Waste Management stock faces CEO handover as healthcare unit hits targets

Waste Management stock traded at 208.55 euros on Lang & Schwarz at 11:44 CET on Friday, October 30, 2026. The company is entering a leadership transition just as its Healthcare Solutions business shows clearer signs that the Stericycle integration is improving profitability.

In its report on the third quarter, Waste Dive said WM generated revenue of 6.84 billion US dollars, up 6.25 percent from a year earlier. Net income rose 36 percent to 820 million US dollars, while adjusted operating EBITDA increased 5.8 percent to 2.12 billion US dollars. The adjusted EBITDA margin held at 31 percent despite higher fuel costs.

Healthcare integration reaches milestones

Healthcare Solutions revenue grew 3.7 percent in the quarter, the first year-over-year increase since WM acquired Stericycle in 2024 for 7.2 billion US dollars, according to executives cited by Waste Dive. Operating EBITDA in the segment advanced 33 percent.

The unit reached two targets set for the end of 2026 ahead of schedule. Core price reached 5.5 percent, while selling, general and administrative expenses fell to 15.2 percent of segment revenue. Chief Financial Officer David Reed said that ratio improved by 390 basis points from the prior year.

The improvement reflects tighter pricing, lower administrative costs and progress with billing and process automation. Management still faces volume headwinds in medical waste and secure document destruction, although executives expect conditions to improve in 2027. WM is targeting the previously discussed Stericycle cost savings by the middle of 2027, according to Waste Dive.

Successor signals strategic continuity

Chief Executive Officer Jim Fish led his final earnings call before his planned retirement in early January. President John Morris is expected to succeed him after a board-led succession process. Morris indicated that WM will keep building the healthcare platform rather than make major changes to its operating model.

For investors, the segment's pricing and cost progress offers an important test of whether the 2024 acquisition can deliver stronger earnings leverage after billing issues, system integration difficulties and customer churn. The business remains exposed to weak volumes, while the core collection and disposal operation also recorded a 0.4 percent volume decline in the quarter.

WM said revenue for the full year should reach the high end of its guidance range of 26.275 billion to 26.475 billion US dollars. Adjusted operating EBITDA is expected to remain within a range of 8.15 billion to 8.25 billion US dollars.

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