Waste Management Faces Inflation Drag Now, Industry Tailwinds Ahead, BofA Says

11:42 AM EDT, 10/28/2026 (MT Newswires) -- Waste Management (WM) is contending with higher-than-expected inflationary pressure that weighs on near-term profitability, though it stands to benefit from long-term industry tailwinds, BofA Securities said Wednesday in a report. Those tailwinds include rising barriers to entry, consolidation, landfill repricing and technology initiatives, the report said. Waste Management's Q3 was "soft," with EBITDA of $2.12 billion about 2% below consensus, while free cash flow of $985 million, up 20% from a year earlier, was a "clear bright spot," the report said. Investors anticipated headwinds from higher fuel costs going into the earnings season, BofA said. The company reaffirmed key elements of its full-year guidance, including EBITDA of $8.15 billion to $8.25 billion, and now expects free cash flow at the high end of its $3.75 billion to $3.85 billion range, the report said. BofA raised its price target on Waste Management stock to $250 from $245 and reiterated its neutral rating. Price: 228.80, Change: -7.01, Percent Change: -2.97