economy
February 26, 2026
Josh Brown likes this trash and recycling management giant that's within striking distance of a record
Josh Brown and Sean Russo break down this trash and recycling management giant.
TL;DR
- The Bill & Melinda Gates Foundation Trust is the largest shareholder in Waste Management (WM).
- WM has undergone a multi-year reinvestment cycle ('planting years') involving $11.6 billion in capital expenditure from FY2022-FY2025.
- Key investments include the acquisition of Stericycle for $7.5 billion, creating a Healthcare Solutions segment, and upgrades to landfill gas-to-energy plants and recycling facilities.
- The company is projected to enter a 'year of harvest' in 2026, with capex collapsing and free cash flow expected to grow significantly.
- WM anticipates 29% year-over-year FCF growth at the midpoint, marking the largest jump since Covid.
- The stock is trading near its 52-week highs, showing constructive digestion under resistance, with a potential breakout above $238-$240.
- Key figures like CEO Jim Fish and CFO David Reed have indicated 2026 as a year for harvesting cash and returning it to shareholders.
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