{"schemaVersion":1,"research":true,"symbol":"wm","name":"Waste Management","topic":"moat","path":"/stock/wm/moat","status":"published","version":4,"updatedAt":"2026-10-17T23:28:57.415Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"WM has a narrow moat supported by its operating landfill infrastructure, regulated permitting and integrated collection and disposal operations. Realized pricing and efficiency gains support the advantage, but the passages do not establish local market dominance, superior costs versus competitors or exceptional durability. Commodity exposure, contractual pricing limits and weaker volumes constrain pricing power.","advantages":[{"mechanism":"intangible_assets","claim":"Existing landfill infrastructure supported by highly regulated permitting provides a barrier to replication. Substantial internal collection, transfer and landfill activity demonstrates an operating asset system rather than merely a planned advantage. Positive disposal pricing supports its economic value, although local scarcity and competing capacity are not established.","durability":"Permitting and installed infrastructure support persistence beyond a single pricing cycle. The evidence supports a limited moat, without establishing a specific duration or guaranteed protection from competition.","risks":"Municipal flow restrictions, lower-priced bidders, environmental compliance costs and declining waste volumes could weaken asset utilization and pricing. Renewable energy monetization adds policy and commodity exposure rather than assured moat durability.","invalidation":"The thesis would weaken materially if competing disposal capacity became readily permitted and accessible in WM's markets, regulatory restrictions impaired its operating capacity, or sustained customer losses and price concessions prevented collection and disposal pricing from covering rising costs despite efficiency improvements.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5"],"counterEvidenceIds":["e6","e7","e8","e9","e10"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Critical Accounting Estimates / landfill permitting and recoverability","excerpt":"The assessment of impairment indicators and the recoverability of our capitalized costs associated with landfills and related expansion projects require significant judgment due to the unique nature of the waste industry, the highly regulated permitting process and the sensitive estimates involved."},{"id":"e2","sourceId":"filing-2","location":"Results of Operations / collection, landfill and transfer intercompany revenues","excerpt":"28 ​ Results of Operations Operating Revenues The mix of operating revenues for the three and six months ended June 30 are as follows (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Intercompany ​ Gross ​ ​ ​ ​ Operating ​ Operating ​ Operating ​ ​ Revenues ​ ​ ​ Revenues (a) ​ ​ ​ Revenues Three Months Ended June 30: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ ​ ​ ​ ​ ​ Commercial $ 1,485 ​ $ 236 ​ $ 1,721 Industrial ​ 820 ​ ​ 245 ​ 1,065 Residential ​ ​ 911 ​ ​ 19 ​ ​ 930 Other collection ​ 849 ​ 74 ​ 923 Total collection ​ 4,065 ​ 574 ​ 4,639 Landfill ​ ​ 1,004 ​ ​ 429 ​ ​ 1,433 Transfer ​ ​ 410 ​ ​ 300 ​ ​ 710 Total Collection and Disposal ​ 5,479 ​ 1,303 ​ 6,782 Recycling Processing and Sales ​ 403 ​ 88 ​ 491 Renewable Energy ​ 157 ​ — ​ 157 Healthcare Solutions (b) ​ ​ 638 ​ ​ 104 ​ ​ 742 Corporate and Other ​ ​ 7 ​ ​ 8 ​ ​ 15 Total ​ $ 6,684 ​ $ 1,503 ​ $ 8,187 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 Renewable Energy ​ 115 ​ — ​ 115 Healthcare Solutions (b) ​ ​ 646 ​ ​ 114 ​ ​ 760 Corporate and Other ​ ​ 7 ​ ​ 8 ​ ​ 15 Total ​ $ 6,430 ​ $ 1,458 ​ $ 7,888 ​ 29 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ Intercompany ​ Gross ​ ​ ​ ​ Operating ​ Operating ​ Operating ​ ​ Revenues ​ ​ ​ Revenues (a) ​ ​ ​ Revenues Six Months Ended June 30: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ ​ ​ ​ ​ ​ Commercial $ 2,914 ​ $ 465 ​ $ 3,379 Industrial ​ 1,578 ​ ​ 467 ​ 2,045 Residential ​ ​ 1,799 ​ ​ 37 ​ ​ 1,836 Other collection ​ 1,643 ​ 146 ​ 1,789 Total collection ​ 7,934 ​ 1,115 ​ 9,049 Landfill ​ ​ 1,868 ​ ​ 811 ​ ​ 2,679 Transfer ​ ​ 758 ​ ​ 571 ​ ​ 1,329 Total Collection and Disposal ​ 10,560 ​ 2,497 ​ 13,057 Recycling Processing and Sales ​ 771 ​ 175 ​ 946 Renewable Energy ​ 316 ​ 2 ​ 318 Healthcare Solutions (b) ​ ​ 1,252 ​ ​ 211 ​ ​ 1,463 Corporate and Other ​ ​ 12 ​ ​ 16 ​ ​ 28 Total ​ $ 12,911 ​ $ 2,901 ​ $ 15,812 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 Renewable Energy ​ 206 ​ 1 ​ 207 Healthcare Solutions (b) ​ ​ 1,265 ​ ​ 216 ​ ​ 1,481 Corporate and Other ​ ​ 9 ​ ​ 16 ​ ​ 25 Total ​ $ 12,448 ​ $ 2,766 ​ $ 15,214 (a) Includes each segment’s intercompany activity, including transactions within a segment and between segments."},{"id":"e3","sourceId":"filing-1","location":"Renewable Energy / operating projects at owned or operated landfills","excerpt":"As of December 31, 2025, we had 103 landfill gas beneficial use projects producing commercial quantities of methane gas at owned or operated landfills."},{"id":"e4","sourceId":"filing-2","location":"Average Yield / municipal solid waste landfill pricing","excerpt":"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."},{"id":"e5","sourceId":"filing-2","location":"Segment operating income / Collection and Disposal","excerpt":"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: 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."},{"id":"e6","sourceId":"filing-1","location":"Competition risk / governmental flow restrictions","excerpt":"Also, such governmental units may attempt to impose flow control or other restrictions that would give them a competitive advantage."},{"id":"e7","sourceId":"filing-1","location":"Competition risk / lower-priced bids","excerpt":"In addition, some of our competitors may have lower financial expectations, allowing them to reduce their prices to expand sales volume or to win competitively-bid contracts, including large national accounts and exclusive franchise arrangements with municipalities."},{"id":"e8","sourceId":"filing-2","location":"Current Quarter Financial Results / volume declines and operating expense ratio","excerpt":"These increases are partially offset by (i) lower collection and disposal volumes; (ii) volume declines in our Healthcare Solutions segment and (iii) a reduction in single-stream and brokerage recycled commodity prices; ● Operating expenses of $3,955 million, or 59.2% of revenues, compared to $3,803 million, or 59.1% of revenues, in the prior year period."},{"id":"e9","sourceId":"filing-2","location":"Environmental proceedings / alleged landfill operational violations","excerpt":"On April 26, 2026, the Delaware Department of Natural Resources and Environmental Control issued an order against Delaware Recyclable Products, Inc., an indirect, wholly-owned subsidiary of WMI, alleging certain environmental violations related to landfill cover and erosion control, stormwater management, the management of prohibited waste, and other permitting and operational matters."},{"id":"e10","sourceId":"filing-1","location":"Renewable fuel policy risk / blending volumes and exemptions","excerpt":"While the previous rules under the RFS program reflected the outsized role of biogas under the program and delivered reforms benefiting the solid waste sector, the current administration has retroactively lowered 2024 blending volumes, proposed reductions for 2025, set low targets for 2026–2027 and begun to grant small refinery exemptions from RFS program requirements."},{"id":"e11","sourceId":"filing-1","location":"Average Yield / 2025 Collection and Disposal pricing results","excerpt":"2024 ​ ​ ​ ​ ​ ​ ​ As a % of ​ ​ ​ ​ ​ ​ ​ Related ​ ​ ​ ​ ​ ​ Amount ​ ​ ​ ​ ​ Business Commercial ​ ​ $ 290 ​ 5.1 % Industrial ​ ​ 99 ​ 2.8 ​ Residential ​ ​ 181 ​ 5.4 ​ Total collection ​ ​ 570 ​ 4.3 ​ Landfill ​ ​ 84 ​ 2.6 ​ Transfer ​ ​ 65 ​ 4.9 ​ Total Collection and Disposal ​ ​ $ 719 ​ 3.8 % ​ Our overall pricing efforts are focused on keeping pace with the increasing costs and capital intensity of our business."},{"id":"e12","sourceId":"filing-2","location":"Average Yield / second-quarter and first-half 2026 pricing results","excerpt":"2025 June 30, 2026 vs. 2025 ​ ​ ​ ​ ​ ​ As a % of ​ ​ ​ As a % of ​ ​ ​ ​ ​ ​ Related ​ ​ ​ Related ​ ​ ​ ​ ​ Amount ​ ​ ​ ​ ​ Business ​ ​ ​ Amount ​ ​ ​ ​ ​ Business Commercial ​ $ 60 ​ 4.0 % $ 129 ​ 4.4 % Industrial ​ 32 ​ 3.4 ​ 59 ​ 3.3 ​ Residential ​ 51 ​ 6.1 ​ 104 ​ 6.2 ​ Total collection ​ 143 ​ 4.2 ​ 292 ​ 4.3 ​ Landfill ​ 25 ​ 2.5 ​ 46 ​ 2.7 ​ Transfer ​ 13 ​ 3.6 ​ 24 ​ 3.4 ​ Total Collection and Disposal ​ $ 181 ​ 3.6 % $ 362 ​ 3.7 % Our overall pricing efforts are focused on keeping pace with the increasing costs and capital intensity of our business."},{"id":"e13","sourceId":"filing-2","location":"Average Yield / definition including mix and customer retention concessions","excerpt":"Revenue growth from Collection and Disposal average yield includes not only base rate changes and environmental and service fee fluctuations, but also (i) certain average price changes related to the overall mix of services, which are due to the types of services provided; (ii) changes in average price from new and lost business and (iii) price decreases to retain customers."},{"id":"e14","sourceId":"filing-1","location":"Inflation risk / indexed contract price adjustments","excerpt":"Many of our contracts have price adjustment provisions that are tied to an index such as the Consumer Price Index."},{"id":"e15","sourceId":"filing-2","location":"Inflation / contractual recovery limitations and lookback provisions","excerpt":"These efforts may not be successful for various reasons including the pace of inflation, operating cost inefficiencies, market responses and contractual limitations, such as the timing lag in our ability to recover increased costs under certain contracts that are tied to a price escalation index with a lookback provision."},{"id":"e16","sourceId":"filing-1","location":"Commodity and sustainability demand risk / reduced willingness to pay premiums","excerpt":"While sustainability remains a priority for many customers, we have observed a shift in prioritization by some companies with respect to sustainability objectives, including a decreased willingness to pay premium prices for recycled materials or enhanced sustainability solutions, which impacts demand for, and viability of, some of our offerings."},{"id":"e17","sourceId":"filing-2","location":"Segment operating income / recycling automation and business suspension","excerpt":"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."},{"id":"e18","sourceId":"filing-2","location":"Segment operating income / completed renewable energy projects","excerpt":"Renewable Energy — The increase in income from operations in our Renewable Energy segment was primarily due to higher volumes driven by the completion of projects that increase the beneficial use of landfill gas sold to third parties."},{"id":"e19","sourceId":"filing-1","location":"Liquidity / 2025 operating cash flow, capital expenditures and free cash flow","excerpt":"Our calculation of free cash flow and reconciliation to net cash provided by operating activities is shown in the table below for the year ended December 31 (in millions), and may not be calculated the same as similarly-titled measures presented by other companies: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Net cash provided by operating activities ​ $ 6,043 ​ $ 5,390 Capital expenditures to support the business ​ ​ (2,594) ​ ​ (2,281) Capital expenditures - sustainability growth investments (a) ​ ​ (633) ​ ​ (950) Total capital expenditures ​ (3,227) ​ (3,231) Proceeds from divestitures of businesses and other assets, net of cash divested ​ 121 ​ 158 Free cash flow ​ $ 2,937 ​ $ 2,317 (a) These growth investments are intended to further our sustainability leadership position by increasing recycling volumes and growing RNG generation and we expect they will deliver circular solutions for our customers and drive environmental value to the communities we serve."},{"id":"e20","sourceId":"filing-2","location":"Condensed Consolidated Statements of Cash Flows / first-half 2026","excerpt":"CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Cash flows from operating activities: ​ ​ ​ ​ Consolidated net income $ 1,509 ​ $ 1,364 Adjustments to reconcile consolidated net income to net cash provided by operating activities: ​ ​ ​ ​ Depreciation, depletion, amortization and accretion ​ 1,512 ​ 1,435 Deferred income tax expense (benefit) ​ 143 ​ 79 Provision for bad debts ​ 69 ​ 43 Equity-based compensation expense ​ 98 ​ 92 Net gain on disposal of assets ​ (6) ​ (12) (Gain) loss from divestitures, asset impairments and other, net ​ (16) ​ 26 Change in operating assets and liabilities, net of effects of acquisitions and divestitures: ​ ​ ​ ​ Receivables ​ (224) ​ (323) Other current assets ​ 3 ​ (52) Other assets ​ 127 ​ 134 Accounts payable and accrued liabilities ​ 134 ​ 42 Deferred revenues and other liabilities ​ (122) ​ (75) Net cash provided by operating activities ​ 3,227 ​ 2,753 Cash flows from investing activities: ​ ​ ​ ​ Acquisitions of businesses, net of cash acquired ​ (85) ​ (366) Capital expenditures ​ (1,280) ​ (1,563) Proceeds from divestitures of businesses and other assets, net of cash divested ​ 77 ​ 103 Other, net ​ (139) ​ (89) Net cash used in investing activities ​ (1,427) ​ (1,915) Cash flows from financing activities: ​ ​ ​ ​ New borrowings ​ 12,823 ​ 9,135 Debt repayments ​ (12,484) ​ (9,234) Common stock repurchase program ​ (1,003) ​ — Cash dividends ​ (764) ​ (669) Exercise of common stock options ​ 32 ​ 50 Tax payments associated with equity-based compensation transactions ​ (40) ​ (49) Other, net ​ (16) ​ (14) Net cash used in financing activities ​ (1,452) ​ (781) Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents ​ (7) ​ 8 Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents ​ 341 ​ 65 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period ​ 297 ​ 487 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 638 ​ $ 552 ​ ​ ​ ​ ​ ​ ​ Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period: ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 557 ​ $ 440 Restricted cash and cash equivalents included in other current assets ​ ​ 9 ​ ​ 45 Restricted cash and cash equivalents included in restricted funds ​ ​ 72 ​ ​ 67 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 638 ​ $ 552 ​ See Notes to Condensed Consolidated Financial Statements."},{"id":"e21","sourceId":"filing-2","location":"Fair Value of Debt / carrying debt balances","excerpt":"23 ​ Fair Value of Debt As of June 30, 2026 and December 31, 2025, the carrying value of our debt was $23.4 billion and $22.9 billion, respectively."},{"id":"e22","sourceId":"filing-1","location":"Commitments / unconditional purchase obligations","excerpt":"As of December 31, 2025, our estimated minimum obligations associated with unconditional purchase obligations were $269 million in 2026, $234 million in 2027, $130 million in 2028, $78 million in 2029, $63 million in 2030 and $594 million thereafter."},{"id":"e23","sourceId":"filing-3","location":"Executive compensation / internal revenue growth below target","excerpt":"Internal revenue growth results were below target performance level, largely due to variability in volume trends across markets and lower volume in the residential and commercial collection businesses."},{"id":"e24","sourceId":"filing-3","location":"Executive compensation / equity incentives, ownership guidelines and clawbacks","excerpt":"The following key structural elements and policies, discussed in more detail in the Compensation Discussion and Analysis, further the objective of our executive compensation program and evidence our dedication to competitive and reasonable compensation practices that are in the best interests of stockholders: • a significant majority of our named executive’s target compensation is linked to Company performance and long-term equity awards, which aligns executives’ interests with those of stockholders; ​ • our total direct compensation opportunities for named executive officers are targeted to fall in a range around the competitive median; ​ • performance-based awards include threshold, target and maximum payouts correlating to a range of performance outcomes and are based on a variety of indicators of performance, which limits risk-taking behavior; ​ • performance stock units with a three-year performance period, as well as stock options that vest over a three-year period, link executives’ interests with long-term performance and reduce incentives to maximize performance in any one year at the expense of future years; ​ • all of our executive officers are subject to stock ownership guidelines, which we believe demonstrates a commitment to, and confidence in, the Company’s long-term prospects; ​ • in addition to adoption of the executive compensation clawback policy mandated by the New York Stock Exchange in 2023, the Company has clawback provisions in its equity award agreements and executive officer employment agreements, and has adopted a clawback policy applicable to annual incentive compensation, designed to recoup compensation when cause and/or misconduct are found; and ​ • the Company has adopted policies that limit executive officer severance benefits and prohibit it from entering into agreements with executive officers that provide for certain death benefits or tax gross-up payments."},{"id":"e25","sourceId":"filing-3","location":"Executive compensation / cash flow PSU calculation exclusions","excerpt":"Additionally, the following adjustments will be made when the aggregate impact of the following items has a greater than 5% impact on goal attainment: (a) impacts from strategic acquisitions or divestitures of assets and business are excluded (impacts from normal course of business acquisition and divestitures are included); (b) impacts from discrete growth capital investment projects made to support the long-term organic growth of the business that were not planned for when the performance targets were established are excluded; and (c) material changes in the realization of earnings and cash flow contributions for growth capital investments caused by items outside of the Company’s control will be excluded (the “2025 Cash Flow PSU Definition”)."},{"id":"e26","sourceId":"filing-3","location":"Board leadership / separation of Chair and CEO","excerpt":"We separated the roles of Chair of the Board and Chief Executive Officer at our Company in 2004."},{"id":"e27","sourceId":"filing-3","location":"Audit Committee / independence standards","excerpt":"Each member of our Audit Committee satisfies the additional New York Stock Exchange independence standards for audit committees set forth in Section 10A of the Exchange Act."},{"id":"e28","sourceId":"filing-3","location":"Compensation Committee / restrictions on delegation","excerpt":"However, the MD&C Committee may not delegate any authority to Company employees under those plans for matters affecting the compensation and benefits of the executive officers."},{"id":"e29","sourceId":"filing-1","location":"Commodity risk / realized recycling revenue effects","excerpt":"The decline in market prices in 2025 for recyclable commodities resulted in a year-over-year decrease in revenue of $166 million, and 29 Table of Contents the increase in market prices in 2024 for recyclable commodities resulted in a year-over-year increase in revenue of $245 million."},{"id":"e30","sourceId":"filing-2","location":"Collection and Disposal / wildfire comparison and weather-related volume declines","excerpt":"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."},{"id":"e31","sourceId":"filing-2","location":"Liquidity / operating cash flow growth drivers","excerpt":"In lieu of providing separate financial statements for the subsidiary issuer and guarantor (WMI and WM Holdings), we have presented the accompanying supplemental summarized combined balance sheet and income statement information for WMI and WM Holdings on a combined basis after elimination of intercompany transactions between WMI and WM Holdings and amounts related to investments in any subsidiary that is a non-guarantor (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Balance Sheet Information: ​ ​ ​ ​ ​ ​ Current assets $ 19 ​ $ 44 Noncurrent assets ​ ​ 12 ​ ​ 13 Current liabilities ​ 672 ​ 738 Noncurrent liabilities: ​ ​ ​ ​ ​ ​ Advances due to affiliates ​ ​ 19,757 ​ ​ 18,160 Other noncurrent liabilities ​ 19,918 ​ 19,733 ​ 38 ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended ​ ​ June 30, 2026 Income Statement Information: ​ ​ ​ Revenue $ — Operating income ​ ​ — Net loss ​ ​ (327) ​ ​ Summary of Cash Flow Activity The following is a summary of our cash flows for the six months ended June 30 (in millions): ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Net cash provided by operating activities ​ $ 3,227 ​ $ 2,753 Net cash used in investing activities ​ ​ (1,427) ​ ​ (1,915) Net cash used in financing activities ​ ​ (1,452) ​ ​ (781) ​ Net Cash Provided by Operating Activities — Our operating cash flows increased by $474 million for the six months ended June 30, 2026, as compared to the prior year period, primarily due to (i) higher earnings, particularly driven by our Collection and Disposal business; (ii) favorable changes in working capital, net of effects from acquisitions and divestitures; (iii) lower annual incentive compensation payments and (iv) lower cash taxes."}],"changes":["No comparable previous version."],"limitations":["Only supplied issuer filings were assessed. Their dates are filing dates: February 9, March 31 and July 29, 2026; the latest operating period supplied ends June 30, 2026.","No competing company is identified as a competitor in the supplied passages. Competitor categories and bidding risks are disclosed, but named competitor coverage, relative costs, local market shares and alternative disposal capacity are absent.","Highly regulated permitting supports a replication barrier, but permitting duration, remaining landfill capacity and local exclusivity are not quantified. Integrated activity does not itself prove a superior cost position.","Reported pricing, cash flows and completed projects provide operating evidence. Claims of the strongest asset network and future automation benefits do not independently demonstrate competitive superiority.","Customer retention and dependency are assessed indirectly from operating activity and volume disclosures. Renewal rates, customer tenure and contractual switching penalties are absent.","The proxy supplies actual compensation and governance arrangements, but ownership guideline compliance, individual ownership levels and the effectiveness of oversight are not established. Meeting proposals are not treated as adopted outcomes."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":2,"rationale":"Regulated landfill permitting and substantial integrated operations support a current replication barrier. Missing local capacity and competitor comparisons limit the strength of the demonstrated advantage.","evidenceIds":["e1","e2","e3","e7"]},{"criterion":"durability","grade":2,"rationale":"Installed infrastructure and regulated permitting support persistence, with positive landfill pricing in 2025 and 2026. Remaining capacity and market-specific protection are undisclosed, and governmental restrictions can favor alternatives.","evidenceIds":["e1","e3","e4","e6","e11"]},{"criterion":"customer_dependency","grade":2,"rationale":"Continuing collection and disposal activity supports recurring demand indirectly. Customer dependence on WM specifically is less established: volume declines, competitive bids and potential retention concessions show alternatives remain relevant.","evidenceIds":["e2","e7","e8","e13"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Core price increases and efficiency gains supported operating income, and recycling automation produced realized cost benefits. Commodity losses, volume weakness and policy exposure show uneven resilience across the portfolio.","evidenceIds":["e5","e8","e10","e17","e29"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":3,"rationale":"Collection and Disposal average yield increased 3.8% in 2025 and 3.7% in first-half 2026; municipal solid waste landfill yield increased 5.9% in first-half 2026. Operating income attribution confirms actual price increases. Yield includes mix and customer changes, so it is not a pure same-customer price measure.","evidenceIds":["e11","e12","e4","e5","e13"]},{"criterion":"retention","grade":2,"rationale":"Recurring service activity and continued positive yield support repeat demand indirectly. Lower collection volumes and below-target internal revenue growth temper that evidence; weather and prior wildfire cleanup explain some volume weakness. No retention rate or proof that pricing caused customer losses is supplied.","evidenceIds":["e2","e8","e23","e30"]},{"criterion":"margin_resilience","grade":2,"rationale":"Core operating income improved through pricing and efficiency, while the second-quarter operating expense ratio was nearly stable at 59.2% versus 59.1%. Recycling commodity losses and reduced willingness to pay sustainability premiums limit portfolio-wide resilience; the expense ratio is not a complete operating margin measure.","evidenceIds":["e5","e8","e16","e17","e29"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Realized price increases demonstrate some practical pricing discretion, but many contracts use indexed adjustments and some have recovery lags. Competitive bidding further constrains terms. The passages do not quantify the freely repriced share of revenue.","evidenceIds":["e12","e14","e15","e7"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Operating cash flow rose to $6.043 billion in 2025 with capital spending broadly stable, and first-half 2026 cash generation increased as capital spending fell. Completed projects produced operating benefits. However, debt rose from $22.9 billion to $23.4 billion while repurchases resumed, substantial commitments remain, and full investment and acquisition returns are not demonstrated.","evidenceIds":["e19","e20","e21","e22","e18"]},{"criterion":"incentive_alignment","grade":2,"rationale":"Actual disclosed arrangements include multiyear performance equity, ownership guidelines and clawbacks. Cash flow PSU exclusions for acquisitions, unplanned growth investments and certain external effects weaken the direct link to total capital outcomes. Ownership compliance and exceptional alignment are not demonstrated.","evidenceIds":["e24","e25"]},{"criterion":"execution","grade":3,"rationale":"Reported achievements include higher core operating income, realized recycling automation savings and higher renewable energy income from completed projects. Cash generation improved, although working capital and lower taxes also contributed. Below-target internal revenue growth and suspension of a recycling business temper otherwise strong demonstrated execution.","evidenceIds":["e5","e17","e18","e20","e23","e31"]},{"criterion":"governance","grade":3,"rationale":"Chair and CEO roles have been separated since 2004; audit committee members satisfy additional independence standards; executive compensation authority cannot be delegated to employees. Disclosed clawbacks add accountability. 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