WM — Jul 28, 2025 release

  RECONCILIATION OF CERTAIN NON-GAAP MEASURES  (In Millions)  (Unaudited)       Three Months Ended     Three Months Ended       June 30, 2025     June 30, 2024       WM     WM                   Legacy     Healthcare                   Business     Solutions     Total WM     Total WM   Adjusted Operating Expenses and Adjusted Operating Expenses Margin                                                                   Gross operating revenues, as reported   $ 7,128     $ 647     $ 7,775     $ 6,610   Intercompany operating revenues     (1,344 )     (1 )     (1,345 )     (1,208 ) Operating revenues, as reported   $ 5,784     $ 646     $ 6,430     $ 5,402                                     Operating expenses, as reported   $ 3,433     $ 406     $ 3,839     $ 3,291   As a % of net revenues     59.4 %     62.8 %     59.7 %     60.9 % Adjustments:                                 Stericycle acquisition and integration-related costs     —       (4 )     (4 )     —   Collective bargaining agreement costs     —       —       —       (1 ) Operating expenses, as adjusted   $ 3,433     $ 402     $ 3,835     $ 3,290   As a % of net revenues     59.4 %     62.2 %     59.6 %     60.9 %       Three Months Ended     Three Months Ended     Three Months Ended       June 30, 2025     June 30, 2024     March 31, 2025 (a)       WM     WM                 WM       Legacy     Healthcare                 Healthcare       Business     Solutions     Total WM     Total WM     Solutions   Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin                                                                                   Gross operating revenues, as reported   $ 7,128     $ 647     $ 7,775     $ 6,610     $ 627   Intercompany operating revenues     (1,344 )     (1 )     (1,345 )     (1,208 )     (8 ) Operating revenues, as reported   $ 5,784     $ 646     $ 6,430     $ 5,402     $ 619                                             SG&A expenses, as reported   $ 546     $ 150     $ 696     $ 501     $ 156   As a % of net revenues     9.4 %     23.2 %     10.8 %     9.3 %     25.2 % Adjustment:                                         Stericycle acquisition and integration-related costs     (9 )     (15 )     (24 )     (7 )     (10 ) SG&A expenses, as adjusted   $ 537     $ 135     $ 672     $ 494     $ 146   As a % of net revenues     9.3 %     20.9 %     10.5 %     9.1 %     23.6 %                 2025 Projected Free Cash Flow Reconciliation (b)   Scenario 1     Scenario 2   Net cash provided by operating activities   $ 5,860     $ 6,025   Capital expenditures to support the business     (2,575 )     (2,625 ) Proceeds from divestitures of businesses and other assets, net of cash divested     115       150   Free cash flow without sustainability growth investments   $ 3,400     $ 3,550   Capital expenditures - sustainability growth investments     (600 )     (650 ) Free cash flow   $ 2,800     $ 2,900       (a) WM Healthcare Solutions Q1 2025 results are included to provide a reconciliation for the sequential improvement in adjusted SG&A as a percentage of revenue. (b) The reconciliation includes two scenarios that illustrate our projected free cash flow range for 2025. The amounts used in the reconciliation are subject to many variables, some of which are not under our control and, therefore, are not necessarily indicative of actual results.         WASTE MANAGEMENT, INC.   SUPPLEMENTAL INFORMATION PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY  (In Millions)  (Unaudited)   Diversity in the structure of recycling contracts results in different accounting treatment for commodity rebates. In accordance with revenue recognition guidance, our Company records gross recycling revenue and records rebates paid to customers as cost of goods sold. Other contract structures allow for netting of rebat