Key Highlights

  • Waste Management reported third quarter revenue of USD 6,846 million, with total company revenue growth of 6.3%.
  • Net income was USD 820 million for the quarter, with diluted earnings per share of USD 2.05 on a GAAP basis.
  • Healthcare Solutions revenue grew 3.7% during the quarter, with operating EBITDA increasing more than 30%.
  • The company affirmed its 2026 guidance ranges, citing disciplined execution and strong investment returns.

Core Price Growth Drives Overall Revenue Expansion

Waste Management, Inc. (NYSE:WM) reported third quarter revenue of USD 6,846 million, with total company revenue growth of 6.3%, driven by core price growth of 5.8% and Collection and Disposal yield of 3.4%. Revenue growth was further supported by increased energy surcharges and higher volumes in the company's recycling and renewable energy businesses following completed growth projects.

Net income was USD 820 million for the quarter, with diluted earnings per common share of USD 2.05. Adjusted operating EBITDA increased 5.8% during the quarter, driven by a strong price-to-cost spread in the Collection and Disposal segment and growing contributions from the company's healthcare and sustainability businesses.

Healthcare Solutions Segment Shows Strong Growth

Healthcare Solutions revenue grew 3.7% in the quarter, with segment operating EBITDA increasing more than 30%, driven by effective cost management, synergy capture, and pricing growth. Management said the quarter's overall results reflect the earnings power of the company's diversified business and its ability to consistently create value for shareholders.

Operating expenses were 59.8% of revenue, compared with 58.9% in the prior year period. Operating efficiency within the Collection and Disposal business drove a 40 basis point improvement, which was more than offset by a 130 basis point dilutive impact primarily related to higher fuel costs and increased risk management costs.

Expense Discipline Supports Margin Resilience

SG&A expenses were 9.6% of revenue, or 9.3% on an adjusted basis, an improvement of 70 basis points both on a reported and adjusted basis from the prior year, reflecting cost discipline and continued synergy capture within Healthcare Solutions. Favorable price-to-cost spread in Collection and Disposal contributed 40 basis points to adjusted operating EBITDA margin, while Healthcare Solutions added another 30 basis points, though these gains were offset by 40 basis points each from higher fuel costs and increased risk management costs.

The company affirmed its 2026 guidance ranges, stating its execution remains aligned with its financial objectives for the year, reflecting disciplined operational execution and continued strong returns on productivity-enhancing investments.

Margin and Growth Metrics to Track

Adjusted operating EBITDA growth relative to the 5.8% increase reported this quarter, continued Healthcare Solutions segment momentum relative to the more than 30% EBITDA growth this period, and the net effect of fuel cost and risk management cost trends relative to this quarter's margin compression are among the items the company has flagged for investors. The interplay between core pricing discipline and cost inflation, particularly in fuel and risk management, remains a central dynamic for the Collection and Disposal segment heading into the fourth quarter.