WM · 10-Q · 2026Q3 · Full report

Operating Expense Trends

WASTE MANAGEMENT INC · 2026-10-28 · Importance 33 · Surprise 32 · No source text

Selling, general and administrative expense declined $10 million in the third quarter, to $655 million from $665 million, and fell to 9.6% of revenue from 10.3%. Nine-month expense was $2,045 million, compared with $2,048 million in 2025, and declined to 10.4% of revenue from 10.8%. Lower labor costs from acquisition synergies, particularly Stericycle, and lower professional fees helped offset higher bad-debt expense and technology costs. The nine-month reduction in professional fees reflected prior-year Stericycle integration consulting costs, while bad-debt expense rose due to account write-offs in Collection and Disposal and an unfavorable Healthcare Solutions adjustment.

Key facts

• Q3 2026 operating expenses were $4,093 million, or 59.8% of revenues, compared with $3,798 million, or 58.9%, in Q3 2025, an increase of $295 million. source
• Q3 2026 selling, general and administrative expenses were $655 million, or 9.6% of revenues, compared with $665 million, or 10.3%, in Q3 2025, a decrease of $10 million. source
• Risk management costs increased primarily because of higher claims costs and an insurance recovery that benefited Q3 2025 related to a 2022 transfer station fire. source
• Q3 2026 operating expense increases primarily reflected higher fuel prices, risk management costs, employee wages and medical costs, and Renewable Energy segment growth; volume-flexed spending and operating efficiency and cost control partially offset the increases. source
• Q3 2026 SG&A declined primarily due to labor cost decreases from acquisition synergies, particularly Stericycle, partly offset by higher bad debt expenses. source
• Operating expenses increased in Q3 and the nine months ended September 30, 2026, primarily due to higher fuel prices, risk management costs, employee wages and medical costs, and Renewable Energy growth; lower collection and special-waste volumes and efficiency initiatives partly offset the increases. source

Impact estimates