Republic Services, Inc. (RSG) Earnings

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Sep 2026upcoming

Next quarter

Reports Oct 29, 2026.

Consensus is $1.92 EPS for Sep 2026 across 10 estimates, ranging $1.72 to $2.00.

RSG Jun 2026

Reported Aug 6, 2026 · after the close

: 2.21%
: +2.37%

: $1.81
: $1.85
: —
: $4.43B

Reported results

: $4.43B; from $4.24B
: 42.14%; from 42.17%
: $901.00M; from $861.00M
: 20.34%; from 20.33%
: $566.08M; from $549.90M
: $1.84; from $1.75

Highlights

EPS beat: Adjusted diluted EPS was $1.85, ahead of the $1.81 consensus by 2.2%, while reported diluted EPS was $1.84 versus $1.75 a year ago and $1.70 in Q1 2026.
Revenue growth: Revenue increased 4.6% year over year to $4.43 billion, up from $4.24 billion in Q2 2025 and $4.11 billion in Q1 2026.
Pricing versus volume: Core price added 5.3% to revenue and average yield added 3.4%, more than offsetting a 1.6% volume decline; acquisitions contributed 1.1% growth.
Operating performance: Operating income rose 4.6% year over year to $901 million, while adjusted EBITDA increased to $1.42 billion from $1.36 billion, holding margin at 32.1%.
Segment mix: Recycling & Waste adjusted EBITDA rose 6.6% to $1.33 billion, led by Group 1’s 14.0% increase to $707 million; Group 3 Environmental Solutions fell 17.7% to $93 million.
Cash generation: First-half operating cash flow increased to $2.38 billion from $2.13 billion, and adjusted free cash flow rose to $1.58 billion from $1.42 billion.
Capital deployment: Republic invested $860 million in acquisitions during the first half, repurchased $651 million of stock and paid $385 million in dividends, returning $1.04 billion to shareholders.
Guidance and dividend: Full-year revenue guidance is now $17.20 billion-$17.30 billion, adjusted EBITDA $5.525 billion-$5.550 billion, adjusted EPS $7.23-$7.28 and adjusted free cash flow $2.540 billion-$2.575 billion; the quarterly dividend rises approximately 7% to $0.670 per share.

Analysis

Republic Services delivered a modest beat in the second quarter, with adjusted EPS of $1.85 versus the $1.81 consensus. Revenue of $4.43 billion rose 4.6% year over year from $4.24 billion and increased 7.8% sequentially from $4.11 billion in Q1. Reported net income reached $566 million, up from $550 million a year ago and $525 million in the prior quarter, while operating income rose to $901 million from $861 million and $830 million, respectively.

The print was defined by pricing power and cost control offsetting weaker volumes. Core price increased revenue 5.3%, while average yield contributed 3.4%, but volume reduced revenue 1.6%, reflecting softer collection activity, construction and manufacturing demand, and the absence of prior-year hurricane recovery volumes. Adjusted EBITDA grew 4.6% to $1.42 billion, with margin steady at 32.1% despite a 50-basis-point comparison headwind. Growth was concentrated in Recycling & Waste, while Environmental Solutions EBITDA declined 18% to $93 million. Lower taxes also supported earnings: the effective tax rate fell to 19.0% from 23.6%, partly due to renewable-energy tax benefits. Management raised full-year guidance and increased the dividend, reinforcing a quarter centered on resilient pricing, cash generation and continued acquisition-led expansion.

Pricing and volume

Republic’s organic growth remained primarily price-driven. Total revenue grew 4.6%, consisting of 3.5% internal growth and 1.1% from acquisitions and divestitures. Pricing more than covered cost pressure, but underlying volume weakened across several collection categories.

Pricing: Core price increased total revenue by 5.3%, including 7.8% in the open-market portion and 4.1% in the restricted portion. Average yield added 3.4%.
Volume: Volume reduced revenue by 1.6%, or 1.9% on related-business revenue. Residential, small-container and large-container collection volumes declined, with large-container activity affected by weaker construction and manufacturing demand.
Landfill and environmental: Construction and demolition landfill volumes declined against non-recurring Hurricane Helene recovery activity in 2025. Environmental Solutions revenue fell 0.2% year over year to $458 million because of lower event-based volumes.
Commodities: Recycled commodity prices averaged $136 per ton, down $13 year over year. Management estimates that a $10-per-ton change would affect annual revenue and operating income by approximately $13 million.

Margins and segments

Operating leverage was evident in the core Recycling & Waste business, although Environmental Solutions weakened and higher fuel costs remained a pressure. Consolidated adjusted EBITDA margin held flat because productivity and pricing offset the volume mix and comparison effects.

Consolidated: Adjusted EBITDA rose 4.6% to $1.423 billion, with margin unchanged at 32.1%. Republic said it overcame a 50-basis-point margin headwind from event-driven landfill volumes in the prior year.
Group 1: Adjusted EBITDA increased 14.0% to $707 million, supported by 8.0% revenue growth and higher yield, despite increased labor and fuel costs.
Group 2: Adjusted EBITDA declined 0.8% to $623 million as 2.5% revenue growth was offset by higher fuel, subcontract and labor costs and lower collection volumes.
Group 3: Environmental Solutions adjusted EBITDA fell 17.7% to $93 million from $113 million, with lower event-based revenue and higher subcontract and fuel costs.
Cost structure: Cost of operations remained 57.9% of revenue. Fuel expense increased to $171 million from $116 million as average diesel prices rose to $5.35 per gallon from $3.56.

Cash and capital deployment

Cash generation supported simultaneous investment in the operating base, acquisitions and shareholder returns. First-half cash flow benefited from higher earnings and working-capital timing, including a $123 million increase in accounts payable.

Cash flow: Operating cash flow increased 11.5% to $2.38 billion, while adjusted free cash flow rose 11.5% to $1.583 billion from $1.420 billion.
Capital spending: Property and equipment purchases were $868 million in the first half, compared with $866 million a year earlier; property and equipment received was $809 million.
Acquisitions: Republic spent $860 million on acquisitions in the first half, including businesses that added $479 million of goodwill and $101 million of customer-related intangible assets. Management expects to invest at least $1.2 billion in acquisitions during 2026.
Shareholder returns: First-half repurchases totaled $651 million for 3.1 million shares, while dividends paid were $385 million. The quarterly dividend increases from $0.625 to $0.670 per share.

Tax and financing

Reported earnings benefited from a substantially lower tax rate, while financing costs rose with a larger debt balance. The tax benefit helped net income grow even though pre-tax income declined year over year.

Tax rate: The effective tax rate fell to 19.0% from 23.6%. Renewable-energy investments contributed $41 million of net tax benefits in the quarter, versus $7 million a year earlier.
Below operating income: Pre-tax income declined to $699 million from $720 million, reflecting interest expense of $151 million versus $145 million and a $58 million loss from equity-method investments versus $2 million.
Debt: Total debt was $14.1 billion at June 30, up from $13.6 billion at year-end 2025. The company issued $1.2 billion of senior notes in June, while its debt-to-EBITDA covenant ratio was approximately 2.6 versus a 3.75 maximum.
Liquidity: Republic had $2.6 billion of availability under its revolving credit facility and amended its commercial paper program on August 6 to raise the cap from $1.5 billion to $2.0 billion.

Raised 2026 outlook

Management increased full-year financial guidance following the quarter’s pricing, margin and cash-flow performance. The outlook assumes no significant change in overall economic conditions during the remainder of 2026.

Revenue: $17.200 billion-$17.300 billion.
Adjusted EBITDA: $5.525 billion-$5.550 billion.
Adjusted diluted EPS: $7.23-$7.28, including $0.05 per share of expected restructuring charges.
Adjusted free cash flow: $2.540 billion-$2.575 billion.
Restructuring: The company expects approximately $14 million of additional restructuring charges during the remainder of 2026, primarily for its accounts receivable system.

Republic Services, Inc.

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