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Waste Management Q3 revenue slightly beats on higher volumes

By Reuters News


Overview

  • US waste services provider's Q3 revenue slightly beat analyst expectations

  • Adjusted EPS for Q3 missed analyst expectations

  • Company returned $957 mln to shareholders via buybacks and dividends in Q3


Outlook

  • WM expects 2026 revenue at high end of $26.275-$26.475 bln guidance

  • Company sees 2026 adj operating EBITDA within $8.15-$8.25 bln guidance

  • WM expects 2026 free cash flow at high end of $3.75-$3.85 bln guidance


Result Drivers

  • PRICING AND SURCHARGES - Co said Q3 revenue growth was driven by higher pricing, energy surcharges and increased recycling and renewable energy volumes

  • HEALTHCARE SOLUTIONS - Co said Healthcare Solutions segment saw higher revenue and operating income due to cost management, synergies and pricing

  • OPERATING EFFICIENCY OFFSET - Co said Collection and Disposal efficiency improved, but higher fuel and risk management costs offset margin gains


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$6.85 bln

$6.81 bln (21 Analysts)

Q3 Adjusted EPS

Miss

$2.15

$2.18 (23 Analysts)

Q3 EPS

$2.05

*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", 9 "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 $257.00, about 6.6% above its October 26 closing price of $241.02

  • The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 26 three months ago


Reuters Recommended Reads

  • Oct 27 - Pentair Q3 sales beat estimates on water solutions growth; reaffirms profit guidance

  • Oct 27 - SunCoke Energy Q3 Adjusted EBITDA rises 30% on higher terminals volumes

  • Oct 26 - Hawkins Q2 revenue beats estimates on water treatment growth, acquisitions


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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