# EDGAR Filing Document

**Accession Number:** 0000823768
**File Stem:** 0001104659-25-102615
**Filing Date:** 2025-10
**Character Count:** 63526
**Document Hash:** 2d09f4b7ec27d65fd3c519bb09046487
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-102615.hdr.sgml**: 20251027

**ACCESSION NUMBER**: 0001104659-25-102615

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251027

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251027

**DATE AS OF CHANGE**: 20251027

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WASTE MANAGEMENT INC
- **CENTRAL INDEX KEY:** 0000823768
- **STANDARD INDUSTRIAL CLASSIFICATION:** REFUSE SYSTEMS [4953]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 731309529
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-12154
- **FILM NUMBER:** 251420383

**BUSINESS ADDRESS:**
- **STREET 1:** 800 CAPITOL STREET, STE 3000
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002
- **BUSINESS PHONE:** 7135126200

**MAIL ADDRESS:**
- **STREET 1:** 800 CAPITOL STREET, STE 3000
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77002

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** USA WASTE SERVICES INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'?

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): October 27, 2025**

**Waste Management, Inc.**

**(Exact Name of Registrant as Specified in Charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **1-12154** | **73-1309529** |
| (State or Other Jurisdiction <br> of Incorporation) | (Commission File Number) | (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **800 Capitol Street** **, Suite 3000, Houston, Texas** | **77002** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

Registrant's Telephone number, including area code: **(713) 512-6200**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

---

| |
|:---|
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

---

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading Symbol(s) | &nbsp;&nbsp;Name of each exchange on which registered |
| &nbsp;&nbsp;Common Stock, $0.01 par value | &nbsp;&nbsp;WM | &nbsp;&nbsp;New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

---

| | |
|:---|:---|
| **Item 2.02.** | **Results of Operations and Financial Condition.** |

---

Waste Management, Inc. (the "Company") issued a press release today announcing its financial results for the third quarter of 2025, a copy of which is furnished as Exhibit 99.1 to this Form 8-K. The Company is conducting an audio webcast to discuss these results beginning at 10:00 a.m. Eastern Time on October 28, 2025. Listeners can access the live audio webcast by visiting investors.wm.com and selecting "Events & Presentations" from the website menu. A replay of the audio webcast will be available at the same location.

On the webcast, management of the Company is expected to discuss certain non-GAAP financial measures. The Company has provided information regarding its use of non-GAAP measures and reconciliations of such measures to their most comparable GAAP measures in the notes and tables that accompany the press release.

---

| | |
|:---|:---|
| **Item 9.01.** | **Financial Statements and Exhibits.** |

---

(d) Exhibits

**<u>Exhibit Index</u>**

---

| | |
|:---|:---|
| **Exhibit <br> Number** | **Description** |
| [99.1](tm2529298d1_ex99-1.htm) | [Press Release dated October 27, 2025](tm2529298d1_ex99-1.htm) |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

WASTE MANAGEMENT, INC.

---

| | | |
|:---|:---|:---|
| Date: October 27, 2025 | By: | */s/ Charles C. Boettcher* |
|  |  | Charles C. Boettcher |
|  |  | Executive Vice President and Chief Legal Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

WM Announces Third Quarter 2025 Earnings

WM Delivers Double-Digit Growth in Cash Flow from Operations Led by Disciplined Growth, Strong Cost Optimization, and Expansion of its Sustainability Businesses

WM Advances its Sustainability Investments with Completion of Two New Renewable Natural Gas Facilities and Two Recycling Projects

**Houston** **— October 27, 2025** — WM (NYSE: WM) today announced financial results for the quarter ended September 30, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** |
|  | **(in millions, except per share amounts)** | **(in millions, except per share amounts)** | **(in millions, except per share amounts)** | **(in millions, except per share amounts)** |
|  | As Reported | As Adjusted<sup>(a)</sup> | As Reported | As Adjusted<sup>(a)</sup> |
| Revenue | $6443 | $6443 | $5609 | $5609 |
| Income from Operations | $989 | $1241 | $1119 | $1153 |
| Operating EBITDA<sup>(b)</sup> | $1718 | $1970 | $1677 | $1711 |
| Operating EBITDA Margin | 26.7% | 30.6% | 29.9% | 30.5% |
| Net Income<sup>(c)</sup> | $603 | $801 | $760 | $790 |
| Diluted EPS | $1.49 | $1.98 | $1.88 | $1.96 |

---

"Our third quarter results highlight momentum in WM's earnings growth and free cash flow conversion, which is driven by our strong operating platform, diverse and growing customer base, and expanding sustainability businesses," said Jim Fish, WM's CEO. "Our Collection and Disposal business delivered record-setting margin this quarter, underscoring the strength of our industry-leading asset network, strategic investments in technology, and disciplined pricing programs. We also achieved adjusted operating EBITDA growth in both our Recycling Processing and Sales and Renewable Energy segments despite commodity price headwinds, underscoring the value of our sustainability investments. Additionally, we continued to advance the integration of WM Healthcare Solutions, enhancing the breadth and value of services we offer to our customers. Strong results across all aspects of our business reinforce our confidence in achieving our full-year earnings and free cash flow guidance, as well as our long-term financial objectives and strategic priorities."<sup>(a)</sup>

**KEY HIGHLIGHTS FOR the Third Quarter OF 2025** **<sup>(d)</sup>**

**Operating EBITDA**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2024 <br> ($ in millions) | Third Quarter 2024 <br> ($ in millions) | Third Quarter 2024 <br> ($ in millions) | Third Quarter 2024 <br> ($ in millions) |
|  | Total Company <br> Breakout | Total Company <br> Breakout | As Adjusted<sup>(a)</sup> | As Adjusted<sup>(a)</sup> | Total Company<br> Breakout | Total Company<br> Breakout | As Adjusted<sup>(a)</sup> | As Adjusted<sup>(a)</sup> |
|  | Amount | Margin | Amount | Margin | Amount | Margin | Amount | Margin |
| WM Legacy Business<sup>(e)</sup> | $1629 | 28.0% | $1860 | 32.0% | $1677 | 29.9% | $1711 | 30.5% |
| WM Healthcare Solutions | 89 | 14.2% | 110 | 17.5% | - |  | - |  |
| &nbsp;&nbsp;&nbsp;Total Company | $1718 | 26.7% | $1970 | 30.6% | $1677 | 29.9% | $1711 | 30.5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted
 operating EBITDA for the WM Legacy Business grew 8.7%.<sup>(a)</sup> The Company's
 Collection and Disposal business led the way with an operating EBITDA margin of 37.5%, or
 38.4% on an adjusted basis, driven by continuous improvements in technology, strategic asset
 network utilization, and focus on disciplined price-cost spread.<sup>(a)</sup>

**Revenue**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2024<br> ($ in millions) | Third Quarter 2024<br> ($ in millions) |
|  | Amount | Growth | Amount | Growth |
| WM Legacy Business<sup>(e)</sup> | $5815 | 3.7% | $5609 | 7.9% |
| WM Healthcare Solutions<sup>(f)</sup> | 628 | N/A | - |  |
| &nbsp;&nbsp;&nbsp;Total Company | $6443 | 14.9% | $5609 | 7.9% |

---

&nbsp;&nbsp;&nbsp;&nbsp;· Revenue
 growth in the WM Legacy Business was driven by Collection and Disposal core price of 6.0%
 and yield of 3.8% as the Company continues to focus on maximizing customer lifetime value.<sup>(g)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· Volumes
 in the Collection and Disposal business grew 0.2% as compared to the third quarter of 2024,
 driven by strong landfill volumes and growth in industrial collection volumes. This growth
 was partially offset by a decline in residential collection volumes due to the strategic
 exit of lower-margin contracts.

&nbsp;&nbsp;&nbsp;&nbsp;· A
 revenue decline of $60 million in the Recycling Processing and Sales segment was driven by
 lower market prices for recycled commodities. The Company's blended average price for
 single stream commodities declined nearly 35% from the prior year quarter.<sup>(h)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· WM
 Healthcare Solutions revenue was slightly below expectations. The Company is taking a disciplined
 approach to customer engagement and prioritizing customer lifetime value, resulting in the
 deferral of some planned price increases.

**Operating Expenses**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2025 <br> ($ in millions) | Third Quarter 2024<br> ($ in millions) | Third Quarter 2024<br> ($ in millions) | Third Quarter 2024<br> ($ in millions) | Third Quarter 2024<br> ($ in millions) |
|  | Total Company <br> Breakout | Total Company <br> Breakout | As Adjusted<sup>(a)</sup> | As Adjusted<sup>(a)</sup> | Total Company <br> Breakout | Total Company <br> Breakout | As Adjusted<sup>(a)</sup> | As Adjusted<sup>(a)</sup> |
|  | Amount | Margin | Amount | Margin | Amount | Margin | Amount | Margin |
| WM Legacy Business<sup>(e)</sup> | $3430 | 59.0% | $3430 | 59.0% | $3399 | 60.6% | $3399 | 60.6% |
| WM Healthcare Solutions<sup>(f)</sup> | 403 | 64.2% | 400 | 63.7% | - |  | - |  |
| &nbsp;&nbsp;&nbsp;Total Company | $3833 | 59.5% | $3830 | 59.4% | $3399 | 60.6% | $3399 | 60.6% |

---

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted
 operating expenses as a percentage of revenue for the WM Legacy Business improved 160 basis
 points, reflecting the benefits of improved driver retention and the Company's disciplined
 cost focus, the strategic exit from low-margin residential collection business, strong municipal
 solid waste and special waste landfill volumes, and the benefit of capital investments made
 in the fleet and automation of recycling facilities.<sup>(a)</sup>

**SG&A Expenses**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Third Quarter 2025<br> ($ in millions) | Third Quarter 2025<br> ($ in millions) | Third Quarter 2025<br> ($ in millions) | Third Quarter 2025<br> ($ in millions) | Third Quarter 2024 <br> ($ in millions) | Third Quarter 2024 <br> ($ in millions) | Third Quarter 2024 <br> ($ in millions) | Third Quarter 2024 <br> ($ in millions) |
|  | Total Company <br> Breakout | Total Company <br> Breakout | As Adjusted<sup>(a)</sup> | As Adjusted<sup>(a)</sup> | Total Company<br> Breakout | Total Company<br> Breakout | As Adjusted<sup>(a)</sup> | As Adjusted<sup>(a)</sup> |
|  | Amount | Margin | Amount | Margin | Amount | Margin | Amount | Margin |
| WM Legacy Business<sup>(e)</sup> | $536 | 9.2% | $523 | 9.0% | $525 | 9.4% | $499 | 8.9% |
| WM Healthcare Solutions | 129 | 20.5% | 120 | 19.1% | - |  | - |  |
| Total Company | $665 | 10.3% | $643 | 10.0% | $525 | 9.4% | $499 | 8.9% |

---

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted
 SG&A results in the WM Legacy Business reflect the Company's ongoing commitment
 to cost discipline.

&nbsp;&nbsp;&nbsp;&nbsp;· SG&A
 as a percentage of revenue for WM Healthcare Solutions improved 270 basis points sequentially,
 or 180 basis points on an adjusted basis, reflecting success in the Company's efforts
 to integrate and streamline its sales and back-office processes.<sup>(a)</sup>

**Cash Flow and Investments**

&nbsp;&nbsp;&nbsp;&nbsp;· Through
 the first nine months of the year, the Company generated $4.35 billion of net cash provided
 by operating activities, an increase of 12.0% from the prior year. This growth has been driven
 by strong operating EBITDA and a decline in cash taxes. These increases were partially offset
 by higher cash interest, which is due to the debt funding of the Stericycle acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;· Free
 cash flow in the first nine months of the year was $2.11 billion, a 13.5% year-over-year
 increase, driven by robust operating EBITDA growth and a planned reduction in capital investment
 in sustainability growth projects as the Company moves from peak construction of this portfolio
 into a period of harvesting strong returns on these businesses. These increases in free cash
 flow were partially offset by higher capital expenditures to support the business, which
 includes the addition of WM Healthcare Solutions.<sup>(a)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company's leverage ratio continues to improve sequentially, driven by increased operating
 EBITDA and debt repayments. The Company remains on track to achieve its targeted leverage
 ratio of between 2.5 and 3.0 times by the middle of 2026.<sup>(i)</sup>

**Sustainability and WM Healthcare Solutions Update**

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company continues to progress its strategic investments in recycling and renewable natural
 gas facilities that drive economic and environmental value. During the quarter, four growth
 projects commenced operations, including new renewable natural gas facilities in Texas and
 California, a new recycling facility in Texas, and a recycling automation project in California.
 These additions bring total renewable natural gas projects completed to 10 out of the original
 20 planned facilities and total recycling automation and new market projects completed to
 31 out of the original 39 planned.

&nbsp;&nbsp;&nbsp;&nbsp;· During
 the quarter, the Company progressed its integration of the people and operations of WM Healthcare
 Solutions into the management and operating structure of its 16 geographic areas, advancing
 process optimization and alignment across the business.

**2025 Outlook**

The Company is confident in its ability to deliver upon its full-year outlook ranges for adjusted operating EBITDA and free cash flow.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company is affirming its adjusted operating EBITDA guidance of between $7.475 and $7.625
 billion.<sup>(a)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· Free
 cash flow guidance remains between $2.8 and $2.9 billion.<sup>(a)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· Total
 Company revenue is now expected to be approximately $25.275 billion, which is at the
 low end of the Company's prior guidance range. The decrease from prior expectations
 is primarily related to a further decline in recycled commodity pricing as well as modestly
 lower revenue expectations from WM Healthcare Solutions.<sup>(h)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· Projected
 adjusted operating EBITDA margin guidance has increased to between 29.6% and 30.2% from between
 29.6% and 29.9% .<sup>(a)</sup>

Fish concluded, "We are pleased with our results in the first three quarters of the year across our business segments, which position us to deliver another year of double-digit adjusted operating EBITDA growth with record margin in our Collection and Disposal business and expanding free cash flow conversion. Looking ahead, 2026 is setting up to be a year of outsized free cash flow growth, with results expected to approach $3.8 billion next year. Our disciplined approach to capital allocation remains unchanged, and we are committed to translating this performance into strong shareholder returns."<sup>(a)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;(a) The information labeled as adjusted
 in this press release, as well as free cash flow, are non-GAAP measures. Please see "Non-GAAP
 Financial Measures" below and the reconciliations in the accompanying schedules for
 more information.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Management defines operating EBITDA
 as GAAP income from operations before depreciation, depletion and amortization; this measure
 may not be comparable to similarly titled measures reported by other companies.

&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of this press release,
 all references to "Net income" refer to the financial statement line item "Net
 income attributable to Waste Management, Inc."

&nbsp;&nbsp;&nbsp;&nbsp;(d) All dollar amounts, unless otherwise
 noted, are presented in millions and rounded to the nearest million. Percentages are calculated
 using rounded figures and shown to one decimal place. Accordingly, percentage totals and
 subtotals may not sum to 100% due to rounding.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Management defines WM Legacy Business
 as total Company GAAP results excluding the WM Healthcare Solutions segment.

&nbsp;&nbsp;&nbsp;&nbsp;(f) WM Healthcare Solutions includes intra-segment
 activity, with operating revenues and expenses of $108 million for the three months ended
 September 30, 2025. Inter-segment activity includes operating revenues of $2 million
 and operating expenses of $16 million for the same period.

&nbsp;&nbsp;&nbsp;&nbsp;(g) Core price is a performance metric used
 by management to evaluate the effectiveness of our pricing strategies; it is not derived
 from our financial statements and may not be comparable to measures presented by other companies.
 Core price is based on certain historical assumptions, which may differ from actual results,
 to allow for comparability between reporting periods and to reveal trends in results over
 time.

&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company's blended average
 price received for single stream recycled commodities sold during the quarter was about $68
 per ton compared to about $101 per ton in the prior year period. The Company now expects
 single stream commodity prices to average approximately $75 per ton in 2025, which is down
 from its prior expectation of $80 per ton. The average price received for Renewable Fuel
 Standard credits was $2.56 during the quarter compared to $3.08 in the prior year period.
 The average price received for natural gas was $2.46 per MMBtu during the quarter compared
 to $1.80 per MMBtu in the prior year period. The average price received for renewable electricity
 was about $73 per megawatt hour in the quarter compared to about $60 per megawatt hour in
 the prior year period.

&nbsp;&nbsp;&nbsp;&nbsp;(i) Leverage ratio is calculated based on
 the defined terms for this financial covenant in the Company's revolving credit agreement,
 which is Exhibit 10.9 to the Company's Form 10-K filed Feb. 19, 2025.

The Company will host a conference call at 10 a.m. ET on October 28, 2025, to discuss the Third Quarter 2025 results. Information contained within this press release will be referenced and should be considered in conjunction with the call.

Listeners can access a live audio webcast of the conference call by visiting <u>investors.wm.com</u> and selecting "Events & Presentations" from the website menu. A replay of the audio webcast will be available at the same location following the conclusion of the call.

Conference call participants should <u>register</u> to obtain their dial in and passcode details. This streamlined process improves security and eliminates wait times when joining the call.

**about wm**

WM (<u>WM.com</u>) is North America's leading provider of comprehensive environmental solutions. Previously known as Waste Management and based in Houston, Texas, WM is driven by commitments to put people first and achieve success with integrity. The company, through its subsidiaries, provides collection, recycling and disposal services to millions of residential, commercial, industrial, medical and municipal customers throughout the U.S. and Canada. With innovative infrastructure and capabilities in recycling, organics and renewable energy, WM provides environmental solutions to and collaborates with its customers in helping them pursue their sustainability goals. In North America, WM has the largest disposal network and collection fleet, is the largest recycler and is a leader in beneficial use of landfill gas, with a growing network of renewable natural gas plants and the most landfill gas-to-electricity plants, as well as the largest heavy-duty natural gas truck fleet in the industry. WM Healthcare Solutions provides collection and disposal services of regulated medical waste and secure information destruction services in the U.S., Canada and Western Europe. To learn more about WM and the company's sustainability progress and solutions, visit <u>Sustainability.WM.com</u>.

**Forward-Looking Statements**

The Company, from time to time, provides estimates or projections of financial and other data, comments on expectations relating to future periods and makes statements of opinion, view or belief about current and future events, circumstances or performance. This press release contains a number of such forward-looking statements, including all statements under the heading "2025 Outlook" and all statements regarding future performance and results of our business; achievement of targets, financial guidance or outlook; growth and optimization of our business; integration of the Stericycle business (which is reported as the WM Healthcare Solutions segment) and related contributions, results and benefits, including amount and timing of synergies; amount and timing of sustainability investments, upgrades and project completions and related returns, contributions, and benefits; drivers of performance, including pricing programs and volume; and statements regarding commodity prices. You should view these statements with caution. They are based on the facts and circumstances known to the Company as of the date the statements are made. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from those set forth in such forward-looking statements, including but not limited to, failure to implement our optimization, automation, growth, and cost savings initiatives and overall business strategy; failure to obtain the results anticipated from strategic initiatives, investments, acquisitions, or new lines of business; failure to identify acquisition targets, consummate and integrate acquisitions, including our ability to integrate the acquisition of Stericycle and achieve the anticipated benefits therefrom, including synergies; legal, regulatory, operational, technological and other matters that may affect the costs and timing of our ability to integrate and deliver all of the expected benefits of the Stericycle acquisition; failure to maintain an effective system of internal control over financial reporting; existing or new environmental and other regulations, including developments related to emerging contaminants, gas emissions, renewable energy, recyclables, extended producer responsibility and our natural gas fleet; significant environmental, safety or other incidents resulting in liabilities or brand damage; failure to obtain and maintain necessary permits due to land scarcity, public opposition or otherwise; diminishing landfill capacity, resulting in increased costs and the need for disposal alternatives; exposure to different regulatory, legal, financial and economic conditions in international jurisdictions; failure to attract, hire and retain key team members and a high quality workforce; increases in labor costs due to union organizing activities or changes in wage- and labor-related regulations; disruption and costs resulting from severe weather and destructive climate events; failure to achieve our sustainability goals or execute on our sustainability-related strategy and initiatives, including within planned timelines or anticipated budgets due to disruptions, delays, cost increases or changes in environmental or tax regulations and incentives; focus on, and regulation of, environmental and sustainability-related disclosures, which could lead to increased costs, risk of non-compliance, brand damage and litigation risk related to our sustainability efforts; macroeconomic conditions, geopolitical conflict and large-scale market disruption resulting in labor, supply chain and transportation constraints, inflationary cost pressures and fluctuations in commodity prices, fuel and other energy costs; increased competition; pricing actions; impacts from international trade restrictions and tariffs; competitive disposal alternatives, diversion of waste from landfills and declining waste volumes; changing conditions in the healthcare industry; changing conditions in the recycling industry, including impacts on demand, pricing and availability of counterparties; weakness in general economic conditions and capital markets; instability of financial institutions; adoption of new tax legislation; fuel shortages; failure to develop and protect new technology; failure of technology to perform as expected; failure to prevent, detect and address cybersecurity incidents or comply with privacy regulations; inability to adapt and manage the benefits and risks of artificial intelligence; negative outcomes of litigation or governmental proceedings, including those acquired through transactions; and operational or management decisions or developments that result in impairment charges. Please also see the Company's filings with the SEC, including Part I, Item 1A of the Company's most recently filed Annual Report on Form 10-K, as updated by subsequent Quarterly Reports on Form 10-Q, for additional information regarding these and other risks and uncertainties applicable to its business. The Company assumes no obligation to update any forward-looking statement, including financial estimates and forecasts, whether as a result of future events, circumstances or developments or otherwise.

**Non-GAAP Financial Measures**

To supplement its financial information, the Company has presented, and/or may discuss on the conference call, adjusted measures including adjusted earnings per diluted share, adjusted net income, adjusted income from operations and margin, adjusted operating EBITDA and margin, adjusted operating expense and margin, and adjusted SG&A expenses and margin. All adjusted measures and free cash flow are non-GAAP financial measures, as defined in Regulation G of the Securities Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP but believes that also discussing non-GAAP measures provides investors with (i) financial measures the Company uses in the management of its business and (ii) additional, meaningful comparisons of current results to prior periods' results by excluding items that the Company does not believe reflect its fundamental business performance and are not representative or indicative of its results of operations.

In addition, the Company's projected adjusted operating EBITDA and margin is anticipated to be adjusted to exclude the effects of other events or circumstances that are not representative or indicative of the Company's results of operations. Such excluded items are not currently determinable, but may be significant, such as asset impairments and one-time items, charges, gains or losses from divestitures or litigation, and other items. Due to the uncertainty of the likelihood, amount and timing of any such items, the Company does not have information available to provide a quantitative reconciliation of such projection to the comparable GAAP measure.

The Company discusses free cash flow and provides a projection of free cash flow because the Company believes that it is indicative of its ability to pay its quarterly dividends, repurchase common stock, fund acquisitions and other investments and, in the absence of refinancings, to repay its debt obligations. The Company believes free cash flow gives investors useful insight into how the Company views its liquidity, but the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that the Company has committed to, such as declared dividend payments and debt service requirements. The Company defines free cash flow as net cash provided by operating activities, less capital expenditures, plus proceeds from divestitures of businesses and other assets (net of cash divested); this definition may not be comparable to similarly-titled measures reported by other companies.

The quantitative reconciliations of non-GAAP measures to the most comparable GAAP measures are included in the accompanying schedules, with the exception of projected adjusted operating EBITDA and margin, and projected 2026 free cash flow. Non-GAAP measures should not be considered a substitute for financial measures presented in accordance with GAAP.

FOR MORE INFORMATION

**WM**

**Website**

**<u>www.wm.com</u>**

**Analysts**

Ed Egl

713.265.1656 <u>eegl@wm.com</u>

**Media**

Toni Werner

<u>media@wm.com</u>

###

**WASTE MANAGEMENT, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In Millions, Except per Share Amounts)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Operating revenues | $6443 | $5609 | $18891 | $16170 |
| Costs and expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating | 3833 | 3399 | 11319 | 9830 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 665 | 525 | 2048 | 1517 |
| &nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization | 729 | 558 | 2093 | 1615 |
| &nbsp;&nbsp;&nbsp;Restructuring | 14 | 2 | 39 | 2 |
| &nbsp;&nbsp;&nbsp;(Gain) loss from divestitures, asset impairments and unusual items, net | 213 | 6 | 239 | 62 |
|  | 5454 | 4490 | 15738 | 13026 |
| Income from operations | 989 | 1119 | 3153 | 3144 |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (225) | (131) | (689) | (397) |
| &nbsp;&nbsp;&nbsp;Equity in net income (loss) of unconsolidated entities | 4 | 1 | 11 | 4 |
| &nbsp;&nbsp;&nbsp;Other, net | 7 | 6 | 16 | 7 |
|  | (214) | (124) | (662) | (386) |
| Income before income taxes | 775 | 995 | 2491 | 2758 |
| Income tax expense | 172 | 235 | 524 | 611 |
| Consolidated net income | 603 | 760 | 1967 | 2147 |
| &nbsp;&nbsp;&nbsp;Less: Net income (loss) attributable to noncontrolling interests |  |  | 1 | (1) |
| Net income attributable to Waste Management, Inc. | $603 | $760 | $1966 | $2148 |
| Basic earnings per common share | $1.50 | $1.89 | $4.88 | $5.35 |
| Diluted earnings per common share | $1.49 | $1.88 | $4.87 | $5.33 |
| Weighted average basic common shares outstanding | 403.0 | 401.5 | 402.6 | 401.5 |
| Weighted average diluted common shares outstanding | 404.3 | 403.2 | 404.0 | 403.2 |

---

**WASTE MANAGEMENT, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In Millions)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $175 | $414 |
| &nbsp;&nbsp;&nbsp;Receivables, net | 4017 | 3687 |
| &nbsp;&nbsp;&nbsp;Other | 647 | 673 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 4839 | 4774 |
| Property and equipment, net | 20069 | 19340 |
| Goodwill | 13894 | 13438 |
| Other intangible assets, net | 3873 | 4188 |
| Other | 2933 | 2827 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $45608 | $44567 |
| **LIABILITIES AND EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable, accrued liabilities and deferred revenues | $4857 | $4899 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 880 | 1359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 5737 | 6258 |
| Long-term debt, less current portion | 22482 | 22541 |
| Other | 7869 | 7514 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 36088 | 36313 |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Waste Management, Inc. stockholders' equity | 9519 | 8252 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interests | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 9520 | 8254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $45608 | $44567 |

---

**WASTE MANAGEMENT, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In Millions)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| Consolidated net income | $1967 | $2147 |
| Adjustments to reconcile consolidated net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation, depletion and amortization | 2093 | 1615 |
| &nbsp;&nbsp;&nbsp;Other | 757 | 271 |
| &nbsp;&nbsp;&nbsp;Change in operating assets and liabilities, net of effects of acquisitions and divestitures | (472) | (154) |
| Net cash provided by operating activities | 4345 | 3879 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Acquisitions of businesses, net of cash acquired | (395) | (782) |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (2339) | (2116) |
| &nbsp;&nbsp;&nbsp;Proceeds from divestitures of businesses and other assets, net of cash divested | 108 | 99 |
| &nbsp;&nbsp;&nbsp;Other, net | (73) | (40) |
| Net cash used in investing activities | (2699) | (2839) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;New borrowings | 14956 | 10914 |
| &nbsp;&nbsp;&nbsp;Debt repayments | (15772) | (10619) |
| &nbsp;&nbsp;&nbsp;Common stock repurchase program |  | (262) |
| &nbsp;&nbsp;&nbsp;Cash dividends | (1001) | (909) |
| &nbsp;&nbsp;&nbsp;Exercise of common stock options | 54 | 42 |
| &nbsp;&nbsp;&nbsp;Tax payments associated with equity-based compensation transactions | (50) | (49) |
| &nbsp;&nbsp;&nbsp;Other, net | (17) | (20) |
| Net cash used in financing activities | (1830) | (903) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | 5 | (2) |
| Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | (179) | 135 |
| Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 487 | 552 |
| Cash, cash equivalents and restricted cash and cash equivalents at end of period | $308 | $687 |

---

**WASTE MANAGEMENT, INC.**

**SUMMARY DATA SHEET**

**(In Millions)**

**(Unaudited)**

**Operating Revenues by Line of Business**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Gross**<br>**Operating**<br>**Revenues** | **Intercompany**<br>**Operating**<br>**Revenues<sup>(b)(c)</sup>** | **Net**<br>**Operating**<br>**Revenues** | **Gross**<br>**Operating**<br>**Revenues<sup>(a)</sup>** | **Intercompany**<br>**Operating**<br>**Revenues<sup>(a)(b)</sup>** | **Net**<br>**Operating**<br>**Revenues** |
| Commercial | $1642 | $(223) | $1419 | $1564 | $(205) | $1359 |
| Industrial | 1042 | (234) | 808 | 1003 | (206) | 797 |
| Residential | 906 | (22) | 884 | 897 | (22) | 875 |
| Other collection | 888 | (69) | 819 | 822 | (57) | 765 |
| &nbsp;&nbsp;&nbsp;Total collection | 4478 | (548) | 3930 | 4286 | (490) | 3796 |
| Landfill<sup>(a)</sup> | 1402 | (407) | 995 | 1311 | (388) | 923 |
| Transfer | 690 | (294) | 396 | 641 | (276) | 365 |
| &nbsp;&nbsp;&nbsp;Total Collection and Disposal | $6570 | $(1249) | $5321 | $6238 | $(1154) | $5084 |
| Recycling Processing and Sales | 470 | (98) | 372 | 503 | (71) | 432 |
| WM Renewable Energy | 116 | (1) | 115 | 88 | (1) | 87 |
| WM Healthcare Solutions<sup>(c)</sup> | 738 | (110) | 628 |  |  |  |
| Corporate and Other<sup>(a)</sup> | 14 | (7) | 7 | 11 | (5) | 6 |
| &nbsp;&nbsp;&nbsp;Total | $7908 | $(1465) | $6443 | $6840 | $(1231) | $5609 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | **Gross**<br>**Operating**<br>**Revenues** | **Intercompany**<br>**Operating**<br>**Revenues<sup>(b)(c)</sup>** | **Net**<br>**Operating**<br>**Revenues** | **Gross**<br>**Operating**<br>**Revenues<sup>(a)</sup>** | **Intercompany**<br>**Operating**<br>**Revenues<sup>(a)(b)</sup>** | **Net**<br>**Operating**<br>**Revenues** |
| Commercial | $4854 | $(657) | $4197 | $4591 | $(586) | $4005 |
| Industrial | 2995 | (656) | 2339 | 2915 | (592) | 2323 |
| Residential | 2694 | (66) | 2628 | 2659 | (67) | 2592 |
| Other collection | 2577 | (209) | 2368 | 2354 | (162) | 2192 |
| &nbsp;&nbsp;&nbsp;Total collection | 13120 | (1588) | 11532 | 12519 | (1407) | 11112 |
| Landfill<sup>(a)</sup> | 4041 | (1170) | 2871 | 3725 | (1137) | 2588 |
| Transfer | 1963 | (842) | 1121 | 1819 | (797) | 1022 |
| &nbsp;&nbsp;&nbsp;Total Collection and Disposal | $19124 | $(3600) | $15524 | $18063 | $(3341) | $14722 |
| Recycling Processing and Sales | 1417 | (280) | 1137 | 1414 | (209) | 1205 |
| WM Renewable Energy | 323 | (2) | 321 | 228 | (3) | 225 |
| WM Healthcare Solutions<sup>(c)</sup> | 2219 | (326) | 1893 |  |  |  |
| Corporate and Other<sup>(a)</sup> | 39 | (23) | 16 | 36 | (18) | 18 |
| &nbsp;&nbsp;&nbsp;Total | $23122 | $(4231) | $18891 | $19741 | $(3571) | $16170 |

---

(a) Beginning with the 2024 Form 10-K, the Company adjusted gross and intercompany operating revenues to reflect
the 15% royalty paid by WM Renewable Energy to Collection and Disposal and Corporate and Other businesses for the purchase of landfill
gas. There was no change to net operating revenues. The three months and nine months ended September 30, 2024 were recast to conform to
the current presentation.

(b) Intercompany operating revenues reflect each segment's total intercompany sales, including intercompany
sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect
the market value of the service.

(c) In the third quarter of 2025, the Company began reflecting intra-segment activity for the WM Healthcare
Solutions segment as a component of Gross Operating Revenues and Intercompany Operating Revenues. Intra-segment activity was $108 million
and $315 million for the three and nine months ended September 30, 2025, respectively. The nine months ended September 30, 2025 was recast
to conform to the current presentation.

**WASTE MANAGEMENT, INC.**

**SUMMARY DATA SHEET**

**(In Millions)**

**(Unaudited)**

**Internal Revenue Growth**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Period-to-Period Change for the** | **Period-to-Period Change for the** | **Period-to-Period Change for the** | **Period-to-Period Change for the** | **Period-to-Period Change for the** | **Period-to-Period Change for the** | **Period-to-Period Change for the** | **Period-to-Period Change for the** |
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** |
|  |<br>**Amount** | **As a % of**<br>**Related**<br>**Business<sup>(a)</sup>** |<br>**Amount** | **As a % of**<br>**Total**<br>**Company<sup>(b)</sup>** |<br>**Amount** | **As a % of**<br>**Related**<br>**Business<sup>(a)</sup>** |<br>**Amount** | **As a % of**<br>**Total**<br>**Company<sup>(b)</sup>** |
| Collection and Disposal | $185 | 3.8% |  |  | $551 | 3.9% |  |  |
| Recycling Processing and Sales and WM Renewable Energy<sup>(c)</sup> | (74) | (14.0) |  |  | (99) | (6.8) |  |  |
| Energy surcharge and mandated fees | 12 | 5 |  |  | 19 | 2.8 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total average yield<sup>(d)</sup> |  |  | $123 | 2.2% |  |  | $471 | 2.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Volume<sup>(e)</sup> |  |  | 43 | 0.8 |  |  | 166 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Internal revenue growth |  |  | 166 | 3 |  |  | 637 | 3.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions |  |  | 674 | 11.9 |  |  | 2114 | 13.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Divestitures |  |  | (3) |  |  |  | (13) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation |  |  | (3) |  |  |  | (17) | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  | $834 | 14.9% |  |  | $2721 | 16.8% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Period-to-Period Change for the** | **Period-to-Period Change for the** | **Period-to-Period Change for the** | **Period-to-Period Change for the** |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** | **September 30, 2025 vs. 2024** |
|  | **As a % of Related Business<sup>(a)</sup>** | **As a % of Related Business<sup>(a)</sup>** | **As a % of Related Business<sup>(a)</sup>** | **As a % of Related Business<sup>(a)</sup>** |
|  | **Yield** | **Volume** | **Yield** | **Volume<sup>(f)</sup>** |
| Commercial | 4.7% | (0.5)% | 5.2% | (0.2)% |
| Industrial | 2.3 | 1.2 | 2.9 | (0.3) |
| Residential | 6.5 | (5.6) | 5.8 | (4.9) |
| &nbsp;&nbsp;&nbsp;Total collection | 4.2 | (1.1) | 4.5 | (1.2) |
| MSW | 6.7 | 5.0 | 6.0 | 4.4 |
| Transfer | 5.6 | (0.9) | 5.1 | (2.5) |
| &nbsp;&nbsp;&nbsp;Total Collection and Disposal | 3.8% | 0.2% | 3.9% | 0.6% |

---

(a) Calculated by dividing the increase or decrease for the current
year period by the prior year period's related business revenues adjusted to exclude the impacts of divestitures for the current year
period.

(b) Calculated by dividing the increase or decrease for the current
year period by the prior year period's total Company revenues adjusted to exclude the impacts of divestitures for the current year
period.

(c) Includes combined impact of commodity price variability in both our Recycling Processing and Sales and
WM Renewable Energy segments, as well as changes in certain recycling fees charged by our collection and disposal operations.

(d) The amounts reported herein represent the changes in our revenue attributable to average yield for the
total Company.

(e) Includes activities from our Corporate and Other businesses.

(f) Workday adjusted volume impact.

**WASTE MANAGEMENT, INC.**

**SUMMARY DATA SHEET**

**(In Millions)**

 **(Unaudited)**

**Free Cash Flow<sup>(a)</sup>**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net cash provided by operating activities | $1592 | $1358 | $4345 | $3879 |
| Capital expenditures to support the business | (635) | (598) | (1910) | (1545) |
| Proceeds from divestitures of businesses and other assets, net of cash divested | 5 | 41 | 108 | 99 |
| **Free cash flow without sustainability growth investments** | 962 | 801 | 2543 | 2433 |
| Capital expenditures - sustainability growth investments | (141) | (183) | (429) | (571) |
| &nbsp;&nbsp;**Free cash flow** | $821 | $618 | $2114 | $1862 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Supplemental Data** |  |  |  |  |
| Internalization of waste, based on disposal costs | 71.9% | 69.6% | 71.4% | 69.1% |
| Landfill depletable tons (in millions) | 33.7 | 32.9 | 97.7 | 93.9 |
| **Acquisition Summary<sup>(b)</sup>** |  |  |  |  |
| Gross annualized revenue acquired | $23 | $217 | $165 | $295 |
| Total consideration, net of cash acquired | 31 | 540 | 442 | 780 |
| Cash paid for acquisitions consummated during the period, net of cash acquired | 29 | 540 | 399 | 773 |
| Cash paid for acquisitions including contingent consideration and other items from prior periods, net of cash acquired | 29 | 540 | 407 | 790 |

---

**Landfill Depletion and Accretion Expenses:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Landfill depletion expense: |  |  |  |  |
| &nbsp;&nbsp;Cost basis of landfill assets<sup>(c)</sup> | $182 | $166 | $514 | $474 |
| &nbsp;&nbsp;Asset retirement costs | 45 | 37 | 116 | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total landfill depletion expense<sup>(c)</sup> | 227 | 203 | 630 | 580 |
| Accretion expense | 35 | 33 | 106 | 99 |
| &nbsp;&nbsp;Landfill depletion and accretion expense | $262 | $236 | $736 | $679 |

---

(a) The summary of free cash flow has been prepared to highlight and facilitate understanding of the principal
cash flow elements. Free cash flow is not a measure of financial performance under generally accepted accounting principles and is not
intended to replace the consolidated statement of cash flows that was prepared in accordance with generally accepted accounting principles.

(b) Represents amounts associated with business acquisitions consummated during the applicable period except
where noted.

(c) The increase in depletion of landfill airspace for the three months ended September 30, 2025, as compared
to the prior year period, was primarily driven by volume increases. The increase in depletion of landfill airspace for the nine months
ended September 30, 2025, as compared to the prior year period, was primarily driven by volume increases, including increases driven by
wildfire volumes.

**WASTE MANAGEMENT, INC.**

**RECONCILIATION OF CERTAIN NON-GAAP MEASURES**

**(In Millions, Except Per Share Amounts)**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
|  | **Income from**<br>**Operations** | **Pre-tax**<br>**Income** | **Tax**<br>**Expense** | **Net**<br>**Income**<sup>(a)</sup>** | **Diluted Per**<br>**Share Amount** |
| **As reported amounts** | $**989** | $**775** | $**172** | $**603** | $**1.49** |
| **Adjustments:** |  |  |  |  |  |
| &nbsp;&nbsp;Stericycle acquisition and integration-related costs<sup>(b)</sup> | 34 | 34 | 9 | 25 |  |
| &nbsp;&nbsp;Loss from asset impairments, unusual items and other, net <sup>(c)</sup> | 218 | 218 | 45 | 173 |  |
|  | 252 | 252 | 54 | 198 | 0.49 |
| **As adjusted amounts** | $**1241** | $**1027** | $**226** **<sup>(d)</sup>** | $**801** | $**1.98** |
| &nbsp;&nbsp;Depreciation, depletion and amortization | 729 |  |  |  |  |
| **Adjusted operating EBITDA** | $**1970** |  |  |  |  |
| **Adjusted operating EBITDA margin** | **30.6%** |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** |
|  | **Income from**<br>**Operations** | **Pre-tax**<br>**Income** | **Tax**<br>**Expense** | **Net**<br>**Income**<sup>(a)</sup>** | **Diluted Per**<br>**Share Amount** |
| **As reported amounts** | $**1119** | $**995** | $**235** | $**760** | $**1.88** |
| **Adjustments:** |  |  |  |  |  |
| &nbsp;&nbsp;Stericycle transaction costs<sup>(b)</sup> | 40 | 40 | 5 | 35 |  |
| &nbsp;&nbsp;Gain from asset impairments, unusual items and other, net | (6) | (6) | (1) | (5) |  |
|  | 34 | 34 | 4 | 30 | 0.08 |
| **As adjusted amounts** | $**1153** | $**1029** | $**239** **<sup>(d)</sup>** | $**790** | $**1.96** |
| &nbsp;&nbsp;Depreciation, depletion and amortization | 558 |  |  |  |  |
| **Adjusted operating EBITDA** | $**1711** |  |  |  |  |
| **Adjusted operating EBITDA margin** | **30.5%** |  |  |  |  |

---

(a) For purposes of this press release table, all references to "Net income" refer to the financial
statement line item "Net income attributable to Waste Management, Inc."

(b) Amounts in 2025 include acquisition and integration-related costs, severance and retention costs, and
WM Healthcare Solutions Enterprise Resource Planning (ERP) system costs. Amounts in 2024 include transaction related costs.

(c) The three months ended September 30, 2025 includes (i) a $152 million impairment charge related to the
decision to temporarily suspend the operations of a business engaged in accelerating plastic film and wrap recycling capabilities within
our Recycling Processing and Sales segment resulting from significant deterioration of market pricing and demand for post-consumer plastics;
(ii) a $45 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier and (iii) an
$11 million negotiated payment for early termination of a contract in our WM Renewable Energy segment.

(d) The Company calculates its effective tax rate based on actual dollars. When the effective tax rate is
calculated by dividing the Tax Expense amount in the table above by the Pre-tax Income amount, differences occur due to rounding, as these
items have been rounded in millions. The third quarter 2025 and 2024 adjusted effective tax rates were 21.9% and 23.3%, respectively.

**WASTE MANAGEMENT, INC.**

**RECONCILIATION OF CERTAIN NON-GAAP MEASURES**

**(In Millions)**

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
|  |<br>**Collection**<br>**and Disposal<sup>(a)(b)</sup>** | **Recycling**<br>**Processing**<br>**and Sales<sup>(a)</sup>** | **WM**<br>**Renewable**<br>**Energy<sup>(b)</sup>** |<br>**Corporate**<br>**and Other** | **Total WM**<br>**Legacy**<br>**Business** | **WM**<br>**Healthcare**<br>**Solutions** |<br>**Total WM** |
| **Adjusted Operating EBITDA and Adjusted Operating EBITDA Margin** |  |  |  |  |  |  |  |
| **Gross operating revenues, as reported** | $**6570** | $**470** | $**116** | $**14** | $**7170** | $**738** | $**7908** |
| &nbsp;&nbsp;Intercompany operating revenues | (1249) | (98) | (1) | (7) | (1355) | (110) | (1465) |
| **Net operating revenues, as reported** | $**5321** | $**372** | $**115** | $**7** | $**5815** | $**628** | $**6443** |
| **Income from operations, as reported** | $**1468** | $**(137)** | $**21** | $**(342)** | $**1010** | $**(21)** | $**989** |
| &nbsp;&nbsp;Depreciation, depletion and amortization | 528 | 47 | 16 | 28 | 619 | 110 | 729 |
| **Operating EBITDA, as reported** | $**1996** | $**(90)** | $**37** | $**(314)** | $**1629** | $**89** | $**1718** |
| **Adjustments:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Stericycle acquisition and integration-related costs<sup>(c)</sup> |  |  |  | 13 | 13 | 21 | 34 |
| &nbsp;&nbsp;Loss from asset impairments, unusual items and other, net<sup>(d)</sup> | 47 | 155 | 11 | 5 | 218 |  | 218 |
|  | 47 | 155 | 11 | 18 | 231 | 21 | 252 |
| **Adjusted operating EBITDA** | $**2043** | $**65** | $**48** | $**(296)** | $**1860** | $**110** | $**1970** |
| **Operating EBITDA margin, as reported** | **37.5%** | **(24.2)%** | **32.2%** | **N/A** | **28.0%** | **14.2%** | **26.7%** |
| **Adjusted operating EBITDA margin** | **38.4%** | **17.5%** | **41.7%** | **N/A** | **32.0%** | **17.5%** | **30.6%** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** |
|  |<br>**Collection**<br>**and Disposal<sup>(a)(b)</sup>** | **Recycling**<br>**Processing**<br>**and Sales<sup>(a)</sup>** | **WM**<br>**Renewable**<br>**Energy<sup>(b)</sup>** |<br>**Corporate**<br>**and Other** |<br>**Total WM** |
| **Adjusted Operating EBITDA and Adjusted Operating EBITDA Margin** |  |  |  |  |  |
| **Gross operating revenues, as reported** | $**6238** | $**503** | $**88** | $**11** | $**6840** |
| &nbsp;&nbsp;Intercompany operating revenues | (1154) | (71) | (1) | (5) | (1231) |
| **Net operating revenues, as reported** | $**5084** | $**432** | $**87** | $**6** | $**5609** |
| **Income from operations, as reported** | $**1426** | $**21** | $**28** | $**(356)** | $**1119** |
| &nbsp;&nbsp;Depreciation, depletion and amortization | 491 | 34 | 9 | 24 | 558 |
| **Operating EBITDA, as reported** | $**1917** | $**55** | $**37** | $**(332)** | $**1677** |
| **Adjustments:** |  |  |  |  |  |
| &nbsp;&nbsp;Stericycle transaction costs<sup>(c)</sup> |  |  |  | 40 | 40 |
| &nbsp;&nbsp;(Gain) loss from asset impairments, unusual items and other, net | (18) |  | 7 | 5 | (6) |
|  | (18) | - | 7 | 45 | 34 |
| **Adjusted operating EBITDA** | $**1899** | $**55** | $**44** | $**(287)** | $**1711** |
| **Operating EBITDA margin, as reported** | **37.7%** | **12.7%** | **42.5%** | **N/A** | **29.9%** |
| **Adjusted operating EBITDA margin** | **37.4%** | **12.7%** | **50.6%** | **N/A** | **30.5%** |

---

(a) Certain fees related to the processing of recycled material we collect are included within our Collection
and Disposal businesses. The amounts in Income from Operations for the three months ended September 30, 2025 and 2024 are $19 million
and $29 million, respectively.

(b) WM Renewable Energy pays a 15% intercompany royalty to our Collection and Disposal and Corporate and Other
businesses for landfill gas. The total amount of royalties in Income from Operations for the three months ended September 30, 2025 and
2024, are $17 million and $13 million, respectively.

(c) Amounts in 2025 include acquisition and integration-related costs, severance and retention costs, and
WM Healthcare Solutions Enterprise Resource Planning (ERP) system costs. Amounts in 2024 include transaction related costs.

(d) The three months ended September 30, 2025 includes (i) a $152 million impairment charge related to the
decision to temporarily suspend the operations of a business engaged in accelerating plastic film and wrap recycling capabilities within
our Recycling Processing and Sales segment resulting from significant deterioration of market pricing and demand for post-consumer plastics;
(ii) a $45 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier and (iii) an
$11 million negotiated payment for early termination of a contract in our WM Renewable Energy segment.

**WASTE MANAGEMENT, INC.**

**RECONCILIATION OF CERTAIN NON-GAAP MEASURES**

**(In Millions)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **Three Months Ended**<br>**September 30, 2024** |
|  | **WM**<br>**Legacy**<br>**Business** | **WM**<br>**Healthcare**<br>**Solutions** |<br>**Total WM** |<br>**Total WM** |
| **Adjusted Operating Expenses and Adjusted Operating Expenses Margin** |  |  |  |  |
| **Gross operating revenues, as reported** | $**7170** | $**738** | $**7908** | $**6840** |
| &nbsp;&nbsp;Intercompany operating revenues | (1355) | (110) | (1465) | (1231) |
| **Operating revenues, as reported** | $**5815** | $**628** | $**6443** | $**5609** |
| **Operating expenses, as reported** | $**3430** | $**403** | $**3833** | $**3399** |
| **As a % of net revenues** | **59.0%** | **64.2%** | **59.5%** | **60.6%** |
| **Adjustment:** |  |  |  |  |
| &nbsp;&nbsp;Stericycle acquisition and integration-related costs |  | (3) | (3) |  |
| **Operating expenses, as adjusted** | $**3430** | $**400** | $**3830** | $**3399** |
| **As a % of net revenues** | **59.0%** | **63.7%** | **59.4%** | **60.6%** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **Three Months Ended**<br>**September 30, 2024** |
|  | **WM**<br>**Legacy**<br>**Business** | **WM**<br>**Healthcare**<br>**Solutions** |<br>**Total WM** |<br>**Total WM** |
| **Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin** |  |  |  |  |
| **Gross operating revenues, as reported** | $**7170** | $**738** | $**7908** | $**6840** |
| &nbsp;&nbsp;Intercompany operating revenues | (1355) | (110) | (1465) | (1231) |
| **Operating revenues, as reported** | $**5815** | $**628** | $**6443** | $**5609** |
| **SG&A expenses, as reported** | $**536** | $**129** | $**665** | $**525** |
| **As a % of net revenues** | **9.2%** | **20.5%** | **10.3%** | **9.4%** |
| **Adjustment:** |  |  |  |  |
| &nbsp;&nbsp;Stericycle acquisition and integration-related costs | (13) | (9) | (22) | (26) |
| **SG&A expenses, as adjusted** | $**523** | $**120** | $**643** | $**499** |
| **As a % of net revenues** | **9.0%** | **19.1%** | **10.0%** | **8.9%** |

---

---

| | | |
|:---|:---|:---|
| ***2025 Projected Free Cash Flow Reconciliation****<sup>(a)</sup>*** | **Scenario 1** | **Scenario 2** |
| Net cash provided by operating activities | $5860 | $6025 |
| Capital expenditures to support the business | (2575) | (2625) |
| Proceeds from divestitures of businesses and other assets, net of cash divested | 115 | 150 |
| **Free cash flow without sustainability growth investments** | $**3400** | $**3550** |
| Capital expenditures - sustainability growth investments | (600) | (650) |
| **Free cash flow** | $**2800** | $**2900** |

---

(a) The reconciliation includes two scenarios that illustrate our projected free cash flow range for 2025.
The amounts used in the reconciliation are subject to many variables, some of which are not under our control and, therefore, are not
necessarily indicative of actual results.

**WASTE MANAGEMENT, INC.**

**SUPPLEMENTAL INFORMATION PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY**

**(In Millions)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Unaudited)**

Diversity in the structure of recycling contracts results in different accounting treatment for commodity rebates. In accordance with revenue recognition guidance, our Company records gross recycling revenue and records rebates paid to customers as cost of goods sold. Other contract structures allow for netting of rebates against revenue.

Additionally, there are differences in whether companies adjust for accretion expense in their calculation of EBITDA. Our Company does not adjust for landfill accretion expenses when calculating operating EBITDA, while other companies do adjust it for the calculation of their EBITDA measure.

The table below illustrates the impact that differing contract structures and treatment of accretion expense has on the Company's adjusted operating EBITDA margin results. This information has been provided to enhance comparability and is not intended to replace or adjust GAAP reported results.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** |
|  | **Amount** | **Change in<br> Adjusted<br> Operating<br> EBITDA Margin** | **Amount** | **Change in<br> Adjusted<br> Operating<br> EBITDA Margin** |
| Recycling commodity rebates | $177 | 0.8% | $240 | 1.4% |
| Accretion expense | $35 | 0.6% | $33 | 0.6% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** |
|  | **Amount** | **Change in<br> Adjusted<br> Operating<br> EBITDA Margin** | **Amount** | **Change in<br> Adjusted<br> Operating<br> EBITDA Margin** |
| Recycling commodity rebates | $554 | 0.9% | $643 | 1.3% |
| Accretion expense | $106 | 0.6% | $99 | 0.6% |

---