WASTE MANAGEMENT INC

Previous wording

reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. We own or operate the largest network of landfills throughout the U.S. and Canada. In order to make disposal more practical for larger urban markets, where the distance to landfills is typically farther, we manage transfer stations that consolidate, compact and transport waste efficiently and economically. Our solid waste business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, recycling and resource recovery services. Through our Renewable Energy segment, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S. and Canada that produce renewable electricity and renewable natural gas (“RNG”), which is a significant source of fuel that we allocate to our natural gas fleet. Our Healthcare Solutions segment provides regulated waste and compliance services (“RWCS”) and secure information destruction (“SID”) services in the U.S., Canada and Western Europe that protect people and brands, promote health and well-being and safeguard the environment. Additionally, through our Recycling Processing and Sales segment, we are a leading recycler in the U.S. and Canada, handling materials that include paper, cardboard, glass, plastic and metal.

Current wording

We are North America’s leading provider of comprehensive environmental solutions, providing services throughout the United States (“U.S.”) and Canada. We partner with our customers and the communities we serve to manage and reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. We own or operate the largest network of landfills throughout the U.S. and Canada. In order to make disposal more practical for larger urban markets, where the distance to landfills is typically farther, we manage transfer stations that consolidate, compact and transport waste efficiently and economically. Our solid waste business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, recycling and resource recovery services. Through our Renewable Energy segment, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S. and Canada that produce renewable electricity and renewable natural gas (“RNG”), which is a significant source of fuel that we allocate to our natural gas fleet. Our Healthcare Solutions segment provides regulated waste and compliance services and secure information destruction services in the U.S., Canada and Western Europe that protect people and brands, promote health and well-being and safeguard the environment. Additionally, through our Recycling Processing and Sales segment, we are a leading recycler in the U.S. and Canada, handling materials that include paper, cardboard, glass, plastic and metal.

Previous wording

The waste industry is a comparatively mature and stable industry. However, customers increasingly expect more of their waste materials to be recovered and those waste streams are becoming more complex. In addition, many state and local governments mandate diversion, recycling and waste reduction at the source and prohibit the disposal of certain types of waste at landfills. We monitor these developments to adapt our service offerings. As companies, individuals and communities look for ways to be more sustainable, we promote our comprehensive services that go beyond our core business of collecting and disposing of waste in order to meet their needs. This includes expanding traditional recycling services, increasing organics collection and processing, providing medical waste services and expanding our renewable energy projects to meet the evolving needs of our diverse customer base. As North America’s leading provider of comprehensive environmental solutions, we are taking big, bold steps to catalyze positive change – change that will impact our Company as well as the communities we serve. Consistent with our Company’s long-standing commitment to sustainability and environmental stewardship, we have published our 2026 Sustainability Report, providing details on our

Current wording

The waste industry is a comparatively mature and stable industry. However, customers increasingly expect more of their waste materials to be recovered and those waste streams are becoming more complex. In addition, many state and local governments mandate diversion, recycling and waste reduction at the source and prohibit the disposal of certain types of waste at landfills. We monitor these developments to adapt our service offerings. As companies, individuals and communities look for ways to be more sustainable, we promote our comprehensive services that go beyond our core business of collecting and disposing of waste in order to meet their needs. This includes expanding traditional recycling services, increasing organics collection and processing, providing medical waste services and expanding our renewable energy projects to meet the evolving needs of our diverse customer base. As North America’s leading provider of comprehensive environmental solutions, we are taking big, bold steps to catalyze positive change – change that will impact our Company as well as the communities we serve. Consistent with our Company’s long-standing commitment to sustainability and environmental stewardship, we have published our 2026 Sustainability Report, providing details on our sustainability-related performance and outlining progress towards our 2030 sustainability goals. The 2026 Sustainability Report conveys the strong linkage between the Company’s sustainability goals and our growth strategy, inclusive of the expansion of the Company’s Recycling Processing and Sales and Renewable Energy segments. The information in this report can be found at sustainability.wm.com but it does not constitute a part of, and is not incorporated by reference into, this Quarterly Report on Form 10-Q.

Previous wording

We sometimes experience margin pressures and variability in earnings and margins from our commodity-driven businesses, specifically within our Recycling Processing and Sales and Renewable Energy segments. During the first half of 2026, we continued to experience decreases in market prices for recycled commodities when compared to the prior year period. Additionally, we experienced declines in commodity prices from the prior year period that had an unfavorable impact on the Renewable Energy segment. We continue to take proactive steps to adjust our business models to protect against the down side risk of changes in commodity prices.

Current wording

We sometimes experience variability in earnings and margins from our commodity-driven businesses, specifically within our Recycling Processing and Sales and Renewable Energy segments. During the nine months ended September 30, 2026, market prices for recycled commodities declined when compared to the prior year period. Additionally, we experienced declines in commodity prices from the prior year period that had an unfavorable impact on the Renewable Energy segment. We continue to take proactive steps to adjust our business models to protect against the downside risk of changes in commodity prices.

Previous wording

Variability in economic conditions, including inflation, interest rates, employment trends and supply chain reliability, can create risk and uncertainty in financial outlook. We take proactive steps to recover and mitigate inflationary cost pressures through our overall pricing efforts and by managing our costs through efficiency, labor productivity and investments in technology to automate certain aspects of our business. We remain committed to putting our people first to ensure that they are well positioned to execute our daily operations diligently and safely. We remain focused on delivering outstanding customer service, managing our variable costs with changing volumes and investing in technology that will enhance our customers’ experience and provide operating efficiencies intended to reduce our cost to serve.

Current wording

Variability in economic conditions, including inflation, interest rates, employment trends and supply chain reliability, can create risk and uncertainty in our financial outlook. We take proactive steps to recover and mitigate inflationary cost pressures through our overall pricing efforts and by managing our costs through efficiency, labor productivity and investments in technology to automate certain aspects of our business. We remain committed to putting our people first to ensure that they are well positioned to execute our daily operations diligently and safely. We remain focused on delivering outstanding customer service, managing our variable costs with changing volumes and investing in technology that will enhance our customers’ experience and provide operating efficiencies intended to reduce our cost to serve.

Previous wording

During the second quarter of 2026, we continued to focus on our priorities to advance our strategy – growing the core business by focusing on customer lifetime value; delivering operational excellence and capitalizing on network advantages; capturing and enhancing returns from our investments in our Recycling Processing and Sales and Renewable Energy segments and driving accretive growth as we take our Healthcare Solutions segment from integration to scalable growth. We continue to invest in our people through paying a competitive market wage, investing in our digital platform

Current wording

During the third quarter of 2026, we continued to focus on our priorities to advance our strategy – growing the core business by focusing on customer lifetime value; delivering operational excellence and capitalizing on network advantages; capturing and enhancing returns from our investments in our Recycling Processing and Sales and Renewable Energy segments and driving accretive growth as we take our Healthcare Solutions segment from integration to scalable growth. We continue to invest in our people through paying a competitive market wage, investing in our digital platform and providing training for our team members. During the third quarter of 2026, we also allocated $957 million of available cash to our shareholders through dividends and common stock repurchases.

Previous wording

Key elements of our financial results for the second quarter of 2026 include:

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Key elements of our financial results for the third quarter of 2026 include:

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

Current wording

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

Previous wording

The significant items affecting revenues during the three and six months ended June 30, 2026, as compared to the prior year periods, are summarized below:

Current wording

The significant items affecting revenues during the three and nine months ended September 30, 2026, as compared to the prior year periods, are summarized below:

Previous wording

Our overall pricing efforts are focused on keeping pace with the increasing costs and capital intensity of our business. We continue to see yield growth in our landfill business primarily driven by municipal solid waste, which achieved average yield of 5.2% and 5.9% for the three and six months ended June 30, 2026, respectively.

Current wording

Our overall pricing efforts are focused on keeping pace with the increasing costs and capital intensity of our business. We continue to see yield growth in our landfill business primarily driven by municipal solid waste, which achieved average yield of 4.2% and 5.3% for the three and nine months ended September 30, 2026, respectively.

Previous wording

Recycling Processing and Sales and Renewable Energy — Recycling Processing and Sales revenues attributable to yield decreased $2 million and $30 million for the three and six months ended June 30, 2026, respectively, as compared to the prior year periods. Average market prices for single-stream recycled commodities declined by about 10% and 20% for the three and six months ended June 30, 2026, respectively, as compared to the prior year periods. Revenues attributable to yield in our Renewable Energy segment decreased $4 million and $13 million for the three and six months ended June 30, 2026, respectively, as compared to the prior year periods primarily due to lower RNG pricing, partially offset by higher electricity prices. While there may be short-term fluctuations in our commodity-driven businesses as prices change, we believe that our business models and processes appropriately mitigate the downside risk of changes in commodity prices.

Current wording

Recycling Processing and Sales and Renewable Energy — Recycling Processing and Sales revenues attributable to yield increased $51 million and $21 million for the three and nine months ended September 30, 2026, respectively, as compared to the prior year periods. Average market prices for single-stream recycled commodities increased 20% and decreased 7% for the three and nine months ended September 30, 2026, respectively, as compared to the prior year periods. Higher processing fee revenue from our recycling facilities more than offset commodity declines, driving yield growth for the nine months ended September 30, 2026. Revenues attributable to yield in our Renewable Energy segment decreased $8 million and $20 million for the three and nine months ended September 30, 2026, respectively, as compared to the prior year periods, primarily due to lower RNG pricing, partially offset by higher electricity prices. While there may be short-term fluctuations in our commodity-driven businesses as prices change, we believe that our business models and processes appropriately mitigate the downside risk of changes in commodity prices.

Previous wording

*Energy Surcharge and Mandated Fees —*These fees increased $102 million and $122 million for the three and six months ended June 30, 2026, respectively, as compared to the prior year periods. The increase in energy surcharge revenues was primarily due to an increase of approximately 50% and 30% in market prices for diesel fuel for three and six months ended June 30, 2026, respectively, as compared to the prior year periods.

Current wording

Energy Surcharge and Mandated Fees —These fees increased $112 million and $234 million for the three and nine months ended September 30, 2026, respectively, as compared to the prior year periods. The increase in energy surcharge revenues was primarily due to an increase of approximately 50% and 40% in market prices for diesel fuel for the three and nine months ended September 30, 2026, respectively, as compared to the prior year periods.

Previous wording

Our revenues from volume (excluding volumes from acquisitions and divestitures, as well as Healthcare Solutions) decreased $22 million, or 0.3%, and $10 million, or 0.1%, for the three and six months ended June 30, 2026, respectively, as compared to the prior year periods. Volume increased in both our Recycling Processing Sales and our Renewable Energy segments primarily due to contributions from recycling automation and growth projects and new renewable natural gas plants. These volume increases were largely offset by special waste volume declines compared to the prior year periods, which benefited from wildfire cleanup activities in the West Tier, and volume declines in our collection business primarily due to our intentional shedding of lower-margin residential business. Additionally, the six months ended June 30, 2026 was negatively impacted by harsh winter weather conditions in the first quarter of 2026.

Current wording

Our revenues from volume (excluding volumes from acquisitions and divestitures, as well as Healthcare Solutions) increased $53 million, or 0.8%, and $43 million, or 0.2%, for the three and nine months ended September 30, 2026, respectively, as compared to the prior year periods. Volume increased in both our Recycling Processing and Sales and our Renewable Energy segments primarily due to contributions from recycling automation and growth projects and new renewable natural gas plants. These volume increases were largely offset by declines in our collection business primarily due to our intentional shedding of lower-margin residential business and lower commercial collection volumes. Additionally, during the nine months ended September 30, 2026, special waste volumes declined compared to the prior year period, which benefited from wildfire cleanup activities in the West Tier.

Previous wording

Revenues from our Healthcare Solutions segment for three and six months ended June 30, 2026, decreased $30 million, or 0.5%, and $42 million, or 0.3%, respectively, as compared to the prior year periods as contributions from pricing activities were more than offset by declines in volumes.

Current wording

Revenues from our Healthcare Solutions segment were relatively unchanged for the three months ended September 30, 2026 and decreased $42 million, or 0.2%, for the nine months ended September 30, 2026, as compared to the prior year periods, as contributions from pricing activities were meaningfully offset by declines in volumes.

Previous wording

Acquisitions and divestitures resulted in a net increase in revenues of $28 million, or 0.5%, and $59 million, or 0.5%, for the three and six months ended June 30, 2026, respectively, as compared to the prior year periods primarily due to our investments in tuck-in collection and disposal businesses.

Current wording

Acquisitions and divestitures resulted in a net increase in revenues of $28 million, or 0.5%, and $87 million, or 0.4%, for the three and nine months ended September 30, 2026, respectively, as compared to the prior year periods primarily due to our investments in tuck-in collection and disposal businesses.

Previous wording

The following table summarizes the major components of our operating expenses for the three and six months ended June 30 (in millions of dollars and as a percentage of revenues):

Current wording

The following table summarizes the major components of our operating expenses for the three and nine months ended September 30 (in millions of dollars and as a percentage of revenues):

Previous wording

Our operating expenses for the three and six months ended June 30, 2026 increased as compared to the prior year periods, primarily due to (i) higher fuel prices; (ii) annual employee wage increases and higher employee medical costs and (iii) growth in our Renewable Energy segment. These increases were partially offset by (i) the Company’s ability to flex spending with lower collection and special waste volumes and (ii) continued operating efficiency and cost control initiatives.

Current wording

Our operating expenses for the three and nine months ended September 30, 2026 increased as compared to the prior year periods, primarily due to (i) higher fuel prices; (ii) increased risk management costs; (iii) annual employee wage increases and higher employee medical costs and (iv) growth in our Renewable Energy segment. These increases were partially offset by (i) the Company’s ability to flex spending with lower collection and special waste volumes and (ii) continued operating efficiency and cost control initiatives.

Previous wording

The significant items affecting operating expenses during the three and six months ended June 30, 2026, as compared to the prior year periods, are summarized below:

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The significant items affecting operating expenses during the three and nine months ended September 30, 2026, as compared to the prior year periods, are summarized below:

Previous wording

Labor and Related Benefits —The increase in labor and related benefits costs was primarily due to annual employee wage increases and an increase in employee medical costs as compared with the prior year periods. These increases were partially offset by (i) the Company’s ability to flex spending with lower collection and special waste volumes; (ii) collection efficiency improvements and (iii) improved driver retention.

Current wording

Labor and Related Benefits — The increase in labor and related benefits costs was primarily due to annual employee wage increases and an increase in employee medical costs as compared with the prior year periods. These increases were partially offset by (i) lower annual incentive compensation; (ii) the Company’s ability to flex spending with volume changes; (iii) residential collection efficiency improvements and (iv) improved driver retention.

Previous wording

Transfer and Disposal Costs — The decrease in transfer and disposal costs for the three and six months ended June 30, 2026, as compared to the prior year periods, was primarily due to lower residential volumes attributable to intentional shedding of lower-margin contracts. Lower transfer and disposal volumes caused by harsh winter weather during the first quarter of 2026 further contributed to the cost decrease for the six months ended June 30, 2026 as compared to the prior year period.

Current wording

Transfer and Disposal Costs — The increase in transfer and disposal costs for the three and nine months ended September 30, 2026, as compared to the prior year periods, was primarily due to increased disposal fees at third-party sites and higher rates from our third-party haulers due to increases in fuel costs. This increase was partially offset by lower transfer and disposal volumes attributable to harsh winter weather during the first quarter of 2026 and intentional shedding of lower margin residential contracts.

Previous wording

Maintenance and Repairs — The increase in maintenance and repairs costs was primarily due to annual wage increases and increased maintenance technician headcount. The increase was partially offset by reduced demand for third-party services driven by fleet and operational optimization.

Current wording

Maintenance and Repairs — The increase in maintenance and repairs costs was primarily due to (i) annual wage increases and increased maintenance technician headcount as the result of an effort to reduce reliance on third-party services; (ii) increased costs for parts, supplies and third-party services driven by inflation and (iii) growth of our Renewable Energy segment. The increase was partially offset by reduced demand for third-party services driven by fleet and operational optimization.

Previous wording

Cost of Goods Sold — The decrease in cost of goods sold was primarily due to fluctuations in average market prices for single-stream recycling commodities discussed above. This decrease was partially offset by additional pipeline transportation costs attributable to new RNG facilities brought online during 2025 and 2026.

Current wording

Cost of Goods Sold — The changes in cost of goods sold were primarily due to fluctuations in average market prices for single-stream recycling commodities discussed above. Additional pipeline transportation costs attributable to new RNG facilities brought online during 2025 and 2026 also increased costs for the three and nine months ended September 30, 2026.

Previous wording

Disposal and Franchise Fees and Taxes — The increase in disposal and franchise fees and taxes was primarily due to an increase in landfill host fees and other fees and taxes paid to municipalities on our disposal volumes.

Current wording

Disposal and Franchise Fees and Taxes — The increase in disposal and franchise fees and taxes was primarily due to an increase in landfill host fees and other fees and taxes paid to municipalities on our disposal volumes and an increase in collection franchise fees in certain markets.

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Landfill Operating Costs — The increase in landfill operating costs was primarily due to higher leachate treatment costsin our West Tier.

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Landfill Operating Costs — The increase in landfill operating costs was primarily due to higher leachate treatment costsin our West and East Tiers.

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Risk Management — The increase in risk management costs was primarily due increased claims costs as compared to the prior year periods.

Current wording

Risk Management — The increase in risk management costs was primarily due to increased claims costs as compared to the prior year periods and an insurance recovery benefiting the third quarter of 2025 associated with a 2022 transfer station fire.

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The following table summarizes the major components of our selling, general and administrative expenses for the three and six months ended June 30 (in millions of dollars and as a percentage of revenues):

Current wording

The following table summarizes the major components of our selling, general and administrative expenses for the three and nine months ended September 30 (in millions of dollars and as a percentage of revenues):

Previous wording

Selling, general and administrative expenses decreased for the three months ended June 30, 2026, as compared to the prior year period, primarily due to decreases in professional fees and lower labor costs resulting from synergies achieved from our acquisitions, particularly Stericycle, partially offset by higher bad debt expenses. Selling, general and administrative expenses increased for the six months ended June 30, 2026, as compared to the prior year period, primarily due to increases in bad debt expenses and technology costs, partially offset by lower professional fees.

Current wording

Selling, general and administrative expenses decreased for the three months ended September 30, 2026, as compared to the prior year period, primarily due to decreases in labor costs resulting from synergies achieved from our acquisitions, particularly Stericycle, partially offset by higher bad debt expenses. Selling, general and administrative expenses decreased for the nine months ended September 30, 2026, as compared to the prior year period, primarily due to lower professional fees and continued synergies in labor offset by increases in bad debt expenses and technology costs.

Previous wording

The significant items affecting selling, general and administrative expenses during the three and six months ended June 30, 2026, as compared to the prior year periods, are summarized below:

Current wording

The significant items affecting selling, general and administrative expenses during the three and nine months ended September 30, 2026, as compared to the prior year periods, are summarized below:

Previous wording

*Labor and Related Benefits —*The decrease in labor and related benefits costs for the three months ended June 30, 2026, as compared to the prior year period, was primarily due to a reduction in workforce as we achieved synergies from our acquisitions, particularly Stericycle, and lower annual incentive compensation costs. These decreases were partially offset by annual employee wage increases. The increase in labor and related benefits costs for the six months ended June 30, 2026, as compared to the prior year period, was primarily due to annual employee wage increases and higher long-term incentive compensation costs. These increases were partially offset by a reduction in workforce as we achieved synergies from our acquisitions, particularly Stericycle.

Current wording

Labor and Related Benefits —The decrease in labor and related benefits costs was primarily due to a reduction in workforce as we achieved synergies from our acquisitions, particularly Stericycle, and lower annual incentive compensation costs. These decreases were partially offset by annual employee wage increases and, for the nine months ended September 30, 2026, higher long term incentive compensation.

Previous wording

Provision for Bad Debts— The increase in provision for bad debts in both the three and six months ended June 30, 2026 was primarily due to increased receivable balances in our Collection and Disposal business driven by increased revenues. The increase for the six months ended June 30, 2026 as compared to the prior year period was also driven by favorable adjustments to the provision for bad debts that benefited the first quarter of 2025.

Current wording

Provision for Bad Debts— The increase in provision for bad debts in the three months ended September 30, 2026, as compared to the prior year period, was primarily due to a favorable adjustment related to our Healthcare Solutions segment that reduced the provision for bad debts in the third quarter of 2025. The increase for the nine months ended September 30, 2026, as compared to the prior year period, was primarily driven by increased write-offs of specific accounts within our Collection and Disposal business and an unfavorable adjustment related to specific accounts within our Healthcare Solutions segment in 2026.

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The following table summarizes the components of our depreciation, depletion, amortization and accretion expenses for the three and six months ended June 30 (in millions of dollars and as a percentage of revenues):

Current wording

The following table summarizes the components of our depreciation, depletion, amortization and accretion expenses for the three and nine months ended September 30 (in millions of dollars and as a percentage of revenues):

Previous wording

The increase in depreciation of tangible property and equipment for the three and six months ended June 30, 2026, as compared to the prior year periods, was primarily due to investments in capital assets placed in service during 2025 and 2026, particularly within our sustainability businesses. The increase in depletion of landfill airspace for the three and six months ended June 30, 2026, as compared to the prior year periods, was primarily due to** **changes in rates from revisions in landfill estimates within our East Tier. The decrease in amortization of intangible assets for the three and six months ended June 30, 2026, as compared to the prior year periods, was primarily due to the conclusion of amortization related to customer relationships and other intangibles acquired as a result of acquisitions during prior years within our East Tier. The increase in interest accretion on landfill and environmental remediation liabilities for the three and six months ended June 30, 2026, as compared to the prior year periods, was primarily due to revisions in landfill estimates.

Current wording

The increase in depreciation of tangible property and equipment for the three and nine months ended September 30, 2026, as compared to the prior year periods, was primarily due to investments in capital assets placed in service during 2025 and 2026, particularly within our sustainability businesses. The increase in depletion of landfill airspace for the three and nine months ended September 30, 2026, as compared to the prior year periods, was primarily due to changes in rates from revisions in landfill estimates within our East Tier, partially offset by volume declines in our West Tier. The decrease in amortization of intangible assets for the three and nine months ended September 30, 2026, as compared to the prior year periods, was due to a reduction in amortization associated with our Healthcare Solutions business and the conclusion of amortization related to a prior year acquisition within our East Tier. The increase in interest accretion on landfill and environmental remediation liabilities for the three and nine months ended September 30, 2026, as compared to the prior year periods, was primarily due to revisions in landfill cost estimates.

Previous wording

Restructuring charges for the three and six months ended June 30, 2026 were not material. Restructuring charges for the three and six months ended June 30, 2025 were primarily due to employee costs related to integration of our November 2024 acquisition of Stericycle.

Current wording

Restructuring charges for the three and nine months ended September 30, 2026 were not material. Restructuring charges for the three and nine months ended September 30, 2025 were primarily due to employee costs related to integration of our November 2024 acquisition of Stericycle.

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(Gain) loss from divestitures, asset impairments and unusual items, net for the three months ended June 30, 2026 was not material. (Gain) loss from divestitures, asset impairments and unusual items, net for the six months ended June 30, 2026 primarily relates to a $34 million gain on a business divestiture in our West Tier, offset by immaterial charges related to legal and remediation liabilities.

Current wording

(Gain) loss from divestitures, asset impairments and unusual items, net for the three months ended September 30, 2026 primarily relates to an $18 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier. The nine months ended September 30, 2026 also includes a $34 million gain on a business divestiture in our West Tier, partially offset by immaterial charges related to legal and remediation liabilities.

Previous wording

(Gain) loss from divestitures, asset impairments and unusual items, net for the three and six months ended June 30, 2025, primarily relates to a $16 million goodwill impairment charge to a business engaged in oil recovery and sludge processing services. This charge is reflected in Other Ancillary within our Collection and Disposal business.

Current wording

(Gain) loss from divestitures, asset impairments and unusual items, net for the three months ended September 30, 2025 includes (i) a $152 million impairment charge related to the decision to suspend the operations of a business engaged in plastic film and wrap recycling within our Recycling Processing and Sales segment resulting from significant deterioration of market pricing and demand for post-consumer plastics; (ii) a $45 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier and (iii) an $11 million negotiated payment for early termination of a contract in our Renewable Energy segment. The nine months ended September 30, 2025 also includes a $16 million goodwill impairment charge related to a business engaged in oil recovery and sludge processing services reflected in Other Ancillary within our Collection and Disposal business.

Previous wording

The following table summarizes income from operations for our reportable segments for the three and six months ended June 30 (dollars in millions):

Current wording

The following table summarizes income from operations for our reportable segments for the three and nine months ended September 30 (dollars in millions):

Previous wording

The significant items affecting income from operations for our segments during the three and six months ended June 30, 2026, as compared to the prior year periods, are summarized below:

Current wording

The significant items affecting income from operations for our segments during the three and nine months ended September 30, 2026, as compared to the prior year periods, are summarized below:

Previous wording

*Collection and Disposal —*Income from operations in our Collection and Disposal business increased primarily due to (i) revenue growth from price increases, which translates into increased yield or average unit price; (ii) actions to improve efficiency and the operating costs incurred to serve our customers and (iii) a gain from a business divestiture in our West Tier recognized in the first quarter of 2026. These increases were partially offset by declines in special waste volume in our West Tier, which was favorably impacted by wildfire clean-up activities in the prior year periods, and lower volumes caused by harsh winter weather in early 2026.

Current wording

Collection and Disposal —Income from operations in our Collection and Disposal business increased primarily due to (i) revenue growth from price increases, which translates into increased yield or average unit price; (ii) actions to improve efficiency and the operating costs incurred to serve our customers and (iii) a $45 million impairment charge in the prior year period compared with an $18 million impairment charge in the current year period, both related to the decision to accelerate the closure of a landfill within our East Tier. These increases were partially offset by higher risk management costs. For the nine months ended September 30, 2026, the increases were further offset by declines in special waste volume in our West Tier, which was favorably impacted by wildfire clean-up activities in the prior year period, and lower volumes caused by harsh winter weather in early 2026.

Previous wording

*Recycling Processing and Sales —*The increase in income from operations in our Recycling Processing and Sales segment was primarily due to lower expenses from the suspension of a business engaged in plastic film and wrap recycling during 2025, increased volumes and reduced costs from the automation of our recycling facilities as well as investments in new facilities. These increases were partially offset by declines in commodity prices compared to the prior year periods.

Current wording

Recycling Processing and Sales —Our Recycling Processing and Sales segment generated income from operations compared to a loss in the prior year for both the three and nine months ended September 30, 2026. The improvement for the three months ended September 30, 2026 was primarily due to (i) a $152 million impairment charge related to the decision to suspend the operations of a business incurred in the third quarter of 2025 and lower related expenses from the suspension of the business; (ii) increased volumes and reduced costs from the automation of our recycling facilities as well as investments in new facilities and (iii) improved commodity pricing compared to the prior year periods. For the nine months ended September 30, 2026, these increases were partially offset by declines in commodity prices as compared to the prior year period.

Previous wording

*Healthcare Solutions —*Our Healthcare Solutions segment generated income from operations in the three months ended June 30, 2026 and a loss from operations in the six months ended June 30, 2026. The improvement across both time periods is primarily due to non-recurring integration costs incurred during the prior year periods along with lower costs in the current year from the realization of synergies, offset by lower volumes.

Current wording

Healthcare Solutions —Our Healthcare Solutions segment generated income from operations compared to a loss in the prior year for both the three and nine months ended September 30, 2026. The improvement across both time periods is primarily due to non-recurring integration costs incurred during the prior year periods along with lower costs in the current year from the realization of synergies and contributions from energy surcharges. These increases were partially offset by lower volumes.

Previous wording

*Corporate and Other —*The loss from operations in Corporate and Other increased in the three months ended June 30, 2026 primarily due to (i) increased technology costs to support strategic initiatives; (ii) higher risk management expenses and (iii) annual wage increases. The loss from operations in Corporate and Other increased in the six months ended June 30, 2026 primarily due to (i) increased technology costs to support our strategic initiatives; (ii) annual wage increases and (iii) increased employee medical costs.

Current wording

Corporate and Other —The loss from operations in Corporate and Other increased in the three months ended September 30, 2026 primarily due to higher risk management expenses, partially offset by lower employee annual incentive compensation. The loss from operations in Corporate and Other increased in the nine months ended September 30, 2026 primarily due to (i) higher technology costs to support our strategic initiatives; (ii) higher risk management expenses; (iii) annual wage increases and (iv) increased employee medical costs. These increases were partially offset by a decrease in consulting fees, due to expenses incurred in the prior year in connection with the Stericycle acquisition.