Republic Services (NYSE:RSG) Issues Earnings Results

Key Points

• Republic Services beat Q1 estimates with adjusted EPS of $1.70 versus $1.64 expected and revenue of $4.11B, delivering 4.3% adjusted EBITDA growth, a 50 bps margin expansion to 32.1%, and about $984M of adjusted free cash flow (up ~35%).
• Operational headwinds persist—organic volumes declined (residential ~−5.2%, large container ~−2.5%), recycling commodity prices weakened (~$120/ton vs $155 LY), and a March diesel spike cut roughly $8M of EBITDA, though fuel recovery is expected to help in Q2.
• Management highlighted disciplined pricing (core price on total revenue 5.7%), plans for digital/AI to deliver ~$100M annual benefit by 2028, and active capital allocation—> $700M of M&A to date with a >$1B target for the year, plus $507M returned to shareholders in Q1 (including $314M buybacks) while maintaining ~$1.8B liquidity and ~2.6x leverage.

Republic Services (NYSE:RSG - Get Free Report) posted its quarterly earnings data on Thursday. The business services provider reported $1.70 EPS for the quarter, topping analysts' consensus estimates of $1.64 by $0.06, FiscalAI reports. Republic Services had a return on equity of 18.44% and a net margin of 12.90%.The firm had revenue of $4.11 billion for the quarter, compared to analyst estimates of $4.10 billion.

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

• Republic reported a strong Q1 with 2.6% revenue growth, 4.3% adjusted EBITDA growth, a 50 bps EBITDA margin expansion to 32.1%, $1.70 adjusted EPS and $984M of adjusted free cash flow (up ~35%).
• Management highlighted disciplined pricing (core price on total revenue 5.7%, related revenue 6.8%) and expects digital/AI investments to deliver roughly $100M of annual benefit by 2028, with pricing gains appearing in 2026 and routing/RISE benefits scaling into 2027–2028.
• Volume pressures persisted—organic volume fell (residential down ~5.2%, large container down 2.5%) and recycling commodity prices weakened (~$120/ton vs $155 prior year), while a March diesel spike reduced EBITDA by about $8M (fuel recovery lag expected to help in Q2).
• Sustainability initiatives advanced—polymer center volumes rose with strong r‑plastic demand, Republic brought 9 RNG projects online in 2025 and expects 4 more in 2026 (targeting 82 total), and EV adoption continues (>200 electric collection vehicles now; >300 expected by year‑end).
• Capital allocation remained active—Republic has invested >$700M in acquisitions to date (including $433M in Q1), expects to exceed $1B of M&A this year, and returned $507M to shareholders in Q1 (including $314M of buybacks) while ending the quarter with ~$1.8B liquidity and ~2.6x leverage.

Republic Services Price Performance

Shares of NYSE RSG traded up $1.07 during mid-day trading on Thursday, hitting $200.76. 2,782,710 shares of the stock traded hands, compared to its average volume of 1,499,139. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.64 and a quick ratio of 0.64. Republic Services has a twelve month low of $198.24 and a twelve month high of $258.75. The company has a market cap of $62.03 billion, a PE ratio of 29.31, a price-to-earnings-growth ratio of 3.38 and a beta of 0.43. The firm has a 50 day simple moving average of $218.04 and a two-hundred day simple moving average of $215.77.

Republic Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Thursday, April 2nd were issued a dividend of $0.625 per share. The ex-dividend date of this dividend was Thursday, April 2nd. This represents a $2.50 annualized dividend and a dividend yield of 1.2%. Republic Services's dividend payout ratio (DPR) is 36.79%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of RSG. Brighton Jones LLC lifted its holdings in Republic Services by 75.8% during the 4th quarter. Brighton Jones LLC now owns 19,822 shares of the business services provider's stock worth $3,988,000 after buying an additional 8,547 shares during the period. Federated Hermes Inc. lifted its stake in shares of Republic Services by 23.2% in the 2nd quarter. Federated Hermes Inc. now owns 17,553 shares of the business services provider's stock valued at $4,329,000 after purchasing an additional 3,303 shares during the period. NewEdge Advisors LLC lifted its stake in shares of Republic Services by 3.6% in the 2nd quarter. NewEdge Advisors LLC now owns 29,690 shares of the business services provider's stock valued at $7,322,000 after purchasing an additional 1,044 shares during the period. Treasurer of the State of North Carolina lifted its stake in shares of Republic Services by 0.7% in the 2nd quarter. Treasurer of the State of North Carolina now owns 94,626 shares of the business services provider's stock valued at $23,336,000 after purchasing an additional 688 shares during the period. Finally, Ieq Capital LLC lifted its stake in shares of Republic Services by 68.4% in the 2nd quarter. Ieq Capital LLC now owns 11,643 shares of the business services provider's stock valued at $2,871,000 after purchasing an additional 4,729 shares during the period. 57.73% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have commented on the company. UBS Group raised their price objective on Republic Services from $225.00 to $240.00 and gave the stock a "neutral" rating in a research note on Thursday, March 5th. Scotiabank decreased their price target on Republic Services from $246.00 to $242.00 and set a "sector perform" rating on the stock in a research note on Wednesday, January 21st. BMO Capital Markets decreased their price target on Republic Services from $251.00 to $248.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 18th. Citigroup lifted their price target on Republic Services from $244.00 to $253.00 and gave the company a "buy" rating in a research note on Monday, February 23rd. Finally, Wells Fargo & Company lifted their price target on Republic Services from $238.00 to $252.00 and gave the company an "overweight" rating in a research note on Wednesday, March 18th. Nine analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $244.67.

Republic Services Company Profile

Republic Services, Inc is a leading provider of non-hazardous solid waste and recycling services in the United States. The company offers a broad range of waste management solutions to residential, commercial, industrial and municipal customers, positioning itself as a full-service partner for everyday waste collection as well as specialized disposal needs.

Republic's core operations include curbside and commercial collection, transfer and hauling, materials recovery and recycling facilities, and landfill disposal.

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