WM reported Q1 2026 revenue of $6.23 billion, up 3.5% year over year, with free cash flow nearly doubling to $920 million as automation investments in recycling and a buildout of renewable natural gas capacity continued to pay off.
Q1 2026 highlights:
- Revenue: $6.23 billion (+3.5% YOY)
- Adjusted operating EBITDA: $1.853 billion (+5.9% YOY), margin of 29.8%
- Core price: 6.3%
- Free cash flow: $920 million vs. $475 million in Q1 2025
The Houston, Texas-based hauler saw a boost in its recycling segment operating EBITDA, which rose 18% even though a 27% drop in single-stream commodity prices were a headwind.
The growth was driven by automation-related workforce/labor savings as well as a 9% of volume processing growth.
Renewable energy operating EBITDA more than doubled, fueled by seven new renewable natural gas facilities completed since Q1 2025, the company noted during an investor call.
“Strong earnings and cash flow results in the quarter achieved our expectations, reflecting the strength of the WM team and the resilience of our business model,” said CEO Jim Fish.
During the quarter, WM opened new recycling facilities in Indianapolis, Indiana, Ontario, Canada, and South Florida, now its largest single-stream operation.
The company also brought its upgraded Orange, California recycling facility online, marking a key milestone in the company’s $1.4 billion plan to build and modernize MRFs across North America.
Together, the projects added more than 600,000 tons of annual processing capacity.
Collection and disposal volume fell 1.5%, with WM citing harsh winter weather and the absence of prior-year wildfire cleanup volumes.
Fish pointed to improving underlying trends, with MSW up 2.7% in the quarter and special waste rising 6.7% when excluding wildfire activity.
He said the volume trend is continuing into Q2. Roll-off volumes, negative for roughly six to seven consecutive quarters, also turned positive.
“MSW volume was over 4% positive for us” in the most recent week, Fish said. “We finally got to a point where [roll-off volume] was just slightly positive. And last year’s was like one and a half percent negative. So I think we’re fairly encouraged with volume numbers.”
