A maker of comprehensive environmental services, WM collects trash and recyclables, runs the largest landfill network in the U.S. and Canada, and turns landfill gas into renewable energy. It also handles regulated healthcare waste and secure document destruction through its Stericycle business. The company's roots trace to 1899, when Dutch immigrant Harm Huizenga hauled garbage through Chicago with a horse and wagon; his grandson Wayne Huizenga formally founded Waste Management in 1968 by buying up small "mom-and-pop" haulers and consolidating them into a national network.
WM's Healthcare Solutions segment turned profitable as free cash flow more than doubled on lower capital spending.
The Stericycle acquisition is starting to pay off. rose 4.0% to $6.7 billion and grew 8.9% to $1.25 billion as the Healthcare Solutions swung to a $2 million operating profit from a $23 million loss a year ago, while more than doubled to $1.1 billion on reduced sustainability . With integration costs easing and share buybacks accelerating past $1 billion in the first half, the post-acquisition deleveraging and return-of-capital story is now underway.
Key takeaways
rose to $1,104 million, up from $813 million a year ago, as increased and fell $102 million with the transition of sustainability growth projects from peak construction to harvesting returns.
The WM Healthcare Solutions , created from the Stericycle acquisition, swung to a $2 million from a $23 million loss in Q2 2025, driven by lower integration costs and synergy realization, even as segment fell $30 million on volume declines.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 4.0% to $6.68B on Collection & Disposal yield and energy surcharges; operating income grew 8.9% to $1.25B.
⌄
Total increased $254 million to $6,684 million, driven by higher in the Collection and Disposal business and a $102 million rise in energy surcharges from higher diesel prices, partially offset by lower collection and disposal volumes.
increased $254 million to $6,684 million, led by higher in the Collection and Disposal business and a $102 million rise in energy surcharges from higher diesel prices, partially offset by lower collection and disposal volumes and the absence of prior-year wildfire cleanup volumes.
grew $102 million to $1,253 million, with an of 18.7%, up 0.8 points , as Collection and Disposal growth and Healthcare Solutions synergies more than offset the prior-year wildfire benefit.
The company repurchased $1,003 million of common stock and paid $764 million in dividends during the first half of 2026, a marked acceleration from the Q1 run rate of $344 million in buybacks.
widened 0.4 points to 40.7%, continuing the multi-year recovery as pricing gains and operating efficiency absorbed higher fuel, labor, and subcontractor costs.
What changed
The Q2 2025 watch item on whether the WM Healthcare Solutions would reach breakeven or profitability as integration costs rolled off is resolved: the segment posted a $2 million in Q2 2026, its first disclosed profitable quarter since the acquisition.
The Q2 2025 watch item on whether could sustain the $813 million quarterly level was exceeded: free cash flow reached $1,104 million in Q2 2026, up 35.8% , as declined.
The Q1 2026 watch item on the pace of share repurchases is answered: the company bought back $1,003 million in the first half, with $659 million in Q2 alone, more than doubling the Q1 run rate.
The Q1 2026 watch item on the $3.7 billion in debt maturing within 12 months remains open: the company ended Q2 with $3.8 billion maturing within 12 months and disclosed support from a $3.5 billion .
What to watch
Whether the Healthcare Solutions can sustain and grow its now that it has reached breakeven, or whether the $2 million result reflects a one-time benefit from integration cost roll-off rather than underlying earnings power.
The trajectory of recycled commodity prices in Q3 and whether the Recycling Processing and Sales can avoid a repeat of the $137 million loss recorded in Q3 2025, given the absence of disclosed charges this quarter.
How the company addresses the $3.8 billion in debt maturing within 12 months — whether refinanced, repaid, or rolled over — and at what interest rate, given the $22.2 billion total debt load.
Whether the $1,003 million first-half pace is sustained or accelerated in the second half, and how management balances buybacks against the upcoming debt maturities.
grew $102 million to $1,253 million (18.7% of ), led by Collection and Disposal growth and Healthcare Solutions synergy realization, partly offset by the absence of prior-year wildfire cleanup volumes.
Healthcare Solutions fell $30 million as pricing gains were more than offset by volume declines, but the segment swung to a $2 million from a $23 million loss a year ago due to lower integration costs and .
Operating expenses rose to 59.2% of , with higher fuel, labor, and subcontractor costs partially mitigated by flexing spending on lower volumes and efficiency initiatives.
surged $286 million to $1,104 million, benefiting from higher and a $102 million reduction in as sustainability growth projects transition from peak construction to harvesting returns.
The company repurchased $1,003 million of common stock and paid $764 million in dividends during the first half of 2026, while maintaining $3.8 billion of debt maturing within 12 months, supported by a $3.5 billion .
Quantitative and Qualitative Disclosures About Market Risk
Information about market risks as of June 30, 2026 does not materially differ from that discussed under Item 7A in our Annual Report on Form 10-K for the year ended December 31, 2025.
⌄
Information about market risks as of June 30, 2026 does not materially differ from that discussed under Item 7A in our Annual Report on Form 10-K for the year ended December 31, 2025.
Information regarding our legal proceedings can be found under the Environmental Matters and Litigation sections of Note 6 to the Condensed Consolidated Financial Statements.
⌄
Information regarding our legal proceedings can be found under the Environmental Matters and Litigation sections of Note 6 to the Condensed Consolidated Financial Statements.
There have been no material changes to the risk factors previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
⌄
There have been no material changes to the risk factors previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.