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# WM's Healthcare Unit Posts $20 Million Operating Profit, But Fuel And Insurance Costs Trim Margin
- URL: https://www.bullished.co/wms-healthcare-unit-posts-20-million-operating-profit-but-fuel-and-insurance-costs-trim-136a2c72/
- Published: 2026-10-27T20:51:10.000Z
- Updated: 2026-10-28T15:33:33.000Z
- Description: Third-quarter revenue rose to $6.846 billion, and the waste hauler affirmed its 2026 guidance ranges.
- Author: Matteo Parrino
- Tags: Earnings, WM, Industry: Industrials

WM, the Houston company that collects, recycles and disposes of waste across the U.S. and Canada, [reported third-quarter revenue of $6.846 billion](https://www.sec.gov/Archives/edgar/data/0000823768/000110465926119188/tm2628322d1%5Fex99-1.htm?ref=bullished.co), up from $6.443 billion a year earlier, in an [8-K filed](https://www.sec.gov/Archives/edgar/data/0000823768/000110465926119188/tm2628322d1%5F8k.htm?ref=bullished.co) Tuesday. Its Healthcare Solutions unit swung to a profit, while higher fuel and risk-management costs shaved the adjusted margin.

## Reported gains, smaller adjusted gains

Reported net income climbed to $820 million, or $2.05 per diluted share, from $603 million, or $1.49\. The prior-year quarter carried larger charges, including a $152 million impairment tied to suspending a business.

On an adjusted basis, net income was $858 million against $801 million, and earnings were $2.15 per share versus $1.98\. Adjusted operating EBITDA, a measure of core operating profit, reached $2.121 billion from $2.005 billion.

The adjusted EBITDA margin slipped 10 basis points, to 31.0% from 31.1%. Better price-to-cost spread in collection and disposal added 40 basis points and Healthcare Solutions added 30\. Higher fuel costs and higher risk-management costs each took away 40.

## Healthcare Solutions turns the corner

Healthcare Solutions, the former Stericycle business, which handles medical waste and secure document shredding, earned $20 million in operating income versus a $21 million loss a year ago. Its adjusted EBITDA margin rose to 22.4% from 17.5%, and revenue grew 3.7%.

CEO Jim Fish credited "effective cost management, synergy capture, and pricing growth." Total revenue grew 6.3%, helped by core price of 5.8% and higher energy surcharges. Collection and disposal volume fell 0.4%, which WM tied to shedding lower-margin residential business and past national account broker losses.

## Cash returns and guidance

WM returned $957 million to shareholders in the quarter: $580 million in buybacks and $377 million in dividends. For the first nine months, free cash flow was $3.01 billion, against $2.11 billion a year earlier, and the company still expects to repurchase $2 billion of stock in 2026.

It expects revenue at the high end of $26.275 billion to $26.475 billion, adjusted EBITDA within $8.15 billion to $8.25 billion, and free cash flow at the high end of $3.75 billion to $3.85 billion. Fish said: "We are affirming our 2026 guidance ranges, as we remain on track to meet our financial objectives."

WM holds its earnings call at 10 a.m. ET on Wednesday, October 28.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — WASTE MANAGEMENT INC (WM)](https://www.sec.gov/Archives/edgar/data/0000823768/000110465926119188/tm2628322d1%5F8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit tm2628322d1\_ex99-1.htm — WASTE MANAGEMENT INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0000823768/000110465926119188/tm2628322d1%5Fex99-1.htm?ref=bullished.co) — SEC EDGAR
- [Earnings Preview Might Change The Case For Investing In Waste Management Stock (WM)](https://sg.finance.yahoo.com/news/earnings-preview-might-change-case-191323720.html?ref=bullished.co) — Yahoo Finance