Republic Services, Inc. (RSG) Q2 2026: Earnings Growth and Increased Guidance — Positive Outlook

Republic Services, Inc. (NYSE: RSG) reported a strong second quarter for 2026, with net income rising to $566 million, or $1.84 per diluted share, compared to $550 million, or $1.75 per diluted share, in the same quarter last year. This represents an increase of $16 million or +2.9% in net income and a +5.1% increase in earnings per share (EPS) year-over-year.

Key Financial Metrics

• Net Income: $566 million (Q2 2026) vs. $550 million (Q2 2025) — an increase of $16 million or +2.9% YoY.
• EPS: $1.84 (Q2 2026) vs. $1.75 (Q2 2025) — an increase of +5.1% YoY.
• Adjusted EPS: $1.85 (Q2 2026) vs. $1.77 (Q2 2025) — an increase of +4.5% YoY.
• Total Revenue: Increased by 4.6% YoY, driven by 3.7% organic growth from the recycling and waste business.
• Adjusted EBITDA: $1.42 billion, maintaining a margin of 32.1% of revenue.

Analyst View

This quarter's performance is a positive outcome for shareholders, reflecting Republic Services' ability to navigate cost inflation while maintaining pricing power. The increase in both net income and EPS indicates effective management and operational efficiency. The company’s disciplined cost management and strategic pricing have allowed it to achieve revenue growth despite a slight decline in volume.

Additionally, the company has increased its full-year financial guidance, which is a strong signal of confidence in its ongoing operations and market conditions. The updated guidance includes:

• Revenue: Increased to a range of $17.200 billion to $17.300 billion.
• Adjusted EBITDA: Increased to a range of $5.525 billion to $5.550 billion.
• Adjusted Diluted EPS: Updated to a range of $7.23 to $7.28 per share.
• Adjusted Free Cash Flow: Increased to a range of $2.540 billion to $2.575 billion.

Shareholder Returns

Republic Services has also increased its quarterly dividend by approximately 7%, raising it to $0.670 per share, payable on October 15, 2026. This move underscores the company's commitment to returning value to shareholders, with a total of $1.04 billion returned year-to-date, including $651 million in share repurchases.

Forward Catalysts

Investors should watch for continued momentum in the company's operations, particularly in the recycling and waste business, which has shown resilience. The successful integration of recent acquisitions and the performance of new renewable natural gas projects will also be critical. Furthermore, the company’s ability to maintain pricing power in the face of inflation and manage costs effectively will be key indicators of its future performance.

In summary, Republic Services' Q2 2026 results demonstrate a solid performance with growth in earnings and revenue, alongside a commitment to shareholder returns. The increased guidance and dividend raise further enhance the positive outlook for the company moving forward.

Note: The following tables contain amounts in millions.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share data)

	Three Months Ended June 30, 2026	Three Months Ended June 30, 2025	Six Months Ended June 30, 2026	Six Months Ended June 30, 2025
Revenue	$4,430	$4,235	$8,544	$8,244
Cost of operations	$2,563	$2,449	$4,929	$4,763
Selling, general and administrative	$488	$463	$949	$897
Income before income taxes	$2,379	$2,323	$3,666	$3,584
Provision for income taxes	$444	$425	$870	$852
Net Income	$566	$550	$1,092	$1,045
Basic earnings per share	$1.84	$1.75	$3.54	$3.33
Weighted-average shares used to compute net income per share, diluted	307.6	313.4	308.5	313.3
Diluted earnings per share	$1.84	$1.75	$3.54	$3.33
Cash dividends paid	$0.625	$0.580	$1.250	$1.160

CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)

ASSETS	June 30, 2026 (Unaudited)	December 31, 2025
Cash and cash equivalents	$107	$76
Accounts receivable, less allowance for doubtful accounts	$2,029	$1,897
Prepaid expenses and other current assets	$427	$550
Total current assets	$2,563	$2,523
Restricted cash and marketable securities	$285	$259
Property and equipment, net	$12,916	$12,639
Goodwill	$17,186	$16,715
Other intangible assets, net	$707	$655
Other assets	$1,502	$1,575
Total assets	$35,159	$34,366
Accounts payable	$1,440	$1,374
Notes payable and current maturities of long-term debt	$548	$596
Deferred revenue	$480	$496
Total current liabilities	$3,980	$3,928
Long-term debt, net of current maturities	$13,521	$12,985
Accrued landfill and environmental costs, net of current portion	$2,642	$2,608
Deferred income taxes and other long-term tax liabilities, net	$1,963	$1,884
Other long-term liabilities	$563	$556
Common stock	$3	$3
Additional paid-in capital	$1,872	$1,833
Retained earnings	$11,867	$11,161
Treasury stock, at cost	-$1,677	-$1,000
Accumulated other comprehensive loss, net of tax	-$33	-$29
Total Republic Services, Inc. stockholders' equity	$12,032	$11,968
Non-controlling interests in consolidated subsidiary	$1	$1
Total stockholders' equity	$12,033	$11,969
Total liabilities and stockholders' equity	$35,159	$34,366

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