Republic Services, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 3 raised. The quarter’s numbers.

Key takeaways

Revenue rose 4.6 percent: Total revenue was $4,430 million against $4,235 million. Growth came from recycling and waste organic growth, a small decline in environmental solutions, and acquisitions. Source
Adjusted EBITDA margin held at 32.1 percent: Adjusted EBITDA was $1,423 million against $1,361 million, and the margin matched the prior-year quarter at 32.1 percent of revenue. Source
Diluted EPS up 5.1 percent: Net income was $566 million against $550 million. Diluted EPS was $1.84 against $1.75; adjusted EPS was $1.85 against $1.77. Source
Environmental Solutions margin fell: Environmental Solutions adjusted EBITDA was $93 million against $113 million, and its margin 20.2 percent against 24.4 percent. Its revenue was $458 million against $462 million. Source
Core price added 6.4 percent on related revenue: Core price added 5.3 percent to total revenue. On related-business revenue it added 6.4 percent, with 7.8 percent in the open market and 4.1 percent in the restricted portion. Source
Volume reduced revenue: Volume decreased total revenue by 1.6 percent and related-business revenue by 1.9 percent, while average yield on related-business revenue added 4.0 percent. Source
Year-to-date operating cash flow rose: Cash from operations was $2,380 million for six months, against $2,134 million. Adjusted free cash flow was $1,583 million, against $1,420 million. Source
Shareholder returns reached $1.04 billion: Year-to-date cash returned to shareholders was $1.04 billion. That covered $651 million of share repurchases and $385 million of dividends paid. Source

“Our second quarter results reflect the strength and resilience of our business model, as we continue to execute our strategy and deliver differentiated value for our customers,”
Jon Vander Ark, president and chief executive officer

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	Year ending December 31, 2026	$17.200 billion to $17.300 billion	Raised
Adjusted EBITDA Source	Year ending December 31, 2026	$5.525 billion to $5.550 billion	Raised
Adjusted diluted earnings per share Source	Year ending December 31, 2026	$7.23 to $7.28 per share
Adjusted free cash flow Source	Year ending December 31, 2026	$2.540 billion to $2.575 billion	Raised
Diluted earnings per share (GAAP) Source	Year ending December 31, 2026	$7.18 - 7.23
Net income attributable to Republic Services, Inc. Source	Year ending December 31, 2026	$2,210 - 2,220 million
Cash provided by operating activities Source	Year ending December 31, 2026	$4,485 - 4,560 million
Property and equipment received (capital spending) Source	Year ending December 31, 2026	$1,970 - 2,010 million

What changed from last quarter

Guidance raised: Full-year revenue guidance increased to $17.200 billion to $17.300 billion from the original guidance. Source
Guidance raised: Full-year adjusted EBITDA guidance increased to $5.525 billion to $5.550 billion from the original guidance. Source
Guidance raised: Full-year adjusted free cash flow guidance increased to $2.540 billion to $2.575 billion from the original guidance. Source
New: Board approved a 4.5-cent increase in the quarterly dividend, to $0.670 per share, after the $0.625 paid in the first quarter. Source

Results and growth drivers

Revenue rose 4.6 percent: Total revenue was $4,430 million against $4,235 million. Growth came from recycling and waste organic growth, a small decline in environmental solutions, and acquisitions. Source
Adjusted EBITDA margin held at 32.1 percent: Adjusted EBITDA was $1,423 million against $1,361 million, and the margin matched the prior-year quarter at 32.1 percent of revenue. Source
Diluted EPS up 5.1 percent: Net income was $566 million against $550 million. Diluted EPS was $1.84 against $1.75; adjusted EPS was $1.85 against $1.77. Source
Equity-method losses rose and were added back: Loss from unconsolidated equity method investments was $58 million against $2 million in the quarter and $110 million against $14 million year to date. The company added these back in adjusted EBITDA. Source

Segments and business types

Recycling and Waste revenue and margin rose: Recycling and Waste revenue was $3,972 million against $3,773 million. Its adjusted EBITDA was $1,330 million and its margin 33.5 percent, against 33.1 percent a year earlier. Source
Environmental Solutions margin fell: Environmental Solutions adjusted EBITDA was $93 million against $113 million, and its margin 20.2 percent against 24.4 percent. Its revenue was $458 million against $462 million. Source
Segment margins over six months: Six-month Recycling and Waste margin was 33.5 percent and Environmental Solutions margin 19.7 percent, against 33.0 and 22.6 percent a year earlier. Source

“Pricing in excess of cost inflation and our disciplined cost management supported accelerated growth in revenue and EBITDA.”
Jon Vander Ark, president and chief executive officer

Pricing, yield and volume

Core price added 6.4 percent on related revenue: Core price added 5.3 percent to total revenue. On related-business revenue it added 6.4 percent, with 7.8 percent in the open market and 4.1 percent in the restricted portion. Source
Volume reduced revenue: Volume decreased total revenue by 1.6 percent and related-business revenue by 1.9 percent, while average yield on related-business revenue added 4.0 percent. Source
Average yield and fuel fees: Average yield added 3.4 percent to total revenue against 4.1 percent a year earlier. Fuel recovery fees added 1.8 percent against a 0.3 percent reduction, and total price added 5.2 percent. Source

Products and revenue mix

Small-container revenue increased: Small-container collection revenue was $1,369 million, or 30.9 percent of total revenue, against $1,259 million and 29.7 percent. Residential collection was $767 million against $752 million. Source
Construction and demolition volume fell: Construction and demolition waste volume fell 37.4 percent against a 47.3 percent rise in the prior-year quarter, while yield rose 3.3 percent. Source
Recycled commodity prices lower: Average recycled commodity price was $136 per ton, $13 below the prior year. Recycling processing and commodity sales revenue was $122 million against $114 million. Source

“Given our strong operating performance and momentum across the business, we are increasing our full-year financial guidance.”
Jon Vander Ark, president and chief executive officer

Costs and margins

Fuel cost share rose: Fuel cost was $171 million, or 3.9 percent of revenue, against $116 million and 2.7 percent. Six-month fuel cost was 3.5 percent of revenue against 2.8 percent. Source
Labor cost share eased: Labor and related benefits were $864 million, or 19.5 percent of revenue, against $844 million and 19.9 percent. Six-month labor cost was 19.8 percent against 20.2 percent. Source
Cost of operations ratio unchanged: Total cost of operations was $2,563 million, or 57.9 percent of revenue, against $2,449 million, which was the same share of revenue as the prior year. Source
Selling and administrative dollars increased: Selling, general and administrative expense was $444 million against $425 million, and 10.0 percent of revenue in both periods. Source

Cash flow and balance sheet

Year-to-date operating cash flow rose: Cash from operations was $2,380 million for six months, against $2,134 million. Adjusted free cash flow was $1,583 million, against $1,420 million. Source
Equipment received rose: Property and equipment received was $809 million for six months, against $727 million. Purchases of property and equipment were $868 million against $866 million. Source
Long-term debt increased: Long-term debt, net of current maturities, was $13,521 million at June 30, 2026, against $12,985 million at December 31, 2025. Source
Receivable days held steady: Days sales outstanding was 41.7 days, against 41.8 days at year-end. Net of deferred revenue, it was 31.8 days against 30.8 days. Source

Acquisitions and shareholder returns

Acquisition spend of $860 million: Year-to-date cash invested in acquisitions was $860 million. The cash flow statement shows $865 million for acquisitions and investments, against $963 million a year earlier. Source
Shareholder returns reached $1.04 billion: Year-to-date cash returned to shareholders was $1.04 billion. That covered $651 million of share repurchases and $385 million of dividends paid. Source
Second-quarter buybacks of 1.6 million shares: In the quarter, 1.6 million shares were repurchased for $337 million, at an average of $206.70. Remaining authorized capacity under the October 2023 program was about $1.0 billion at June 30. Source

Other items in the release

Two renewable natural gas projects started: The company completed two renewable natural gas projects during the quarter and commenced operations on both. Source
Receivables system drove restructuring: Restructuring charges were $4 million in the quarter against $6 million, and related primarily to the design and implementation of a new accounts receivable system. Source
Industry recognition continued: Republic was named to the Dow Jones Best-in-Class Indices for the tenth consecutive year and to a Forbes list of America's Best Employers for Company Culture. Source

Coming up, as management said on 6 August 2026

Quarterly dividend payable October 15: The $0.670 quarterly dividend is payable to shareholders of record on October 2, 2026, on October 15, 2026. Source

Risks management discussed

Demand: Margin in the quarter absorbed a 50 basis point headwind from event-driven landfill volumes received in the prior year. Source
External: Full-year guidance assumes current economic conditions and no significant change in the overall economy for the rest of 2026. Source

Earlier plans management reported on

Not stated: In the first-quarter release, management said the company remained well positioned for its full-year objectives.
Not stated: Management said the company continues to increase cash returns to shareholders, including the quarterly dividend increase. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Republic Services, Inc. Reports

Second Quarter 2026 Results

Reported Earnings Per Share of $1.84 and Adjusted Earnings Per Share of $1.85
Generated Year-to-Date Cash Flow from Operations of $2.38 Billion and Adjusted Free Cash Flow of $1.58 Billion
Invested Approximately $860 Million in Value-Creating Acquisitions During the First-Half of 2026
Increased Full-Year 2026 Financial Guidance
Increased Quarterly Dividend by Approximately 7 Percent

PHOENIX (August 6, 2026) - Republic Services, Inc. (NYSE: RSG) today reported net income of $566 million, or $1.84 per diluted share, for the three months ended June 30, 2026, versus $550 million, or $1.75 per diluted share, for the comparable 2025 period. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended June 30, 2026, was $569 million, or $1.85 per diluted share, versus $556 million, or $1.77 per diluted share, for the comparable 2025 period.

“Our second quarter results reflect the strength and resilience of our business model, as we continue to execute our strategy and deliver differentiated value for our customers,” said Jon Vander Ark, president and chief executive officer. “Pricing in excess of cost inflation and our disciplined cost management supported accelerated growth in revenue and EBITDA. Given our strong operating performance and momentum across the business, we are increasing our full-year financial guidance.”

Second-Quarter and Year-to-Date 2026 Highlights:

Total revenue growth of 4.6 percent includes 3.7 percent organic growth from our recycling and waste business, 0.2 percent decline from our environmental solutions business, and 1.1 percent growth from acquisitions.
Core price on total revenue increased revenue by 5.3 percent. Core price on related business revenue increased revenue by 6.4 percent, which consisted of 7.8 percent in the open market and 4.1 percent in the restricted portion of the business.
Revenue growth from average yield on total revenue was 3.4 percent, and volume decreased revenue by 1.6 percent. Revenue growth from average yield on related business revenue was 4.0 percent, and volume decreased related business revenue by 1.9 percent.
Net income was $566 million, or a margin of 12.8 percent.
EPS was $1.84 per share, an increase of 5.1 percent over the prior year.
Adjusted EPS, a non-GAAP measure, was $1.85 per share, an increase of 4.5 percent over the prior year.
Adjusted EBITDA, a non-GAAP measure, was $1.42 billion. Adjusted EBITDA margin, a non-GAAP measure, was 32.1 percent of revenue, which remained consistent with the prior year. The Company overcame 50 basis points of margin headwind from event driven landfill volumes received in the prior year.
Year-to-date cash invested in acquisitions was $860 million.
Year-to-date cash returned to shareholders was $1.04 billion, which included $651 million of share repurchases and $385 million of dividends paid.
The Company's average recycled commodity price per ton sold at its recycling centers during the second quarter was $136. This represents a decrease of $13 per ton over the prior year.
The Company completed and commenced operations on two renewable natural gas projects during the quarter.
Republic was recognized by several leading organizations during the quarter, including:
Dow Jones Best-in-Class Indices for the 10th consecutive year
Forbes list of America’s Best Employers for Company Culture

Updated Full-Year 2026 Financial Guidance

Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy for the remainder of 2026. Please refer to the Reconciliation of Full-Year 2026 Financial Guidance section of this document for detail relating to the computation of non-GAAP measures as well as the Information Regarding Forward-Looking Statements section of this document.

The Company provided additional details as follows:

Revenue: Increased original guidance to a range of $17.200 billion to $17.300 billion
Adjusted EBITDA: Increased original guidance to a range of $5.525 billion to $5.550 billion
Adjusted Diluted Earnings per Share: Updated original guidance to a range of $7.23 to $7.28 per share
Adjusted Free Cash Flow: Increased original guidance to a range of $2.540 billion to $2.575 billion

Company Increases Quarterly Dividend

Republic continues to increase cash returns to shareholders, and previously announced that its Board of Directors approved a 4.5-cent increase in the quarterly dividend. The quarterly dividend of $0.670 per share for shareholders of record on October 2, 2026, will be paid on October 15, 2026.

Presentation of Certain Performance Metrics and Non-GAAP Measures

Adjusted diluted earnings per share, adjusted net income - Republic, adjusted pre-tax income, adjusted tax impact, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA by business type, adjusted EBITDA margin by business type and adjusted free cash flow are described in the Performance Metrics and Reconciliations of Certain Non-GAAP Measures section of this document.

About Republic Services

Republic Services, Inc. is a leader in the environmental services industry. Through its subsidiaries, the Company provides customers with the most complete set of products and services, including recycling, solid waste, special waste, hazardous waste and field services. Republic’s industry-leading commitments to advance circularity and support decarbonization are helping deliver on its vision to partner with customers to create a more sustainable world. For more information, please visit RepublicServices.com.

	June 30,	December 31,
	2026	2025
	(Unaudited)
SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION
AND OPERATING DATA
REPUBLIC SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
ASSETS
Current assets:
Cash and cash equivalents	$107	$76
Accounts receivable, less allowance for doubtful accounts and other of $59 and $66, respectively	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
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$1,440	$1,374
Notes payable and current maturities of long-term debt	548	596
Deferred revenue	480	496
Accrued landfill and environmental costs, current portion	156	148
Accrued interest	114	109
Other accrued liabilities	1,242	1,205
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
Insurance reserves, net of current portion	457	436
Other long-term liabilities	563	556
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01 per share; 50 shares authorized; none issued	-	-
Common stock, par value $0.01 per share; 750 shares authorized; 314 and 313 issued including shares held in treasury, respectively	3	3
Additional paid-in capital	1,872	1,833
Retained earnings	11,867	11,161
Treasury stock, at cost; 8 and 5 shares, respectively	(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

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
Revenue	$4,430	$4,235	$8,544	$8,244
Expenses:
Cost of operations	2,563	2,449	4,929	4,763
Depreciation, depletion and amortization	488	463	949	897
Accretion	30	28	60	57
Selling, general and administrative	444	425	870	852
Restructuring charges	4	6	6	9
(Gain) loss on business divestitures and impairments, net	-	3	(1)	1
Operating income	901	861	1,731	1,665
Interest expense	(151)	(145)	(302)	(285)
Loss from unconsolidated equity method investments	(58)	(2)	(110)	(14)
Interest income	2	2	5	4
Other income, net	5	4	31	15
Income before income taxes	699	720	1,355	1,385
Provision for income taxes	133	170	263	340
Net income	566	550	1,092	1,045
Net income attributable to non-controlling interests in consolidated subsidiary	-	-	-	-
Net income attributable to Republic Services, Inc.	$566	$550	$1,092	$1,045
Basic earnings per share attributable to Republic Services, Inc. stockholders:
Basic earnings per share	$1.84	$1.76	$3.54	$3.34
Weighted average common shares outstanding	307.5	313.1	308.3	313.0
Diluted earnings per share attributable to Republic Services, Inc. stockholders:
Diluted earnings per share	$1.84	$1.75	$3.54	$3.33
Weighted average common and common equivalent shares outstanding	307.6	313.4	308.5	313.3
Cash dividends per common share	$0.625	$0.580	$1.250	$1.160

	Six Months Ended June 30,
	2026	2025
REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Cash provided by operating activities:
Net income	$1,092	$1,045
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion, amortization and accretion	1,009	954
Non-cash interest expense	40	37
Deferred tax provision (benefit)	61	(8)
Loss from unconsolidated equity method investments	110	14
Other non-cash items	51	37
Change in assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivable	(147)	(51)
Prepaid expenses and other assets	41	21
Accounts payable	123	(13)
Capping, closure and post-closure expenditures	(27)	(21)
Remediation expenditures	(26)	(19)
Other liabilities	53	138
Cash provided by operating activities	2,380	2,134
Cash used in investing activities:
Purchases of property and equipment	(868)	(866)
Proceeds from sales of property and equipment	7	8
Cash used in acquisitions and investments, net of cash and restricted cash acquired	(865)	(963)
Cash received from business divestitures	2	7
Other	(3)	(1)
Cash used in investing activities	(1,727)	(1,815)
Cash used in financing activities:
Proceeds from credit facilities and notes payable, net of fees	25,683	20,025
Proceeds from issuance of senior notes, net of discount and fees	1,185	1,183
Payments of credit facilities and notes payable	(26,394)	(21,030)
Issuances of common stock, net	(8)	(14)
Purchases of common stock for treasury	(659)	(59)
Cash dividends paid	(385)	(362)
Contingent consideration payments	(17)	(3)
Cash used in financing activities	(595)	(260)
Effect of foreign exchange rate changes on cash	(1)	1
Increase in cash, cash equivalents, restricted cash and restricted cash equivalents	57	60
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period	249	203
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period	$306	$263

You should read the following information in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K as of and for the year ended December 31, 2025. All amounts below are in millions and as a percentage of our revenue, except per share data.

REVENUE

The following table reflects our total revenue by line of business for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Collection:
Residential	$767	17.3%	$752	17.8%	$1,515	17.7%	$1,496	18.1%
Small-container	1,369	30.9	1,259	29.7	2,675	31.3	2,502	30.3
Large-container	839	19.0	794	18.7	1,607	18.8	1,532	18.6
Other	18	0.4	17	0.4	35	0.4	35	0.4
Total collection	2,993	67.6	2,822	66.6	5,832	68.2	5,565	67.4
Transfer	495		479		935		903
Less: intercompany	(264)		(258)		(503)		(494)
Transfer, net	231	5.2	221	5.2	432	5.1	409	5.0
Landfill	858		854		1,622		1,577
Less: intercompany	(341)		(338)		(652)		(640)
Landfill, net	517	11.7	516	12.2	970	11.4	937	11.4
Environmental solutions	473		478		891		944
Less: intercompany	(15)		(16)		(28)		(33)
Environmental solutions, net	458	10.3	462	10.9	863	10.1	911	11.1
Other:
Recycling processing and commodity sales	122	2.7	114	2.7	234	2.7	222	2.7
Other non-core	109	2.5	100	2.4	213	2.5	200	2.4
Total other	231	5.2	214	5.1	447	5.2	422	5.1
Total revenue	$4,430	100.0%	$4,235	100.0%	$8,544	100.0%	$8,244	100.0%

The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Average yield	3.4%	4.1%	3.4%	4.3%
Fuel recovery fees	1.8	(0.3)	1.0	(0.4)
Total price	5.2	3.8	4.4	3.9
Volume	(1.6)	0.2	(1.2)	(0.5)
Change in workdays	-	-	-	(0.2)
Recycling processing and commodity sales	0.1	-	-	0.1
Environmental solutions	(0.2)	(0.9)	(0.7)	(0.3)
Total internal growth	3.5	3.1	2.5	3.0
Acquisitions / divestitures, net	1.1	1.5	1.1	1.2
Total	4.6%	4.6%	3.6%	4.2%
Core price	5.3%	5.7%	5.5%	5.9%

Average yield is defined as revenue growth from the change in average price per unit of service, expressed as a percentage. Core price is defined as price increases to our customers and fees, excluding fuel recovery fees, net of price decreases to retain customers. We also measure changes in core price, average yield and volume as a percentage of related-business revenue, defined as total revenue excluding recycled commodities, fuel recovery fees and environmental solutions revenue, to determine the effectiveness of our pricing and organic growth strategies. The following table reflects core price, average yield and volume as a percentage of related-business revenue for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	As a % of Related Business		As a % of Related Business
Core price	6.4%	7.0%	6.6%	7.2%
Average yield	4.0%	5.0%	4.1%	5.2%
Volume	(1.9)%	0.2%	(1.5)%	(0.6)%

The following table reflects changes in average yield and volume, as a percentage of related business revenue by line of business, for the three and six months ended June 30, 2026 and 2025:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	Yield	Volume	Yield	Volume	Yield	Volume	Yield	Volume
Collection:
Residential	4.4%	(4.3)%	5.1%	(3.2)%	4.5%	(4.7)%	5.3%	(3.1)%
Small-container	5.0%	(0.2)%	6.0%	(0.9)%	4.8%	(0.3)%	6.1%	(1.1)%
Large-container	3.8%	(2.2)%	5.5%	(3.4)%	4.2%	(2.4)%	5.6%	(3.3)%
Landfill:
Municipal solid waste	5.6%	1.1%	5.5%	(2.1)%	5.3%	1.2%	6.1%	(2.8)%
Construction and demolition waste	3.3%	(37.4)%	3.9%	47.3%	4.0%	(29.9)%	4.0%	30.9%
Special waste	- %	(0.3)%	- %	22.4%	- %	4.3%	- %	14.5%

COST OF OPERATIONS

The following table summarizes the major components of our cost of operations for the three and six months ended June 30, 2026 and 2025 (in millions of dollars and as a percentage of revenue):

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Labor and related benefits	$864	19.5%	$844	19.9%	$1,695	19.8%	$1,662	20.2%
Transfer and disposal costs	285	6.4	279	6.6	542	6.3	533	6.5
Maintenance and repairs	381	8.6	379	9.0	742	8.7	738	8.9
Transportation and subcontract costs	333	7.5	302	7.1	626	7.3	594	7.2
Fuel	171	3.9	116	2.7	295	3.5	230	2.8
Disposal fees and taxes	95	2.2	96	2.3	179	2.1	179	2.2
Landfill operating costs	107	2.4	104	2.5	199	2.3	193	2.3
Risk management	102	2.3	109	2.6	206	2.4	213	2.6
Other	225	5.1	220	5.2	445	5.3	421	5.1
Total cost of operations	$2,563	57.9%	$2,449	57.9%	$4,929	57.7%	$4,763	57.8%

These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies. As such, you should take care when comparing our cost of operations by cost component to that of other companies and of ours for prior periods.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

The following table summarizes our selling, general and administrative expenses for the three and six months ended June 30, 2026 and 2025 (in millions of dollars and as a percentage of revenue):

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Salaries and related benefits	$292	6.6%	$280	6.6%	$593	7.0%	$573	6.9%
Provision for doubtful accounts	15	0.3	8	0.2	27	0.3	18	0.2
Other	137	3.1	137	3.2	250	2.9	261	3.2
Total selling, general and administrative expenses	$444	10.0%	$425	10.0%	$870	10.2%	$852	10.3%

These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies. As such, you should take care when comparing our selling, general and administrative expenses by cost component to those of other companies and of ours for prior periods.

PERFORMANCE METRICS AND RECONCILIATIONS OF CERTAIN NON-GAAP MEASURES

The following tables calculate EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA and adjusted EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, adjusted diluted earnings per share, and adjusted free cash flow, which are not measures determined in accordance with U.S. generally accepted accounting principles (U.S. GAAP), for the three and six months ended June 30, 2026 and 2025. Our definitions of the foregoing non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.

Adjusted EBITDA and Adjusted EBITDA Margin

The following table calculates adjusted EBITDA and adjusted EBITDA margin for the three and six months ended June 30, 2026 and 2025 (in millions of dollars and as a percentage of revenue):

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net income attributable to Republic Services, Inc. and net income margin	$566	12.8%	$550	13.0%	$1,092	12.8%	$1,045	12.7%
Provision for income taxes	133		170		263		340
Other income, net	(5)		(4)		(31)		(15)
Interest income	(2)		(2)		(5)		(4)
Interest expense	151		145		302		285
Depreciation, depletion and amortization	488		463		949		897
Accretion	30		28		60		57
EBITDA and EBITDA margin	$1,361	30.7%	$1,350	31.9%	$2,630	30.8%	$2,605	31.6%
Loss from unconsolidated equity method investments	58		2		110		14
Restructuring charges	4		6		6		9
(Gain) loss on business divestitures and impairments, net	-		3		(1)		1
Total adjustments	62		11		115		24
Adjusted EBITDA and adjusted EBITDA margin	$1,423	32.1%	$1,361	32.1%	$2,745	32.1%	$2,629	31.9%

Adjusted EBITDA and Adjusted EBITDA Margin by Business Type

The following table summarizes revenue, adjusted EBITDA and adjusted EBITDA margin by business type for the three and six months ended June 30, 2026 and 2025 (in millions of dollars and adjusted EBITDA margin as a percentage of revenue):

	Three Months Ended June 30, 2026			Three Months Ended June 30, 2025
	Recycling & Waste	Environmental Solutions	Total	Recycling & Waste	Environmental Solutions	Total
Revenue	$3,972	$458	$4,430	$3,773	$462	$4,235
Adjusted EBITDA	$1,330	$93	$1,423	$1,248	$113	$1,361
Adjusted EBITDA Margin	33.5%	20.2%	32.1%	33.1%	24.4%	32.1%

	Six Months Ended June 30, 2026			Six Months Ended June 30, 2025
	Recycling & Waste	Environmental Solutions	Total	Recycling & Waste	Environmental Solutions	Total
Revenue	$7,681	$863	$8,544	$7,333	$911	$8,244
Adjusted EBITDA	$2,574	$171	$2,745	$2,423	$206	$2,629
Adjusted EBITDA Margin	33.5%	19.7%	32.1%	33.0%	22.6%	31.9%

(a) Certain corporate expenses, including selling, general and administrative expenses, and National Accounts revenue are allocated to the two business types.

(b) Adjusted EBITDA Margin does not calculate due to rounding.

The amounts shown for Recycling & Waste represent the sum of our Group 1 and Group 2 reportable segments, and Environmental Solutions represents our Group 3 reportable segment.

Adjusted Diluted Earnings Per Share

The following table calculates adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, and adjusted diluted earnings per share for the three and six months ended June 30, 2026 and 2025 (in millions of dollars except per share data):

	Three Months Ended June 30, 2026				Three Months Ended June 30, 2025
				Diluted				Diluted
			Net	Earnings			Net	Earnings
	Pre-tax	Tax	Income -	per	Pre-tax	Tax	Income -	per
	Income	Impact	Republic	Share	Income	Impact	Republic	Share
As reported	$699	$133	$566	$1.84	$720	$170	$550	$1.75
Restructuring charges	4	1	3	0.01	6	2	4	0.01
Loss on business divestitures and impairments, net	-	-	-	-	3	1	2	0.01
Total adjustments	4	1	3	0.01	9	3	6	0.02
As adjusted	$703	$134	$569	$1.85	$729	$173	$556	$1.77

	Six Months Ended June 30, 2026				Six Months Ended June 30, 2025
				Diluted				Diluted
			Net	Earnings			Net	Earnings
	Pre-tax	Tax	Income -	per	Pre-tax	Tax	Income -	per
	Income	Impact	Republic	Share	Income	Impact	Republic	Share
As reported	$1,355	$263	$1,092	$3.54	$1,385	$340	$1,045	$3.33
Restructuring charges	6	2	4	0.01	9	2	7	0.03
(Gain) loss on business divestitures and impairments, net	(1)	-	(1)	-	1	-	1	-
Total adjustments	5	2	3	0.01	10	2	8	0.03
As adjusted	$1,360	$265	$1,095	$3.55	$1,395	$342	$1,053	$3.36

(1) The income tax effect related to our adjustments includes both current and deferred income tax impact and is individually calculated based on the statutory rates applicable to each adjustment.

(2) The aggregate impact to adjusted diluted earnings per share totals to less than $0.01 for the six months ended June 30, 2026 and 2025.

We believe that presenting EBITDA and EBITDA margin is useful to investors because they provide important information concerning our operating performance exclusive of certain non-cash and other costs. EBITDA and EBITDA margin demonstrate our ability to execute our financial strategy, which includes reinvesting in existing capital assets to ensure a high level of customer service, investing in capital assets to facilitate growth in our customer base and services provided, maintaining our investment grade credit ratings and minimizing debt, paying cash dividends, repurchasing our common stock, and maintaining and improving our market position through business optimization. Although depreciation, depletion, amortization and accretion are considered operating costs in accordance with U.S. GAAP, they represent the allocation of non-cash costs generally associated with long-lived assets acquired or constructed in prior years.

We believe that presenting adjusted EBITDA and adjusted EBITDA margin, adjusted EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, and adjusted diluted earnings per share provide an understanding of operational activities before the financial impact of certain items. We use these measures, and believe investors will find them helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods.

Restructuring charges. During the three and six months ended June 30, 2026, we incurred restructuring charges of $4 million and $6 million, respectively, and during the three and six months ended June 30, 2025, we incurred restructuring charges of $6 million and $9 million, respectively. The charges in these periods related primarily to the design and implementation of our new accounts receivable system.

(Gain) loss on business divestitures and impairments, net. During the six months ended June 30, 2026, we recorded a net gain on business divestitures and impairments of $1 million. During the three and six months ended June 30, 2025, we recorded a loss on business divestitures and impairments of $3 million and $1 million, respectively.

Adjusted Free Cash Flow

The following table calculates our adjusted free cash flow, which is not a measure determined in accordance with U.S. GAAP, for the six months ended June 30, 2026 and 2025 (in millions of dollars):

	Six Months Ended June 30,
		2026	2025
Cash provided by operating activities		$2,380	$2,134
Property and equipment received		(809)	(727)
Proceeds from sales of property and equipment		7	8
Restructuring payments, net of tax	5	5
Adjusted free cash flow		$1,583	$1,420

We believe that presenting adjusted free cash flow provides useful information regarding our recurring cash provided by operating activities after certain expenditures or recoveries. It also demonstrates our ability to execute our financial strategy and is a key metric we use to determine compensation. The presentation of adjusted free cash flow has material limitations. Adjusted free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed, such as debt service requirements and dividend payments.

Purchases of property and equipment as reflected on our consolidated statements of cash flows represent amounts paid during the period for such expenditures. A reconciliation of property and equipment expenditures reflected on our consolidated statements of cash flows to property and equipment received during the period follows for the six months ended June 30, 2026 and 2025 (in millions of dollars):


	2026	2025
Purchases of property and equipment per the unaudited consolidated statements of cash flows	$868	$866
Adjustments for property and equipment received in a different period	(59)	(139)
Property and equipment received during the period	$809	$727

The adjustments noted above do not affect our net change in cash, cash equivalents, restricted cash and restricted cash equivalents as reflected in our consolidated statements of cash flows.

ACCOUNTS RECEIVABLE

As of June 30, 2026 and December 31, 2025, accounts receivable were $2,029 million and $1,897 million, net of allowance for doubtful accounts of $59 million and $66 million, respectively, resulting in days sales outstanding of 41.7, or 31.8 days net of deferred revenue, compared to 41.8, or 30.8 days net of deferred revenue, respectively.

CASH DIVIDENDS

In April 2026, we paid a cash dividend of $192 million to shareholders of record as of April 2, 2026. As of June 30, 2026, we recorded a quarterly dividend payable of $191 million to shareholders of record at the close of business on July 2, 2026, which was paid on July 15, 2026.

SHARE REPURCHASE PROGRAM

During the three months ended June 30, 2026, we repurchased 1.6 million shares of our common stock for $337 million at a weighted average cost per share of $206.70. As of June 30, 2026, the remaining authorized purchase capacity under our October 2023 repurchase program was approximately $1.0 billion.

RECONCILIATION OF FULL-YEAR 2026 FINANCIAL GUIDANCE

Adjusted EBITDA

The following is a summary of our anticipated adjusted EBITDA, which is not a measure determined in accordance with U.S. GAAP, for the year ending December 31, 2026 (in millions of dollars):

	(Anticipated) Year Ending December 31, 2026
Net income attributable to Republic Services, Inc.	$ 2,210 - 2,220
Provision for income taxes	530 - 535
Other income, net	(30)
Interest expense, net	605
Depreciation, depletion, amortization and accretion	2,000 - 2,010
Loss from unconsolidated equity method investments	190
Restructuring charges	20
Adjusted EBITDA	$ 5,525 - 5,550

We believe that presenting adjusted EBITDA provides an understanding of operational activities before the financial impact of certain items. We use this measure, and believe investors will find it helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Our definition of adjusted EBITDA may not be comparable to similarly titled measures presented by other companies.

Adjusted Diluted Earnings per Share

The following is a summary of anticipated adjusted diluted earnings per share, which is not a measure determined in accordance with U.S. GAAP, for the year ending December 31, 2026:

	(Anticipated) Year Ending December 31, 2026
Diluted earnings per share	$ 7.18 - 7.23
Restructuring charges	0.05
Adjusted diluted earnings per share	$ 7.23 - 7.28

We believe that presenting adjusted diluted earnings per share provides an understanding of operational activities before the financial impact of certain items. We use this measure, and believe investors will find it helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Our definition of adjusted diluted earnings per share may not be comparable to similarly titled measures presented by other companies.

Adjusted Free Cash Flow

Our anticipated adjusted free cash flow, which is not a measure determined in accordance with U.S. GAAP, for the year ending December 31, 2026, is calculated as follows (in millions of dollars):

	(Anticipated) Year Ending December 31, 2026
Cash provided by operating activities	$ 4,485 - 4,560
Property and equipment received	(1,970) - (2,010)
Proceeds from sales of property and equipment	10
Restructuring payments, net of tax	15
Adjusted free cash flow	$ 2,540 - 2,575

Our financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy for the remainder of 2026.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Forward-looking statements notice

This press release contains certain forward-looking information about us that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as “guidance,” “expect,” “will,” “may,” “anticipate,” “plan,” “estimate,” “project,” “intend,” “should,” “can,” “likely,” “could,” “outlook” and similar expressions are intended to identify forward-looking statements. These statements include information about our plans, strategies, and expectations of future financial performance and prospects. Forward-looking statements are not guarantees of performance. These statements are based upon the current beliefs and expectations of our management and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such expectations may not prove to be correct. Among the factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements are the impacts of the overall global economy and changing interest rates, impacts from international trade restrictions and tariffs, our ability to effectively integrate and manage companies we acquire, and to realize the anticipated benefits of any such acquisitions, the impact of prolonged work stoppages or other labor disruptions, the amount of the financial contribution of our sustainability initiatives, acts of war, riots or terrorism, and the impact of these acts on economic, financial and social conditions in the United States and Canada, as well as our dependence on large, long-term collection, transfer and disposal contracts. More information on factors that could cause actual results or events to differ materially from those anticipated is included from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, particularly under Part I, Item 1A - Risk Factors. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such risk factors, or to assess the impact such risk factors might have on our business. We undertake no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Contacts
For more information, contact: Media Inquiries · Roman Blahoski (480) 718-0328 · media@RepublicServices.com
Investor Inquiries · John Weeks (480) 718-0309 · investor@RepublicServices.com