Financial Analysis

10. Commitments and Contingencies Financial Instruments We have obtained letters of credit, surety bonds and insurance policies and have established trust funds and issued financial guarantees to support tax-exempt bonds, contracts, performance of landfill final capping, closure and post-closure requirements, environmental remediation and other obligations. Letters of credit generally are supported by our $3.5 billion revolving credit facility and other credit lines established for that purpose. These facilities are discussed further in Note 6. Surety bonds and insurance policies are supported by (i) a diverse group of third-party surety and insurance companies; (ii) an entity in which we have a noncontrolling financial interest or (iii) a wholly-owned insurance captive, the sole business of which is to issue surety bonds and/or insurance policies on our behalf. Management does not expect that any claims against or draws on these instruments would have a material adverse effect on our financial condition, results of operations or cash flows. We have not experienced any unmanageable difficulty in obtaining the required financial assurance instruments for our current operations. In an ongoing effort to mitigate risks of future cost increases and reductions in available capacity, we continue to evaluate various options to access cost effective sources of financial assurance. Insurance We carry insurance coverage for protection of our assets and operations from certain risks incl …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

6. Debt The following table summarizes the major components of debt at principal amounts as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of December 31: 2025 2024 Commercial paper program (weighted average interest rate of 4.1% as of December 31, 2025 and 4.7% as of December 31, 2024) $ 1,090 $ 1,250 Senior notes, maturing through 2054, interest rates ranging from 1.15% to 7.75% (weighted average interest rate of 4.3% as of December 31, 2025 and 4.2% as of December 31, 2024) 17,498 18,419 Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6% 364 348 Tax-exempt bonds, maturing through 2055, fixed and variable interest rates ranging from 0.70% to 4.60% (weighted average interest rate of 3.4% as of December 31, 2025 and 3.7% as of December 31, 2024) 2,827 2,873 Financing leases and other, maturing through 2075 (weighted average interest rate of 4.8% as of December 31, 2025 and 4.9% as of December 31, 2024) 1,284 1,189 Debt issuance costs, discounts and other (156) (179) 22,907 23,900 Current portion of long-term debt 711 1,359 Long-term debt, less current portion $ 22,196 $ 22,541 Debt Classification As of December 31, 2025, we had approximately $3.7 billion of debt maturing within the next 12 months, including (i) $1.8 billion of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities; (ii) $1.1 bil …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

14. Equity-Based Compensation Employee Stock Purchase Plan We have an Employee Stock Purchase Plan (ESPP) under which employees that have been employed for at least 30 days may purchase shares of our common stock at a discount. The plan provides for two offering periods for purchases: January through June and July through December. At the end of each offering period, enrolled employees purchase shares of our common stock at a price equal to 85% of the market value on the last day of the applicable offering period. The purchases are made at the end of an offering period with funds accumulated through payroll deductions over the course of the offering period. Subject to limitations set forth in the plan and under IRS regulations, eligible employees may elect to have up to 10% of their base pay deducted during the offering period. The total number of shares issued under the plan for the offering periods in 2025, 2024 and 2023 was approximately 438,000, 408,000 and 473,000, respectively. After the January 2026 issuance of shares associated with the July to December 2025 offering period, 0.9 million shares remain available for issuance under the ESPP. Annual compensation expense resulting from our ESPP was $13 million, or $10 million net of tax expense, for 2025, $11 million, or $8 million net of tax expense, for 2024 and $14 million, or $11 million net of tax expense, for 2023. Employee Stock Incentive Plans In May 2023, our stockholders approved our 2023 Stock Incentive Plan (th …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

16. Fair Value Measurements Assets and Liabilities Accounted for at Fair Value Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Inputs that are generally unobservable and typically reflect managements estimate of assumptions that market participants would use in pricing the asset or liability. We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In measuring the fair value of our assets and liabilities, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

5. Goodwill and Other Intangible Assets Goodwill was $13.9 billion and $13.4 billion as of December 31, 2025 and 2024, respectively. As discussed in Note 2, we perform our annual impairment test of goodwill balances for our reporting units using a measurement date of October 1. We will also perform interim tests if an impairment indicator exists. The $442 million increase in goodwill during 2025 is primarily related to our solid waste and recycling acquisitions. This increase was offset by a $16 million goodwill impairment charge to a business engaged in oil recovery and sludge processing services. This charge is reflected in Other Ancillary within our Collection and Disposal businesses. There were no impairments of goodwill or other intangible assets for the year ended December 31, 2024. See Notes 11 and 17 for additional information. Goodwill is included within each segments total assets. For segment reporting purposes, our recycling facilities and recycling brokerage services are included within our Recycling Processing and Sales segment. In 2025, we finalized the determination of our reporting units related to the Stericycle acquisition and allocated the goodwill balance to two reporting units within our Healthcare Solutions segment using a relative fair value allocation method. The following table presents changes in goodwill during the reported periods (in millions): Recycling Collection and Disposal Processing Healthcare East Tier West Tier Other Ancillary and Sales So …

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8. Income Taxes Income Tax Expense Our income tax expense consisted of the following for the year ended December 31 (in millions): 2025 2024 2023 Current: Federal $ 193 $ 419 $ 477 State 121 133 151 Foreign 40 37 34 354 589 662 Deferred: Federal 308 98 73 State 64 19 2 Foreign (9) 7 8 363 124 83 Income tax expense: $ 717 $ 713 $ 745 The U.S. federal statutory income tax rate is reconciled to the effective income tax rate for the year ended December 31 as follows (in millions, except percentages): 2025 2024 2023 Tax Expense Rate Tax Expense Rate Tax Expense Rate Income tax expense at U.S. federal statutory rate $ 720 21.0 % $ 726 21.0 % $ 634 21.0 % State and local income tax, net of federal income tax effect (a) 146 4.3 135 3.9 123 4.1 Foreign tax effects 6 0.2 16 0.5 12 0.4 Tax credits Investment tax credits (184) (5.4) (137) (4.0) (8) (0.2) Low income housing tax credits (117) (3.4) (90) (2.6) (88) (2.9) Other tax credits (2) (0.1) (3) (0.1) (2) (0.1) Changes in valuation allowances (5) (0.2) (7) (0.2) 41 1.4 Nontaxable or nondeductible items 34 1.0 17 0.5 35 1.1 Changes in unrecognized tax benefits (20) (0.6) 1 0.0 Other adjustments Proportional amortization method 96 2.8 78 2.3 Other 23 0.7 (2) (0.1) (3) (0.1) $ 717 20.9 % $ 713 20.6 % $ 745 24.7 % (a) For the years ended December 31, 2025, 2024 and 2023, the states that make up a majority of the effect of the state and local income tax category include California, Florida, Illinois, New Jersey, New York and Oregon . Addi …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Adoption of New Accounting Standards in 2025 Improvements to Income Tax Disclosures In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) which improves the transparency of income tax disclosures by requiring specific categories in the income tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold. Further, ASU 2023-09 requires certain disclosures on income taxes paid disaggregated by jurisdiction. ASU 2023-09 was effective for public entities for fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-09 for the year ended December 31, 2025 on a retrospective basis and accordingly, our income tax disclosures for years 2024 and 2023 have been retrospectively recast under this guidance. See Note 8 for additional information. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

9. Employee Benefit Plans Defined Contribution Plans The Company sponsors a 401(k) retirement savings plan that covers employees, except those working subject to collective bargaining agreements that do not provide for coverage under the plan. U.S. employees who are not subject to such collective bargaining agreements are generally eligible to participate in the plan following a 90-day waiting period after hire and may contribute as much as 50% of their eligible annual compensation and 80% of their annual incentive plan bonus, subject to annual contribution limitations established by the IRS. Under the 401(k) retirement savings plan, for non-union employees, we match 100% of employee contributions on the first 3% of their eligible annual compensation and 50% of employee contributions on the next 3% of their eligible annual compensation, resulting in a maximum match of 4.5% of eligible annual compensation. Non-union employees are automatically enrolled in the plan at a 3% contribution rate upon eligibility. Both employee and Company contributions are in cash and vest immediately. In connection with our acquisition of Stericycle in November 2024, we acquired a domestic defined contribution plan with attributes similar to our existing Waste Management 401(k) retirement savings plan. In January 2026, the Stericycle 401(k) plan was merged into the Waste Management 401(k) retirement savings plan. Certain U.S. employees who are subject to collective bargaining agreements may partici …

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19. Segment and Related Information Our senior management evaluates, oversees and manages the financial performance of our business through five reportable segments, referred to as (i) East Tier; (ii) West Tier; (iii) Recycling Processing and Sales; (iv) Renewable Energy and (v) Healthcare Solutions. Our East and West Tiers, along with Other Ancillary services, form our Collection and Disposal businesses. We also provide additional services not managed through our five reportable segments, which are presented as Corporate and Other. From time to time, our operating results are significantly affected by certain transactions or events that management believes are not indicative or representative of our results. Refer to Note 11 for an explanation of certain transactions and events affecting our operating results. Reclassifications have been made to our prior period consolidated financial information to conform to the current year presentation. Collection and Disposal Our Collection and Disposal businesses provide integrated environmental services, including collection, transfer, disposal and resource recovery services. We evaluate our Collection and Disposal businesses primarily through two geographic segments, East Tier and West Tier. Our East Tier primarily consists of geographic areas located in the Eastern U.S., the Great Lakes region and substantially all of Canada. Our West Tier primarily includes geographic areas located in the Western, Southern and Central U.S., includi …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

2. Summary of Significant Accounting Policies Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of WMI, its wholly-owned and majority-owned subsidiaries and certain variable interest entities for which we have determined that we are the primary beneficiary. In the opinion of management, these Consolidated Financial Statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows, and changes in equity for the periods presented. All material intercompany balances and transactions have been eliminated. Investments in unconsolidated entities are accounted for under the appropriate method of accounting. Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with precision from available data or simply cannot be calculated. In some cases, these estimates are difficult to determine, and we must exercise significant judgment. In preparing our financial statements, the most difficult, subjective and complex estimates and the assumptions that present the greatest amount of uncerta …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

13. Capital Stock, Dividends and Common Stock Repurchase Program Capital Stock We have 1.5 billion shares of authorized common stock with a par value of $0.01 per common share. As of December 31, 2025, we had 402.9 million shares of common stock issued and outstanding. The Board of Directors is authorized to issue preferred stock in series, and with respect to each series, to fix its designation, relative rights (including voting, dividend, conversion, sinking fund, and redemption rights), preferences (including dividends and liquidation) and limitations. We have 10 million shares of authorized preferred stock, $0.01 par value, none of which is currently outstanding. Dividends Our quarterly dividends have been declared by our Board of Directors. Cash dividends declared and paid were $1.3 billion in 2025, or $3.30 per common share, $1.2 billion in 2024, or $3.00 per common share, and $1.1 billion in 2023, or $2.80 per common share. In December 2025, we announced that our Board of Directors expects to increase the quarterly dividend from $0.825 to $0.945 per share for dividends declared in 2026. However, all future dividend declarations are at the discretion of our Board of Directors and depend on various factors, including our net earnings, financial condition, cash required for future business plans, growth and acquisitions and other factors the Board of Directors may deem relevant. Common Stock Repurchase Program The Company repurchases shares of its common stock as part of …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

6. Commitments and Contingencies Financial Instruments We have obtained letters of credit, surety bonds and insurance policies and have established trust funds and issued financial guarantees to support tax-exempt bonds, contracts, performance of landfill final capping, closure and post-closure requirements, environmental remediation and other obligations. Letters of credit generally are supported by our $3.5 billion revolving credit facility and other credit lines established for that purpose. These facilities are discussed further in Note 3. Surety bonds and insurance policies are supported by (i) a diverse group of third-party surety and insurance companies; (ii) an entity in which we have a noncontrolling financial interest or (iii) a wholly-owned insurance captive, the sole business of which is to issue surety bonds and/or insurance policies on our behalf. Management does not expect that any claims against or draws on these instruments would have a material adverse effect on our financial condition, results of operations or cash flows. We have not experienced any unmanageable difficulty in obtaining the required financial assurance instruments for our current operations. In an ongoing effort to mitigate risks of future cost increases and reductions in available capacity, we continue to evaluate various options to access cost-effective sources of financial assurance. Insurance We carry insurance coverage for protection of our assets and operations from certain risks inclu …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

3. Debt The following table summarizes the major components of debt at principal amounts as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of June 30, 2026: June 30, December 31, 2026 2025 Commercial paper program (weighted average interest rate of 3.95% as of June 30, 2026 and 4.05% as of December 31, 2025) $ 1,068 $ 1,090 Senior notes, maturing through 2054, interest rates ranging from 1.15% to 7.75% (weighted average interest rate of 4.27% as of June 30, 2026 and 4.28% as of December 31, 2025) 17,483 17,498 Canadian senior notes, C$500 million, redeemed July 2026, interest rate of 2.60% 352 364 Canadian senior notes, C$700 million, maturing July 2033, interest rate of 3.944% 493 Tax-exempt bonds, maturing through 2055, fixed and variable interest rates ranging from 0.70% to 4.60% (weighted average interest rate of 3.33% as of June 30, 2026 and 3.41% as of December 31, 2025) 2,827 2,827 Financing leases and other, maturing through 2075 (weighted average interest rate of 4.90% as of June 30, 2026 and 4.83% as of December 31, 2025) 1,283 1,284 Debt issuance costs, discounts and other (150) (156) 23,356 22,907 Current portion of long-term debt 1,075 711 Long-term debt, less current portion $ 22,281 $ 22,196 Debt Classification As of June 30, 2026, we had approximately $3.8 billion of debt maturing within the next 12 months, including (i) $2.0 billion of tax-exempt bonds with term interest rate periods tha …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

12. Fair Value Measurements Assets and Liabilities Accounted for at Fair Value Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions): June 30, December 31, 2026 2025 Quoted prices in active markets (Level 1): Cash equivalents and money market funds $ 424 $ 91 Equity securities 92 88 Significant other observable inputs (Level 2): Available-for-sale securities (a) 670 528 Total assets measured at fair value $ 1,186 $ 707 (a) Our available-for-sale securities primarily relate to debt securities with maturities over the next nine years . Fair Value of Debt As of June 30, 2026 and December 31, 2025, the carrying value of our debt was $23.4 billion and $22.9 billion, respectively. The estimated fair value of our debt was approximately $22.6 billion and $22.5 billion as of June 30, 2026 and December 31, 2025, respectively. Although we have determined the estimated fair value amounts using available market information and commonly accepted valuation methodologies, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, our estimates are not necessarily indicative of the amounts that we, or holders of the instruments, could realize in a current market exchange. The use of different assumptions or estimation methodologies could have a material effect on the estimated fair values. The fair value estimates are based on Level 2 inputs of the fair value hierarchy availab …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

4. Income Taxes Our effective income tax rate was 23.2% and 21.2% for the three and six months ended June 30, 2026, respectively, compared to 21.7% and 20.5% for the three and six months ended June 30, 2025, respectively. The increase in our effective income tax rate when comparing the three and six months ended June 30, 2026 and 2025 was primarily driven by a decrease in investment tax credits and an increase in pre-tax income, partially offset by the recognition of clean fuel production tax credits at our RNG facilities. We evaluate our effective income tax rate at each interim period and adjust it as facts and circumstances warrant. Investments Qualifying for Federal Tax Credits Renewable Natural Gas Through our Renewable Energy segment, we have invested in building landfill gas-to-energy facilities in the U.S. and Canada that produce renewable electricity and RNG. Our RNG facilities in the U.S. qualify for investment tax credits and clean fuel production tax credits, pursuant to Sections 48 and 45Z of the Internal Revenue Code, which we expect to realize through 2027 and 2029, respectively. During the three and six months ended June 30, 2026, we recognized a reduction in our income tax expense of $29 million and $53 million, respectively, due to investment tax credits from our RNG investments compared to $43 million and $89 million, respectively, for the comparable prior year periods. During the three and six months ended June 30, 2026, we recognized a reduction in our in …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Adoption of New Accounting Standards in 2026 Improvements to Measurement of Credit Losses for Accounts Receivable and Contract Assets In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-05, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses for Account Receivable and Contract Assets (ASU 2025-05), which simplifies the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification 606, Revenue from Contracts with Customers. The amendments permit entities to elect a practical expedient to assume the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast for purposes of estimating expected credit losses. The Company adopted ASU 2025-05 on a prospective basis and elected the practical expedient during the quarter ended March 31, 2026. The adoption of the amended guidance did not have a material impact on our Condensed Consolidated Financial Statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

7. Segment and Related Information Our senior management evaluates, oversees and manages the financial performance of our business through five reportable segments, referred to as (i) East Tier; (ii) West Tier; (iii) Recycling Processing and Sales; (iv) Renewable Energy and (v) Healthcare Solutions. Our East and West Tiers along with Other Ancillary services that are not managed through our Tier segments, but that support our collection and disposal operations, form our Collection and Disposal business. We also provide additional services not managed through our five reportable segments, which are presented as Corporate and Other. Summarized financial information concerning our reportable segments for the three and six months ended June 30 is shown in the following table (in millions): Depreciation, Net Intercompany Gross Selling, Other Depletion, Income Capital Operating Operating Operating Operating General and Net Amortization from Expenditures Revenues Revenues(a) Revenues Expenses Administrative Expenses(b) and Accretion Operations(c) (d) Three Months Ended June 30: 2026 Collection and Disposal: East Tier $ 2,406 $ 663 $ 3,069 $ 1,888 $ 91 $ $ 306 $ 784 $ 302 West Tier 2,291 582 2,873 1,769 91 252 761 293 Other Ancillary 782 58 840 800 28 7 5 16 Collection and Disposal(e)(f)(g) 5,479 1,303 6,782 4,457 210 565 1,550 611 Recycling Processing and Sales(e) 403 88 491 385 14 2 54 36 64 Renewable Energy(f) 157 157 81 5 24 47 61 Healthcare Solutions(g)(h) 638 104 742 506 126 3 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing