Waste Management Q2 revenue rises driven by core price increases

Overview

• US waste services provider's Q2 revenue rose 4% but slightly missed analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company returned over $1 bln to shareholders via buybacks and dividends in Q2

Outlook

• Waste Management sees 2026 revenue between $26.275 bln and $26.475 bln, down 0.6% from prior outlook

• Company maintains 2026 adjusted operating EBITDA guidance of $8.15 bln to $8.25 bln

• Waste Management expects 2026 free cash flow of $3.75 bln to $3.85 bln

Result Drivers

• PRICING AND YIELD - Revenue growth driven by core price increases of 5.7% and Collection and Disposal yield of 3.6%

• RECYCLING AND RENEWABLE ENERGY - Higher volumes and efficiencies from automation projects, along with increased renewable natural gas production, boosted segment EBITDA

• COST DISCIPLINE - Operating expenses as a percentage of revenue remained stable despite higher fuel costs, and SGA expenses improved 60 basis points

Company press release: ID:nBw5sZLNWa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the environmental services equipment peer group is "buy"

• Wall Street's median 12-month price target for Waste Management Inc is $260.00, about 9.3% above its July 27 closing price of $237.90

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• July 28 - Finland's Lamor Q2 revenue falls on weak orders

• July 28 - Canada's Biorem Q2 revenue rises 66% on project execution

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)