Waste Management (WM) Oppenheimer 21st Annual Industrial Growth Virtual Conference summary

Solid waste business performance and strategy

• Achieved strong Q1 price yield, with upper 6% yield and 2.7% volume growth in MSW, despite some residential volume decline as part of a strategic shift to shed unprofitable business.

• Residential volume is expected to remain slightly negative through late 2026, then stabilize in 2027–2028, with improved margins and EBITDA.

• Price-cost spread targeted at 250 basis points above inflation for 2026, with analytics and customer lifetime value tools guiding pricing decisions.

• Landfill capacity tightness is increasing, especially in the Northeast, and investments in logistics and network planning are positioning the company for long-term advantage.

• Special waste and landfill volumes are expected to drive positive volume growth in the second half of 2026.

Technology, AI, and customer experience

• Predictive analytics, machine learning, and AI are used to optimize pricing, customer segmentation, and operational efficiency, but final pricing decisions remain human-controlled.

• AI supports sales teams and customer service, enabling faster data analysis and improved customer journey management.

• Significant investment in digital self-service has reduced call center volume by 19% year-on-year and doubled digital interactions.

• Goal to triple digital transactions by 2030, with about one-third progress achieved.

National accounts and sustainability positioning

• National accounts have grown 12% annually with a 99% retention rate, and the total addressable market is considered conservative at $5 billion.

• Cross-selling with healthcare and document destruction services is expanding the addressable market and driving new business.

• Sustainability remains a key differentiator, with recycling and reliability as core customer priorities, even as some corporates reduce public ESG commitments.