WM · Earnings call · 2026Q3T · Full report

Pricing and Input Costs

WASTE MANAGEMENT INC · 2026-10-27 · Importance 38 · Surprise 24

Core price was 5.8% in the quarter, while yield in collection and disposal was 3.4%. Management said the core price-to-cost spread had generally been in the low-60% to 70% range, with collection around the mid-60s; disposal was more pressured by small acquired-site closures and West Coast volume shifts. Management said it expected to maintain the price-to-cost spread and pass through costs, while noting that the health care pricing algorithm could approximate solid waste over the long term.

Key facts

• WM expected increased landfill operating costs to persist and planned to enhance landfill and transfer-station pricing in 2027 and beyond to pass those costs along.
• WM planned to continue landfill and transfer-station pricing enhancements in 2027 and beyond because of increased landfill operating costs.
• Waste Management said it had maintained a price-to-cost spread above 50% during the year and would continue focusing on maintaining it.
• WM's health care solutions third-quarter 2026 core price was 5.5%, achieving its year-end 2026 target early.
• Waste Management said it reached the solid waste pricing level discussed several quarters earlier sooner than anticipated.
• WM's collection and disposal core price was 5.8% in the third quarter of 2026.
• WM's health care solutions core price was 5.5% in the third quarter of 2026, matching its year-end target.
• Waste Management said its historical core price-yield spread was generally in the low 60% to 70% range; collection was around the mid-60% range.