Waste Management reported second quarter revenue of $6.68 billion, a 4.0% increase year-over-year, and adjusted EPS of $2.02. Revenue came in just below analyst expectations of $6.71 billion, while adjusted EPS beat the consensus of $1.99. The company's performance was marked by strong pricing and cost management, which drove a 40 basis point expansion in adjusted operating EBITDA margin to 30.9%.
Key Highlights
- Revenue growth of 4.0% was primarily driven by a core price increase of 5.7%, which successfully offset a 1.8% decline in Collection and Disposal volume.
- Adjusted operating EBITDA margin expanded by 40 basis points to 30.9%, reflecting strong cost controls and a 60 basis point year-over-year improvement in adjusted SG&A as a percentage of revenue.
- Free cash flow increased 34.5% to $1.10 billion, enabling the company to return $1.04 billion to shareholders through $659 million in share repurchases and $379 million in dividends.
- WM updated its full-year 2026 outlook, reaffirming its adjusted operating EBITDA and free cash flow targets while raising its margin forecast by 20 basis points, despite slightly lowering its revenue guidance by approximately 0.6%.