Waste Management stock holds outlook as healthcare margins improve

Published on 11/05/2026 at 14:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Waste Management stock held its 2026 outlook as healthcare profitability improved. Softer volumes and higher fuel costs remain key pressure points.

Healthcare gains meet volume pressure

Third-quarter revenue reached 6.85 billion US dollars and adjusted earnings were 2.15 US dollars per share.
Healthcare Solutions operating EBITDA increased 33%, while Collection and Disposal volumes declined on a workday-adjusted basis.
Management maintained its 2026 revenue, EBITDA and free cash flow ranges despite higher fuel and risk costs.
Jim Fish plans to retire in early January, with John Morris set to become chief executive.

Waste Management, US94106L1098, Illustration mit AI erstellt.

Waste Management's third-quarter 2026 earnings call highlighted stronger healthcare profitability and disciplined pricing, but also softer waste volumes and higher fuel costs. In a TradingView News report on the call, management maintained its full-year outlook and pointed to stronger cash generation.

Revenue beats while earnings miss estimates

Revenue rose 6.3% year over year to 6.85 billion US dollars, ahead of the 6.80 billion US dollar consensus cited in the report. Adjusted earnings reached 2.15 US dollars per share, below the 2.18 US dollar estimate.

Adjusted operating EBITDA increased 5.8% to 2.12 billion US dollars. Management said pricing in Collection and Disposal and contributions from Healthcare Solutions supported the result, while fuel and risk-management costs each reduced the operating margin by 40 basis points.

Healthcare integration supports margins

Healthcare Solutions revenue grew 3.7%, while operating EBITDA increased 33%. President John Morris said pricing discipline and integration savings helped the business reach its year-end targets ahead of schedule. The segment's core price reached 5.5%, and its selling, general and administrative expense ratio fell to 15.2%.

The improvement came alongside weaker volumes in the core business. Workday-adjusted Collection and Disposal volumes declined 0.5%, residential volumes fell 2.6% and commercial volumes decreased 1.3%. Management expects full-year volume to decline by roughly 1% and said visibility into 2027 waste volumes remains limited.

Guidance stays intact despite cost pressure

Waste Management kept its 2026 revenue range at 26.275 billion to 26.475 billion US dollars. Adjusted operating EBITDA guidance remains 8.15 billion to 8.25 billion US dollars, while free cash flow is projected at 3.75 billion to 3.85 billion US dollars.

Chief Financial Officer David Reed said sequential margin improvement is expected, although diesel prices above 5.50 US dollars per gallon could weigh on the fourth quarter. The company also reported a 63 million US dollar year-over-year increase in risk-management costs, linked to an actuarial adjustment, large claims and a difficult comparison with the prior year.

Leadership transition adds a watch point

Jim Fish plans to retire in early January, when John Morris is expected to become chief executive. Morris signaled continuity in pricing, technology adoption, healthcare integration and acquisitions. Healthcare synergies remain targeted for completion by mid-2027, while renewable natural gas and recycling investments are intended to broaden future earnings support.

Waste Management stock traded at 214.10 euros on Lang & Schwarz at 1:48 p.m. CET on Thursday, November 5, 2026.

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