WM — Apr 28, 2026 release

  RECONCILIATION OF CERTAIN NON-GAAP MEASURES   (In Millions, Except Per Share Amounts)   (Unaudited)       Three Months Ended     Three Months Ended       March 31, 2026     March 31, 2025   Adjusted Operating Expenses and Adjusted Operating Expenses Margin                                   Operating revenues, as reported   $ 6,227     $ 6,018                     Operating expenses, as reported (a)   $ 3,694     $ 3,612   As a % of revenues     59.3 %     60.0 % Adjustment:                 Legacy loss contingency reserve     (10 )     (7 ) Operating expenses, as adjusted   $ 3,684     $ 3,605   As a % of revenues     59.2 %     59.9 %                         Three Months Ended     Three Months Ended       March 31, 2026     March 31, 2025   Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin                                   Operating revenues, as reported   $ 6,227     $ 6,018                     SG&A expenses, as reported   $ 707     $ 687   As a % of revenues     11.4 %     11.4 % Adjustment:                 Stericycle acquisition and integration costs     (17 )     (24 ) SG&A expenses, as adjusted   $ 690     $ 663   As a % of revenues     11.1 %     11.0 %                     2026 Projected Free Cash Flow Reconciliation (b)   Scenario 1     Scenario 2   Net cash provided by operating activities   $ 6,300     $ 6,450   Capital expenditures to support the business     (2,450 )     (2,550 ) Proceeds from divestitures of businesses and other assets, net of cash divested     100       150   Free cash flow before sustainability growth investments   $ 3,950     $ 4,050   Capital expenditures - sustainability growth investments     (200 )     (200 ) Free cash flow   $ 3,750     $ 3,850       (a) Beginning in 2026, landfill accretion expense was moved from operating expenses to depreciation, depletion, amortization, and accretion. Landfill Accretion expense in the three months ended March, 31 2026 and 2025 was $39 million and $35 million, respectively. For comparability purposes, 2025 actuals have been updated to reflect that change.   (b) The reconciliation includes two scenarios that illustrate our projected free cash flow range for 2026. 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