Waste Management Inc

Waste Management declared a quarterly dividend of $0.945 per share, in line with its previous payout. The dividend is payable on September 25 to shareholders of record on September 11, with the ex-dividend date also on September 11. Based on the current share price, the forward yield is 1.67%.

Waste Management Inc reported second-quarter 2026 results featuring a 35% increase in free cash flow and a 40-basis-point expansion in operating EBITDA margin. Operating EBITDA grew 5.5%, or 9.1% excluding last year's wildfire cleanup contributions, while free cash flow for the first six months surged more than 56% to $2.02 billion. The company's recycling and renewable energy segment delivered nearly 33% EBITDA growth, contributing a 30-basis-point uplift to total company margin, and healthcare solutions expanded its EBITDA margin by 200 basis points to 19%. Waste Management returned $1 billion in share repurchases and $764 million in dividends to shareholders, and it raised its full-year 2026 margin expectations by 20 basis points to a range of 31% to 31.2%. Despite softer-than-planned volume trends that narrowed the full-year revenue outlook by about 1.5%, management expressed confidence in its EBITDA and free cash flow guidance, citing better pricing execution and cost management.

Waste Management Inc reported second-quarter net income of $785 million, or $1.95 per share, up from $726 million, or $1.80 per share, a year earlier. Excluding items, adjusted earnings were $813 million, or $2.02 per share. Revenue rose 4.0% to $6.684 billion from $6.430 billion. The company issued full-year revenue guidance of $26.275 billion to $26.475 billion.

Analysts project Waste Management will report second-quarter earnings of $1.99 per share on revenues of about US$6.71 billion when it releases results on July 28, 2026, both higher than a year earlier. The optimism is partly driven by rapid expansion in WM Renewable Energy revenues, which analysts see as reinforcing the company's mission-critical business model and its recent recognition as a strong S&P 500 performer. Waste Management's investment narrative now includes a forecast of $29.4 billion in revenue and $4.0 billion in earnings by 2028, requiring 7.0% yearly revenue growth and a $1.3 billion earnings increase from $2.7 billion today. Four members of the Simply Wall St community estimate the company's fair value between US$238.76 and US$268.87, implying a potential upside of up to 13% from the current price.

StockStory identifies two industrial stocks with durable competitive advantages and one facing headwinds. AZZ, a metal coating and power infrastructure provider, posted 17.3% annual revenue growth over five years and a 15.5% operating margin, while Waste Management achieved 10.8% annual revenue growth over two years and a 39% gross margin. In contrast, EnerSys, a battery manufacturer, saw flat unit sales and projects just 4.1% sales growth, with a low gross margin of 26.6%. AZZ trades at $150.34 per share, Waste Management at $232.58, and EnerSys at $201.16.

AM Best has affirmed the Financial Strength Rating of A and the Long-Term Issuer Credit Rating of "a" for National Guaranty Insurance Company of Vermont, with a stable outlook. The ratings reflect the captive insurer's very strong balance sheet, very strong operating performance, limited business profile, and appropriate enterprise risk management. National Guaranty Insurance Company of Vermont serves as the captive insurance company of Waste Management, Inc., one of North America's leading waste management environmental services providers, and benefits from its parent's robust risk management strategies. The company has remained consistently profitable over the last decade, with combined ratios that have outperformed the industry and its peers by wide margins, and AM Best expects favorable operating results to continue prospectively.

Waste Management shares rose 1.45% to close at $236.71 ahead of its July 28, 2026 earnings report, where EPS is forecast at $2. The stock has returned 7.9% over the past 30 days and 8.4% year to date, with a five-year total shareholder return of 78.2%. A widely followed narrative pegs fair value at $253.12, implying the stock is about 6.5% undervalued, driven by strategic investments in recycling and renewable energy that are expected to boost revenue and improve EBITDA margins through automation. However, the stock trades at 34 times earnings versus an estimated fair P/E of 26.3 and an industry average of 21.2, suggesting a rich valuation that could compress if sentiment cools. Risks include higher leverage from the Stericycle deal and pressure on temporary industrial volumes.

JPMorgan Chase and Waste Management present contrasting investment cases, with JPMorgan favored for the next 12 months and Waste Management for the next decade. A $1,000 investment in JPMorgan 10 years ago grew to roughly $7,104, more than doubling the S&P 500's $3,533 return, while the same amount in Waste Management reached about $4,055. JPMorgan's recent performance is supported by a new $50 billion share buyback program and 17% year-over-year EPS growth in Q1 2026, while Waste Management offers a 23-year streak of dividend growth and nearly doubled free cash flow to $920 million in Q1 2026. JPMorgan trades at 16 times trailing earnings near a 52-week high of $343.45, while Waste Management's 33 times earnings multiple reflects its defensive profile and Stericycle integration. Investors are advised to consider JPMorgan for near-term capital markets strength and Waste Management as a long-term compounder.

Clean Harbors and Waste Management present contrasting investment cases in the environmental services sector for 2026. Clean Harbors, a hazardous waste specialist, reported fiscal 2025 revenue of nearly $6.0 billion and net income of approximately $391.0 million, with a debt-to-equity ratio of 1.3x and free cash flow of nearly $438.2 million. Waste Management, a solid waste and recycling giant, posted fiscal 2025 revenue of $25.2 billion and net income of approximately $2.7 billion, driven partly by its Stericycle acquisition, with a debt-to-equity ratio of 2.3x and free cash flow of approximately $2.8 billion. Clean Harbors trades at a forward P/E of 33.8x and a P/S ratio of 2.6x, while Waste Management trades at a forward P/E of 28.2x and a P/S ratio of 3.7x. The choice hinges on investor preference: Waste Management offers a steady dividend and buybacks with municipal contract stability, while Clean Harbors provides a high-moat, regulation-driven growth opportunity tied to stricter EPA rules on forever chemicals.

Waste Management has seen its stock rise 5.2% over the past month, supported by consistent dividend increases and positive earnings estimates. The company paid dividends of $1.1 billion, $1.2 billion, and $1.3 billion in 2023, 2024, and 2025, respectively. The Zacks Consensus Estimate for fiscal 2026 revenue is $26.5 billion, indicating 5.1% year-over-year growth, while earnings per share are pegged at $8.15, implying 8.7% growth. Waste Management is also focused on pricing and cost control, converting landfill gas into renewable energy, and integrating technology and acquisitions to boost margins and service reliability.

WM has acquired the residential and commercial operations of HBS Trash Services, a private equity-backed provider in Colorado, in a deal that closed on June 1. HBS, owned by Eagle River Capital, will retain its contractor services and roll-off dumpster rental operations while refocusing on the home building industry. The acquired operations include residential waste and recycling collection for 11 cities along Colorado's Front Range, including Denver suburbs like Littleton and Lakewood. WM, which already has a significant presence in the region, expects to open a new materials recovery facility in the Denver area in July. The acquisition comes as WM plans to spend between $100 and $200 million on mergers and acquisitions in 2026, following a quiet period focused on integrating Stericycle assets.

Waste Management reported 6.3% core pricing growth and 110 basis points of margin expansion in its Collection and Disposal segment during the first quarter of 2026. CEO Jim Fish highlighted that the company's landfill network, which is nearly impossible to replicate near major cities due to regulatory hurdles, allows it to raise prices as industry capacity shifts away from urban areas. The dividend has more than doubled since 2017, reaching an annualized $3.78 in 2026, while consuming only 22% of operating cash flow. Free cash flow nearly doubled to $920 million in the quarter, and management plans roughly $2 billion in buybacks this year. Shares trade near their 52-week low at around $214.60, with a forward P/E of 26 and a beta of 0.457.