Segment and Related Information

9 Months Ended

Sep. 30, 2025

Segment and Related Information

Segment and Related Information

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) WM Renewable Energy and (v) WM 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” businesses. 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 nine months ended September 30 is shown in the following table (in millions):

	Net		Intercompany		Gross				Selling,		Other		Depreciation,		Income		Capital
	Operating		Operating		Operating		Operating		General and		Net		Depletion and		from		Expenditures
	Revenues		Revenues(a)		Revenues		Expenses		Administrative		Expenses(b)		Amortization		Operations(c)		(d)
Three Months Ended September 30:
2025
Collection and Disposal:
East Tier	$	2,336	$	638	$	2,974	$	1,813	$	88	$	46	$	287	$	740	$	348
West Tier		2,228		560		2,788		1,738		88		—		234		728		271
Other Ancillary		757		51		808		773		28		—		7		—		12
Collection and Disposal(e)(f)(g)		5,321		1,249		6,570		4,324		204		46		528		1,468		631
Recycling Processing and Sales(e)		372		98		470		389		16		155		47		(137)		59
WM Renewable Energy(f)		115		1		116		63		5		11		16		21		114
WM Healthcare Solutions(g)(h)		628		110		738		511		129		9		110		(21)		42
Corporate and Other(f)		7		7		14		6		316		6		28		(342)		1
Total	$	6,443	$	1,465	$	7,908	$	5,293	$	670	$	227	$	729	$	989	$	847
Intercompany Elimination(a)						(1,465)		(1,460)		(5)		—		—		—
Net						6,443		3,833		665		227		729		989
	Net		Intercompany		Gross				Selling,		Other		Depreciation,		Income		Capital
	Operating		Operating		Operating		Operating		General and		Net		Depletion and		from		Expenditures
	Revenues		Revenues(a)		Revenues		Expenses		Administrative		Expenses(b)		Amortization		Operations(c)		(d)
2024
Collection and Disposal:
East Tier	$	2,242	$	584	$	2,826	$	1,747	$	96	$	2	$	263	$	718	$	305
West Tier		2,138		524		2,662		1,657		95		(19)		221		708		306
Other Ancillary		704		46		750		714		29		—		7		—		17
Collection and Disposal(e)(f)		5,084		1,154		6,238		4,118		220		(17)		491		1,426		628
Recycling Processing and Sales(e)		432		71		503		434		16		(1)		33		21		124
WM Renewable Energy(f)		87		1		88		41		3		7		9		28		147
Corporate and Other(f)		6		5		11		32		291		19		25		(356)		(10)
Total	$	5,609	$	1,231	$	6,840	$	4,625	$	530	$	8	$	558	$	1,119	$	889
Intercompany Elimination(a)						(1,231)		(1,226)		(5)		—		—		—
Net						5,609		3,399		525		8		558		1,119

	Net		Intercompany		Gross				Selling,		Other		Depreciation,		Income		Capital
	Operating		Operating		Operating		Operating		General and		Net		Depletion and		from		Expenditures
	Revenues		Revenues(a)		Revenues		Expenses		Administrative		Expenses(b)		Amortization		Operations(c)		(d)
Nine Months Ended September 30:
2025
Collection and Disposal:
East Tier	$	6,768	$	1,826	$	8,594	$	5,336	$	264	$	54	$	810	$	2,130	$	905
West Tier		6,561		1,620		8,181		5,066		257		2		692		2,164		828
Other Ancillary		2,195		154		2,349		2,244		89		16		20		(20)		41
Collection and Disposal(e)(f)(g)		15,524		3,600		19,124		12,646		610		72		1,522		4,274		1,774
Recycling Processing and Sales(e)		1,137		280		1,417		1,175		45		161		131		(95)		167
WM Renewable Energy(f)		321		2		323		177		11		11		46		78		351
WM Healthcare Solutions(g)(h)		1,893		326		2,219		1,507		434		27		316		(65)		122
Corporate and Other(f)		16		23		39		28		965		7		78		(1,039)		(111)
Total	$	18,891	$	4,231	$	23,122	$	15,533	$	2,065	$	278	$	2,093	$	3,153	$	2,303
Intercompany Elimination(a)						(4,231)		(4,214)		(17)		—		—		—
Net						18,891		11,319		2,048		278		2,093		3,153
	Net		Intercompany		Gross				Selling,		Other		Depreciation,		Income		Capital
	Operating		Operating		Operating		Operating		General and		Net		Depletion and		from		Expenditures
	Revenues		Revenues(a)		Revenues		Expenses		Administrative		Expenses(b)		Amortization		Operations(c)		(d)
2024
Collection and Disposal:
East Tier	$	6,501	$	1,677	$	8,178	$	5,079	$	274	$	4	$	757	$	2,064	$	726
West Tier		6,207		1,529		7,736		4,829		278		(19)		639		2,009		725
Other Ancillary		2,014		135		2,149		2,053		87		(2)		20		(9)		40
Collection and Disposal(e)(f)		14,722		3,341		18,063		11,961		639		(17)		1,416		4,064		1,491
Recycling Processing and Sales(e)		1,205		209		1,414		1,207		46		(1)		93		69		351
WM Renewable Energy(f)		225		3		228		120		8		7		26		67		361
Corporate and Other(f)		18		18		36		98		839		75		80		(1,056)		15
Total	$	16,170	$	3,571	$	19,741	$	13,386	$	1,532	$	64	$	1,615	$	3,144	$	2,218
Intercompany Elimination(a)						(3,571)		(3,556)		(15)		—		—		—
Net						16,170		9,830		1,517		64		1,615		3,144

(a) Includes each segment’s intercompany activity, including transactions within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.

(b) Other net expenses include restructuring expenses, (gain) loss from divestitures, and asset impairments and unusual items, net.

(c) For those items included in the determination of income from operations, the accounting policies of the segments are the same as those described in Note 1.

(d) Includes non-cash items. Additionally, our Corporate and Other business recognizes construction work in progress for fleet purchases during the period. Capital expenditures are reported in our reportable segments at the time they are recorded within the segments’ property and equipment balances and, therefore, include timing differences for amounts accrued but not yet paid as well as amounts transferred from Corporate and Other for fleet placed in service.

(e) Certain fees related to the processing of recyclable material we collect are included within our Collection and Disposal businesses. The amounts in income from operations for the three and nine months ended September 30, 2025 are $19 million and $59 million, respectively. The amounts in income from operations for three and nine months ended September 30, 2024, are $29 million and $77 million, respectively.

(f) WM Renewable Energy pays a 15% intercompany royalty to our Collection and Disposal and Corporate and Other businesses for landfill gas. The total amount of royalties in gross and intercompany operating revenues for the East Tier, West Tier, and Corporate and Other and in operating expenses for WM Renewable Energy for the three and nine months ended September 30, 2025 are $17 million and $48 million, respectively. The total amount of royalties in gross and intercompany operating revenues for the East Tier, West Tier, and Corporate and Other and in operating

expenses for WM Renewable Energy for the three and nine months ended September 30, 2024 are $13 million and $34 million, respectively. Prior to the fourth quarter of 2024, amounts related to intercompany royalty payments were adjusted through income from operations. Prior periods have been recast to conform to current year presentation.

(g) Our Collection and Disposal business records intercompany operating revenue for collection and disposal services provided to WM Healthcare Solutions.  The total amount of intercompany operating revenues reflected in our Collection and Disposal businesses and in operating expenses for WM Healthcare Solutions for the three and nine months ended September 30, 2025 are $16 million and $36 million, respectively.

(h) In the third quarter of 2025, as a result of continued integration efforts and to enhance transparency and accountability, the Company began reflecting intra-segment activity within the WM Healthcare Solutions segment. These charges were designed to measure profitability at more granular levels of the enterprise and to facilitate clearer financial accountability within operating units. Accordingly, adjustments to the nine months ended September 30, 2025 were made to properly reflect the year to date intra-segment activity. Intra-segment operating revenues and operating expenses within WM Healthcare Solutions for the three and nine months ended September 30, 2025 are $108 million and $315 million, respectively.

Total assets by reportable segment are presented in the table below as follows (in millions):

	September 30,		December 31,
	2025		2024
Collection and Disposal:
East Tier	$	15,964	$	15,328
West Tier		12,049		11,786
Other Ancillary		808		779
Collection and Disposal		28,821		27,893
Recycling Processing and Sales		2,710		2,686
WM Renewable Energy		1,879		1,544
WM Healthcare Solutions		9,098		9,406
Corporate and Other		4,019		3,785
Elimination of intercompany investments and advances		(919)		(747)
Total assets, per Condensed Consolidated Balance Sheet	$	45,608	$	44,567

The mix of operating revenues from our major lines of business for the three and nine months ended September 30 are as follows (in millions):

	Net		Intercompany		Gross
	Operating		Operating		Operating
	Revenues		Revenues (a)(b)		Revenues
Three Months Ended September 30:
2025
Commercial	$	1,419	$	223	$	1,642
Industrial		808		234		1,042
Residential		884		22		906
Other collection		819		69		888
Total collection		3,930		548		4,478
Landfill		995		407		1,402
Transfer		396		294		690
Total Collection and Disposal		5,321		1,249		6,570
Recycling Processing and Sales		372		98		470
WM Renewable Energy		115		1		116
WM Healthcare Solutions		628		110		738
Corporate and Other		7		7		14
Total	$	6,443	$	1,465	$	7,908
2024
Commercial	$	1,359	$	205	$	1,564
Industrial		797		206		1,003
Residential		875		22		897
Other collection		765		57		822
Total collection		3,796		490		4,286
Landfill		923		388		1,311
Transfer		365		276		641
Total Collection and Disposal		5,084		1,154		6,238
Recycling Processing and Sales		432		71		503
WM Renewable Energy		87		1		88
Corporate and Other		6		5		11
Total	$	5,609	$	1,231	$	6,840

	Net		Intercompany		Gross
	Operating		Operating		Operating
	Revenues		Revenues (a)(b)		Revenues
Nine Months Ended September 30:
2025
Commercial	$	4,197	$	657	$	4,854
Industrial		2,339		656		2,995
Residential		2,628		66		2,694
Other collection		2,368		209		2,577
Total collection		11,532		1,588		13,120
Landfill		2,871		1,170		4,041
Transfer		1,121		842		1,963
Total Collection and Disposal		15,524		3,600		19,124
Recycling Processing and Sales		1,137		280		1,417
WM Renewable Energy		321		2		323
WM Healthcare Solutions		1,893		326		2,219
Corporate and Other		16		23		39
Total	$	18,891	$	4,231	$	23,122
2024
Commercial	$	4,005	$	586	$	4,591
Industrial		2,323		592		2,915
Residential		2,592		67		2,659
Other collection		2,192		162		2,354
Total collection		11,112		1,407		12,519
Landfill		2,588		1,137		3,725
Transfer		1,022		797		1,819
Total Collection and Disposal		14,722		3,341		18,063
Recycling Processing and Sales		1,205		209		1,414
WM Renewable Energy		225		3		228
Corporate and Other		18		18		36
Total	$	16,170	$	3,571	$	19,741

(a) Includes each segment’s intercompany activity, including transactions within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.

(b) Beginning with the 2024 Form 10-K, the Company adjusted gross and intercompany operating revenues to reflect the 15% royalty paid by WM Renewable Energy to our Collection and Disposal and Corporate and Other businesses for the purchase of landfill gas. There was no change to net operating revenues. Prior periods have been recast to conform to current presentation.

Our financial and operating results may fluctuate for many reasons, including period-to-period changes in the relative contribution of revenue by each line of business, changes in commodity prices and general economic conditions. Our operating revenues and volumes typically experience seasonal increases in the summer months that are reflected in second and third quarter revenues and results of operations.

Service or operational disruptions caused by severe storms, extended periods of inclement weather or climate events can significantly affect the operating results of the geographic areas affected. Extreme weather events may also lead to supply chain disruption and delayed project development, or disruption of our customers’ businesses, reducing the amount of waste generated by their operations.

Conversely, certain destructive weather and climate conditions, such as wildfires in the Western U.S. and hurricanes that most often impact our operations in the Southern and Eastern U.S. during the second half of the year, can increase our revenues in the geographic areas affected as a result of the waste volumes generated by these events.