WM Announces Fourth Quarter and Full-Year 2025 Earnings

HOUSTON--( BUSINESS WIRE)--WM (NYSE: WM) today announced financial results for the fourth quarter and year ended Dec. 31, 2025.

Three Months Ended

Year Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

(in millions, except per share amounts)

Reported

Adjusted (a)

Reported

Adjusted (a)

Reported

Adjusted (a)

Reported

Adjusted (a)

Revenue

$6,313

$5,893

$25,204

$22,063

Income from Operations

$1,155

$1,204

$919

$1,054

$4,308

$4,719

$4,063

$4,296

Operating EBITDA (b)

$1,925

$1,974

$1,571

$1,706

$7,171

$7,582

$6,330

$6,563

Operating EBITDA Margin

30.5%

31.3%

26.7%

28.9%

28.5%

30.1%

28.7%

29.7%

Net Income (c)

$742

$780

$598

$688

$2,708

$3,031

$2,746

$2,916

Diluted EPS

$1.83

$1.93

$1.48

$1.70

$6.70

$7.50

$6.81

$7.23

“2025 was a year of disciplined execution for WM,” said Jim Fish, WM’s CEO. “We delivered record performance in operating expenses as a percentage of revenue for both the fourth quarter and the full year, resulting in our best full-year adjusted operating EBITDA margin. (a) Our investments in technology and automation continue to generate meaningful efficiencies, contributing to structurally enhanced margins and stronger cash generation. We are also building momentum in the strategic growth of our recycling, renewable energy, and healthcare solutions businesses as we position WM as the leading provider of comprehensive environmental solutions.”

Fish continued, “As we carry our momentum into 2026, we expect to grow free cash flow by nearly 30% at the midpoint of our guidance. (a) This growth is underpinned by our unreplicable solid waste network as well as the intentional investments we have made in recycling and renewable energy projects, our fleet, and a premier medical waste network. We plan to harvest the benefits of our investments and return to shareholders approximately $3.5 billion in 2026 through dividends and share repurchases while also returning our leverage ratio to our long-term target range of between 2.5x and 3.0x.” (d)

KEY HIGHLIGHTS FOR THE FOURTH QUARTER AND FULL YEAR 2025

Fourth Quarter 2025

($ in millions)

Full Year 2025

($ in millions)

Total Company

Breakout

As Adjusted (a)

Total Company

Breakout

As Adjusted (a)

Amount

Margin

Amount

Margin

Amount

Margin

Amount

Margin

Legacy Business (e)

$ 1,838

32.3%

$ 1,869

32.8%

$ 6,833

30.1%

$ 7,158

31.5%

Healthcare Solutions

14.1%

105

17.1%

338

13.5%

424

16.9%

Total Company

$ 1,925

30.5%

$ 1,974

31.3%

$ 7,171

28.5%

$ 7,582

30.1%

Fourth Quarter 2025

($ in millions)

Full Year 2025

($ in millions)

Amount

Growth

Amount

Growth

Legacy Business (e)

$ 5,698

3.8%

$ 22,696

4.8%

Healthcare Solutions

615

N/A

2,508

N/A

Total Company

$ 6,313

7.1%

$ 25,204

14.2%

Operating Expenses

Fourth Quarter 2025

($ in millions)

Full Year 2025

($ in millions)

Total Company

Breakout

As Adjusted (a)

Total Company

Breakout

As Adjusted (a)

Amount

Margin

Amount

Margin

Amount

Margin

Amount

Margin

Legacy Business (e)

$ 3,302

58.0%

$ 3,302

58.0%

$ 13,429

59.2%

$ 13,422

59.1%

Healthcare Solutions

391

63.6%

389

63.3%

1,583

63.1%

1,574

62.8%

Total Company

$ 3,693

58.5%

$ 3,691

58.5%

$ 15,012

59.6%

$ 14,996

59.5%

SG&A Expenses

Fourth Quarter 2025

($ in millions)

Full Year 2025

($ in millions)

Total Company

Breakout

As Adjusted (a)

Total Company

Breakout

As Adjusted (a)

Amount

Margin

Amount

Margin

Amount

Margin

Amount

Margin

Legacy Business (e)

$ 535

9.4%

$ 520

9.1%

$ 2,149

9.5%

$ 2,098

9.2%

Healthcare Solutions

139

22.6%

128

20.8%

573

22.8%

528

21.1%

Total Company

$ 674

10.7%

$ 648

10.3%

$ 2,722

10.8%

$ 2,626

10.4%

Cash Flow and Investments

Sustainability and Healthcare Solutions Update

FINANCIAL OUTLOOK (h)

WM’s outlook for growth in 2026 is driven by expectations of continued strength in the solid waste business, ongoing optimization of Healthcare Solutions, and increased contributions from sustainability growth investments.

Projected Results

($ in millions)

Projected Year-Over-Year Change at Midpoint

Revenue

$26,425 - $26,625

Growth of 5.2%

Adjusted operating EBITDA (a)

$8,150 - $8,250

Growth of 6.2% on a comparable basis, reflecting a change in the classification of accretion expense beginning in 2026 (i)

Adjusted operating EBITDA margin (a)

30.8%-31.0%

Expansion of 30 basis points on a comparable basis, reflecting a change in the classification of accretion expense beginning in 2026, (i) or 50 basis points when normalized for the prior year wildfire cleanup

Capital to support the business

$2,450 - $2,550

Reduction of about $100 million

Sustainability growth capital (j)

About $200

Reduction of more than $400 million

Free cash flow (a)

$3,750 - $3,850

Growth of 29.4%

2026 EXPECTATIONS

SUSTAINABILITY GROWTH OUTLOOK

WM is progressing its sustainability growth portfolio to expand its industry-leading network of renewable energy and recycling assets. The Company expects to complete six additional renewable natural gas plants and four additional recycling projects in 2026. The Company has executed well on its strategic investment portfolio, and 2027 financial results are expected to achieve almost all of the full run-rate contributions from its previously announced projects. As a result, adjusted operating EBITDA for the Recycling Processing and Sales and Renewable Energy segments combined with the landfill gas royalties realized by the Collection and Disposal segment are expected to collectively approach $1 billion in 2027 at current market prices. (a)(m)

Fish concluded, “As we wrap up a record 2025, we’re incredibly grateful for the hard work and commitment of our WM team. Their focus and drive delivered impressive results and provided a strong foundation for 2026. Looking ahead, we’re confident in our ability to achieve our 2026 outlook as we continue to grow our sustainability and healthcare solutions businesses and create value for our customers, communities, and shareholders.”

(a)

The information labeled as adjusted in this press release, as well as free cash flow, are non-GAAP measures. Please see “Non-GAAP Financial Measures” below and the reconciliations in the accompanying schedules for more information.

(b)

Management defines operating EBITDA as GAAP income from operations before depreciation, depletion and amortization; this measure may not be comparable to similarly titled measures reported by other companies.

(c)

For purposes of this press release, all references to “Net income” refer to the financial statement line item “Net income attributable to Waste Management, Inc.”

(d)

Leverage ratio is calculated based on the defined terms for this financial covenant in the Company’s revolving credit agreement, which is Exhibit 10.9 to the Company’s Form 10-K filed Feb. 19, 2025.

(e)

Management defines Legacy Business as total Company GAAP results excluding the Healthcare Solutions segment and net of intercompany eliminations.

(f)

Core price is a performance metric used by management to evaluate the effectiveness of our pricing strategies; it is not derived from our financial statements and may not be comparable to measures presented by other companies. Core price is based on certain historical assumptions, which may differ from actual results, to allow for comparability between reporting periods and to reveal trends in results over time.

(g)

The Company’s blended average price received for single stream recycled commodities sold during the quarter was about $62 per ton compared to about $87 per ton in the prior year period, and $75 per ton for the full year compared to $92 per ton in the prior year period. The blended average price for renewable natural gas sold in 2025 was about $31per MMBtu. The average price received for Renewable Fuel Standard credits was $2.41 during the quarter compared to $3.02 in the prior year period, and $2.49 for the full year compared to $3.05 in the prior year period. The average price received for natural gas was $3.06 per MMBtu during the quarter compared to $2.30 per MMBtu in the prior year period and $2.99 for the full year compared to $1.99 in the prior year period. The average price received for electricity was about $72 per megawatt hour in the quarter compared to about $65 per megawatt hour in the prior year period and $72 per megawatt hour for the full year compared to $63 in the prior year period.

(h)

The Company’s 2026 financial outlook and expectations are independent of 2027 estimates and projections communicated at its June 2025 Investor Day. The Investor Day estimates were developed using certain commodity, economic and other assumptions at that time. The Investor Day estimates spoke only as of the date issued and are not reissued or affirmed. The Company anticipates that it would next comment on 2027 estimates and projections when it provides ordinary course annual financial guidance in connection with its fourth quarter 2026 earnings announcement. As noted at the Investor Day and under “Forward-Looking Statements” below, the Company assumes no obligation to update any forward-looking statements, including estimates, projections, guidance or underlying assumptions.

(i)

To enhance comparability and better reflect operating performance, the Company is updating its classification of accretion expense, resulting in its exclusion from operating expense and operating EBITDA. Accretion will remain a component of income from operations. For 2026, the Company expects accretion expense of approximately $150 million. This compares to accretion expense of $142 million in 2025 with $35 million in the first quarter, $36 million in the second quarter, $35 million in the third quarter, and $36 million in the fourth quarter.

(j)

The Company expects capital spending of about $85 million in 2026 on two recently approved renewable natural gas facilities and one new recycling growth project that are each expected to be completed and begin contributing operating EBITDA by 2028.

(k)

The 2026 outlook includes a blended average single-stream recycled commodity price of approximately $70 per ton. The Company estimates that a $10 per ton change in the blended average single-stream commodity price impacts total Company operating EBITDA by approximately $27 million.

(l)

The Company expects to generate between 21 and 22 million MMBtu of renewable natural gas in 2026, 60% of which has already been contracted at a blended average price of about $27 per MMBtu. The remaining 40% is expected to be sold at market rates averaging approximately $24.50 per MMBtu for an overall anticipated blended average price of approximately $26 per MMBtu. The Company’s current sensitivity to a $0.10 change in the value of Renewable Fuel Standard credits on the uncontracted portion of expected sales is approximately $6 million of operating EBITDA.

(m)

The Company estimates an adjusted operating EBITDA baseline for the Recycling Processing and Sales and Renewable Energy segments combined with landfill gas royalties that would have been realized in the Collection and Disposal segment in 2023 of approximately $300 million before contributions from sustainability growth projects realized that year.

The Company will host a conference call at 10 a.m. ET on Jan. 29, 2026, to discuss the fourth quarter and full-year 2025 results. Information contained within this press release will be referenced and should be considered in conjunction with the call.

Listeners can access a live audio webcast of the conference call by visiting investors.wm.com and selecting “Events & Presentations” from the website menu. A replay of the audio webcast will be available at the same location following the conclusion of the call.

Conference call participants should register to obtain their dial in and passcode details. This streamlined process improves security and eliminates wait times when joining the call.

ABOUT WM

WM ( WM.com) is North America's leading provider of comprehensive environmental solutions. Previously known as Waste Management and based in Houston, Texas, WM is driven by commitments to put people first and achieve success with integrity. The company, through its subsidiaries, provides collection, recycling and disposal services to millions of residential, commercial, industrial, medical and municipal customers throughout the U.S. and Canada. With innovative infrastructure and capabilities in recycling, organics and renewable energy, WM provides environmental solutions to and collaborates with its customers in helping them pursue their sustainability goals. WM has the largest disposal network and collection fleet in North America, is the largest recycler of post-consumer materials and is a leader in beneficial use of landfill gas, with a growing network of renewable natural gas plants and the most landfill gas-to-electricity plants in North America. WM's fleet includes more than 12,000 natural gas trucks – the largest heavy-duty natural gas truck fleet in the industry in North America. Healthcare Solutions provides collection and disposal services of regulated medical waste, as well as secure information destruction services, in the U.S., Canada and Western Europe. To learn more about WM and the company's sustainability progress and solutions, visit Sustainability.WM.com.

FORWARD-LOOKING STATEMENTS

The Company, from time to time, provides estimates or projections of financial and other data, comments on expectations relating to future periods and makes statements of opinion, view or belief about current and future events, circumstances or performance. This press release contains a number of such forward-looking statements, including statements regarding 2026 in the heading of this press release, all statements under the headings “Financial Outlook,” “2026 Expectations,” and “Sustainability Growth Outlook” and all statements regarding future growth, earnings, value creation, performance and results of our business; targets, financial guidance and outlook; ability to achieve the Company’s 2026 outlook; future capital allocation, including dividends, share repurchases and acquisition spending; future leverage ratio; technology and automation investments and results; integration of the Healthcare Solutions business and related contributions, results and benefits, including amount and timing of synergies; amount and timing of sustainability investments, upgrades and project completions and related returns, contributions, and benefits; drivers of performance, including pricing programs, cost optimization, and volume; and assumptions regarding commodity prices, natural gas production, tax credits and renewable fuel programs. You should view these statements with caution. They are based on the facts and circumstances known to the Company as of the date the statements are made. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those set forth in such forward-looking statements, including but not limited to, failure to implement our optimization, automation, growth, and cost savings initiatives and overall business strategy; failure to obtain the results anticipated from strategic initiatives, investments, acquisitions, or new lines of business; failure to identify acquisition targets, consummate and integrate acquisitions, including our ability to integrate the acquisition of Stericycle (which is now presented as our Healthcare Solutions segment) and achieve the anticipated benefits therefrom, including synergies; legal, regulatory, operational, technological and other matters that may affect the costs and timing of our ability to integrate and deliver all of the expected benefits of the Stericycle acquisition; existing or new environmental and other regulations, including developments related to emerging contaminants, gas emissions, renewable energy, recyclables, extended producer responsibility and our natural gas fleet; significant environmental, safety or other incidents resulting in liabilities or brand damage; failure to obtain and maintain necessary permits due to land scarcity, public opposition or otherwise; diminishing landfill capacity, resulting in increased costs and the need for disposal alternatives; failure to attract, hire and retain key team members and a high quality workforce; increases in labor costs due to union organizing activities or changes in wage- and labor-related regulations; disruption and costs resulting from severe weather and destructive climate events; failure to achieve our sustainability goals or execute on our sustainability-related strategy and initiatives, including within planned timelines or anticipated budgets due to disruptions, delays, cost increases or changes in environmental or tax regulations and incentives; focus on, and regulation of, environmental and sustainability-related disclosures, which could lead to increased costs, risk of non-compliance, brand damage and litigation risk related to our sustainability efforts; macroeconomic conditions, geopolitical conflict and large-scale market disruption resulting in labor, supply chain and transportation constraints, inflationary cost pressures and fluctuations in commodity prices, fuel and other energy costs; increased competition and pricing pressure; impacts from international trade restrictions and tariffs; competitive disposal alternatives, diversion of waste from landfills and declining waste volumes; changes in general economic conditions, capital markets or consumer trends; changing conditions in the recycling industry, including impacts on demand, pricing and availability of counterparties; changing conditions in the healthcare industry; adoption of new tax legislation; fuel shortages; failure to develop and protect new technology; failure of technology to perform as expected; inability to adapt and manage the benefits and risks of artificial intelligence; failure to prevent, detect and address cybersecurity incidents or comply with privacy regulations; negative outcomes of litigation or governmental proceedings, including those acquired through transactions; failure to maintain an effective system of internal control over financial reporting; and operational or management decisions or developments that result in impairment charges. Please also see the Company’s filings with the SEC, including Part I, Item 1A of the Company’s most recently filed Annual Report on Form 10-K, as updated by subsequent Quarterly Reports on Form 10-Q, for additional information regarding these and other risks and uncertainties applicable to its business. The Company assumes no obligation to update any forward-looking statement, including financial estimates and forecasts, whether as a result of future events, circumstances or developments or otherwise.

NON-GAAP FINANCIAL MEASURES

To supplement its financial information, the Company has presented, and/or may discuss on the conference call, adjusted measures including adjusted earnings per diluted share, adjusted net income, adjusted income from operations and margin, adjusted operating EBITDA and margin, adjusted operating expense and margin, and adjusted SG&A expenses and margin. All adjusted measures and free cash flow are non-GAAP financial measures, as defined in Regulation G of the Securities Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP but believes that also discussing non-GAAP measures provides investors with (i) financial measures the Company uses in the management of its business and (ii) additional, meaningful comparisons of current results to prior periods’ results by excluding items that the Company does not believe reflect its fundamental business performance and are not representative or indicative of its results of operations.

In addition, the Company’s projected adjusted operating EBITDA and margin is anticipated to be adjusted to exclude the effects of other events or circumstances that are not representative or indicative of the Company’s results of operations. Such excluded items are not currently determinable, but may be significant, such as asset impairments and one-time items, charges, gains or losses from divestitures or litigation, and other items. Due to the uncertainty of the likelihood, amount and timing of any such items, the Company does not have information available to provide a quantitative reconciliation of such projections to the comparable GAAP measure.

The Company discusses free cash flow and provides a projection of free cash flow because the Company believes that it is indicative of its ability to pay its quarterly dividends, repurchase common stock, fund acquisitions and other investments and, in the absence of refinancings, to repay its debt obligations. The Company believes free cash flow gives investors useful insight into how the Company views its liquidity, but the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that the Company has committed to, such as declared dividend payments and debt service requirements. The Company defines free cash flow as net cash provided by operating activities, less capital expenditures, plus proceeds from divestitures of businesses and other assets (net of cash divested); this definition may not be comparable to similarly-titled measures reported by other companies.

The quantitative reconciliations of non-GAAP measures to the most comparable GAAP measures are included in the accompanying schedules, with the exception of projected adjusted operating EBITDA and margin. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Millions, Except per Share Amounts)

(Unaudited)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

Operating revenues

6,313

5,893

25,204

22,063

Costs and expenses:

Operating

3,693

3,553

15,012

13,383

Selling, general and administrative

674

747

2,722

2,264

Depreciation, depletion and amortization

770

652

2,863

2,267

Restructuring

(Gain) loss from divestitures, asset impairments and unusual items, net

248

5,158

4,974

20,896

18,000

Income from operations

1,155

919

4,308

4,063

Other income (expense):

Interest expense, net

(223)

(201)

(912)

(598)

Equity in net income (loss) of unconsolidated entities

(1)

—

Other, net

(18)

(11)

(220)

(219)

(882)

(605)

Income before income taxes

935

700

3,426

3,458

Income tax expense

193

102

717

713

Consolidated net income

742

598

2,709

2,745

Less: Net income (loss) attributable to noncontrolling interests

—

(1)

Net income attributable to Waste Management, Inc.

742

598

2,708

2,746

Basic earnings per common share

1.84

1.49

6.72

6.84

Diluted earnings per common share

1.83

1.48

6.70

6.81

Weighted average basic common shares outstanding

403.1

401.6

402.7

401.5

Weighted average diluted common shares outstanding

404.5

403.6

404.2

403.4

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Millions)

(Unaudited)

December 31,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

201

414

Receivables, net

4,055

3,687

Other

654

673

Total current assets

4,910

4,774

Property and equipment, net

20,378

19,340

Goodwill

13,880

13,438

Other intangible assets, net

3,767

4,188

Other

2,900

2,827

Total assets

45,835

44,567

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable, accrued liabilities and deferred revenues

4,813

4,899

Current portion of long-term debt

711

1,359

Total current liabilities

5,524

6,258

Long-term debt, less current portion

22,196

22,541

Other

8,124

7,514

Total liabilities

35,844

36,313

Equity:

Waste Management, Inc. stockholders’ equity

9,990

8,252

Noncontrolling interests

Total equity

9,991

8,254

Total liabilities and equity

45,835

44,567

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

(Unaudited)

Year Ended

December 31,

2025

2024

Cash flows from operating activities:

Consolidated net income

2,709

2,745

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation, depletion and amortization

2,863

2,267

Other

984

402

Change in operating assets and liabilities, net of effects of acquisitions and divestitures

(513)

(24)

Net cash provided by operating activities

6,043

5,390

Cash flows from investing activities:

Acquisitions of businesses, net of cash acquired

(395)

(7,488)

Capital expenditures

(3,227)

(3,231)

Proceeds from divestitures of businesses and other assets, net of cash divested

121

158

Other, net

(65)

(40)

Net cash used in investing activities

(3,566)

(10,601)

Cash flows from financing activities:

New borrowings

20,414

24,578

Debt repayments

(21,747)

(17,870)

Common stock repurchase program

—

(262)

Cash dividends

(1,334)

(1,210)

Exercise of common stock options

Tax payments associated with equity-based compensation transactions

(51)

(52)

Other, net

(16)

(82)

Net cash provided by (used in) financing activities

(2,673)

5,155

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents

(9)

Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

(190)

(65)

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

487

552

Cash, cash equivalents and restricted cash and cash equivalents at end of period

297

487

WASTE MANAGEMENT, INC.

SUMMARY DATA SHEET

(In Millions)

(Unaudited)

Operating Revenues by Line of Business

Three Months Ended

December 31,

2025

2024

Gross

Intercompany

Net

Gross

Intercompany

Net

Operating

Revenues

Commercial

1,666

(233)

1,433

1,578

(212)

1,366

Industrial

994

(227)

767

968

(202)

766

Residential

903

(21)

882

896

(22)

874

Other collection

886

(79)

807

840

(68)

772

Total collection

4,449

(560)

3,889

4,282

(504)

3,778

Landfill

1,306

(396)

910

1,231

(374)

857

Transfer

666

(285)

381

629

(270)

359

Total Collection and Disposal

6,421

(1,241)

5,180

6,142

(1,148)

4,994

Recycling Processing and Sales

449

(94)

355

476

(78)

398

Renewable Energy

158

(1)

157

—

Healthcare Solutions (a)

732

(117)

615

471

(68)

403

Corporate and Other

(7)

Total

7,773

(1,460)

6,313

7,194

(1,301)

5,893

Year Ended

December 31,

2025

2024

Gross

Intercompany

Net

Gross

Intercompany

Net

Operating

Revenues

Commercial

6,520

(890)

5,630

6,169

(798)

5,371

Industrial

3,989

(883)

3,106

3,883

(794)

3,089

Residential

3,597

(87)

3,510

3,555

(89)

3,466

Other collection

3,463

(288)

3,175

3,194

(230)

2,964

Total collection

17,569

(2,148)

15,421

16,801

(1,911)

14,890

Landfill

5,347

(1,566)

3,781

4,958

(1,513)

3,445

Transfer

2,629

(1,127)

1,502

2,448

(1,067)

1,381

Total Collection and Disposal

25,545

(4,841)

20,704

24,207

(4,491)

19,716

Recycling Processing and Sales

1,866

(374)

1,492

1,890

(287)

1,603

Renewable Energy

481

(3)

478

321

(3)

318

Healthcare Solutions (a)

2,951

(443)

2,508

471

(68)

403

Corporate and Other

(30)

(25)

Total

30,895

(5,691)

25,204

26,937

(4,874)

22,063

(a)

In the third quarter of 2025, as a result of continued integration efforts and to enhance transparency and accountability, the Company began reflecting intra-segment activity within the Healthcare Solutions segment. These charges were designed to measure profitability at more granular levels of the enterprise and to facilitate clearer financial accountability within operating units. Accordingly, adjustments to 2025 and 2024 activity were made to properly reflect intra-segment activity for both periods. Intra-segment operating revenues within Healthcare Solutions for the three months ended December 31, 2025 and 2024 are $109 million and $58 million, respectively. Intra-segment operating revenues within Healthcare Solutions for the years ended December 31, 2025 and 2024 are $425 million and $58 million, respectively.

WASTE MANAGEMENT, INC.

SUMMARY DATA SHEET

(In Millions)

(Unaudited)

Internal Revenue Growth

Period-to-Period Change for the

Three Months Ended

December 31, 2025 vs. 2024

Period-to-Period Change for the

Year Ended

December 31, 2025 vs. 2024

As a % of

Total

Amount

Business (a)

Amount

Company (b)

Amount

Business (a)

Amount

Company (b)

Collection and disposal

168

3.5

719

3.8

Recycling Processing and Sales and Renewable Energy (c)

(57)

(11.4)

(155)

(7.9)

Energy surcharges and mandated fees

11.1

4.9

Total average yield (d)

136

2.3

608

2.8

Volume (e)

0.7

206

0.9

Healthcare Solutions (f)

0.1

—

Internal revenue growth

183

3.1

820

3.7

Acquisitions

251

4.3

2,365

10.7

Divestitures

(18)

(0.3)

(31)

(0.1)

Foreign currency translation

―

(13)

(0.1)

Total

420

7.1

3,141

14.2

Period-to-Period Change for the

Three Months Ended December 31, 2025 vs. 2024

Period-to-Period Change for the

Year Ended December 31, 2025 vs. 2024

As a % of Related Business (a)

Yield

Volume

Yield

Volume (g)

Commercial

4.8

(0.4)

5.1

(0.2)

Industrial

2.3

(0.3)

2.8

(0.3)

Residential

4.2

(4.0)

5.4

(4.7)

Total collection

3.8

(1.4)

4.3

(1.3)

MSW

8.1

(1.7)

6.5

2.9

Transfer

4.1

(1.0)

4.9

(2.1)

Total collection and disposal

3.5

(0.6)

3.8

0.3

(a)

Calculated by dividing the increase or decrease for the current year by the prior year’s related business revenue adjusted to exclude the impacts of divestitures for the current year.

(b)

Calculated by dividing the increase or decrease for the current year by the prior year’s total Company revenue adjusted to exclude the impacts of divestitures for the current year.

(c)

Includes combined impact of commodity price variability in both our Recycling Processing and Sales and Renewable Energy segments, as well as changes in certain recycling fees charged by our collection and disposal operations.

(d)

The amounts reported herein represent the changes in our revenue attributable to average yield for the total Company.

(e)

Includes activities from our Corporate and Other businesses.

(f)

The amounts reported herein represent the total change in our revenues attributable to our Healthcare Solutions business in the period following the anniversary of the acquisition.

(g)

Workday adjusted volume impact.

WASTE MANAGEMENT, INC.

SUMMARY DATA SHEET

(In Millions)

(Unaudited)

Free Cash Flow (a)

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

Net cash provided by operating activities

1,698

1,511

6,043

5,390

Capital expenditures to support the business

(684)

(736)

(2,594)

(2,281)

Proceeds from divestitures of businesses and other assets, net of cash divested

121

158

Free cash flow before sustainability growth investments

1,027

834

3,570

3,267

Capital expenditures - sustainability growth investments

(204)

(379)

(633)

(950)

Free cash flow

823

455

2,937

2,317

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

Supplemental Data

Internalization of waste, based on disposal costs

72.3

70.1

71.7

69.4

Landfill depletable tons (in millions)

31.1

128.8

125.0

Acquisition Summary (b)

Gross annualized revenue acquired

2,622

166

2,917

Total consideration, net of cash acquired

(2)

6,720

440

7,500

Cash paid for acquisitions consummated during the period, net of cash acquired

6,706

400

7,479

Cash paid for acquisitions including contingent consideration and other items from prior periods, net of cash acquired

6,713

408

7,503

Landfill Depletion and Accretion Expenses:

Three Months Ended

Year Ended

December 31,

2025

2024

2025

2024

Landfill depletion expense:

Cost basis of landfill assets

169

159

683

633

Asset retirement costs

215

162

Total landfill depletion expense (c)

268

215

898

795

Accretion expense

142

133

Landfill depletion and accretion expense

304

249

1,040

928

(a)

The summary of free cash flow has been prepared to highlight and facilitate understanding of the principal cash flow elements. Free cash flow is not a measure of financial performance under generally accepted accounting principles and is not intended to replace the consolidated statement of cash flows that was prepared in accordance with generally accepted accounting principles.

(b)

Represents amounts associated with business acquisitions consummated during the applicable period except where noted.

(c)

For both the fourth quarter of 2025 and the year ended December 31, 2025, the increase in landfill depletion expense was primarily due to increased volumes at our landfills, particularly in our Western Tier.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions, Except Per Share Amounts)

(Unaudited)

Three Months Ended December 31, 2025

Income

from

Operations

Pre-tax

Income

Tax

Expense

Net

Income (a)

Diluted

Per Share Amount

As reported amounts

1,155

935

193

742

1.83

Adjustments:

Stericycle transaction and integration costs

(Gain) loss from asset impairments and other, net (b)

0.10

As adjusted amounts

1,204

984

204

780

1.93

Depreciation, depletion and amortization

770

As adjusted operating EBITDA

1,974

Adjusted operating EBITDA margin

31.3

Three Months Ended December 31, 2024

Income

from

Operations

Pre-tax

Income

Tax

Expense

Net

Income (a)

Diluted

Per

Share Amount

As reported amounts

919

700

102

598

1.48

Adjustments:

Stericycle transaction and integration costs

113

Loss on early extinguishment of debt

—

(Gain) loss from asset impairments and other, net (c)

(6)

135

142

0.22

As adjusted amounts

1,054

842

154

688

1.70

Depreciation, depletion and amortization

652

As adjusted operating EBITDA

1,706

Adjusted operating EBITDA margin

28.9

(a)

For purposes of this press release table, all references to "Net income" refer to the financial statement line item "Net income attributable to Waste Management, Inc."

(b)

Includes an $8 million impairment charge related to the decision to temporarily suspend the operations of a business engaged in accelerating plastic film and wrap recycling capabilities.

(c)

Primarily relates to a net charge of $13 million to adjust an indirect wholly-owned subsidiary’s estimated potential share of the liability for a proposed environmental remediation plan at a closed site. The tax expense and net income amounts also include a benefit from the determination that a realized loss from a prior period is deductible for tax purposes.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions)

(Unaudited)

Three Months Ended December 31, 2025

Collection

and

Disposal

(a)(b)

Recycling

Processing

and

Sales (a)

Renewable

Energy (b)

Corporate

and

Other

Total

Legacy

Business

Healthcare

Solutions

Total WM

Operating revenues, as reported

5,180

355

157

5,698

615

6,313

Income from operations, as reported

1,503

(397)

1,178

(23)

1,155

Depreciation, depletion and amortization

516

660

110

770

Operating EBITDA, as reported

2,019

(319)

1,838

1,925

Adjustments:

Stericycle transaction and integration costs

—

(Gain) loss from asset impairments and other, net

—

Adjusted operating EBITDA

2,020

(304)

1,869

105

1,974

Operating EBITDA margin, as reported

39.0

16.9

49.7

N/A

32.3

14.1

30.5

Adjusted operating EBITDA margin

39.0

20.8

50.3

N/A

32.8

17.1

31.3

Three Months Ended December 31, 2024

Collection

and

Disposal

(a)(b)

Recycling Processing

and

Sales (a)

Renewable

Energy (b)

Corporate

and

Other

Total

Legacy Business

Healthcare Solutions

Total WM

Operating revenues, as reported

4,994

398

5,490

403

5,893

Income from operations, as reported

1,380

(441)

988

(69)

919

Depreciation, depletion and amortization

484

579

652

Operating EBITDA, as reported

1,864

(394)

1,567

1,571

Adjustments:

Stericycle transaction and integration costs

—

113

(Gain) loss from asset impairments and other, net

—

135

Adjusted operating EBITDA

1,869

(324)

1,645

1,706

Operating EBITDA margin, as reported

37.3

13.8

45.2

N/A

28.5

1.0

26.7

Adjusted operating EBITDA margin

37.4

14.6

45.2

N/A

30.0

15.1

28.9

(a)

Certain fees related to the processing of recycled material we collect are included within our Collection and Disposal businesses. The total amount of such fees in income from operations for the three months ended December 31, 2025 and 2024 is $16 million and $23 million, respectively.

(b)

Renewable Energy pays a 15% intercompany royalty to our Collection and Disposal businesses for landfill gas. The total amount of royalties in income from operations for the three months ended December 31, 2025 and 2024 is $24 million and $14 million, respectively.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions, Except Per Share Amounts)

(Unaudited)

Year Ended December 31, 2025

Income

from

Operations

Pre-tax

Income

Tax

Expense

Net

Income (a)

Diluted

Per

Amount

As reported amounts

4,308

3,426

717

2,708

6.70

Adjustments:

Stericycle transaction and integration costs

137

106

(Gain) loss from asset impairments and other, net (b)

274

217

411

323

0.80

As adjusted amounts

4,719

3,837

805

3,031

7.50

Depreciation, depletion and amortization

2,863

As adjusted operating EBITDA

7,582

Adjusted operating EBITDA margin

30.1

Year Ended December 31, 2024

Income

from

Operations

Pre-tax

Income

Tax

Expense

Net

Income (a)

Diluted

Per

Amount

As reported amounts

4,063

3,458

713

2,746

6.81

Adjustments:

Stericycle transaction and integration costs

160

132

Loss on early extinguishment of debt

—

Collective bargaining agreement costs

—

(Gain) loss from asset impairments and other, net (c)

233

240

170

0.42

As adjusted amounts

4,296

3,698

783

2,916

7.23

Depreciation, depletion and amortization

2,267

As adjusted operating EBITDA

6,563

Adjusted operating EBITDA margin

29.7

(a)

For purposes of this press release table, all references to "Net income" refer to the financial statement line item "Net income attributable to Waste Management, Inc."

(b)

Primarily includes (i) a $162 million impairment charge related to the decision to temporarily suspend the operations of a business engaged in accelerating plastic film and wrap recycling capabilities; (ii) a $45 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier; (iii) a $16 million goodwill impairment charge related to a business engaged in oil recovery and sludge processing services within our Collection and Disposal businesses and (iv) an $11 million negotiated payment for early termination of a contract in our Renewable Energy segment.

(c)

Primarily includes net charges consisting of a $54 million charge required to increase the estimated fair value of a liability associated with the expected disposition of an investment the Company holds in a waste diversion technology business and a $13 million charge to adjust an indirect wholly-owned subsidiary’s estimated potential share of the liability for a proposed environmental remediation plan at a closed site.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions)

(Unaudited)

Year Ended December 31, 2025

Collection

and

Disposal

(a)(b)

Recycling

Processing

and

Sales (a)

Renewable

Energy (b)

Corporate

and

Other

Total

Legacy

Business

Healthcare

Solutions

Total WM

Operating revenues, as reported

20,704

1,492

478

22,696

2,508

25,204

Income from operations, as reported

5,777

(80)

135

(1,436)

4,396

(88)

4,308

Depreciation, depletion and amortization

2,038

176

156

2,437

426

2,863

Operating EBITDA, as reported

7,815

202

(1,280)

6,833

338

7,171

Adjustments:

Stericycle transaction and integration costs

—

137

(Gain) loss from asset impairments and other, net

175

274

—

274

175

325

411

Adjusted operating EBITDA

7,889

271

214

(1,216)

7,158

424

7,582

Operating EBITDA margin, as reported

37.7

6.4

42.3

N/A

30.1

13.5

28.5

Adjusted operating EBITDA margin

38.1

18.2

44.8

N/A

31.5

16.9

30.1

Year Ended December 31, 2024

Collection

and

Disposal

(a)(b)

Recycling

Processing

and

Sales (a)

Renewable

Energy (b)

Corporate

and

Other

Total

Legacy

Business

Healthcare

Solutions

Total WM

Operating revenues, as reported

19,716

1,603

318

21,660

403

22,063

Income from operations, as reported

5,444

(1,497)

4,132

(69)

4,063

Depreciation, depletion and amortization

1,900

132

126

2,194

2,267

Operating EBITDA, as reported

7,344

218

135

(1,371)

6,326

6,330

Adjustments:

Stericycle transaction and integration costs

—

103

160

Collective bargaining agreement costs

—

(Gain) loss from asset impairments and other, net

(12)

—

(11)

177

176

233

Adjusted operating EBITDA

7,333

221

142

(1,194)

6,502

6,563

Operating EBITDA margin, as reported

37.2

13.6

42.5

N/A

29.2

1.0

28.7

Adjusted operating EBITDA margin

37.2

13.8

44.7

N/A

30.0

15.1

29.7

(a)

Certain fees related to the processing of recycled material we collect are included within our Collection and Disposal businesses. The total amount of such fees in income from operations for the year ended December 31, 2025 and 2024 is $75 million and $100 million, respectively.

(b)

Renewable Energy pays a 15% intercompany royalty to our Collection and Disposal businesses for landfill gas. The total amount of royalties in income from operations for the year ended December 31, 2025 and 2024 is $72 million and $48 million, respectively.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions)

(Unaudited)

Three months

ended

Three months ended

December 31, 2025

December 31,

2024 (a)

Legacy

Healthcare

Business

Solutions

Total WM

Adjusted Operating Expenses and Adjusted Operating Expenses Margin

Operating revenues, as reported

5,698

615

6,313

5,893

Operating expenses, as reported

3,302

391

3,693

3,553

As a % of revenues

58.0

63.6

58.5

60.3

Adjustment:

Stericycle transaction and integration costs

—

(2)

—

As adjusted operating expenses (a)

3,302

389

3,691

3,553

As a % of revenues

58.0

63.3

58.5

60.3

Year Ended

December 31, 2025

December 31, 2024 (a)

Legacy

Healthcare

Business

Solutions

Total WM

Adjusted Operating Expenses and Adjusted Operating Expenses Margin

Operating revenues, as reported

22,696

2,508

25,204

22,063

Operating expenses, as reported

13,429

1,583

15,012

13,383

As a % of revenues

59.2

63.1

59.6

60.7

Adjustments:

Stericycle transaction and integration costs

—

(9)

—

Legacy loss contingency reserve

(7)

—

(7)

—

Collective bargaining agreement costs

—

(1)

As adjusted SG&A expenses

13,422

1,574

14,996

13,382

As a % of revenues

59.1

62.8

59.5

60.7

(a)

Total 2024 WM and Legacy Business reconciliation is the same.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions)

(Unaudited)

Three months ended

December 31, 2025

December 31, 2024

Legacy

Business

Healthcare

Solutions

Total WM

Legacy

Business

Healthcare

Solutions

Total WM

Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin

Operating revenues, as reported

5,698

615

6,313

5,490

403

5,893

SG&A expenses, as reported

535

139

674

592

155

747

As a % of revenues

9.4

22.6

10.7

10.8

38.5

12.7

Adjustment:

Stericycle transaction and integration costs

(15)

(11)

(26)

(56)

(57)

(113)

As adjusted SG&A expenses

520

128

648

536

634

As a % of revenues

9.1

20.8

10.3

9.8

24.3

10.8

Year Ended

December 31, 2025

December 31, 2024

Legacy

Business

Healthcare

Solutions

Total WM

Legacy

Business

Healthcare

Solutions

Total WM

Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin

Operating revenues, as reported

22,696

2,508

25,204

21,660

403

22,063

SG&A expenses, as reported

2,149

573

2,722

2,109

155

2,264

As a % of revenues

9.5

22.8

10.8

9.7

38.5

10.3

Adjustment:

Stericycle transaction and integration costs

(51)

(45)

(96)

(89)

(57)

(146)

As adjusted SG&A expenses

2,098

528

2,626

2,020

2,118

As a % of revenues

9.2

21.1

10.4

9.3

24.3

9.6

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions)

(Unaudited)

2026 Projected Free Cash Flow Reconciliation (a)

Scenario 1

Scenario 2

Net cash provided by operating activities

6,300

6,450

Capital expenditures to support the business

(2,450)

(2,550)

Proceeds from divestitures of businesses and other assets, net of cash divested

100

150

Free cash flow before sustainability growth investments

3,950

4,050

Capital expenditures - sustainability growth investments

(200)

Free cash flow

3,750

3,850

(a)

The reconciliation includes two scenarios that illustrate our projected free cash flow range for 2026. The amounts used in the reconciliation are subject to many variables, some of which are not under our control and, therefore, are not necessarily indicative of actual results.

Note: The reconciliations of net cash provided by operating activities to free cash flow for the fourth quarter and full year of 2025 are included in the third Summary Data Sheet.

WASTE MANAGEMENT, INC.

SUPPLEMENTAL INFORMATION PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY

(In Millions)

(Unaudited)

Diversity in the structure of recycling contracts results in different accounting treatment for commodity rebates. In accordance with revenue recognition guidance, our Company records gross recycling revenue and records rebates paid to customers as cost of goods sold. Other contract structures allow for netting of rebates against revenue.

Additionally, there are differences in whether companies adjust for accretion expense in their calculation of EBITDA. Our Company does not currently adjust for landfill accretion expenses when calculating operating EBITDA, while other companies do adjust it for the calculation of their EBITDA measure.

The table below illustrates the impact that differing contract structures and treatment of accretion expense has on the Company’s adjusted operating EBITDA margin results. This information has been provided to enhance comparability and is not intended to replace or adjust GAAP reported results.

Three Months Ended

December 31, 2025

December 31, 2024

Amount

Change in

Adjusted

Operating

EBITDA Margin

Amount

Change in

Adjusted

Operating

EBITDA Margin

Recycling commodity rebates

158

0.8%

236

1.3%

Accretion expense

0.6%

Year Ended

December 31, 2025

December 31, 2024

Amount

Change in

Adjusted

Operating

EBITDA Margin

Amount

Change in

Adjusted

Operating

EBITDA Margin

Recycling commodity rebates

712

0.9%

879

1.3%

Accretion expense

142

0.5%

133

0.7%