Waste Management, Inc.

Strong Q2 earnings + margin expansion (good) - Operating EBITDA up 5.5% (or 9.1% excluding last year’s wildfire cleanup contributions) and Operating EBITDA margin +40 bps. - Margin performance overcame headwinds of about -60 bps from wildfire volumes and -40 bps from higher energy surcharges. - Collection & Disposal drove most of the margin strength via price discipline, cost optimization, and mix improvements. - Integration / synergy progress supporting Healthcare Solutions: Healthcare operating EBITDA margin +200 bps to 19%, with SG&A down 15% and integration benefits showing up (e.g., DSO improving by ~5 days).

Free cash flow momentum + shareholder returns (good) - Q2 free cash flow +35% YoY (supported by higher earnings, lower capex, and working capital benefits). - First half: Operating cash flow $3.23B (+17% YoY); Free cash flow $2.02B (+56% YoY). - Capital discipline: capex >18% lower YoY in the first 6 months. - Shareholder returns in H1: $1.0B share repurchases and $764M dividends. - Leverage ~2.96x, within target 2.5x–3.0x, with expectation to come down in the back half of the year.

2026 outlook: revenue guide narrowed lower, but earnings/cash confidence maintained (mixed) - Management raised full-year margin expectations by 20 bps to 31.0%–31.2%. - Revenue outlook narrowed by about -0.5% to $26.275B–$26.475B due primarily to softer volume. - Volume expectations: full-year Collection & Disposal volume decline approaching ~1%, i.e. about ~50 bps of revenue impact excluding 2025 wildfire cleanup distortions; back-half volumes expected ~flat.