WM · Earnings call · 2026Q3T · Full report

Operating Expense Trends

WASTE MANAGEMENT INC · 2026-10-27 · Importance 36 · Surprise 40

Company SG&A expense improved 70 basis points year over year to 9.3% of revenue in the third quarter. Management attributed the improvement to disciplined cost management and continued synergy capture from Health Care Solutions. Health Care Solutions SG&A was 15.2% of revenue, a 190-basis-point improvement year over year and ahead of its 15%–16% year-end target; full-year company SG&A is expected to be about 10% of revenue.

Key facts

• Waste Management said Health Care Solutions G&A synergies underwritten in the acquisition were expected to reach 17%, and the business was already past that level.
• WM said landfill operating costs were rising in California and elsewhere, in large part because of leachate, and that it would pass costs to customers through price increases.
• Waste Management said Health Care Solutions G&A was better than 15.2%, with further room to improve, but it did not yet know where it would land.
• WM's health care solutions third-quarter 2026 SG&A was 15.2% of revenue, achieving its year-end target early.
• WM's health care solutions third-quarter 2026 SG&A of 15.2% of revenue was a 190-basis-point improvement year over year.
• WM's third-quarter 2026 risk costs included a negative actuarial adjustment following six consecutive quarters of positive variances against the actuarial report.
• WM attributed third-quarter 2026 higher risk costs in part to cost estimate increases for a few large-loss claims accrued during the quarter.
• WM's third-quarter 2026 risk costs included a difficult comparison with a third-quarter 2025 insurance recovery.