Republic Services (NYSE:RSG) Announces Quarterly Earnings Results

Key Points

• Republic Services beat quarterly expectations: Adjusted EPS was $1.94 versus the $1.93 consensus, while revenue reached $4.56 billion, above estimates of $4.42 billion. The company raised its full-year 2026 revenue, adjusted EBITDA, and free-cash-flow guidance.
• Commercial volumes and Environmental Solutions strengthened: Small- and large-container volumes each rose 50 basis points, while Environmental Solutions revenue grew 21% and its adjusted EBITDA margin expanded to 25.4%. Residential volumes nevertheless declined 4.3%.
• Growth investments continue despite margin pressures: Higher diesel costs, healthcare claims, and unfavorable comparisons weighed on margins, but Republic has invested $1.1 billion in acquisitions year to date and is expanding AI-driven pricing and routing initiatives. Analysts maintain a “Moderate Buy” consensus with an average price target of $243.73.

Republic Services (NYSE:RSG - Get Free Report) released its quarterly earnings data on Thursday. The business services provider reported $1.94 earnings per share for the quarter, beating analysts' consensus estimates of $1.93 by $0.01, FiscalAI reports. The firm had revenue of $4.56 billion for the quarter, compared to analyst estimates of $4.42 billion. Republic Services had a net margin of 12.94% and a return on equity of 18.69%.

Here are the key takeaways from Republic Services' conference call:

• Strong third-quarter performance and raised 2026 outlook: Revenue grew 8.2%, adjusted EPS was $1.94, and year-to-date adjusted free cash flow reached $2.28 billion. Republic increased its full-year 2026 guidance to $17.425–$17.475 billion of revenue, $5.5–$5.575 billion of adjusted EBITDA, and $2.565–$2.585 billion of adjusted free cash flow.
• Volume trends improved across commercial businesses: Small- and large-container volumes each increased 50 basis points, marking the first quarter in more than three years with simultaneous growth in both categories. Management expects industry Recycling & Waste volumes to turn positive in 2027, although residential volumes declined 4.3% in the quarter.
• Environmental Solutions delivered significant growth and margin expansion: Revenue increased 21% year over year, or approximately 9% excluding several large emergency-response projects, while adjusted EBITDA margin expanded 440 basis points to 25.4%. Management cited broad-based demand across industrial and hazardous-waste operations and expects continued growth into 2027.
• Higher diesel, healthcare, and prior-year comparisons pressured margins: Elevated fuel costs reduced adjusted EBITDA margin by 50 basis points, while unusually high healthcare claims and the absence of a prior-year rebate reduced it by another 60 basis points. Fuel recovery fees offset the cash impact of diesel inflation but are dilutive to margins when fuel prices rise.
• Investment programs support longer-term growth: Republic has invested $1.1 billion in acquisitions year to date and expects at least $1.2 billion for 2026, while AI pricing tools are already deployed and AI routing is expected to scale beginning in 2027. Management continues to target roughly $100 million of run-rate EBITDA benefit from digital initiatives by the end of 2028.

Republic Services Stock Performance

Shares of NYSE RSG traded up $3.03 during midday trading on Thursday, reaching $236.43. The company's stock had a trading volume of 1,505,575 shares, compared to its average volume of 1,525,937. The stock has a market capitalization of $72.40 billion, a P/E ratio of 33.49, a PEG ratio of 3.86 and a beta of 0.39. The company has a debt-to-equity ratio of 1.12, a current ratio of 0.64 and a quick ratio of 0.64. The firm has a 50 day moving average price of $221.99 and a 200-day moving average price of $216.64. Republic Services has a 12-month low of $196.41 and a 12-month high of $243.22.

Insider Activity at Republic Services

In other Republic Services news, major shareholder Cascade Investment, L.L.C. acquired 324,810 shares of the business's stock in a transaction on Friday, September 11th. The shares were acquired at an average price of $222.89 per share, with a total value of $72,396,900.90. Following the completion of the transaction, the insider owned 117,058,444 shares in the company, valued at approximately $26,091,156,583.16. This trade represents a 0.28% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Insiders purchased 6,254,462 shares of company stock worth $1,380,321,958 over the last three months. Company insiders own 0.12% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Barclays raised their price target on shares of Republic Services from $233.00 to $240.00 and gave the company an "equal weight" rating in a research report on Friday, August 7th. Robert W. Baird boosted their price objective on Republic Services from $242.00 to $245.00 and gave the stock a "neutral" rating in a report on Thursday, October 22nd. Morgan Stanley lowered their price objective on Republic Services from $232.00 to $219.00 and set an "equal weight" rating for the company in a research note on Tuesday, October 13th. Weiss Ratings upgraded Republic Services from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, August 21st. Finally, UBS Group upped their price target on Republic Services from $233.00 to $235.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. Thirteen investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $243.73.

Republic Services Company Profile

Republic Services, Inc is an environmental services company that provides waste collection, recycling and disposal solutions for residential, commercial, industrial and municipal customers. Its services include curbside collection, dumpster and roll-off container services, transfer station operations, landfill management and recycling processing.

The company also provides specialized environmental services, including hazardous waste management, emergency response, remediation and other sustainability-related solutions for businesses and government organizations.

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