WM · Earnings call · 2026Q3T · Full report
Operating Cash Flow and Free Cash Flow
WASTE MANAGEMENT INC · 2026-10-27 · Importance 58 · Surprise 56 · In source text
Operating cash flow increased 12% in the first nine months of 2026 compared with the same period in 2025. Free cash flow exceeded $3 billion, up more than 42%, with operating EBITDA conversion above 50%. Management said strong earnings growth and lower capital spending were expected drivers, while favorable cash taxes and improved working capital—particularly accounts payable—provided additional benefit. The company expected full-year free cash flow at the high end of its prior range.
Key facts
- WM generated more than $3 billion of free cash flow in the first nine months of 2026, up more than 42% year over year, with operating EBITDA conversion above 50%.
- WM's third-quarter 2026 free cash flow grew 20%.
- WM's operating cash flow increased 12% in the first nine months of 2026 compared with the same period in 2025.
- WM's 2026 cash taxes were more favorable than expected, and working capital improved sustainably, particularly accounts payable, driven by vendor-management strategies.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | — | WM generated more than $3 billion of free cash flow in the first nine months of 2026, up more than 42% year over year, with operating… |