WM · 10-Q · 2026Q2 · Full report

Inflationary Cost Pressures

WASTE MANAGEMENT INC · 2026-07-29 · Importance 45 · Surprise 64

Waste Management identifies inflation, interest rates, employment trends and supply chain reliability as factors creating uncertainty in its financial outlook. The Company is using pricing efforts, cost management, labor productivity and technology investments to recover or mitigate inflationary cost pressures. Diesel fuel market prices increased approximately 50% in the second quarter and 30% in the first half of 2026 versus the prior-year periods, increasing energy surcharge revenue and operating costs. Annual wage increases, higher employee medical costs and higher electricity prices also increased costs during 2026.

Key facts

• Market prices for diesel fuel increased approximately 50% for the three months ended June 30, 2026 and approximately 30% for the six months ended June 30, 2026 versus the prior year periods. source
• Waste Management takes proactive steps to recover and mitigate inflationary cost pressures through pricing efforts and by managing costs via efficiency, labor productivity and investments in technology to automate certain aspects of the business. source
• Waste Management cautions that recovery efforts for inflationary cost pressures may not be successful due to pace of inflation, operating cost inefficiencies, market responses and contractual limitations such as timing lags tied to price escalation indices with lookback provisions. source
• Variability in economic conditions including inflation, interest rates, employment trends and supply chain reliability can create risk and uncertainty in financial outlook. source
• The increase in operating expenses for the three and six months ended June 30, 2026 was primarily due to higher fuel prices; annual employee wage increases and higher employee medical costs; and growth in the Renewable Energy segment. source