WM Q3 2026 Earnings Call: Healthcare EBITDA Rises 33%, Free Cash Flow Tops $3 Billion
Source Tradingkey
Key Takeaways
- WM reported Q3 2026 revenue growth of 6.3% and operating EBITDA growth of 5.8%, while maintaining an operating EBITDA margin of 31%.
- SG&A improved by 70 basis points to 9.3% of revenue. Management expects full-year SG&A to be about 10% of revenue.
- Healthcare Solutions revenue rose 3.7% and operating EBITDA increased 33%. Core price reached 5.5%, while SG&A fell to 15.2% of revenue, achieving both year-end targets ahead of schedule.
- Free cash flow exceeded $3 billion for the first nine months of 2026, up more than 42%, supported by earnings growth and a more than 17% decline in capital spending.
- Management expects full-year revenue and free cash flow to finish at the high end of their prior guidance ranges, with operating EBITDA remaining within the original range.
- CEO Jim Fish will retire in early January, after which John Morris will become CEO. Management said the leadership transition will not result in a major change to WM’s strategy.
Core Financial Data
| Metric | Q3 2026 / YTD result | Change or context |
|---|---|---|
| Revenue | — | Up 6.3% year over year in Q3 |
| Operating EBITDA | — | Up 5.8% year over year in Q3 |
| Operating EBITDA margin | 31% | Maintained despite higher fuel costs |
| SG&A as a percentage of revenue | 9.3% | Improved 70 basis points year over year |
| Operating cash flow | — | Up 12% for the first nine months |
| Free cash flow | More than $3 billion | Up more than 42% for the first nine months |
| Operating EBITDA-to-free-cash-flow conversion | More than 50% | First nine months of 2026 |
| Capital spending | — | Down more than 17% for the first nine months |
| Share repurchases | $1.58 billion | First nine months of 2026 |
| Dividends paid | $1.14 billion | First nine months of 2026 |
| Leverage | 2.92x | Within WM’s 2.5x to 3.0x target range |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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