Waste Management stock: Healthcare gains support 2026 outlook

Waste Management stock traded at 210.15 euros on Lang & Schwarz at 5:39 p.m. CET on Friday, October 30, 0.02 percent below the Xetra close of 210.20 euros on Friday. The quote was 2.31 percent above the 205.40 euros reported in the previous article on October 29 at 5:32 p.m. Berlin time. The comparison marks the main change since the last report.

WM released its third-quarter results on October 27 for the period ended September 30. According to the WM earnings release, revenue rose 6.3 percent to 6.846 billion US dollars. Reported net income was 820 million US dollars, while adjusted diluted earnings per share reached 2.15 US dollars.

Healthcare milestones arrive early

Healthcare Solutions revenue increased 3.7 percent, and adjusted operating EBITDA rose to 146 million US dollars from 110 million US dollars a year earlier. The segment reached its year-end targets ahead of schedule, with core price at 5.5 percent and adjusted selling, general and administrative expenses at 15.2 percent of revenue.

The improvement supports WM's integration of the former Stericycle operations, but the company also reported pressure in its core business. Collection and Disposal volume declined 0.4 percent in the quarter, while higher fuel and risk-management costs offset part of the margin benefit from pricing and healthcare operations.

Cash flow keeps guidance intact

Free cash flow reached 985 million US dollars in the quarter and 3.009 billion US dollars through the first nine months. WM returned 957 million US dollars to shareholders in the quarter through buybacks and dividends. Management expects 2026 revenue of 26.275 billion to 26.475 billion US dollars, adjusted operating EBITDA of 8.15 billion to 8.25 billion US dollars and free cash flow of 3.75 billion to 3.85 billion US dollars, with revenue and free cash flow at the high end of the ranges.

For investors, the results combine stronger healthcare profitability and cash generation with weaker collection volumes and cost pressure. CEO Jim Fish plans to retire in early January, when President John Morris is expected to become CEO.

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