WM · 10-Q · 2026Q3 · Full report

Segment Profitability

WASTE MANAGEMENT INC · 2026-10-28 · Importance 31 · Surprise 32 · In source text

Collection and Disposal operating income increased 5.0% in the third quarter and 6.5% for the first nine months of 2026, supported by pricing, efficiency improvements, and lower landfill impairment charges than in 2025. Recycling Processing and Sales returned to operating income from a prior-year loss, aided by the absence of a $152 million impairment, recycling-facility automation, lower costs, and improved quarterly commodity pricing. Renewable Energy operating income increased as completed projects raised landfill-gas volumes sold to third parties, partly offset by lower RINs pricing. Healthcare Solutions also moved from an operating loss to income, reflecting lower integration costs and realized synergies, partly offset by lower volumes.

Key facts

• Recycling Processing and Sales generated operating income rather than a loss in both Q3 and the first nine months of 2026; Q3 improvement reflected the prior-year $152 million impairment, lower expenses after business suspension, automation-related volume and cost benefits, new facility investments, and improved commodity pricing. source
• Healthcare Solutions generated operating income rather than a loss in both Q3 and the first nine months of 2026, primarily due to non-recurring prior-year integration costs, current-year synergies and energy surcharge contributions, partly offset by lower volumes. source
• Collection and Disposal operating income growth was driven by pricing/yield, efficiency and cost-to-serve actions, and a $45 million prior-year landfill impairment versus an $18 million current-year impairment; higher risk management costs partly offset growth. source
• Renewable Energy operating income increased primarily due to higher volumes from completed projects that increased beneficial use of landfill gas sold to third parties, partly offset by lower RINs pricing. source
• Nine-month 2026 Recycling Processing and Sales operating income improvement was partly offset by commodity price declines compared with the prior-year period. source

Impact estimates