WM reported a strong Q1 2026, with EBITDA growth of 6%, driven by pricing power and cost controls despite softer volumes from weather and wildfire comparisons. Management maintained full-year guidance, highlighting structural advantages in MSW pricing and RNG investments. Q1 2026 operating EBITDA grew ~6% year-over-year, with collection & disposal margins expanding 110 basis points.
WM reported a strong Q1 2026, with EBITDA growth of 6%, driven by pricing power and cost controls despite softer volumes from weather and wildfire comparisons. Management maintained full-year guidance, highlighting structural advantages in MSW pricing and RNG investments. Q1 2026 operating EBITDA grew ~6% year-over-year, with collection & disposal margins expanding 110 basis points.
Management expressed confidence in achieving full-year guidance despite weather and volume headwinds, citing strong pricing execution, cost control, and positive momentum in key growth areas.
Q1 2026 operating EBITDA grew ~6% year-over-year, with collection & disposal margins expanding 110 basis points.
Core pricing exceeded expectations at 6.3%, with MSW and landfill pricing both over 7.5%.
Special waste volumes up 6.7% ex-wildfire, indicating strong pipeline for rest of 2026.
Management highlighted the importance of AI and technology in driving efficiency, safety, and pricing improvements, with specific examples including AI-enabled cameras for recycling contamination identification and data-driven coaching for drivers. They view these technologies as providing sustainable cost savings and competitive advantages, with further opportunities expected in routing, logistic
Special waste volumes up 6.7% excluding wildfire impact, a leading indicator of macro optimism.. Management expressed confidence in achieving full-year guidance despite weather and volume headwinds, citing strong pricing execution, cost control, and positive momentum in key growth areas.
Capital expenditures totaled $650 million in the quarter, down 22% year-over-year, reflecting normalized fleet spend and completion of several sustainability projects. The company remains on track to substantially complete its sustainability capital program in 2026, with investments in renewable natural gas and recycling automation contributing to growth.
Management expressed confidence in achieving full-year guidance despite weather and volume headwinds, citing strong pricing execution, cost control, and positive momentum in key growth areas.
“as you see landfill capacity slowly come offline for the industry...we end up in a better position because our landfill lives are a bit longer than the rest of the industry.”
“We're just navigating some interconnect delays with the utilities that might have been unexpected.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Free cash flow | FY2026 | $3B–$3.4Binline vs consensus | $3.2B | MAINTAINED |
| Op margin | FY2026 | 30.4%–31%inline vs consensus | 30.7% | MAINTAINED |
| Revenue | FY2026 | $22.8B–$23.3Binline vs consensus | $23.05B | MAINTAINED |