Segment and Related Information

6 Months Ended

Jun. 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 six months ended June 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(f)		Amortization		Operations(b)		(c)
Three Months Ended June 30:
2025
Collection and Disposal:
East Tier	$	2,292	$	630	$	2,922	$	1,833	$	88	$	8	$	272	$	721	$	360
West Tier		2,251		554		2,805		1,721		86		2		239		757		335
Other Ancillary		738		51		789		753		31		16		6		(17)		12
Collection and Disposal(d)(e)		5,281		1,235		6,516		4,307		205		26		517		1,461		707
Recycling Processing and Sales(d)		381		101		482		398		14		1		45		24		70
WM Renewable Energy(e)		115		—		115		59		3		—		15		38		115
WM Healthcare Solutions		646		1		647		406		150		9		105		(23)		46
Corporate and Other(e)		7		8		15		7		331		—		26		(349)		(123)
Total	$	6,430	$	1,345	$	7,775	$	5,177	$	703	$	36	$	708	$	1,151	$	815
Intercompany Elimination						(1,345)		(1,338)		(7)		—		—		—
Net						6,430		3,839		696		36		708		1,151
	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(f)		Amortization		Operations(b)		(c)
2024
Collection and Disposal:
East Tier	$	2,178	$	566	$	2,744	$	1,708	$	89	$	2	$	253	$	692	$	245
West Tier		2,076		518		2,594		1,614		92		—		214		674		218
Other Ancillary		668		45		713		683		29		—		8		(7)		11
Collection and Disposal(d)(e)		4,922		1,129		6,051		4,005		210		2		475		1,359		474
Recycling Processing and Sales(d)		405		70		475		399		16		—		31		29		140
WM Renewable Energy(e)		69		1		70		40		3		—		9		18		123
Corporate and Other(e)		6		8		14		50		277		56		28		(397)		39
Total	$	5,402	$	1,208	$	6,610	$	4,494	$	506	$	58	$	543	$	1,009	$	776
Intercompany Elimination						(1,208)		(1,203)		(5)		—		—		—
Net						5,402		3,291		501		58		543		1,009

	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(f)		Amortization		Operations(b)		(c)
Six Months Ended June 30:
2025
Collection and Disposal:
East Tier	$	4,432	$	1,188	$	5,620	$	3,523	$	176	$	8	$	523	$	1,390	$	557
West Tier		4,333		1,060		5,393		3,328		169		2		458		1,436		557
Other Ancillary		1,438		103		1,541		1,471		61		16		13		(20)		29
Collection and Disposal(d)(e)		10,203		2,351		12,554		8,322		406		26		994		2,806		1,143
Recycling Processing and Sales(d)		765		182		947		786		29		6		84		42		108
WM Renewable Energy(e)		206		1		207		114		6		—		30		57		237
WM Healthcare Solutions		1,265		9		1,274		789		305		18		206		(44)		80
Corporate and Other(e)		9		16		25		22		649		1		50		(697)		(112)
Total	$	12,448	$	2,559	$	15,007	$	10,033	$	1,395	$	51	$	1,364	$	2,164	$	1,456
Intercompany Elimination						(2,559)		(2,547)		(12)		—		—		—
Net						12,448		7,486		1,383		51		1,364		2,164
	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(f)		Amortization		Operations(b)		(c)
2024
Collection and Disposal:
East Tier	$	4,259	$	1,093	$	5,352	$	3,332	$	178	$	2	$	494	$	1,346	$	421
West Tier		4,069		1,005		5,074		3,172		183		—		418		1,301		419
Other Ancillary		1,310		89		1,399		1,339		58		(2)		13		(9)		23
Collection and Disposal(d)(e)		9,638		2,187		11,825		7,843		419		—		925		2,638		863
Recycling Processing and Sales(d)		773		138		911		773		30		—		60		48		227
WM Renewable Energy(e)		138		2		140		79		5		—		17		39		214
Corporate and Other(e)		12		13		25		66		548		56		55		(700)		25
Total	$	10,561	$	2,340	$	12,901	$	8,761	$	1,002	$	56	$	1,057	$	2,025	$	1,329
Intercompany Elimination						(2,340)		(2,330)		(10)		—		—		—
Net						10,561		6,431		992		56		1,057		2,025

(a) Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany sales 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) 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.

(c) 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.

(d) 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 six months ended June 30, 2025 are $20 million and $40 million, respectively. The amounts in income from operations for three and six months ended June 30, 2024, are $26 million and $48 million, respectively.

(e) 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 six months ended June 30, 2025 are $17 million and $31 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 six months ended June 30, 2024 are $11 million and $21 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.

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

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

	June 30,		December 31,
	2025		2024
Collection and Disposal:
East Tier	$	15,875	$	15,328
West Tier		11,933		11,786
Other Ancillary		819		779
Collection and Disposal		28,627		27,893
Recycling Processing and Sales		2,850		2,686
WM Renewable Energy		1,788		1,544
WM Healthcare Solutions		9,218		9,406
Corporate and Other		4,151		3,785
Elimination of intercompany investments and advances		(912)		(747)
Total assets, per Condensed Consolidated Balance Sheet	$	45,722	$	44,567

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

	Net		Intercompany		Gross
	Operating		Operating		Operating
	Revenues		Revenues (a)(b)		Revenues
Three Months Ended June 30:
2025
Commercial	$	1,398	$	220	$	1,618
Industrial		790		223		1,013
Residential		872		22		894
Other collection		796		68		864
Total collection		3,856		533		4,389
Landfill		1,036		410		1,446
Transfer		389		292		681
Total Collection and Disposal		5,281		1,235		6,516
Recycling Processing and Sales		381		101		482
WM Renewable Energy		115		—		115
WM Healthcare Solutions		646		1		647
Corporate and Other		7		8		15
Total	$	6,430	$	1,345	$	7,775
2024
Commercial	$	1,330	$	196	$	1,526
Industrial		779		199		978
Residential		863		23		886
Other collection		729		52		781
Total collection		3,701		470		4,171
Landfill		873		389		1,262
Transfer		348		270		618
Total Collection and Disposal		4,922		1,129		6,051
Recycling Processing and Sales		405		70		475
WM Renewable Energy		69		1		70
Corporate and Other		6		8		14
Total	$	5,402	$	1,208	$	6,610

	Net		Intercompany		Gross
	Operating		Operating		Operating
	Revenues		Revenues (a)(b)		Revenues
Six Months Ended June 30:
2025
Commercial	$	2,778	$	434	$	3,212
Industrial		1,531		422		1,953
Residential		1,744		44		1,788
Other collection		1,549		140		1,689
Total collection		7,602		1,040		8,642
Landfill		1,876		763		2,639
Transfer		725		548		1,273
Total Collection and Disposal		10,203		2,351		12,554
Recycling Processing and Sales		765		182		947
WM Renewable Energy		206		1		207
WM Healthcare Solutions		1,265		9		1,274
Corporate and Other		9		16		25
Total	$	12,448	$	2,559	$	15,007
2024
Commercial	$	2,646	$	381	$	3,027
Industrial		1,526		386		1,912
Residential		1,717		45		1,762
Other collection		1,427		105		1,532
Total collection		7,316		917		8,233
Landfill		1,665		749		2,414
Transfer		657		521		1,178
Total Collection and Disposal		9,638		2,187		11,825
Recycling Processing and Sales		773		138		911
WM Renewable Energy		138		2		140
Corporate and Other		12		13		25
Total	$	10,561	$	2,340	$	12,901

(a) Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany sales 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. While weather-related and other event-driven special projects can boost revenues through additional work for a limited time, due to significant start-up costs and other factors, such revenue can generate earnings at comparatively lower margins.