-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
WM's Q1 results exceeded expectations, with operating EPS of $1.81 (up 8.4% Y/Y) vs. consensus of $1.74, driven by better-than-anticipated margin execution. Adjusted EBITDA margin expanded 70 bps to 29.8%, with Recycling and Renewable segments showing impressive gains of 370 bps and 790 bps, respectively. We believe operational efficiency initiatives are paying dividends as WM invests in technology and automation to optimize its cost structure, a trend that should continue supporting margin expansion in 2026 and beyond. Core pricing remained robust at 6.3%, reflecting WM's pricing power as the company shifts toward higher-margin contracts. WM completed three recycling facilities during the quarter, adding nearly 300K tons of processing capacity in growing markets. We see newer automated facilities as making this business more profitable. Healthcare Solutions integration was notable, with adjusted EBITDA growing 11.6% despite slight revenue decline, driven by SG&A cost management and synergy capture.