Waste Management Q1 Free Cash Flow Doubles to $920M, Adjusted EBITDA Up 5.9%
Waste Management reported Q1 revenue of $6.23 billion, up 3.5% year-over-year, while adjusted operating EBITDA rose 5.9% to $1.85 billion, expanding margin by 70 basis points. Free cash flow nearly doubled to $920 million from $475 million, and the company returned $729 million to shareholders through dividends and buybacks.
1. First Quarter Financial Results
Waste Management achieved Q1 2026 revenue of $6.23 billion, up 3.5% year-over-year on core price gains and higher recycling volumes. Adjusted operating EBITDA increased 5.9% to $1.85 billion, lifting margin by 70 basis points to 29.8%, while adjusted net income reached $731 million with diluted EPS of $1.81.
2. Cash Flow and Shareholder Returns
Net cash provided by operating activities rose to $1.5 billion, and free cash flow nearly doubled to $920 million from $475 million, driven by EBITDA growth and working capital improvements. The company returned $729 million to shareholders, comprising $385 million in dividends and $344 million in share repurchases, and maintained leverage within its 2.5–3.0x target range.
3. Segment Performance and Growth Projects
The Collection and Disposal segment led with a $154 million EBITDA increase and a 190 basis-point margin gain, powered by disciplined pricing and cost control. Recycling and Renewable Energy EBITDA grew $49 million on higher RNG production and volumes, Healthcare Solutions EBITDA rose 11.6%, and new recycling facilities in Ontario and Detroit added 300,000 tons of capacity.