| Metric [Unit: $ Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| East Tier Gross Revenue  | **2,642**  **[0001558370-23-007024_wm-20230331x10q.htm:21]**  | **2,761**  **[0001558370-23-012266_wm-20230630x10q.htm:24]**  | **2,789**  **[0001558370-23-016700_wm-20230930x10q.htm:22]**  | N/A     | **2,616**  **[0001558370-24-005734_wm-20240331x10q.htm:20]**  | **2,751**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **2,835**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  | N/A     |
| East Tier Intercompany   | **(534)**  **[0001558370-23-007024_wm-20230331x10q.htm:21]**  | **(569)**  **[0001558370-23-012266_wm-20230630x10q.htm:24]**  | **(575)**  **[0001558370-23-016700_wm-20230930x10q.htm:22]**  | N/A     | **(535)**  **[0001558370-24-005734_wm-20240331x10q.htm:20]**  | **(573)**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **(593)**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  | N/A     |
| East Tier Net Revenue    | **2,108**  **[0001558370-23-007024_wm-20230331x10q.htm:21]**  | **2,192**  **[0001558370-23-012266_wm-20230630x10q.htm:24]**  | **2,214**  **[0001558370-23-016700_wm-20230930x10q.htm:22]**  | N/A     | **2,081**  **[0001558370-24-005734_wm-20240331x10q.htm:20]**  | **2,178**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **2,242**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  | N/A     |
| West Tier Gross Revenue  | **2,537**  **[0001558370-23-007024_wm-20230331x10q.htm:21]**  | **2,666**  **[0001558370-23-012266_wm-20230630x10q.htm:24]**  | **2,694**  **[0001558370-23-016700_wm-20230930x10q.htm:22]**  | N/A     | **2,497**  **[0001558370-24-005734_wm-20240331x10q.htm:20]**  | **2,616**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **2,687**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  | N/A     |
| West Tier Intercompany   | **(554)**  **[0001558370-23-007024_wm-20230331x10q.htm:21]**  | **(582)**  **[0001558370-23-012266_wm-20230630x10q.htm:24]**  | **(580)**  **[0001558370-23-016700_wm-20230930x10q.htm:22]**  | N/A     | **(504)**  **[0001558370-24-005734_wm-20240331x10q.htm:20]**  | **(540)**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **(549)**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  | N/A     |
| West Tier Net Revenue    | **1,983**  **[0001558370-23-007024_wm-20230331x10q.htm:21]**  | **2,084**  **[0001558370-23-012266_wm-20230630x10q.htm:24]**  | **2,114**  **[0001558370-23-016700_wm-20230930x10q.htm:22]**  | N/A     | **1,993**  **[0001558370-24-005734_wm-20240331x10q.htm:20]**  | **2,076**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **2,138**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  | N/A     |

7ff4e47bffb215c24aff55a12238f9c692657cce1d57fe6bf8acfd01ba9d7e1b

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

ae9fecd8cc816fcdf835be5d4e5f24baa1d3df1095b90122add8543563e75ece

eae754e19bf03e8a5f8c1164a298466f33d671afb0eb676cc4498232e2cdda7b

Average Market Price for Recycled Commodities ($/ton)

Yield Change from Renewable Energy Segment ($ million)

Number of Locations on EPA's Superfund NPL

Number of Sites Owned on Superfund NPL

446610d647bc0691f5dede395fc30257ca1bc047c0d7f3a4270440b4124082c1

a67939dc5cc0fcbd836b5180bb5523926fb6279cec58a2e1db075a5e0cc0d230

| Segment / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Commercial** ($ million) | **5,450**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **1,412**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **1,464**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | **1,316**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **1,316**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | N/A | N/A |
| **Industrial** ($ million) | **3,681**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **933**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **982**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | **757**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **747**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | N/A | N/A |
| **Residential** ($ million) | **3,339**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **854**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **875**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | **856**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **854**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | N/A | N/A |
| **Other Collection** ($ million) | **699**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **172**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **193**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | **738**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **698**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | N/A | N/A |
| **Total Collection** ($ million) | **13,169**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **3,371**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **3,514**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | N/A | N/A | N/A | N/A |
| **Landfill** ($ million) | **4,600**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **1,152**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **1,261**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | **802**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **792**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | N/A | N/A |
| **Transfer** ($ million) | **2,143**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **540**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **594**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | **318**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **309**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | N/A | N/A |
| **Recycling** ($ million) | **1,701**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **358**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **366**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | **349**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **368**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | **405**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **432**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  |
| **Other** ($ million) | **2,405**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **613**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **678**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | N/A | N/A | N/A | N/A |
| **Intercompany** ($ million) | **(4,320)**  **[0001558370-23-000964_wm-20221231x10k.htm:184]**  | **(1,142)**  **[0001558370-23-007024_wm-20230331x10q.htm:22]**  | N/A | **(1,215)**  **[0001558370-23-016700_wm-20230930x10q.htm:24]**  | **(1,184)**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | N/A | N/A | N/A |
| **WM Renewable Energy** ($ million) | N/A | N/A | N/A | N/A | **75**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **69**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | **69**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **87**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  |
| **Corporate and Other** ($ million) | N/A | N/A | N/A | N/A | **6**  **[0001104659-24-015422_tm245359d1_ex99-1.htm:9]**  | **6**  **[0001558370-24-005734_wm-20240331x10q.htm:21]**  | **6**  **[0001558370-24-010155_wm-20240630x10q.htm:24]**  | **6**  **[0001558370-24-013762_wm-20240930x10q.htm:22]**  |

44246139093c4644ebed91cec80803e5974d7e5dd25860843a52c8264dd7aca7

WM, North America's leading provider of comprehensive environmental solutions, operates primarily in the United States and Canada. The company manages waste from collection to disposal, while also recovering valuable resources and creating renewable energy **[0001558370-24-001049_wm-20231231x10k.htm:64]** **[0001558370-24-010155_wm-20240630x10q.htm:34]** **[0001558370-24-005734_wm-20240331x10q.htm:26]**. WM owns or operates the largest network of landfills in North America and manages transfer stations to efficiently transport waste. Their business is divided into four reportable segments: Collection and Disposal - East Tier, Collection and Disposal - West Tier, Recycling Processing and Sales, and WM Renewable Energy **[0001558370-24-001049_wm-20231231x10k.htm:64]** **[0001558370-24-010155_wm-20240630x10q.htm:34]** **[0001558370-24-005734_wm-20240331x10q.htm:26]**.

1. **Collection and Disposal** - Provides comprehensive waste management services, including Commercial, Industrial, Residential, and Other Collection services, as well as Landfill and Transfer operations, across the East and West Tiers **[0001558370-24-001049_wm-20231231x10k.htm:64]** **[0001558370-24-010155_wm-20240630x10q.htm:34]**.
2. **Recycling Processing and Sales** - Manages the processing and sale of recyclable materials, contributing to resource recovery and sustainability efforts **[0001558370-24-013762_wm-20240930x10q.htm:24]** **[0001558370-24-013762_wm-20240930x10q.htm:40]**.
3. **WM Renewable Energy** - Focuses on creating renewable energy from waste, supporting environmental sustainability and energy recovery **[0001558370-24-013762_wm-20240930x10q.htm:24]** **[0001558370-24-013762_wm-20240930x10q.htm:40]**.

fcd78fd312f4725aa9c2026104bd5cb70df9f71febd57b5bd2f8b9bb292aec46

1. Given that your leverage is expected to rise to **3.6x** after the Stericycle acquisition and recent tuck-in acquisitions, how do you plan to manage debt reduction while continuing to invest in growth opportunities and return value to shareholders, especially considering the temporary suspension of your share repurchase program?  **[WM_3394420_6]** 

2. With certain segments of your collection volumes trending behind full-year expectations, particularly in industrial and roll-off services, what specific strategies are you implementing to mitigate these volume declines, and how confident are you in the sustainability of your cost optimization efforts?  **[WM_3394420_4]** **[WM_3394420_28]** 

3. Considering softness in industrial volumes and potential economic uncertainties, how confident are you in maintaining your pricing power to sustain margin expansion into **2025**, and what factors could impact your ability to do so?  **[WM_3394420_10]** 

4. How might the upcoming election outcomes impact your renewable natural gas (**RNG**) business, particularly regarding **RIN pricing** and the regulatory environment, and how does this influence your investment plans for RNG projects?  **[WM_3394420_9]** 

5. With the planned acquisition of Stericycle introducing medical waste as a new vertical, what integration risks do you foresee, and how do you plan to address potential cultural and operational challenges to ensure the projected financial and strategic benefits are realized?  **[WM_3394420_1]** **[WM_3394420_22]** 

4abeee0b6f18eb0f8f2ee0348d0da4ce8502dd4ad74f726ec0390b2f71a59a96

Collection and Disposal

- East Tier

- West Tier

- Other Ancillary

Recycling Processing and Sales

WM Renewable Energy

Corporate and Other

Other

Total Revenue

8fb9f6da6bc4fac5b627778fac296098b45a6dac3a0631c5d6b4064ca8120b26

32a19d65418ce28f10808073f3f4fb7f6d03acd22bac0ae3285f6d72dda47d23

6248c4b8e093458b8a21fd8c3ed507eb7660cbd5fdeb83fd989054de639d3b62

- **Large national waste management companies** - Compete with WM in waste collection and disposal operations.
- **Counties and municipalities** - Maintain their own waste collection and disposal or recycling operations and may have financial competitive advantages due to tax revenues and tax-exempt financing.
- **Regional and local companies** - Varying sizes and financial resources, compete in all aspects of operations.
- **Companies specializing in discrete areas of waste management** - Focus on specific segments within the waste management industry.
- **Operators of alternative disposal facilities** - Provide alternative solutions for waste disposal.
- **Companies using waste stream as feedstock for renewable energy and other by-products** - Compete by utilizing waste for renewable energy production.
- **Waste brokers** - Rely on haulers in local markets to address customer needs.

2eff19b061de7617e54b5dd8c69b3a68733121622ee0d890b68074793e019be6

East Tier

West Tier

Other Ancillary

U.S.

Canada

Tier 1

Tier 2

Tier 3

Solid Waste Total

a1733203ad6ba36e9351d937d058585643867d0ee2fa0fa350d62b74db059b0f

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD]

Earnings Per Share (EPS) - Diluted [USD]

a20f0d405aed0f89f7b9882bc049b587e9c53d4b354d1d4c947ab39511e65747

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Operating EBITDA Growth**: Nearly **10%**  **[WM_3394420_5]** .
  - **Operating EBITDA**: **$6.475 billion**  **[WM_3394420_5]** .
  - **Operating EBITDA Margin**: **30%** for Q2, with Q3 outlook between **30.5% to 31%**  **[WM_3394420_5]** **[WM_3394420_7]** .
  - **Free Cash Flow**: Between **$2 billion and $2.15 billion**  **[WM_3394420_5]** .
  - **Capital Expenditures**: **$850 million to $900 million**  **[WM_3394420_5]** .
  - **Leverage**: **3.6x** post-acquisition, targeting **2.75 to 3x** within 24 months  **[WM_3394420_6]** .
  - **Tax Rate**: **22%**  **[WM_3394420_17]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Total Revenue Growth**: **5% to 5.75%**  **[WM_3380873_4]** .
  - **Operating EBITDA Margin**: **29.7% to 30.2%**  **[WM_3380873_1]** .
  - **Free Cash Flow**: Increased by **$100 million**  **[WM_3380873_1]** .
  - **Operating EBITDA**: Increased by **$100 million**  **[WM_3380873_1]** .
  - **Incremental Investment Tax Credits (ITCs)**: **$145 million**  **[WM_3380873_5]** .
  - **Margins for Q2 and Q3**: Above **30%** in Q2, potentially over **31%** in Q3  **[WM_3380873_9]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Total Company Revenue Growth**: **6% to 7%**  **[WM_3373134_4]** .
  - **Operating EBITDA Growth**: **$450 million** at midpoint  **[WM_3373134_4]** .
  - **Collection and Disposal Volume Growth**: Approaching **1%**  **[WM_3373134_3]** .
  - **Core Price and Yield**: Core price **6% to 6.5%**, yield approaching **5%**  **[WM_3373134_2]** .
  - **Capital Spending**: **$2.25 billion**, with **$875 million** in sustainability projects  **[WM_3373134_4]** .
  - **Free Cash Flow Before Sustainability Investments**: Almost **7%** growth to **$2.85 billion**  **[WM_3373134_4]** .
  - **Sustainability Growth Investments**: **$115 million** contribution to operating EBITDA  **[WM_3373134_1]** .
  - **Renewable Natural Gas and Recycling Projects**: 5 new facilities and 10 upgrades  **[WM_3373134_1]** .
  - **Sustainability Project Pipeline**: **$2.8 billion to $2.9 billion** investment from 2022-2026  **[WM_3373134_5]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information from the Q3 2024 earnings call for WM, so I cannot provide the guidance metrics or period from that specific call.

a1c2363ddbe5c11283bd5b09d97a06c818b01d1fc8d58597eefe33b3ef50935d

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Charles C. Boettcher  | Executive Vice President, Corporate Development and Chief Legal Officer  | February 2020    | Charles C. Boettcher has been serving in his current role since **February 2020**. Previously, he was the Senior Vice President, Corporate Development and Chief Legal Officer from **May 2019 to February 2020**  **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** **[0001104659-24-042337_tm242637d5_def14a.htm:39]** **[0001104659-23-037529_tm231382d2_def14a.htm:36]** .                    |
| Rafael E. Carrasco    | Senior Vice President — Enterprise Strategy                              | September 2023   | Rafael E. Carrasco has been the Senior Vice President — Enterprise Strategy since **September 2023**. He was previously the Senior Vice President — Operations from **July 2021 to September 2023**  **[0001104659-24-042337_tm242637d5_def14a.htm:39]** **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** .                                     |
| John A. Carroll       | Vice President and Chief Accounting Officer                              | March 2023       | John A. Carroll has been serving as the Vice President and Chief Accounting Officer since **March 2023**. Before this, he was the Vice President of Internal Audit and Controls from 2018 to March 2023  **[0001104659-24-042337_tm242637d5_def14a.htm:39]** **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** **[0001104659-23-037529_tm231382d2_def14a.htm:36]** .                              |
| Christopher P. DeSantis| Senior Vice President — Operations                                       | October 2023     | Christopher P. DeSantis has been the Senior Vice President — Operations since **October 2023**. Prior to this, he served as the Area Vice President for the New England area from 2009 until October 2023  **[0001104659-24-042337_tm242637d5_def14a.htm:39]** **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** .                               |
| Tara J. Hemmer        | Senior Vice President and Chief Sustainability Officer                   | July 2021        | Tara J. Hemmer has been serving as the Senior Vice President and Chief Sustainability Officer since **July 2021**. She was previously the Senior Vice President of Operations from January 2019 to June 2021  **[0001104659-24-042337_tm242637d5_def14a.htm:39]** **[0001104659-23-037529_tm231382d2_def14a.htm:36]** .                            |
| John J. Morris, Jr.   | Executive Vice President and Chief Operating Officer                     | January 2019     | John J. Morris, Jr. has been serving as the Executive Vice President and Chief Operating Officer since **January 2019**. He was previously the Senior Vice President of Operations from 2012 to December 2018  **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** **[0001104659-23-037529_tm231382d2_def14a.htm:36]** .                           |
| Devina A. Rankin      | Executive Vice President and Chief Financial Officer                     | February 2020    | Devina A. Rankin has been the Executive Vice President and Chief Financial Officer since **February 2020**. She was previously the Senior Vice President and Chief Financial Officer from 2017 to February 2020  **[0001104659-24-042337_tm242637d5_def14a.htm:39]** **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** **[0001104659-24-033311_tm242637d3_pre14a.htm:40]** .                       |
| Kelly C. Rooney       | Senior Vice President and Chief Human Resources and Diversity & Inclusion Officer | February 2023 | Kelly C. Rooney has been in her current role since **February 2023**. She was previously the Senior Vice President and Chief People Officer from **August 2022 to February 2023**  **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** **[0001104659-24-042337_tm242637d5_def14a.htm:39]** .                                                        |
| Donald J. Smith       | Senior Vice President — Operations                                       | January 2023     | Donald J. Smith has been the Senior Vice President — Operations since **January 2023**. He was previously the Area Vice President for the Texas & Oklahoma Area from 2012 to December 2022  **[0001104659-24-042337_tm242637d5_def14a.htm:39]** **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** .                                              |
| Johnson Varkey        | Senior Vice President and Chief Information Officer                      | January 2024     | Johnson Varkey is expected to start as the Senior Vice President and Chief Information Officer in **January 2024**. He was previously the Vice President and Chief Information Officer from **March 2023 to December 2023**  **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** **[0001104659-24-042337_tm242637d5_def14a.htm:39]** .             |
| Michael J. Watson     | Senior Vice President and Chief Customer Officer                         | 2018             | Michael J. Watson has been the Senior Vice President and Chief Customer Officer since **2018**. He was previously the Area Vice President for the Illinois & Missouri Valley Area from **2013 to September 2018**  **[0001104659-24-042337_tm242637d5_def14a.htm:39]** **[0001104659-24-033311_tm242637d3_pre14a.htm:39]** **[0001104659-23-037529_tm231382d2_def14a.htm:36]** .                    |
| James C. Fish, Jr.    | President and Chief Executive Officer                                    | 2016             | James C. Fish, Jr. has been the President, Chief Executive Officer, and Director since **2016**. He has over 20 years of experience with the company and has held several key positions  **[0001104659-24-033311_tm242637d3_pre14a.htm:30]** **[0001104659-24-042337_tm242637d5_def14a.htm:30]** .                                                 |

a62481a195c0597c199b0ec7b6909645d923c18ef28d155ee7e215b6072a3e6c

| Program Details          | Program 1         | Program 2         |
|--------------------------|-------------------|-------------------|
| Approval Date            | N/A               | N/A               |
| End Date/Duration        | February 2024  **[0001558370-24-013762_wm-20240930x10q.htm:27]**  | April 2024  **[0001558370-24-013762_wm-20240930x10q.htm:27]**     |
| Total Additional Amount  | N/A               | **$250 million**  **[0001558370-24-013762_wm-20240930x10q.htm:27]**  |
| Remaining Authorization  | **$1,238 million**  **[0001558370-24-013762_wm-20240930x10q.htm:27]**  | **$1,238 million**  **[0001558370-24-013762_wm-20240930x10q.htm:27]**  |
| Details                  | Completed in February 2024  **[0001558370-24-013762_wm-20240930x10q.htm:27]**  | Completed in April 2024  **[0001558370-24-013762_wm-20240930x10q.htm:27]**  |

22a6ca6c87f966df0383a5b02b0e3d3eff36facfb02ff91ad6727fd8ba51c0e1

**Annual guidance for FY 2024:**
- **Operating EBITDA**: $6.5B  **[WM_3404361_5]**  (raised from $6.475B  **[WM_3394420_5]** )  
- **Operating EBITDA Growth**: 10%  **[WM_3404361_5]**  (no change from nearly 10%  **[WM_3394420_5]** )  
- **Free Cash Flow**: $2.15B  **[WM_3404361_5]**  (raised from $2.0B–$2.15B  **[WM_3394420_5]** )  
- **Capital Expenditures**: $3.15B–$3.25B  **[WM_3404361_5]**  (raised from $850M–$900M  **[WM_3394420_5]** )  
- **Investment Tax Credits**: $145M  **[WM_3404361_5]**  (no prior guidance)  
- **Sustainability-Related EBITDA**: $120M–$130M  **[WM_3404361_6]**  (no prior guidance)  
- **Recycling Commodity Prices**: $90/ton  **[WM_3404361_11]**  (no prior guidance)  
- **Renewable Natural Gas Projects**: 7 of 20 planned projects online by end of FY 2024  **[WM_3404361_2]**  (no prior guidance)  
- **Acquisition of Stericycle**: Closing targeted in Q4 2024  **[WM_3404361_2]**  (no prior guidance)  

3c0f93543a355394cd930db1156b327ac37b7dee7d9e42681839f61b1b3c1200

1. **Outlook on 2025-2027 Growth**  
   **Q:** Will growth exceed 5-7% in 2025?  
   **A:** Management expects **outsized growth in 2025-2027**, surpassing the typical 5-7% organic EBITDA growth, driven by sustainability investments, reduced CapEx leading to increased free cash flow, and higher synergies from the Stericycle acquisition.  **[WM_3404361_8]**  They anticipate most sustainability plants coming online in late 2024, with full EBITDA impact realized by 2027, targeting **$800 million** in EBITDA.  **[WM_3404361_8]** 

2. **Sustainability Investments and CapEx**  
   **Q:** Is the sustainability CapEx increasing?  
   **A:** CapEx for sustainability projects has increased from an original **$2.8-$2.9 billion** to about **$3 billion**, mainly due to cost inflation in renewable natural gas plant construction and higher utility interconnect costs.  **[WM_3404361_6]** **[WM_3404361_19]**  By the end of 2024, they expect to have spent **75%** of the **$3 billion** total CapEx.  **[WM_3404361_19]** 

3. **Recycling Investments Return**  
   **Q:** What are the returns on recycling investments?  
   **A:** Recycling investments are yielding strong results, with labor cost per ton improving by **30%**, gross operating expenses decreasing by **17%**, and commodity blended value increasing by **17%**, leading to faster payback periods of **6-7 years**.  **[WM_3404361_11]**  These investments now have among the best returns on invested capital in their portfolio.  **[WM_3404361_11]** 

4. **Stericycle Acquisition Synergies**  
   **Q:** Any update on Stericycle synergies?  
   **A:** After 4.5 months of diligence, management is more optimistic about Stericycle, believing initial synergy estimates of **$125 million** over 3 years are conservative.  **[WM_3404361_8]** **[WM_3404361_12]**  They see opportunities to reduce SG&A expenses significantly, given Stericycle's SG&A is **22%** of revenue compared to WM's **8.9%**.  **[WM_3404361_8]** 

5. **RNG Contracting Strategy**  
   **Q:** How are you managing RNG price risks?  
   **A:** WM is contracting more of its renewable natural gas volumes, with **40%** of 2025 volumes already secured, to mitigate price volatility and political risks.  **[WM_3404361_12]**  They plan to expand contracted volumes through long-term offtake agreements and forward selling of RINs.  **[WM_3404361_12]** 

6. **Solid Waste M&A Activity**  
   **Q:** How significant is recent M&A activity?  
   **A:** WM closed nearly **$800 million** in acquisitions, potentially reaching **$1 billion**, focusing on strategic markets like Arizona, Carolinas, Florida, and Long Island.  **[WM_3404361_14]**  They expect a rollover benefit of **$150 million** to revenue and **$35 million** to EBITDA in 2025 from these acquisitions.  **[WM_3404361_14]** 

7. **Price-Cost Spread and Automation**  
   **Q:** How is pricing strategy progressing?  
   **A:** Management remains disciplined on pricing, achieving objectives despite CPI declines.  **[WM_3404361_9]**  They are investing in automation to offset wage inflation of **4.5%-5.5%** in frontline roles, not refilling over **2,200** positions since 2022 through attrition.  **[WM_3404361_9]** 

8. **Volume Trends and Economic Outlook**  
   **Q:** Any concerns about volume trends?  
   **A:** Core business volumes, particularly in commercial collection and MSW, remain strong.  **[WM_3404361_15]**  Industrial hauls are lighter than expected, but management anticipates potential improvement after election clarity.  **[WM_3404361_15]**  They see no **"storm clouds"** in the economy.  **[WM_3404361_9]** 

9. **Sustainability EBITDA Contribution**  
   **Q:** What is the expected sustainability EBITDA for 2024?  
   **A:** WM expects **$120-$130 million** in EBITDA from sustainability-related businesses in 2024  **[WM_3404361_6]** , with year-to-date delivering **$92 million**.  **[WM_3404361_6]**  They initially guided **$115 million** plus **$15 million** from commodity prices.  **[WM_3404361_6]** 

10. **Residential Volume Strategy**  
    **Q:** What's the plan for declining residential volumes?  
    **A:** Residential volumes are down **2.9%** by design, as WM lets go of underperforming contracts to improve efficiency and margins.  **[WM_3404361_21]**  They aim to make residential business competitive with other collection lines, potentially returning to flat volumes by end of 2025 or early 2026.  **[WM_3404361_21]** 

84f9dfe6ba3fb71cea3796b9624fb6e37b526a26dece562c49e82a22f34c2e86

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0001558370-24-001049_wm-20231231x10k.htm:119]**    | Present  | Current auditor   |

c9599529c70a7376e2124f78d1dd919e5fd3edecd987bdc1d1b96a939d039ad8

627cdbb59517ecd055707fdb18989552d92b4070e52a4e97a83e6f3bdcdf5e8c

- Total Revenue: $5,609 million in Q3 2024 vs. $5,198 million in Q3 2023 (+8% YoY)  **[0001558370-24-013762_wm-20240930x10q.htm:2]** **[0001558370-24-013762_wm-20240930x10q.htm:22]** **[0001558370-24-013762_wm-20240930x10q.htm:24]** **[0001558370-23-016700_wm-20230930x10q.htm:2]** **[0001558370-23-016700_wm-20230930x10q.htm:23]**   
- Operating Income (EBIT): $1,119 million in Q3 2024 vs. $1,021 million in Q3 2023 (+10% YoY)  **[0001558370-24-013762_wm-20240930x10q.htm:2]** **[0001558370-24-013762_wm-20240930x10q.htm:22]** **[0001558370-24-013762_wm-20240930x10q.htm:24]** **[0001558370-23-016700_wm-20230930x10q.htm:2]** **[0001558370-23-016700_wm-20230930x10q.htm:23]**   
- Net Income: **$76 million in Q3 2024 vs. $663 million in Q3 2023 (-89% YoY)**  **[0001558370-24-013762_wm-20240930x10q.htm:2]** **[0001558370-24-013762_wm-20240930x10q.htm:22]** **[0001558370-24-013762_wm-20240930x10q.htm:24]** **[0001558370-23-016700_wm-20230930x10q.htm:2]**   
- Diluted EPS: $1.89 in Q3 2024 vs. $1.63 in Q3 2023 (+16% YoY)  **[0001558370-24-013762_wm-20240930x10q.htm:2]** **[0001558370-24-013762_wm-20240930x10q.htm:22]** **[0001558370-24-013762_wm-20240930x10q.htm:24]** **[0001558370-23-016700_wm-20230930x10q.htm:2]**   
- Recycling Processing & Sales: $432 million in Q3 2024 vs. $366 million in Q3 2023 (**+18% YoY**)  **[0001558370-24-013762_wm-20240930x10q.htm:22]** **[0001558370-24-013762_wm-20240930x10q.htm:24]** **[0001558370-23-016700_wm-20230930x10q.htm:38]**   

0ccc7fa384b83b081712452dc5e838dc0f68a72663faecdedcbeeb32c399dcb7

- **WM expects to exceed its previous target range for Investment Tax Credit (ITC) benefits**, with **$220 million** anticipated in 2025 and **$135 million** captured in 2024, surpassing the initial **$250 million to $350 million** range. This enhancement in cash flow is due to the company's focus on maximizing ITC through domestic content in projects.  **[WM_3413736_31]**
- **The Stericycle acquisition is performing better than expected**, with WM projecting approximately **$460 million** in EBITDA for WM Healthcare Solutions in 2025, up from an implied **$350 million** in 2024. This includes **$85 million to $90 million** of synergy capture and a **9% organic growth rate**, significantly boosting overall EBITDA.  **[WM_3413736_45]**
- **Significant contributions are expected from growth investments** in recycling and renewable natural gas (RNG), with **$190 million** anticipated in 2025 from these initiatives. Tailwinds in both businesses, along with new projects coming online, are expected to positively impact earnings.  **[WM_3413736_10]**

c1659aa42c4a94c1dd2a21ce485d0756b1f8f6849a0d740a9a7f112c9f901bbf

- **WM's growth projections depend heavily on achieving significant synergies from the Stericycle acquisition, planning for $85 million to $90 million in synergy capture in 2025.** If these synergies do not materialize as expected, the projected increase in EBITDA to approximately **$460 million** may be at risk.  **[WM_3413736_45]** **[WM_3413736_8]**
- **WM is experiencing softness in industrial volumes, particularly in industrial hauls, and does not expect a significant rebound in 2025.** This ongoing weakness could negatively impact overall growth.  **[WM_3413736_33]**
- **Capital expenditures for Renewable Natural Gas (RNG) projects have increased compared to initial projections.** While returns are expected to be in line, higher capital investment may pressure return on invested capital if revenues or margins do not meet expectations.  **[WM_3413736_37]**

30ccbb3d7d695609176b742a5ac6d494d75de953e8f984915db4880125f3c8e4

1. **Stericycle Synergies**

   **Q:** Synergies from Stericycle are doubling to $250 million?

   **A:** Yes, the synergy estimates for the WM Healthcare Solutions business (formerly Stericycle) have doubled from $125 million to **$250 million**.  **[WM_3413736_14]**  This increase focuses on the same three areas as initially planned: internalization, SG&A, and OpEx.  **[WM_3413736_14]**  While internalization remains the same, they have identified significantly larger opportunities in SG&A and OpEx, such as optimizing sales coverage and consolidating recycling capacity.  **[WM_3413736_14]** 

2. **2025 Collection and Disposal Growth**

   **Q:** Collection and disposal organic EBITDA up 7% despite headwinds?

   **A:** Yes, the collection and disposal organic EBITDA is expected to grow approximately **7%** in 2025, even with a **$63 million** CNG tax credit headwind  **[WM_3413736_7]** ,.  **[WM_3413736_11]**  This solid growth is driven by strong pricing, cost management, and operational efficiency.  **[WM_3413736_11]**  The team has effectively managed costs, contributing to margin expansion.  **[WM_3413736_11]** 

3. **Sustainability Investments Contribution**

   **Q:** What's the outlook for sustainability contributions in 2025?

   **A:** They expect significant tailwinds from sustainability investments, contributing **$190 million** in additional EBITDA in 2025.  **[WM_3413736_10]**  This includes benefits from new recycling facilities and renewable natural gas (RNG) plants.  **[WM_3413736_10]**  The company is optimistic about the positive impact rolling through the P&L.  **[WM_3413736_10]** 

4. **Core Pricing and Yield**

   **Q:** How is core pricing yield projected for 2025?

   **A:** The core price guide is **5.8% to 6.2%**, with a yield conversion of **4% to 4.2%**.  **[WM_3413736_13]**  The lower conversion is due to business mix, particularly in the landfill business, which, while profitable, has a lower average unit rate.  **[WM_3413736_13]**  Cost management and pricing sophistication contribute to maintaining a favorable price-to-cost spread.  **[WM_3413736_11]** 

5. **Residential Volume Strategy**

   **Q:** Is there intentional shedding of residential volumes?

   **A:** Yes, they are intentionally shedding about **3% to 3.5%** of residential volumes  **[WM_3413736_21]** ,.  **[WM_3413736_25]**  This strategy improves margins and reduces underperforming contracts, leading to a **400 basis point** improvement in margins  **[WM_3413736_21]** ,.  **[WM_3413736_25]**  They have reduced 900 routes and aim to continue this approach.  **[WM_3413736_25]** 

6. **RNG Projects Timeline**

   **Q:** Are renewable natural gas projects on schedule?

   **A:** Yes, by the end of 2025, all but two RNG plants will have completed construction, with the remaining two finishing in early 2026.  **[WM_3413736_19]**  They feel more confident about utility interconnects and have visibility into completion timelines.  **[WM_3413736_19]** 

a9c96979ece961564c36b480608ea2e27017d1c4d0d4e21770e6f902b9bc6200

WM projects US$460M in 2025 Healthcare Solutions EBITDA (up from US$350M) on Stericycle synergies of US$85M–US$90M and 9% organic growth. Add US$220M in ITC benefits plus US$190M from recycling/RNG, and these gains may offset soft industrial volumes.

aa81925da40cadfb5b4116a6ecb6dbabde5235d6402a2e3c00e549e7f92f6ec2

**Annual guidance for FY 2024:**
- **ITC**: $135 million  **[WM_3413736_31]**  (lowered from $145 million  **[WM_3404361_5]** )

**Annual guidance for FY 2025:**
- **ITC**: $220 million  **[WM_3413736_31]**  (no prior guidance)
- **Collection & Disposal Operating EBITDA Growth**: more than 7%  **[WM_3413736_2]**  (no prior guidance)
- **Sustainability Segments (Operating EBITDA Growth)**: $150 million  **[WM_3413736_2]**  (no prior guidance)
- **Total Company Operating EBITDA Growth**: 15% at midpoint  **[WM_3413736_2]**  (no prior guidance)
- **Stericycle/Healthcare Solutions Revenue**: $2.6 billion  **[WM_3413736_27]** **[WM_3413736_45]**  (no prior guidance)
- **Stericycle/Healthcare Solutions EBITDA**: $460 million  **[WM_3413736_27]** **[WM_3413736_45]**  (no prior guidance)
- **Free Cash Flow**: expected to grow in 2025  **[WM_3413736_15]**  (no prior guidance)
- **Yield**: 4% to 4.2%  **[WM_3413736_13]**  (no prior guidance)
- **Core Pricing**: 5.8% to 6.2%  **[WM_3413736_13]**  (no prior guidance)
- **Volume Guidance**: 0.5 points  **[WM_3413736_42]**  (no prior guidance)

f20c343dde187b35d2b0a7ad8a22b21f63405e4e2a7cefa9e5f627e0442dfded

Average yield in the collection line of business (percentage)

Average yield in the municipal solid waste business (percentage)

Average market prices for single-stream recycled commodities (percentage)

5f8b0b64f861a81a42048a80a3e709b2a84e31eb0b8303a004e39c574ddc99ed

b148e40e1f7f32c9153ff9d585db73bda88169b57d6c5a640f69d766228aaf6a

- **Flat volume growth and softness in industrial segments:** The company reported that volumes were **flat**, with specific softness in the **temporary roll-off and industrial spaces**, particularly in **construction and demolition (C&D)**.  **[WM_3394420_16]**
- **Potential delays in realizing synergies from Stericycle acquisition:** Management indicated that the anticipated **$125 million** in cost synergies from the Stericycle acquisition may take longer to realize due to caution around Stericycle's recent **ERP implementation**, impacting the pace at which synergies can be captured.  **[WM_3394420_14]**
- **Margin pressures due to various headwinds:** The company adjusted its margin expectations for the upcoming quarter to **30.5% to 31%**, down from prior guidance, citing factors such as **lower industrial volumes with strong flow-through**, **elevated recycling commodity prices** negatively impacting margins, and initial lower contribution margins from recent tuck-in acquisitions.  **[WM_3394420_7]**

2d727beff3f5297ad8ef3b000367c38c7746b23700ff429730554b3c877c57fa

1. **EBITDA Growth and M&A Impact**  
   **Q:** What's the impact of M&A on 2024 EBITDA guidance?  
   **A:** Management expects **EBITDA growth approaching 10%** for the year, with a **$25 million** contribution from M&A in the back half, including the Winters Bros acquisition. They've acquired about **$300 million in revenue** year-to-date. Solid waste EBITDA grew **$415 million** in the first half, and sustainability businesses are on track to contribute **$115 million** in EBITDA for 2024.  **[WM_3394420_8]** 

2. **Stericycle Acquisition Strategy and Synergies**  
   **Q:** How will you achieve synergies from the Stericycle acquisition?  
   **A:** The company anticipates at least **$125 million** in cost synergies over three years from the Stericycle deal. They see significant opportunities, particularly in SG&A, where Stericycle's SG&A is **22%** of revenue compared to WM's **9%**. The integration team is determining the timing, possibly realizing most synergies in years one or two.  **[WM_3394420_11]** 

3. **Outlook for 2025**  
   **Q:** What's driving your optimism for 2025?  
   **A:** WM expects 2025 to be a blockbuster year due to sustainability investments. By the end of 2024, seven of twenty RNG plants will be online, representing roughly **30%** of the anticipated **$510 million** in EBITDA from these projects. They also foresee benefits from recycling investments and reduced shutdown costs incurred in 2024.  **[WM_3394420_19]** 

4. **Negative Factors Affecting EBITDA**  
   **Q:** What negatives are impacting EBITDA despite strong growth?  
   **A:** Softer-than-expected volume, particularly in industrial temp roll-off, and minor delays in plant openings have been negatives. Volume is flat versus the anticipated near **1%** growth. Plant delays impacted EBITDA by approximately **$11 million**. Shutdown costs from recycling plant rebuilds also affect earnings, but overall, the company remains bullish, offsetting negatives to achieve nearly **10%** EBITDA growth.  **[WM_3394420_15]** 

5. **Consumer Strength and Pricing Outlook**  
   **Q:** Can you sustain price spreads amid market softness?  
   **A:** The consumer remains resilient, bolstering commercial volumes. While residential volumes are soft, the commercial line shows strength. WM is confident in its pricing strategy, leveraging data and analytics to maintain healthy price-cost spreads into 2025.  **[WM_3394420_11]** 

6. **RNG Business Strategy and Potential Sale**  
   **Q:** Is there any plan to sell your RNG assets?  
   **A:** While open to offers, management emphasizes that the RNG business is core to their sustainability strategy, providing significant margin accretion and cash flow. They dismissed a rumored **$3 billion** sale price as insufficient, focusing instead on completing the build-out of twenty RNG plants.  **[WM_3394420_14]** 

7. **Risk Management Costs and Seasonality**  
   **Q:** Are risk management costs affecting margins ongoing?  
   **A:** The **50 basis point** headwind from risk management costs in Q2 was due to nonrecurring incidents and isn't expected to repeat. Typical seasonal trends are challenged by muted roll-off volumes, but the company anticipates strong seasonality benefits elsewhere, especially in the commercial collection line.  **[WM_3394420_10]** 

8. **Margin Outlook and Q3 Guidance**  
   **Q:** Should we adjust Q3 margin expectations?  
   **A:** Q2 margins were around **30%**, impacted by a **50 basis point** risk management cost and a **40 basis point** headwind from recycled commodity prices. With lower industrial volumes and initial lower margins from tuck-in acquisitions, Q3 margins are now expected in the range of **30.5% to 31%**.  **[WM_3394420_7]** 

9. **Acquisition Outlook and Labor Expenses**  
   **Q:** How are acquisitions and labor trends affecting the business?  
   **A:** The acquisition pipeline is strong, with over **$1 billion** in tuck-in acquisitions expected for the year. Pressure on smaller operators from labor costs and supply chain challenges is leading to more acquisition opportunities. WM's lower turnover rates are easing labor pressures, and ongoing efficiencies are expected to continue into next year.  **[WM_3394420_16]** 

10. **Winters Bros Acquisition Strategy**  
    **Q:** What's the strategic rationale behind acquiring Winters Bros?  
    **A:** The acquisition fills a geographic white space in Long Island, an area facing disposal constraints due to landfill closures. Winters Bros' intermodal assets enhance WM's waste transportation capabilities. The business operates **150 routes** with **500 employees**, strengthening WM's position in a new market.  **[WM_3394420_13]** 

8cd3c2937943311be0625e869a1632bc623612970dadff79ee35fda8001f816c

1. **Margin Expansion Sustainability**  
   **Q:** Is the stellar margin performance sustainable, and what drove it?  
   **A:** Management confirmed that the significant margin expansion, with operating EBITDA in collection and disposal up **$212 million** and margins expanding **310 basis points** to **36.6%**, was due to cost efficiencies, particularly in labor and maintenance, and robust pricing. There were **no one-time items** influencing the results. They expect these efficiencies to continue, supporting sustained margin performance.  **[WM_3380873_7]** **[WM_3380873_10]** 

2. **Future Margin Outlook**  
   **Q:** Should we expect lower margin expansion in 2025 after strong gains in 2024?  
   **A:** While management is cautious about repeating the same level of margin expansion, they believe ongoing cost efficiencies, especially in labor and maintenance, will continue to drive margins. However, the expiration of the alternative fuel tax credits at the end of 2024, worth **$55 million**, could be a headwind, but they expect other efficiencies to offset this.  **[WM_3380873_11]** 

3. **Labor and Efficiency Improvements**  
   **Q:** Can you quantify the operational efficiencies and labor savings from technology investments?  
   **A:** The company has improved the ratio of direct labor to revenue, driven by route optimization and reduced turnover at an all-time low of **18%**. They've reduced routes by about **750** year-over-year and plan to eliminate an additional **1,200** positions through attrition in 2024, enhancing efficiency.  **[WM_3380873_12]** **[WM_3380873_11]** 

4. **Recycling Plant Automation Benefits**  
   **Q:** What are the benefits of recycling facility upgrades besides labor reduction?  
   **A:** Upgrades are improving material quality, enabling sales at higher prices, and significantly increasing capacity. Automation will result in a **30% improvement** in labor costs and operating expenses, with **70%** headcount reduction in these facilities expected by the end of 2024.  **[WM_3380873_11]** **[WM_3380873_26]** 

5. **Investment Tax Credits Update**  
   **Q:** How has the outlook for investment tax credits changed?  
   **A:** The expected investment tax credit benefit for 2024 increased by **$25 million** from the original **$120 million** to **$145 million**, primarily due to better-than-expected project qualifications. Over the development plan, they are tracking toward the high end of the **$250 million to $300 million** range.  **[WM_3380873_10]** 

6. **Pricing Outlook**  
   **Q:** Are you expecting core price to be closer to 7% for the rest of the year?  
   **A:** Management indicated they exceeded their pricing expectations slightly but are not changing annual guidance, suggesting they expect pricing to remain robust, potentially around **6% to 7%**, consistent with previous expectations.  **[WM_3380873_14]** 

7. **Volume Guidance and Macro Outlook**  
   **Q:** How has the macro environment affected volume, particularly in roll-off?  
   **A:** The company adjusted volume guidance slightly from about **1%** to **0.5%** due to softness in the housing sector impacting roll-off volumes. However, other sectors remain strong, and they've seen a slight uptick in April, suggesting possible improvement ahead.  **[WM_3380873_13]** 

8. **Residential Margin Improvement**  
   **Q:** How have residential margins improved, and can they reach company average?  
   **A:** Residential margins have increased from around **10–11%** a few years ago to approaching **20%** now. Management aims for residential margins to converge closer to commercial and industrial margins, indicating potential for further improvement.  **[WM_3380873_8]** 

9. **Free Cash Flow Improvement**  
   **Q:** What drove the **$100 million** improvement in free cash flow guidance?  
   **A:** The improvement is driven by the **$100 million** increase in EBITDA, expected to flow directly through to free cash flow. Higher earnings are offset by increased investment tax credits, keeping tax expenses flat. Strong working capital performance may provide additional upside.  **[WM_3380873_17]** 

10. **PFAS Regulation Impact**  
    **Q:** What are the expected cost impacts of PFAS regulations, and how might this change?  
    **A:** The company is closely monitoring PFAS regulations. While costs are hard to predict now, they see potential opportunities in managing PFAS waste from sites like DoD cleanups. Technological advancements may allow them to manage PFAS effectively at a cost that can be passed to customers.  **[WM_3380873_17]** 

11. **M&A Outlook**  
    **Q:** Are there opportunities for transformational M&A or entry into new lines of business?  
    **A:** Management remains focused on internal opportunities but acknowledges a strong acquisition pipeline. They are open to strategic acquisitions offering long-term prospects but maintain guidance of **$100 million to $200 million** for M&A activities.  **[WM_3380873_18]** 

12. **New Baseline Margin**  
    **Q:** Can we now consider **29.5% to 30%** as the new baseline margin to grow from?  
    **A:** Management agrees that the current performance establishes a new baseline and they aim for continuous improvement from here, supporting margins at this level or better.  **[WM_3380873_15]** 

13. **Roll-off Business Resilience**  
    **Q:** Is there anything different in how you manage the roll-off business during slowdowns?  
    **A:** No, they continue to adjust by parking equipment, repositioning drivers, and raising prices as needed to maintain profitability, demonstrating the business's resilience during slow periods.  **[WM_3380873_15]** 

14. **Seasonal Margin Outlook**  
    **Q:** How should we shape the Q2 margin expectation?  
    **A:** Management expects margins to improve sequentially from Q1 to Q2, with margins expected to be north of **30%** in Q2 and potentially over **31%** in Q3. They are cautiously optimistic as they enter uncharted territory with higher margins.  **[WM_3380873_9]** 

15. **Cost Impact of Fuel Prices on Guidance**  
    **Q:** Did fuel costs play a role in the EBIT guidance raise?  
    **A:** Fuel did not impact the dollar outlook for EBITDA but did improve margin outlook, contributing a **40 basis point** benefit in the quarter. Some of this margin benefit is expected to continue into subsequent quarters.  **[WM_3380873_10]** 

3b5cc5226bd8356beb228dd0b306073067cac0445d8b1bf730088c52c7bca99f

1. **Margin Outlook**  
   **Q:** How will margins trend in 2024?  
   **A:** Waste Management expects margin expansion to be more heavily weighted toward the front half of 2024, particularly in the collection and disposal business. They anticipate **significant margin improvements** in this area.  **[WM_3373134_7]**  SG&A margin expansion will be fairly even over 2024.  **[WM_3373134_7]**  The sustainability businesses' commodity price benefits are muted year-over-year, but renewable natural gas projects will contribute to margin expansion, especially in the back half of the year.  **[WM_3373134_7]** 

2. **Sustainability Investments**  
   **Q:** What's the status of sustainability CapEx and EBITDA targets?  
   **A:** The company increased its sustainability CapEx guidance to **$2.8–$2.9 billion**, up from $2.2 billion, primarily due to inflation in renewable natural gas builds related to supply chain, construction costs, and interconnects.  **[WM_3373134_12]**  They plan to have **roughly 40 projects** under construction during 2024 and expect to exit the year with a **run rate EBITDA approaching $300 million**, building momentum toward the **$800 million target** by 2026.  **[WM_3373134_22]** 

3. **Pricing Strength**  
   **Q:** Can you discuss pricing strength in 2024?  
   **A:** Waste Management anticipates maintaining strong pricing in 2024, with collection and disposal yield growth around **4.5% to 5%**.  **[WM_3373134_8]**  Residential and disposal pricing showed **year-over-year increases**, supporting margin growth.  **[WM_3373134_8]**  Pricing continues to be a strength and is expected to add margin in 2024.  **[WM_3373134_8]** 

4. **Cost Optimization Efforts**  
   **Q:** Update on automation and productivity initiatives?  
   **A:** The company is making great progress in reducing labor dependency, targeting the elimination of **5,000 to 7,000 jobs** across areas like customer experience (about **75%** complete), routing (**40%** complete), and recycling (**20%** complete).  **[WM_3373134_6]**  These efforts have positively impacted margins, notably in labor costs in Q4.  **[WM_3373134_6]** 

5. **Price-Cost Spread**  
   **Q:** Can you maintain the price-cost spread?  
   **A:** Waste Management expects the price-cost spread to stay similar in 2024 as in 2023.  **[WM_3373134_30]**  They feel good about wage inflation control and anticipate that price-cost dynamics won't change significantly.  **[WM_3373134_30]** 

6. **Inflation and Cost Pressures**  
   **Q:** How are inflation and wages impacting costs?  
   **A:** The company is cautious about inflationary pressures in 2024.  **[WM_3373134_10]**  Wage inflation is expected to be north of **4%**, starting at 4% with additional spot increases in certain markets.  **[WM_3373134_16]**  They are taking a conservative view on cost outlook due to economic uncertainties.  **[WM_3373134_10]** **[WM_3373134_16]** 

7. **Acquisition Outlook**  
   **Q:** What are your acquisition expectations?  
   **A:** Waste Management sees a robust acquisition pipeline, driven by factors like lack of succession plans at smaller firms and labor challenges they face.  **[WM_3373134_23]**  They plan to capitalize on these opportunities but will ensure returns are similar to their organic growth projects.  **[WM_3373134_23]** 

8. **Commodity Price Impact**  
   **Q:** How do commodity prices affect your business?  
   **A:** Commodity price benefits in recycling are muted, and higher commodity prices can compress margins due to the high-return brokerage business.  **[WM_3373134_7]**  In recycling, **95%** of contracts are fee-for-service, insulating the company from commodity price volatility.  **[WM_3373134_31]** 

9. **Renewable Natural Gas Pricing**  
   **Q:** What RINs pricing assumptions are in guidance?  
   **A:** The company assumes a **$3** RIN price in 2024.  **[WM_3373134_20]**  They have about **two-thirds** of their offtake locked in for 2024, a mix of long-term contracts and RINs sold forward at higher rates than $3.  **[WM_3373134_20]**  The remaining volumes are expected to be sold at the $3 RIN guidance.  **[WM_3373134_20]** 

10. **Free Cash Flow Conversion**  
    **Q:** What's the free cash flow conversion expectation from sustainability investments?  
    **A:** Waste Management expects strong free cash flow conversion from sustainability investments due to lower maintenance capital, estimating a conversion in the **70% to 90%** range.  **[WM_3373134_25]** 

11. **Fleet Renewal**  
    **Q:** Are you caught up on fleet renewals?  
    **A:** The company delivered about **1,700 units** in 2023, which is close to a full allotment, with **another 300 units** to be delivered. They expect to be fully caught up by the end of 2024.  **[WM_3373134_24]** 

12. **Hazardous Waste Business**  
    **Q:** Can you discuss your hazardous waste business outlook?  
    **A:** Waste Management's hazardous waste business continues to be a valuable component with national coverage. They are looking for opportunities to grow this business, particularly in the Southeast and Gulf Coast, leveraging their transportation assets.  **[WM_3373134_29]** 

13. **Event-Driven Business**  
    **Q:** Does 2024 guidance assume event-driven business returns?  
    **A:** The company is not necessarily expecting a rebound in special waste volumes in 2024 but anticipates some momentum from Q4 2023 to carry over.  **[WM_3373134_9]**  They noted that Hurricane Ian volumes benefited Q1 2023, which will impact Q1 2024 comparisons.  **[WM_3373134_9]** 

14. **Extended Producer Responsibility**  
    **Q:** What are the opportunities with EPR in Canada?  
    **A:** Waste Management is investing in two projects in Ontario related to Extended Producer Responsibility, leveraging their automation investments.  **[WM_3373134_21]** **[WM_3373134_26]**  EPR in Canada operates on a fee-for-service model, and the company is monitoring EPR developments throughout Canada and pending legislation in the U.S..  **[WM_3373134_26]** 

15. **Sustainability EBITDA Target Delta**  
    **Q:** What's the reason for the change in sustainability EBITDA targets?  
    **A:** The increase to **$510 million** in renewable natural gas EBITDA targets accounts for growth in the business without including eRINs and third-party RNG projects. This is an increase from the previous target of $500 million.  **[WM_3373134_32]** 

16. **Monetization of D3 RINs Credits**  
    **Q:** How do you monetize D3 RINs credits when using RNG in your fleet?  
    **A:** Waste Management uniquely benefits by allocating renewable natural gas to their own fleet, allowing them to generate RINs without giving up any value.  **[WM_3373134_27]** **[WM_3373134_28]**  They receive the **full RIN value** and balance spot market sales with forward contracts.  **[WM_3373134_28]** 

da12b8463b68a2b15867c6f94fa2a1c094d651cbd283042482760029048b3445

| Year | Amount Due (Millions) | Debt Type      | Interest Rate (%) | % of Total Debt                                                                 |
|----------|---------------------------|--------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | 422                       | Senior Notes       | 3.125                | 2.5% = (422 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2025     | 500                       | Senior Notes       | 0.75                 | 3.0% = (500 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2026     | 250                       | Senior Notes       | 7.375                | 1.5% = (250 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2027     | 750                       | Senior Notes       | 3.15                 | 4.5% = (750 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2027     | 750                       | Senior Notes       | 4.950                | 4.5% = (750 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2028     | 600                       | Senior Notes       | 7.00                 | 3.6% = (600 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2028     | 500                       | Senior Notes       | 1.15                 | 3.0% = (500 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2029     | 250                       | Senior Notes       | 7.375                | 1.5% = (250 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2029     | 475                       | Senior Notes       | 2.00                 | 2.9% = (475 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2029     | 750                       | Senior Notes       | 4.875                | 4.5% = (750 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2030     | 750                       | Senior Notes       | 4.625                | 4.5% = (750 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2031     | 1,000                     | Senior Notes       | 1.50                 | 6.0% = (1,000 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                     |
| 2031     | 750                       | Senior Notes       | 4.950                | 4.5% = (750 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2032     | 500                       | Senior Notes       | 7.75                 | 3.0% = (500 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2032     | 1,000                     | Senior Notes       | 4.15                 | 6.0% = (1,000 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                     |
| 2033     | 500                       | Senior Notes       | 4.625                | 3.0% = (500 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2034     | 1,250                     | Senior Notes       | 4.875                | 7.5% = (1,250 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                     |
| 2035     | 450                       | Senior Notes       | 3.90                 | 2.7% = (450 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2039     | 600                       | Senior Notes       | 6.125                | 3.6% = (600 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2041     | 475                       | Senior Notes       | 2.95                 | 2.9% = (475 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2045     | 750                       | Senior Notes       | 4.10                 | 4.5% = (750 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |
| 2049     | 1,000                     | Senior Notes       | 4.15                 | 6.0% = (1,000 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                     |
| 2050     | 500                       | Senior Notes       | 2.50                 | 3.0% = (500 / 16,653) * 100 **[0001558370-24-013762_wm-20240930x10q.htm:53]** **[0001558370-24-013762_wm-20240930xex22d1.htm:0]**                                       |

747203e9737e49f1db1c5b514d56b8a77280258f873d3a6ea3b1cc4a0e82a786

- **WM achieved significant margin expansion** in Q4, with operating EBITDA margin up **220 basis points** year-over-year, driven by efficiency improvements in the collection and disposal business and successful cost optimization strategies. They are nearing their aspirational metrics set earlier, such as **30% EBITDA margin**, **SG&A at 9%**, and **OpEx at 60%**, demonstrating strong execution and potential for continued growth.  **[WM_3373134_15]** **[WM_3373134_10]**
- **WM's sustainability initiatives are progressing well**, with increased targets for their renewable natural gas (RNG) business. They have increased their RNG EBITDA target by **$10 million**, and are adding new recycling projects including **two new projects in Canada**, contributing to their growth. They are confident in project timelines and have strategies to mitigate commodity price volatility, such as moving to a **95% fee-for-service model** in recycling and securing offtake agreements for renewable energy.  **[WM_3373134_32]** **[WM_3373134_31]**
- **WM is uniquely positioned to fully monetize D3 RINs credits** due to their ownership of RNG production and a large fleet of compressed natural gas vehicles. This allows them to allocate RNG to their own fleet, generate RINs, and **capture full value without relying on third parties**, providing a significant competitive advantage in the renewable energy space.  **[WM_3373134_28]** **[WM_3373134_27]**

82c05b16c02c3c07b4b820358ac6d2b5d3f8a4380b0079663a39405dee20e700

- **Sustainability projects have experienced delays due to supply chain constraints**, leading to a slowdown in 2022 and the first half of 2023.  **[WM_3373134_22]**
- **Inflation and supply chain issues have increased sustainability capital expenditures by approximately $300 million**, from the initial $2.2 billion to $2.8-$2.9 billion.  **[WM_3373134_12]**
- **The company is adopting a cautious margin outlook for 2024 due to persistent inflationary pressures and economic uncertainty**, which may impact profitability.  **[WM_3373134_10]**

111510a813e1b2cc6fdd83f5ab02a698b2664c379ade1dc6f041ceb1b73a79c4

- **Softness in Temporary Roll-off Volumes:** The company experienced a decline in temporary roll-off volumes due to slowness in the homebuilding and industrial segments, impacting revenue growth.  **[WM_3380873_4]**
- **Lowered Revenue Growth Outlook:** Total revenue growth guidance has been revised downward to between **5% and 5.75%**, driven by the softer temporary roll-off volumes and a lower outlook for energy surcharge revenue due to declining diesel prices.  **[WM_3380873_4]**
- **Cautious Margin Expectations:** While operating EBITDA margins reached **29.6%** in Q1, the company is cautious about future margin expansion, noting they are in "**uncharted territory**," which may indicate potential challenges in maintaining or improving margins further.  **[WM_3380873_9]**

7d5733e6b0d6ae4909539e5397c6036064e32aae9dd61683d7f7ec7336670937

- **Waste Management has increased its free cash flow outlook by $100 million for the year**, driven by higher EBITDA expectations and anticipates potential upside from strong working capital performance.  **[WM_3380873_27]**
- **The company is experiencing stronger-than-expected growth in its solid waste business**, with higher margin performance occurring earlier than anticipated.  **[WM_3380873_20]**
- **Investments in automation and technology are leading to significant cost reductions and efficiency gains**, including a 30% improvement in labor costs and operating expenses from upgraded recycling facilities.  **[WM_3380873_13]**

1da519d612507239fa167feaa8fcf37b6ca895241045f424c4bc0735b7f0f950

- Despite **flat volume growth**, WM is achieving an **approaching 10% EBITDA growth**, exceeding their original guidance and demonstrating strong operational efficiency.  **[WM_3394420_23]**
- The planned acquisition of Stericycle is expected to generate at least **$125 million** in cost synergies, with potential for even greater savings, enhancing WM's growth prospects.  **[WM_3394420_14]**
- WM is achieving the **strongest EBITDA growth since the 1990s**, driven by **organic growth** through strategic investments in technology and sustainability, leading to increased margins and positioning the company for a **blockbuster year in 2025**.  **[WM_3394420_8]**

f55272add70cceba929bc73ffa2b7d787e35ec57084b9a03d31ca1ee5a88a1a5

- **Waste Management experienced a 50 basis point headwind due to the timing of the alternative fuel tax credit, negatively impacting margins in the third quarter.**  **[WM_3361942_20]**
- **Dilutive impact from recent M&A activities, particularly in recycling brokerage acquisitions, resulted in a negative impact on margins of 40 basis points in the first half and 20 basis points in the third quarter.**  **[WM_3361942_20]**
- **A $150 million delay in sustainability growth capital spending is shifting investments into 2024 and 2025, potentially affecting the timeline of expected growth from these projects.**  **[WM_3361942_23]**

83c8d1650f2008508081c48b8c54a755bde162cef9b846591d7a1a53f7290e86

- **Strong Margin Expansion and Cost Optimization:** Waste Management achieved a record operating EBITDA margin of **29.6% in Q3 2023**, a **100 basis point improvement** compared to the same period last year. This growth was driven by a **70 basis point improvement** in the collection and disposal business and **20 basis points** from SG&A leverage.  **[WM_3361942_20]** ,  **[WM_3361942_17]**
- **Operational Efficiencies through Technology and Reduced Turnover:** The company is leveraging technology and automation to enhance operations, reducing headcount by **1,650 positions** since January 2022 through attrition. Improved labor efficiency and reduced turnover have led to positive impacts on safety and efficiency metrics across business lines.  **[WM_3361942_1]** ,  **[WM_3361942_3]** ,  **[WM_3361942_22]**
- **Advancement of Sustainability Growth Projects:** Waste Management is progressing with its sustainability initiatives, maintaining a commitment to approximately **$750 million** in sustainability growth capital spending for 2023. The company plans to catch up on any delayed spending over the next two to three quarters, signaling strong future growth in renewable natural gas and recycling projects.  **[WM_3361942_27]** ,  **[WM_3361942_23]**

1017a90ae5d985d81edec8274ee8304b2b4377bbbf98d07291fae585e301c3db

Waste Management Inc (WM)

Financials