NEW YORK, July 28, 2026, 17:59 EDT
- Shares declined 2.9% in after-hours trading to $232.50. During the regular session, the stock finished up 0.6% at $239.41.
- WM reduced its 2026 revenue midpoint by $150 million, while maintaining its profit and free-cash-flow guidance.
- Adjusted earnings per share surpassed FactSet’s forecast, but revenue for the quarter came in just below expectations.
Shares of Waste Management, Inc. fell in after-hours trading on Tuesday, as the waste hauling company reduced its full-year revenue forecast due to soft collection volumes.
WM maintained its profit and cash guidance, while raising its margin outlook. The after-hours reaction indicates investors centered on the reduced sales target.
Revenue at the guidance midpoints drops by $150 million compared to the January plan. Non-GAAP adjusted operating EBITDA holds steady at $8.20 billion. The resulting margin increases to about 31.1%, up from 30.9%.
The comparison of guidance outlines WM’s approach to safeguarding its earnings:
| 2026 guidance | July update | January outlook | Midpoint change |
|---|---|---|---|
| Revenue | $26.275B-$26.475B | $26.425B-$26.625B | -$150M |
| Adjusted operating EBITDA | $8.15B-$8.25B | $8.15B-$8.25B | Unchanged |
| Free cash flow | $3.75B-$3.85B | $3.75B-$3.85B | Unchanged |
| Adjusted EBITDA margin | 31.0%-31.2% | 30.8%-31.0% | +20 basis points |
The updated midpoint for revenue is $175 million below FactSet’s estimate prior to the release. This maintains the earnings outlook, but a shortfall remains on overall revenue.
Revenue for the second quarter increased 4.0% to $6.684 billion, coming in around $26 million below FactSet’s forecast. Adjusted earnings per share were $2.02, which surpassed the estimate by four cents.
Pricing was a key driver for the quarter. Core price rose by 5.7%, with collection-and-disposal yield up 3.6%. Business volume declined 1.8%.
Residential volume declined by 2.9% while yield rose 6.1%. WM reported ongoing reductions in lower-margin residential contracts. The decrease in volume showed a 210 basis-point improvement compared to the first quarter.
The headline drop was also skewed by wildfire comparisons. Without the impact of cleanup activity from last year, collection-and-disposal volume slipped 0.4%. Landfill volume increased 1.7% on the same comparison.
Weaker mix was offset by costs. Adjusted operating EBITDA margin increased by 40 basis points to reach 30.9%. Adjusted selling and administrative costs saw a 60 basis point improvement.
Chief Executive Jim Fish said, “Second quarter earnings growth, margin expansion, and cash flow generation reflect the strength of our business model.” Business Wire
Adjusted EBITDA from recycling and renewable energy rose by $40 million, a gain of 32.5%. Healthcare Solutions contributed an additional $11 million, helped by synergies from integration and reduced overhead costs.
Free cash flow rose by 34.5% to reach $1.10 billion. WM distributed $1.04 billion via dividends and share buybacks. This cash performance underpins the maintained full-year goal.
The valuation allows less flexibility for volume shortfalls. WM ended Tuesday’s regular session trading at 34.6 times its trailing earnings. Shares of Republic Services, Inc. NYSE:RSG were at 31.1 times, meaning WM trades at an 11% premium.
WM rose 1.3% over the last five sessions. Company management is set to address its updated assumptions at 10:00 EDT on Wednesday. Investors are monitoring whether the deceleration in residential losses persists.
There are still risks tied to collection volumes, fuel expenses and the integration of Healthcare Solutions. Lower pricing or slower-than-expected cost reductions could rapidly shrink the margin buffer.
C
