Waste Management Q3 revenue slightly beats on higher volumes
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.)