Waste Management (WM) official guidance

Momentum is building in the second half with improving revenue quality supporting top-line growth and core price expected to exit 2026 above 5.5%.

The Company expects to achieve its full-year financial guidance, with revenue expected to be at the high end of the guidance range of $26.275 to $26.475 billion, adjusted operating EBITDA to be within the guidance range of $8.15 to $8.25 billion, and free cash flow to be at the high end of the guidance range of $3.75 to $3.85 billion.(a)

With two quarters of the year complete, the Company remains confident in its ability to deliver its full-year outlook for adjusted operating EBITDA between $8.15 and $8.25 billion and free cash flow of between $3.75 and $3.85 billion.

Moving to the outlook, we expect operating EBITDA to be between $8.15 billion and $8.25 billion in 2026.

| Adjusted operating EBITDA(a) | $8,150 - $8,250 | Growth of 6.2% on a comparable basis, reflecting a change in the classification of accretion expense beginning in 2026(i) |

The Company expects to achieve its full-year financial guidance, with revenue expected to be at the high end of the guidance range of $26.275 to $26.475 billion, adjusted operating EBITDA to be within the guidance range of $8.15 to $8.25 billion, and free cash flow to be at the high end of the guidance range of $3.75 to $3.85 billion.(a)

With two quarters of the year complete, the Company remains confident in its ability to deliver its full-year outlook for adjusted operating EBITDA between $8.15 and $8.25 billion and free cash flow of between $3.75 and $3.85 billion.

| Free cash flow | $ | 3,750 | | | 3,850 |

In 2026, we expect free cash flow growth of nearly 30% to $3.8 billion at the midpoint of the outlook, which drives our projected operating EBITDA to free cash flow conversion above 46%.

| Free cash flow(a) | $3,750 - $3,850 | Growth of 29.4% |

We're pleased to share that 2026 is setting up to be a year of harvesting the benefits of our investments, which will be partially evident in our free cash flow, as our early view for next year suggests free cash flow approaching $3.8 billion.

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.

We anticipate full year SG&A as a percent of revenue of around 10%, including SG&A in Healthcare Solutions improving to a run rate of between 15% and 16% of revenue, compared to more than 24% of revenue when we acquired the business.

We anticipate full year SG&A as a percent of revenue of around 10%, including SG&A in Healthcare Solutions improving to a run rate of between 15% and 16% of revenue, compared to more than 24% of revenue when we acquired the business.

The Company expects to achieve its full-year financial guidance, with revenue expected to be at the high end of the guidance range of $26.275 to $26.475 billion, adjusted operating EBITDA to be within the guidance range of $8.15 to $8.25 billion, and free cash flow to be at the high end of the guidance range of $3.75 to $3.85 billion.(a)

As a result, we are narrowing our full year revenue outlook by about 1.5% to $26.275 billion-$26.475 billion.

Revenue is now expected to be between $26.275 and $26.475 billion dollars, reflecting a reduction of approximately 0.6% compared to the prior outlook, primarily driven by lower volume expectations, partially offset by higher energy surcharges.

| Revenue | $26,425 - $26,625 | Growth of 5.2% |

Collection and Disposal volumes expected to be relatively flat in the second half, resulting in full year decline approaching 1% or approximately 50 basis points excluding the impact of 2025 wildfire cleanup activity.

The fact that on the volume line, when we look at 2026, we have a 50 basis points headwind on volume from that fire volume that we got last year on the West Coast.

The outlook for revenue growth is based on core price in 2026 of between 5.4% and 5.8%, yield of between 3.2% and 3.6%, and volumes between 0.2% and 0.6%, overcoming a 50-basis point headwind from wildfire volume in 2025.(f)

| Capital expenditures to support the business | | (2,450 | | | (2,550 |

We anticipate capital expenditures for 2026 to be between $2.65 billion-$2.75 billion, which is inclusive of about $200 million directed towards high return sustainability projects.

| Capital to support the business | $2,450 - $2,550 | Reduction of about $100 million |

| Net cash provided by operating activities | $ | 6,300 | | | 6,450 |

We commenced our share repurchase program right after our earnings call last quarter. We are on track for the 2 billion for the year. It's going to be a little bit more back-end weighted, call it 55%-60% in the H2 of the year.

As announced in December, the Company expects to resume share repurchases during the first quarter of 2026 and repurchase approximately $2 billion of its shares during 2026 while remaining committed to returning to its targeted leverage ratio of between 2.5x and 3.0x during the year.(d)

There could be some M&A and very likely will be a substantial share purchase next year.

Accordingly, adjusted operating EBITDA margin in 2026 is now expected to be between 31.0% and 31.2%, representing an increase of 20 basis points.

We remain on track to achieve a run rate of $300 million of total synergies at the end of 2027, with results reflected across all of our business segments.