Form 8-K

8-K — WASTE MANAGEMENT INC

Accession: 0001104659-26-119188

Filed: 2026-10-27

Period: 2026-10-27

CIK: 0000823768

SIC: 4953 (REFUSE SYSTEMS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — tm2628322d1_8k.htm (Primary)

EX-99.1 — EXHIBIT 99.1 (tm2628322d1_ex99-1.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — FORM 8-K

8-K (Primary)

Filename: tm2628322d1_8k.htm · Sequence: 1

false

0000823768

WASTE MANAGEMENT INC

0000823768

2026-10-27

iso4217:USD

xbrli:shares

iso4217:USD

xbrli:shares

SECURITIES AND

EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13

or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 27, 2026

Waste

Management, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware

1-12154

73-1309529

(State

or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS

Employer

Identification No.)

800

Capitol Street, Suite

3000, Houston,

Texas

77002

(Address

of Principal Executive Offices)

(Zip

Code)

Registrant’s Telephone number, including

area code: (713) 512-6200

(Former Name or Former Address, if Changed Since

Last Report)

Check the appropriate box below if the Form 8-K

filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written

communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting

material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement

communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement

communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of

the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common

Stock, $0.01 par value

New

York Stock Exchange

Indicate

by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405

of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying

with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

Waste Management, Inc.

(the “Company”) issued a press release today announcing its financial results for the third quarter of 2026, a copy of which

is furnished as Exhibit 99.1 to this Form 8-K. The Company is conducting an audio webcast to discuss these results beginning

at 10:00 a.m. Eastern Time on October 28, 2026. Listeners can access the live audio webcast 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.

On the webcast, management

of the Company is expected to discuss certain non-GAAP financial measures. The Company has provided information regarding its use of non-GAAP

measures and reconciliations of such measures to their most comparable GAAP measures in the notes and tables that accompany the press

release.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Index

Exhibit

Number

Description

99.1

Press Release dated October 27, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements

of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto

duly authorized.

WASTE MANAGEMENT, INC.

Date: October 27, 2026

By:

/s/ Charles C. Boettcher

Charles C. Boettcher

Executive Vice President and Chief Legal Officer

EX-99.1 — EXHIBIT 99.1

EX-99.1

Filename: tm2628322d1_ex99-1.htm · Sequence: 2

Exhibit 99.1

WM Announces Third Quarter 2026

Earnings

Strong Cash Flow from Operations Supports Return

of $957 Million to Shareholders During the Quarter

Healthcare Solutions Increases Income from Operations

by $41 Million

Driven by 3.7% Revenue Growth and Growing Cost Improvements

Houston

— October 27, 2026 — WM (NYSE: WM) today announced financial results for

the quarter ended September 30, 2026.

Three

Months Ended

Three

Months Ended

September

30, 2026

(in millions, except per share amounts)

September 30, 2025

(in millions, except per share amounts)

Reported

Adjusted(a)

Reported

Adjusted(a)

Revenue

$6,846

$6,443

Income

from Operations

$1,279

$1,329

$989

$1,241

Operating

EBITDA(b) (c)

$2,071

$2,121

$1,753

$2,005

Operating

EBITDA Margin

30.3%

31.0%

27.2%

31.1%

Net Income(d)

$820

$858

$603

$801

Diluted

EPS

$2.05

$2.15

$1.49

$1.98

“WM

delivered another quarter of solid operating and financial performance, in line with our expectations, underscoring the consistent execution

of our strategy,” said Jim Fish, WM’s CEO. “Adjusted

operating EBITDA increased 5.8% in the third quarter driven by strong price-to-cost spread in Collection and Disposal and growing contributions

from our healthcare and sustainability businesses. Notably, Healthcare Solutions revenue grew 3.7% in the quarter and operating EBITDA

increased more than 30%, driven by effective cost management, synergy capture, and pricing growth. Overall, our results reflect the earnings

power of our diversified business and our ability to consistently create value for shareholders.”(a)

Fish continued, “The quality of our earnings

is evident in the strength of our cash flow generation. Net cash flow from operations increased 12% through the first nine months of

the year, reflecting disciplined operational execution and continued strong returns on investments that are improving productivity, enhancing

service and supporting sustainable long-term growth. We are affirming our 2026 guidance ranges, as we remain on track to meet our financial

objectives.”

KEY

HIGHLIGHTS FOR the Third quarter OF 2026

• Total

Company revenue grew 6.3%, driven by core price of 5.8% and Collection and Disposal yield

of 3.4%. In addition to disciplined execution on pricing, revenue growth was driven by increased

energy surcharges and higher volumes in the recycling and renewable energy businesses as

a result of completed growth projects.(e)(f)

• Collection

and Disposal volume declined 0.4%, or declined 0.5% on a workday adjusted basis. Volumes

continued to be impacted by the Company’s intentional shedding of lower-margin residential

business and commercial declines largely related to prior national account broker losses.

• Operating

expenses were 59.8% of revenue, compared to 58.9% in the prior year. Operating efficiency

in the Collection and Disposal business drove a 40-basis point improvement, which was more

than offset by dilutive impacts of 130 basis points primarily related to higher fuel costs and increased risk management costs.

• 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 strong cost discipline

and continued synergy capture in Healthcare Solutions.(a)

• Favorable

price-to-cost spread in the Collection and Disposal business contributed 40 basis points

to adjusted operating EBITDA margin, and Healthcare Solutions operating performance added

another 30 basis points. These contributions were more than offset by 40 basis points

related to higher fuel costs and 40 basis points related to increased risk management

costs. Overall, adjusted operating EBITDA margin compressed by 10 basis points

compared to the prior year period. (a)

• Through

the first nine months of the year, the Company generated $4.87 billion of net cash provided

by operating activities. The 12.0% increase from the prior year was driven by earnings growth

and favorable working capital.

• Through

the first nine months of the year, free cash flow was $3.01 billion, compared to $2.11 billion

in the prior year period, an increase of more than 42%. Conversion of adjusted operating

EBITDA to free cash flow was 50% in the first nine months of the year.(a)

• The

Company returned $957 million to shareholders in the third quarter, consisting of $580 million

in share repurchases and $377 million in cash dividends, bringing returns to shareholders

in the first nine months of the year to more than $2.72 billion, which is more than 90% of

free cash flow generated during the period and reflects the Company’s commitment to

harvesting the benefits of its investments. Through the first nine months of the year, the

Company repurchased $1.58 billion of its shares and continues to expect to repurchase a total

of $2 billion of its shares in 2026.

• During

the quarter, the Company began operations at a new renewable natural gas facility in New

York, marking its eighteenth new facility completed since 2022.

• The

Company expects to achieve its full-year financial guidance, with revenue expected

to be at the high end of the guidance range of $26.275 to $26.475 billion, adjusted operating

EBITDA to be within the guidance range of $8.15 to $8.25 billion, and free cash flow to be

at the high end of the guidance range of $3.75 to $3.85 billion.(a)

(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, amortization

and accretion; this measure may not be comparable to similarly titled measures reported by

other companies.

in 2026, landfill accretion expense was moved from operating expenses to depreciation, depletion,

amortization, and accretion. Landfill accretion expense in the three months ended September

30, 2026 and 2025 was $39 million and $35 million, respectively. For comparability purposes,

2025 actuals have been updated to reflect that change.

(d) 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.”

(e) 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.

(f) The

Company’s blended average price received for single stream recycled commodities sold

during the quarter was about $82 per ton compared to about $68 per ton in the prior year

period. The average price received for Renewable Fuel

Standard credits was $2.32 during the quarter compared to $2.56 in the prior year period.

The average price received for natural gas was $2.56 per MMBtu during the quarter compared

to $2.46 per MMBtu in the prior year period. The average price received for electricity was about

$78 per megawatt hour in the quarter compared to about $73 per megawatt hour in the prior

year period.

The Company will host a conference call at 10

a.m. ET on October 28, 2026, to discuss the third quarter 2026 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. WM, 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. In North America, WM has the largest disposal

network and collection fleet, is the largest recycler 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, as well as the largest heavy-duty natural gas truck fleet in the

industry. WM, through its subsidiaries, also provides collection and disposal services of regulated medical waste and 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 all statements regarding financial guidance and achievement of 2026 guidance; future growth, earnings, value creation,

performance, cash flow generation, outlook, and results of our business; future share repurchases; and execution, results and benefits

from operational initiatives and investments. 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, Inc. (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, Inc. 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.

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.

FOR

MORE INFORMATION

Website

www.wm.com

Analysts

Ed Egl

713.265.1656

eegl@wm.com

Media

Toni Werner

media@wm.com

###

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Millions, Except per Share Amounts)

(Unaudited)

Three Months

Ended

September 30,

Nine Months

Ended

September 30,

2026

2025

2026

2025

Operating

revenues

$ 6,846

$ 6,443

$ 19,757

$ 18,891

Costs and expenses:

Operating(a)

4,093

3,798

11,742

11,213

Selling, general and administrative

655

665

2,045

2,048

Depreciation,

depletion, amortization and accretion(a)

792

764

2,304

2,199

Restructuring

(Gain) loss from

divestitures, asset impairments and unusual items, net

213

239

5,567

5,454

16,112

15,738

Income from operations

1,279

989

3,645

3,153

Other income (expense):

Interest expense, net

(237 )

(225 )

(695 )

(689 )

Other, net

(235 )

(214 )

(686 )

(662 )

Income before income taxes

1,044

775

2,959

2,491

Income tax expense

224

172

630

524

Consolidated net income

820

603

2,329

1,967

Less: Net income

(loss) attributable to noncontrolling interests

—

Net income attributable

to Waste Management, Inc.

$ 820

$ 603

$ 2,328

$ 1,966

Basic earnings per common share

$ 2.06

$ 1.50

$ 5.80

$ 4.88

Diluted earnings per common share

$ 2.05

$ 1.49

$ 5.79

$ 4.87

Weighted average basic common shares

outstanding

398.9

403.0

401.2

402.6

Weighted average diluted common shares

outstanding

399.8

404.3

402.2

404.0

(a) Beginning in 2026, landfill

accretion expense was moved from operating expenses to depreciation, depletion, amortization

and accretion. Landfill accretion expenses in the three and nine months ended September 30,

2026 were $39 million and $117 million, respectively. Landfill accretion expenses in the

three and nine months ended September 30, 2025 were $35 million and $106 million, respectively.

For comparability purposes, 2025 actuals have been updated to reflect that change.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Millions)

(Unaudited)

September

30,

2026

December

31,

2025

ASSETS

Current assets:

Cash and cash equivalents

$ 247

$ 201

Receivables, net

4,359

4,055

Other

644

654

Total current assets

5,250

4,910

Property and equipment, net

20,849

20,378

Goodwill

14,002

13,880

Other intangible assets, net

3,544

3,767

Other

2,874

2,900

Total assets

$ 46,519

$ 45,835

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable, accrued liabilities

and deferred revenues

$ 4,862

$ 4,813

Current portion

of long-term debt

1,524

711

Total current liabilities

6,386

5,524

Long-term debt, less current portion

21,846

22,196

Other

8,419

8,124

Total liabilities

36,651

35,844

Equity:

Waste Management, Inc. stockholders’

equity

9,867

9,990

Noncontrolling

interests

Total equity

9,868

9,991

Total liabilities

and equity

$ 46,519

$ 45,835

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH

FLOWS

(In Millions)

(Unaudited)

Nine Months

Ended

September 30,

2026

2025

Cash flows from operating activities:

Consolidated net income

$ 2,329

$ 1,967

Adjustments to reconcile consolidated net income to net cash

provided by operating activities:

Depreciation, depletion, amortization

and accretion

2,304

2,199

Other

425

662

Change in operating

assets and liabilities, net of effects of acquisitions and divestitures

(191 )

(483 )

Net cash provided by operating activities

4,867

4,345

Cash flows from investing activities:

Acquisitions of businesses, net of

cash acquired

(89 )

(395 )

Capital expenditures

(1,937 )

(2,339 )

Proceeds from divestitures of businesses

and other assets, net of cash divested

108

Other, net

(112 )

(73 )

Net cash used in investing activities

(2,059 )

(2,699 )

Cash flows from financing activities:

New borrowings

18,644

14,956

Debt repayments

(18,668 )

(15,772 )

Common stock repurchase program

(1,583 )

—

Cash dividends

(1,141 )

(1,001 )

Exercise of common stock options

Tax payments associated with equity-based

compensation transactions

(40 )

(50 )

Other, net

(19 )

(17 )

Net cash used in financing activities

(2,766 )

(1,830 )

Effect of exchange rate changes on cash,

cash equivalents and restricted cash and cash equivalents

(7 )

Increase (decrease) in cash, cash equivalents and restricted

cash and cash equivalents

(179 )

Cash, cash equivalents and restricted

cash and cash equivalents at beginning of period

297

487

Cash, cash equivalents and restricted

cash and cash equivalents at end of period

$ 332

$ 308

WASTE MANAGEMENT, INC.

SUMMARY DATA SHEET

(In Millions)

(Unaudited)

Operating Revenues by Line of Business

Three

Months Ended September 30,

2026

2025

Net

Operating

Revenues

Intercompany

Operating

Revenues(a)

Gross

Operating

Revenues

Net

Operating

Revenues

Intercompany

Operating

Revenues(a)

Gross

Operating

Revenues

Commercial

$ 1,494

$ 243

$ 1,737

$ 1,419

$ 223

$ 1,642

Industrial

843

257

1,100

808

234

1,042

Residential

926

945

884

906

Other collection

878

952

819

888

Total collection

4,141

593

4,734

3,930

548

4,478

Landfill

1,018

431

1,449

995

407

1,402

Transfer

420

306

726

396

294

690

Total Collection and Disposal

$ 5,579

$ 1,330

$ 6,909

$ 5,321

$ 1,249

$ 6,570

Recycling Processing and Sales

441

530

372

470

Renewable Energy

167

168

115

116

Healthcare Solutions

651

101

752

628

110

738

Corporate and Other

Total

$ 6,846

$ 1,528

$ 8,374

$ 6,443

$ 1,465

$ 7,908

Nine Months

Ended September 30,

2026

2025

Net

Operating

Revenues

Intercompany

Operating

Revenues(a)

Gross

Operating

Revenues

Net

Operating

Revenues

Intercompany

Operating

Revenues(a)

Gross

Operating

Revenues

Commercial

$ 4,408

$ 708

$ 5,116

$ 4,197

$ 657

$ 4,854

Industrial

2,421

724

3,145

2,339

656

2,995

Residential

2,725

2,781

2,628

2,694

Other collection

2,521

220

2,741

2,368

209

2,577

Total collection

12,075

1,708

13,783

11,532

1,588

13,120

Landfill

2,886

1,242

4,128

2,871

1,170

4,041

Transfer

1,178

877

2,055

1,121

842

1,963

Total Collection and Disposal

$ 16,139

$ 3,827

$ 19,966

$ 15,524

$ 3,600

$ 19,124

Recycling Processing and Sales

1,212

264

1,476

1,137

280

1,417

Renewable Energy

483

486

321

323

Healthcare Solutions

1,903

312

2,215

1,893

326

2,219

Corporate and Other

Total

$ 19,757

$ 4,429

$ 24,186

$ 18,891

$ 4,231

$ 23,122

(a) Includes each segment’s intercompany

activity, including transactions within a segment and between segments. Transactions within

and between segments are generally made on a basis intended to reflect the market value of

the service.

WASTE MANAGEMENT, INC.

SUMMARY DATA SHEET

(In Millions)

(Unaudited)

Internal Revenue Growth

Period-to-Period

Change for the

Three

Months Ended

September 30,

2026 vs. 2025

Period-to-Period

Change for the

Nine

Months Ended

September 30,

2026 vs. 2025

Amount

a % of

Business(a)

Amount

a % of

Total

Company(b)

Amount

a % of

Business(a)

Amount

a % of

Total

Company(b)

Collection and Disposal

$ 171

3.4 %

$ 533

3.6 %

Recycling

Processing and Sales and Renewable Energy (c)

8.6

—

Energy surcharge and

mandated fees

112

42.2

234

30.0

Total average yield

$ 326

5.1 %

$ 768

4.1 %

Volume

(d)

0.8

0.2

Healthcare

Solutions (e)

—

(42 )

(0.2 )

Internal revenue growth

380

5.9

769

4.1

Acquisitions

0.6

101

0.5

Divestitures

(5 )

(0.1 )

(14 )

(0.1 )

Foreign currency

translation

(5 )

(0.1 )

0.1

Total

$ 403

6.3 %

$ 866

4.6 %

Period-to-Period

Change for the

Three

Months Ended

September 30,

2026 vs. 2025

Period-to-Period

Change for the

Nine

Months Ended

September 30,

2026 vs. 2025

a % of Related Business(a)

Yield

Volume

(f)

Yield

Volume

(f)

Commercial

4.2 %

(1.3 )%

4.3 %

(1.4 )%

Industrial

3.1

—

3.2

0.1

Residential

5.4

(2.6 )

5.9

(3.5 )

Total collection

4.0

(1.2 )

4.2

(1.4 )

MSW

4.2

(1.1 )

5.3

0.5

Transfer

2.7

1.8

3.2

(0.6 )

Total Collection and Disposal

3.4 %

(0.5 )%

3.6 %

(1.3 )%

(a) Calculated by dividing the increase or decrease

for the current year period by the prior year period’s related business revenues adjusted

to exclude the impacts of divestitures for the current year period.

(b) Calculated by dividing the increase or decrease

for the current year period by the prior year period’s total Company revenues adjusted

to exclude the impacts of divestitures for the current year period.

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) Includes activities from our Corporate and

Other businesses.

(e) The amounts reported herein represent the

change in our revenues from the combined impacts of yield and volume, and exclude energy

surcharges, attributable to our Healthcare Solutions segment.

(f) Workday adjusted volume impact.

WASTE MANAGEMENT, INC.

SUMMARY DATA SHEET

(In Millions)

(Unaudited)

Free Cash Flow(a)

Three Months

Ended

September 30,

Nine Months

Ended

September 30,

2026

2025

2026

2025

Net

cash provided by operating activities

$ 1,640

$ 1,592

$ 4,867

$ 4,345

Capital expenditures

to support the business

(602 )

(635 )

(1,746 )

(1,910 )

Proceeds

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

108

Free cash

flow without sustainability growth investments

1,040

962

3,200

2,543

Capital

expenditures - sustainability growth investments

(55 )

(141 )

(191 )

(429 )

Free

cash flow

$ 985

$ 821

$ 3,009

$ 2,114

Three Months

Ended

September 30,

Nine Months

Ended

September 30,

2026

2025

2026

2025

Supplemental

Data

Internalization

of waste, based on disposal costs

72.1 %

71.9 %

72.3 %

71.4 %

Landfill depletable

tons (in millions)

33.8

33.7

96.1

97.7

Acquisition

Summary(b)

Gross annualized

revenue acquired

$ 3

$ 23

$ 126

$ 165

Total consideration,

net of cash acquired

239

442

Cash paid for

acquisitions consummated during the period, net of cash acquired

399

Cash paid for

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

102

407

Landfill Depletion and Accretion Expenses

Three

Months Ended

September

30,

Nine Months

Ended

September 30,

2026

2025

2026

2025

Landfill depletion expense:

Cost basis of landfill

assets

$ 188

$ 182

$ 535

$ 514

Asset retirement

costs

117

116

Total landfill depletion expense

230

227

652

630

Accretion expense

117

106

Landfill depletion

and accretion expense

$ 269

$ 262

$ 769

$ 736

(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.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions, Except Per Share Amounts)

(Unaudited)

Three

Months Ended September 30, 2026

Income

from

Operations

Pre-tax

Income

Tax

Expense

Net

Income(a)

Diluted

Per

Amount

reported amounts

$ 1,279

$ 1,044

$ 224

$ 820

$ 2.05

Adjustments:

Stericycle

acquisition and integration costs

Collective

bargaining agreement costs

—

(Gain)

loss from asset impairments, unusual items and other, net(b)

0.10

adjusted amounts

$ 1,329

$ 1,094

$ 236 (c)

$ 858

$ 2.15

Depreciation,

depletion, amortization and accretion(d)

792

Adjusted

operating EBITDA

$ 2,121

Adjusted

operating EBITDA margin

31.0 %

Three

Months Ended September 30, 2025

Income

from

Operations

Pre-tax

Income

Tax

Expense

Net

Income(a)

Diluted

Per

Amount

reported amounts

$ 989

$ 775

$ 172

$ 603

$ 1.49

Adjustments:

Stericycle

acquisition and integration costs

(Gain)

loss from asset impairments, unusual items and other, net(e)

218

173

252

198

$ 0.49

adjusted amounts

$ 1,241

$ 1,027

$ 226 (c)

$ 801

$ 1.98

Depreciation,

depletion, amortization and accretion(d)

764

Adjusted

operating EBITDA

$ 2,005

Adjusted

operating EBITDA margin

31.1 %

(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) The three months ended September 30,

2026 primarily includes an $18 million impairment charge related to the decision to accelerate

the closure of a landfill within our East Tier.

rate based on actual dollars. When the effective tax rate is calculated by dividing the Tax

Expense amount in the table above by the Pre-tax Income amount, differences occur due to

rounding, as these items have been rounded in millions. The three months ended September

30, 2026 and 2025 adjusted effective tax rates are 21.5% and 21.9%, respectively.

(d) Beginning in 2026, landfill

accretion expense was moved from operating expenses to depreciation, depletion, amortization

and accretion. Landfill accretion expenses in the three months ended September 30, 2026 and

2025 are $39 million and $35 million, respectively. For comparability purposes, 2025 results

have been updated to reflect that change.

(e) The three months ended September 30, 2025

includes (i) a $152 million impairment charge related to the decision to suspend the operations

of a business; (ii) a $45 million impairment charge related to the decision to accelerate

the closure of a landfill within our East Tier and (iii) an $11 million negotiated payment

for early termination of a contract in our Renewable Energy segment.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions)

(Unaudited)

Three

Months Ended September 30, 2026

Collection

and

Disposal(a)(b)

Recycling

Processing

and

Sales(a)

Renewable

Energy(b)

Healthcare

Solutions

Corporate

and

Other

Total

Adjusted

Operating EBITDA and Adjusted Operating EBITDA Margin

Operating revenues,

as reported

$ 5,579

$ 441

$ 167

$ 651

$ 8

$ 6,846

Income from operations,

as reported

$ 1,542

$ 36

$ 37

$ 20

$ (356 )

$ 1,279

Depreciation,

depletion, amortization and accretion(c)

573

107

792

Operating

EBITDA, as reported

$ 2,115

$ 91

$ 65

$ 127

$ (327 )

$ 2,071

Adjustments:

Stericycle

acquisition and integration costs

—

Collective

bargaining agreement costs

—

(Gain)

loss from asset impairments, unusual items and other, net(d)

—

Adjusted

operating EBITDA

$ 2,135

$ 91

$ 65

$ 146

$ (316 )

$ 2,121

Operating EBITDA margin,

as reported

37.9 %

20.6 %

38.9 %

19.5 %

N/A

30.3 %

Adjusted operating EBITDA

margin

38.3 %

20.6 %

38.9 %

22.4 %

N/A

31.0 %

Three

Months Ended September 30, 2025

Collection

and

Disposal(a)(b)

Recycling

Processing

and

Sales(a)

Renewable

Energy(b)

Healthcare

Solutions

Corporate

and

Other

Total

Adjusted Operating

EBITDA and Adjusted Operating EBITDA Margin

Operating revenues, as reported

$ 5,321

$ 372

$ 115

$ 628

$ 7

$ 6,443

Income from operations,

as reported

$ 1,468

$ (137 )

$ 21

$ (21 )

$ (342 )

$ 989

Depreciation,

depletion, amortization and accretion(c)

560

110

764

Operating EBITDA, as reported

$ 2,028

$ (90 )

$ 37

$ 89

$ (311 )

$ 1,753

Adjustments:

Stericycle

acquisition and integration costs

—

(Gain)

loss from asset impairments, unusual items and other, net(e)

155

—

218

155

252

Adjusted

operating EBITDA

$ 2,075

$ 65

$ 48

$ 110

$ (293 )

$ 2,005

Operating EBITDA margin,

as reported

38.1 %

(24.2 %)

32.2 %

14.2 %

N/A

27.2 %

Adjusted operating EBITDA

margin

39.0 %

17.5 %

41.7 %

17.5 %

N/A

31.1 %

(a) Certain fees related

to the processing of recyclable material we collect are included within our Collection and

Disposal business. The amounts in Income from Operations for the three months ended September

30, 2026 and 2025 are $21 million and $19 million, respectively.

(b) Renewable Energy pays a 15% intercompany

royalty to our Collection and Disposal business and Corporate and Other for landfill gas.

The total amount of royalties in Income from Operations for the three months ended September

30, 2026 and 2025, are $25 million and $17 million, respectively.

was moved from operating expenses to depreciation, depletion, amortization and accretion.

Landfill accretion expenses in the three months ended September 30, 2026 and 2025 are $39

million and $35 million, respectively. For comparability purposes, 2025 results have been

updated to reflect that change.

(d) The three months ended September 30,

2026 primarily includes an $18 million impairment charge related to the decision to accelerate

the closure of a landfill within our East Tier.

(e) The three months ended September 30, 2025

includes (i) a $152 million impairment charge related to the decision to suspend the operations

of a business; (ii) a $45 million impairment charge related to the decision to accelerate

the closure of a landfill within our East Tier and (iii) an $11 million negotiated payment

for early termination of a contract in our Renewable Energy segment.

WASTE MANAGEMENT, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES

(In Millions)

(Unaudited)

Three

Months Ended

September 30, 2026

Three

Months Ended

September 30, 2025⁽ᵃ⁾

Adjusted Operating Expenses and Adjusted Operating

Expenses Margin

Operating revenues, as reported

$ 6,846

$ 6,443

Operating expenses, as reported

$ 4,093

$ 3,798

As a % of net revenues

59.8 %

58.9 %

Adjustments:

Collective bargaining agreement costs

(2 )

—

Stericycle acquisition

and integration costs

—

(3 )

Operating expenses, as adjusted

$ 4,091

$ 3,795

As a % of net revenues

59.8 %

58.9 %

Three

Months Ended

September 30, 2026

Three

Months Ended

September 30, 2025

Adjusted SG&A Expenses and Adjusted SG&A

Expenses Margin

Operating revenues, as reported

$ 6,846

$ 6,443

SG&A expenses, as reported

$ 655

$ 665

As a % of net revenues

9.6 %

10.3 %

Adjustment:

Stericycle acquisition

and integration costs

(21 )

(22 )

SG&A expenses, as adjusted

$ 634

$ 643

As a % of net revenues

9.3 %

10.0 %

2026

Projected Free Cash Flow Reconciliation(b)

Year

Ended

December 31, 2026

Net cash provided by operating activities

$ 6,500

Capital expenditures to support the business

(2,500 )

Proceeds from divestitures of businesses

and other assets, net of cash divested

100

Free cash flow without sustainability growth investments

$ 4,100

Capital expenditures - sustainability

growth investments

(250 )

Free cash flow

$ 3,850

(a) Beginning in 2026, landfill accretion expense

was moved from operating expenses to depreciation, depletion, amortization and accretion.

Landfill accretion expenses in the three months ended September 30, 2026 and 2025 are $39

million and $35 million, respectively. For comparability purposes, 2025 results have been

updated to reflect that change.

(b) 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.

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.

The table below illustrates

the impact that differing contract structures have 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

September

30, 2026

September

30, 2025

Amount

Change

Adjusted

Operating

EBITDA

Margin

Amount

Change

Adjusted

Operating

EBITDA

Margin

Recycling commodity rebates

$ 215

1.0 %

$ 177

0.8 %

Nine Months

Ended

September

30, 2026

September

30, 2025

Amount

Change

Adjusted

Operating

EBITDA

Margin

Amount

Change

Adjusted

Operating

EBITDA

Margin

Recycling commodity rebates

$ 558

0.9 %

$ 554

0.9 %

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