WM · Earnings call · 2026Q3T · Full report

Customer Dynamics

WASTE MANAGEMENT INC · 2026-10-27 · Importance 25 · Surprise 32

Management attributed part of commercial volume weakness to national-account broker decisions made in the prior year and expected to lap those losses around the end of the first quarter. The company’s commercial churn improved about 30 basis points year over year to 9.3%, and management said pricing had not been affected. Management also noted some pressure on the small and midsize business line associated with housing and construction activity, while commercial momentum indicators were improving after excluding the broker-account impact.

Key facts

• WM said health care solutions cross-selling was $38 million for the full year previously restated, and management felt good about the position moving into 2027.
• WM expected commercial broker-account losses to be lapped around the end of first-quarter 2027.
• Waste Management said it was working through a long tail of customer losses from the end of 2025 and 2026, while near-term churn trends were improving.
• WM's churn improved about 30 basis points year over year to 9.3%.
• WM's commercial churn improved about 30 basis points year over year to 9.3%, and management said pricing had not been impacted.