Waste Management, Inc.: Operating EBITDA margin expanded despite wildfire and energy surcharge headwinds

Waste Management, Inc. 2026 Q2: Financial Performance summary

• Capital allocation returned $1.0 billion of shares and $764 million in dividends in the first half; leverage finished Q2 at 2.96x within the 2.5x–3x target range.
• First-half operating cash flow was $3.23 billion (+17% vs. 1H 2025) and free cash flow was $2.02 billion (+56% vs. 1H 2025), with operating EBITDA conversion approaching 52%.
• Free cash flow grew 35% in the quarter, supported by higher earnings plus lower capital spending and working capital benefits.
• Operating EBITDA grew 5.5% (or 9.1% excluding last year’s wildfire cleanup contributions) in Q2 2026.
• Operating EBITDA margin expanded 40 bps, overcoming a 60 bps wildfire volume headwind and a 40 bps headwind from higher energy surcharges.
• SG&A improved 60 bps to 9.9% of revenue in Q2, and returned below 10% for the first time since the 2024 Healthcare Solutions acquisition.
• Underlying margin expansion was led by Collection and Disposal via price discipline, cost optimization, and mix improvements.