points.
Healthcare integration gains momentum
Healthcare Solutions revenue grew 3.7 percent to 651 million US dollars. Adjusted operating EBITDA climbed to 146 million US dollars from 110 million US dollars, lifting the segment margin to 22.4 percent from 17.5 percent. WM credited cost management, pricing growth and integration synergies for the improvement. The segment reached its year-end targets for 5.5 percent core price and a selling, general and administrative expense ratio between 15 percent and 16 percent ahead of schedule, with third-quarter SG&A at 15.2 percent of revenue.
The company also generated 4.867 billion US dollars in operating cash flow during the first nine months, up 12.0 percent year over year. Free cash flow reached 3.009 billion US dollars, an increase of more than 42 percent. WM returned 957 million US dollars to shareholders during the quarter through 580 million US dollars in share repurchases and 377 million US dollars in dividends.
Outlook remains intact
WM expects full-year revenue at the high end of its 26.275 billion to 26.475 billion US dollar range. Adjusted operating EBITDA is expected within the 8.15 billion to 8.25 billion US dollar range, while free cash flow is also expected at the high end of its 3.75 billion to 3.85 billion US dollar range. The company continues to expect 2 billion US dollars of share repurchases in 2026.
For investors, the results show a business using pricing and cost controls to offset softer volumes and fuel-related pressure. The healthcare integration is becoming a more visible earnings support, but the volume trend and operating costs remain important indicators for the next quarter.
Waste Management stock traded at 218.25 euros on Lang & Schwarz at 14:33 CET on Thursday, November 12, 2026.
Waste Management company facts
- Company: Waste Management, Inc.
- ISIN: US94106L1098
- Home exchange: New York Stock Exchange
- Latest quote: 218.25 euros on Lang & Schwarz, Thursday, November 12, 2026, 14:33 CET
- Third-quarter revenue: 6.846 billion US dollars, period ended September 30, 2026
- 2026 revenue outlook: 26.275 billion to 26.475 billion US dollars
US market conditions remain relevant for the company; see the latest S&P 500 market reports.
