WM Reports Q2 2026: Adjusted EPS $2.02 Beats, Revenue Slightly Misses; Reaffirms Profit and Cash Flow Outlook

summarizeSummary

WM's Q2 adjusted EPS of $2.02 beat estimates, but revenue of $6.68B slightly missed. Strong cash flow funded $1.04B in buybacks and dividends. Full-year profit and cash flow guidance was reaffirmed.

check_boxKey Events · Earnings and Guidance · WM

• Q2 Earnings Beat on Bottom Line

  Adjusted EPS of $2.02 exceeded the $1.98 consensus, while revenue of $6.68B was slightly below expectations. Adjusted operating EBITDA grew 5.5% to $2.07B.

• Cash Flow Surge Funds Heavy Shareholder Returns

  Free cash flow jumped 35% to $1.10B, enabling $1.04B returned to shareholders via $659M in buybacks and $379M in dividends during the quarter.

• Full-Year Profit and Cash Flow Guidance Reaffirmed

  Management maintained its 2026 adjusted operating EBITDA outlook of $8.15-$8.25B and free cash flow of $3.75-$3.85B, despite trimming the revenue forecast by ~0.6% to $26.275-$26.475B.

• Sustainability Investments Begin to Pay Off

  Three new renewable natural gas facilities and one recycling facility were completed, contributing to a 32.5% increase in recycling and renewable energy operating EBITDA.

auto_awesomeAnalysis · WM · Energy & Transportation

Waste Management delivered a mixed second quarter. Adjusted earnings of $2.02 per share topped the $1.98 consensus, but revenue of $6.68 billion came in just shy of expectations. The real story is margin resilience and cash generation: adjusted operating EBITDA margin expanded 40 basis points to 30.9%, and free cash flow surged 35% to $1.1 billion, funding over $1 billion in shareholder returns. Management reaffirmed its full-year adjusted operating EBITDA and free cash flow targets despite trimming the revenue outlook by about 0.6% on lower volume expectations. The quarter shows the core collection and disposal business remains a cash engine, while sustainability investments are starting to contribute.