WM · 10-Q · 2026Q2 · Full report

Operating Expense Trends

WASTE MANAGEMENT INC · 2026-07-29 · Importance 31 · Surprise 14

Second-quarter operating expenses increased $152 million to $3,955 million, or 59.2% of revenue, from $3,803 million, or 59.1%, in the prior year. Higher fuel prices, annual wage increases, employee medical costs and Renewable Energy growth drove the increase, partly offset by lower collection and special-waste volumes and efficiency initiatives. Six-month operating expenses rose to $7,649 million from $7,415 million, while labor and related benefits increased to $2,265 million and subcontractor costs increased to $1,306 million. Second-quarter SG&A decreased $13 million to $683 million, or 10.2% of revenue, because of lower professional fees and Stericycle-related synergy savings, partly offset by higher bad-debt expense; six-month SG&A increased to $1,390 million due to bad debts and technology costs.

Key facts

• Operating expenses for the second quarter of 2026 were $3,955 million, or 59.2% of revenues, compared to $3,803 million, or 59.1% of revenues, in the prior year period, a $152 million increase. source
• Selling, general and administrative expenses for the second quarter of 2026 were $683 million, or 10.2% of revenues, compared to $696 million, or 10.8% of revenues, in the prior year period, a $13 million decrease. source
• Critical accounting estimates with greatest uncertainty relate to accounting for landfills, environmental remediation liabilities, long-lived asset impairments, intangible asset impairments and fair value of assets and liabilities acquired in business combinations. source