WM's free cash flow nearly doubles year-over-year in Q1 of 2026
Adjusted operating EBITDA grew 5.9% as recycling and renewable energy investments begin paying off
WM opened 2026 with adjusted operating EBITDA growth of 5.9% and margin expansion of 70 basis points, led by its core collection and disposal business.
Core pricing of 6.3% was the primary revenue driver, with collection and disposal yield up 3.9% and overall revenue growing 3.5%.
The core collection and disposal business was the quarter's standout, with operating EBITDA growing $154 million and margins expanding 190 basis points. The improvement came from a favourable price-to-cost spread, investments in frontline worker retention, and increased use of technology and automation to reduce costs.
The recycling and renewable energy segments added $51 million in combined EBITDA growth, driven by increased renewable natural gas production and higher recycling volumes. New recycling facilities opened in Ontario and Detroit, and a major automation project in South Florida was completed, adding nearly 300,000 tons of processing capacity in total.
Collection and disposal volume fell 1.5%, due to harsh winter weather, the intentional shedding of lower-margin residential business, and the absence of wildfire cleanup work that had benefited the prior year period.
Free cash flow nearly doubled to $920 million from $475 million a year ago, driven by EBITDA growth and working capital improvements. The company returned $729 million to shareholders through $385 million in dividends and $344 million in buybacks.
