WM — Jul 28, 2026 release

  RECONCILIATION OF CERTAIN NON-GAAP MEASURES   (In Millions)   (Unaudited)       Three Months Ended     Three Months Ended       June 30, 2026     June 30, 2025 (a)   Adjusted Operating Expenses and Adjusted Operating Expenses Margin                                   Operating revenues, as reported   $ 6,684     $ 6,430                     Operating expenses, as reported   $ 3,955     $ 3,803   As a % of net revenues     59.2 %     59.1 % Adjustment:                 Legacy loss contingency reserve     —       (4 ) Operating expenses, as adjusted   $ 3,955     $ 3,799   As a % of net revenues     59.2 %     59.1 %       Three Months Ended     Three Months Ended       June 30, 2026     June 30, 2025   Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin                                   Operating revenues, as reported   $ 6,684     $ 6,430                     SG&A expenses, as reported   $ 683     $ 696   As a % of net revenues     10.2 %     10.8 % Adjustment:                 Stericycle acquisition and integration-related costs     (21 )     (24 ) SG&A expenses, as adjusted   $ 662     $ 672   As a % of net revenues     9.9 %     10.5 %   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     (2,400 )     (2,500 ) Proceeds from divestitures of businesses and other assets, net of cash divested     100       150   Free cash flow without sustainability growth investments   $ 4,000     $ 4,100   Capital expenditures - sustainability growth investments     (250 )     (250 ) 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 expenses in the three months ended June 30, 2026 and 2025 are $39 million and $36 million, respectively. For comparability purposes, 2025 results 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 P