What Waste Management, Inc. told the SEC could break it.

WM's Renewable Energy segment revenue depends on the sale of RINs under the EPA's Renewable Fuel Standard, Low Carbon Fuel credits, energy/capacity and RECs; its new RNG facilities are expected to qualify for federal tax credits realized through 2027 under Section 45 — exposing it to changes in these credit regimes (RINs pricing already declined in 2025).

“the revenues from these facilities are primarily generated through (i) the sale of captured and converted landfill methane gas; (ii) the sale of RINs under the Renewable Fuel Standard (“RFS”) program implemented by the EPA; (iii) sale of Low Carbon Fuel credits designed to stimulate the use of low-carbon fuels and (iv) the sale of energy (electricity and capacity) and associated RECs.”

Significant foreign-trade restrictions and tariffs negatively impact WM's recycling export business and cross-border commerce (particularly with Canada), decrease paper mills' demand for recycled cardboard, and raise equipment/material costs; WM also relies on increasingly limited and expensive third-party transportation providers/haulers.

“Significant restrictions and tariffs on foreign trade have a negative impact on our recycling export business and our cross-border commerce, particularly with Canada, decrease paper mills' demand for recycled corrugated cardboard used in packaging and increase the cost of certain equipment and other materials used in our operat[ions]”

WM operates under stringent federal/state/provincial/local environmental, health, safety, land-use and zoning regulations (EPA, Canada's ECCC and others); rules on emerging contaminants like PFAS and extended producer responsibility can restrict operations, raise operating costs and capital expenditures, increase tax liabilities or reduce revenues.

“emerging contaminants and extended producer responsibility, can restrict or alter our operations, increase our operating costs, increase our tax liabilities, reduce revenues, or require us to make additional capital expenditures. Stringent government regulations at the federal, state, provincial and local level”

WM's Recycling Processing and Sales segment is exposed to recycled-commodity prices (paper, cardboard, glass, plastic, metal); average market prices for single-stream recycled commodities declined ~20% in 2025, cutting yield-attributable revenue by $166M, though WM believes its models partly mitigate downside.

“Average market prices for single-stream recycled commodities declined approximately 20% in 2025 as compared to the prior year.”