WM · 10-Q · 2026Q3 · Full report

Operating Cash Flow and Free Cash Flow

WASTE MANAGEMENT INC · 2026-10-28 · Importance 41 · Surprise 48 · In source text

Third-quarter net cash provided by operating activities increased $48 million to $1,640 million from $1,592 million in 2025. Free cash flow rose $164 million to $985 million from $821 million, reflecting higher operating cash flow and lower capital spending. Lower collection-vehicle spending and planned reductions in sustainability-project investment as construction moved past its peak contributed to the lower capital spending. Higher earnings and favorable working-capital changes supported operating cash flow, partly offset by higher cash taxes.

Key facts

• Q3 2026 net cash provided by operating activities was $1,640 million, compared with $1,592 million in Q3 2025, an increase of $48 million. source
• Q3 2026 free cash flow was $985 million, compared with $821 million in Q3 2025, an increase of $164 million. source
• For the nine months ended September 30, 2026, net cash provided by operating activities was $4,867 million, compared with $4,345 million in 2025. source
• Q3 2026 free cash flow increased due to higher operating cash flow and lower capital spending, including lower collection-vehicle spending and planned reductions in sustainability growth project investment as the portfolio transitioned from peak construction to harvesting returns. source
• Operating cash flows increased by $522 million for the nine months ended September 30, 2026, compared with the prior-year period, primarily due to higher earnings, favorable working-capital changes, and lower annual incentive compensation payments; higher cash taxes partially offset the increase. source
• Q3 2026 operating cash flow increased primarily due to higher earnings and favorable working-capital changes, net of acquisition and divestiture effects, partly offset by higher cash taxes. source

Impact estimates