US Waste: A primer on the solid waste landfill business

Research evidence excerpt

US Waste: A primer on the solid waste landfill business

Connor Cerniglia, CFA +1 917 344 8472 connor.cerniglia@bernsteinsg.com 22 June 2026

DETAILS

AN OVERVIEW OF THE TRADITIONAL SOLID WASTE INDUSTRY

At its most basic level, the municipal solid waste industry collects waste from homes, businesses, and industrial sites and

disposes of it through a recycling facility or landfill, with the latter often monetizing the methane gas it naturally emits. The

industry is typically divided into 5 segments: 1) Collection (Residential, Commercial, and Industrial), 2) Transfer Stations, 3)

Recycling, 4) Landfills, and 5) Renewables.

EXHIBIT 1: An overview of the waste industry

Material Recovery Facility

(MRF)

Broker sells recycled MRF processes, seperates,

MRF profits are materials to and re-packages recyclable comprised of tipping businesses waste

fees (~30%) and the

sale of commodities

Collection

Transfer Station

Waste is dropped off at a more

centrally located transfer station

collect waste before it is shipped to a Landfill/MRF Households, Trucks RINs from customers

Businesses, &

Industrial The RNG capture process generates RINs make up ~90%

Customers RINs that are then sold of the value

generated from the

Landfill Landfill Gas landfill

Collection makes up Landfill charges a tipping fee to Methane is captured from more than half of

deposit waste at their location landfills

Natural Gas

Landfill gas is converted into

electricity, RNG used in WM Natural gas makes

Existing landfill capacity, cost per Peak methane production trucks, or sold to a third party up the remaining

acre, and government restrictions occurs between landfill

drive large regional differences in closure to 5-10 years after

tipping fees

RNG can power CNG fleet used for collection

Source: Bernstein analysis