Republic Services (NYSE: RSG) grows Q1 earnings and declares dividend
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Republic Services, Inc. reported solid first-quarter 2026 results with revenue of $4.11 billion and net income of $525 million, or $1.70 per diluted share, up from $1.58 a year earlier. Adjusted EBITDA reached $1.32 billion, with margin expanding 50 basis points to 32.1%.
Cash provided by operating activities was $1.23 billion and adjusted free cash flow was $984 million, supporting both growth and shareholder returns. The company invested $433 million in acquisitions and returned $507 million to shareholders, including $314 million of share repurchases and $193 million of dividends.
The board declared a regular quarterly dividend of $0.625 per share, payable July 15, 2026, to shareholders of record on July 2, 2026. Management highlighted disciplined pricing, cost control and continued investment across recycling, waste and environmental solutions businesses.
Positive
- None.
Negative
- None.
Insights
Republic delivers modest Q1 growth, stronger margins and robust cash generation.
Republic Services grew Q1 2026 revenue to $4.113 billion and net income to $525 million, with EPS rising to $1.70. Margin performance was notable: adjusted EBITDA reached $1.322 billion, and margin improved 50 basis points to 32.1%, helped by core price increases and cost discipline.
Cash flow was a key strength. Operating cash flow of $1.227 billion supported $984 million in adjusted free cash flow, even as the company invested $433 million in acquisitions. It also returned $507 million to shareholders through dividends and buybacks, indicating capacity to fund both growth and capital returns.
The board declared a quarterly dividend of $0.625 per share and the company repurchased 1.4 million shares for $314 million. Environmental solutions revenue declined and recycled commodity prices fell $35 per ton year over year, so future disclosures will show how pricing and mix offset these pressures.
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revenue: $4.113 billion
Net income: $525 million
Diluted EPS: $1.70 per share
+5 more
8 metrics
Revenue
$4.113 billion
Three months ended March 31, 2026
Net income
$525 million
Q1 2026, net income margin 12.8%
Diluted EPS
$1.70 per share
Q1 2026, up from $1.58 in Q1 2025
Adjusted EBITDA
$1.322 billion
Q1 2026, margin 32.1% of revenue
Adjusted free cash flow
$984 million
Three months ended March 31, 2026
Quarterly dividend
$0.625 per share
Declared May 5, 2026, payable July 15, 2026
Share repurchases
$314 million for 1.4 million shares
Q1 2026, average price $218.29
Operating cash flow
$1.227 billion
Cash provided by operating activities, Q1 2026
Key Terms
Adjusted EBITDA, core price, adjusted free cash flow, non-GAAP, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA, a non-GAAP measure, was $1.32 billion"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
core price financial
"Core price on total revenue increased revenue by 5.7 percent."
Core price is a measure of general price changes that excludes highly volatile items—typically food and energy—so it highlights the underlying trend in what things cost. Investors watch core price because it gives a clearer signal of persistent inflation that can influence central bank decisions, interest rates and asset values; think of it as looking at the steady pattern after removing short-term weather-driven spikes.
adjusted free cash flow financial
"Generated Adjusted Free Cash Flow of $984 Million"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
non-GAAP financial
"are described in the Performance Metrics and Reconciliations of Certain Non-GAAP Measures section"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
Environmental solutions financial
"Environmental solutions, net | 405 | | | 9.8 | %"
Earnings Snapshot
Revenue: $4.113 billion
Three months ended March 31, 2026
Revenue
$4.113 billion
+2.6% year over year
Diluted EPS
$1.70
+7.6% year over year
Net income
$525 million
Adjusted EBITDA
$1.322 billion
Adjusted free cash flow
$984 million
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 5, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code: (480 ) 627-2700
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each Class | Trading Symbol | Name of exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | |||||
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition. | 3 | ||||||||||
| Item 8.01 Other Events. | 3 | ||||||||||
Item 9.01 Financial Statements and Exhibits. | 3 | ||||||||||
SIGNATURES | 4 | ||||||||||
| EX-99.1 | |||||||||||
| EX-104 | |||||||||||
2
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, Republic Services, Inc. (the Company) issued a press release containing information about the Company’s financial results for the three months ended March 31, 2026. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 8.01 Other Events.
On May 5, 2026, the Board of Directors of the Company declared a regular quarterly dividend of $0.625 per share for shareholders of record on July 2, 2026. The dividend will be paid on July 15, 2026.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
99.1 | Press release of Republic Services, Inc. issued May 7, 2026 to announce the financial results for the three months ended March 31, 2026. | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| REPUBLIC SERVICES, INC. | |||||||||||
| Date: | May 7, 2026 | By: | /s/ BRIAN DELGHIACCIO | ||||||||
Brian DelGhiaccio | |||||||||||
| Executive Vice President, Chief Financial Officer (Principal Financial Officer) | |||||||||||
| Date: | May 7, 2026 | By: | /s/ ELYSE M. CARLSEN | ||||||||
| Elyse M. Carlsen | |||||||||||
| Vice President and Chief Accounting Officer (Principal Accounting Officer) | |||||||||||
4
EXHIBIT 99.1
Republic Services, Inc. Reports
First Quarter 2026 Results
● | First Quarter Earnings Per Share of $1.70 | |||||||
● | Expanded First Quarter Net Income Margin 50 Basis Points and Adjusted EBITDA Margin 50 Basis Points | |||||||
● | Generated Cash Flow from Operations of $1.23 Billion | |||||||
● | Generated Adjusted Free Cash Flow of $984 Million | |||||||
● | Invested More Than $700 Million in Value-Creating Acquisitions To Date | |||||||
● | Named to Fortune's 2026 World's Most Admired Companies List | |||||||
PHOENIX (May 7, 2026) – Republic Services, Inc. (NYSE: RSG) today reported net income of $525 million, or $1.70 per diluted share, for the three months ended March 31, 2026, versus $495 million, or $1.58 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 March 31, 2026, was $526 million, or $1.70 per diluted share, versus $496 million, or $1.58 per diluted share, for the comparable 2025 period.
“We are off to a strong start and remain well positioned to achieve our full‑year objectives,” said Jon Vander Ark, president and chief executive officer. “Disciplined pricing and effective cost management drove solid earnings growth and 50 basis points of adjusted EBITDA margin expansion in the first quarter. We remain focused on executing our strategy and investing for growth to deliver long‑term value for our customers and shareholders."
1
First-Quarter 2026 Highlights:
•Total revenue growth of 2.6 percent includes 2.8 percent organic growth from our recycling and waste business, 1.3 percent organic decline from our environmental solutions business, and 1.1 percent growth from acquisitions.
•Core price on total revenue increased revenue by 5.7 percent. Core price on related business revenue increased revenue by 6.8 percent, which consisted of 8.4 percent in the open market and 4.4 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 0.8 percent. Revenue growth from average yield on related business revenue was 4.1 percent, and volume decreased related business revenue by 1.0 percent.
•Net income was $525 million, or a margin of 12.8 percent.
•EPS and Adjusted EPS, a non-GAAP measure, were both $1.70 per share, an increase of 7.6 percent over the prior year.
•Adjusted EBITDA, a non-GAAP measure, was $1.32 billion, and adjusted EBITDA margin, a non-GAAP measure, was 32.1 percent of revenue, an increase of 50 basis points over the prior year.
•Cash invested in acquisitions was $433 million.
•Cash returned to shareholders was $507 million, which included $314 million of share repurchases and $193 million of dividends paid.
•The Company's average recycled commodity price per ton sold at its recycling centers during the first quarter was $120. This represents a decrease of $35 per ton over the prior year.
•Republic was recognized by several leading organizations during the quarter, including:
◦Ethisphere's 2026 World's Most Ethical Companies® List
◦Fortune's 2026 World's Most Admired Companies List
Company Declared Quarterly Dividend
On May 5, 2026, the Board of Directors of Republic Services, Inc. declared a regular quarterly dividend of $0.625 per share for shareholders of record on July 2, 2026. The dividend will be paid on July 15, 2026.
2
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.
| For more information, contact: | |||||
Media Inquiries | Investor Inquiries | ||||
Roman Blahoski (480) 718-0328 | Aaron Evans (480) 718-0309 | ||||
media@RepublicServices.com | investor@RepublicServices.com | ||||
3
| SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION | |||||||||||
| AND OPERATING DATA | |||||||||||
| REPUBLIC SERVICES, INC. | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (in millions, except per share amounts) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 118 | $ | 76 | |||||||
Accounts receivable, less allowance for doubtful accounts and other of $60 and $66, respectively | 1,917 | 1,897 | |||||||||
| Prepaid expenses and other current assets | 475 | 550 | |||||||||
| Total current assets | 2,510 | 2,523 | |||||||||
| Restricted cash and marketable securities | 292 | 259 | |||||||||
| Property and equipment, net | 12,695 | 12,639 | |||||||||
| Goodwill | 16,926 | 16,715 | |||||||||
| Other intangible assets, net | 647 | 655 | |||||||||
| Other assets | 1,530 | 1,575 | |||||||||
| Total assets | $ | 34,600 | $ | 34,366 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 1,196 | $ | 1,374 | |||||||
| Notes payable and current maturities of long-term debt | 547 | 596 | |||||||||
| Deferred revenue | 480 | 496 | |||||||||
| Accrued landfill and environmental costs, current portion | 159 | 148 | |||||||||
| Accrued interest | 122 | 109 | |||||||||
| Other accrued liabilities | 1,236 | 1,205 | |||||||||
| Total current liabilities | 3,740 | 3,928 | |||||||||
| Long-term debt, net of current maturities | 13,317 | 12,985 | |||||||||
| Accrued landfill and environmental costs, net of current portion | 2,620 | 2,608 | |||||||||
| Deferred income taxes and other long-term tax liabilities, net | 1,936 | 1,884 | |||||||||
| Insurance reserves, net of current portion | 454 | 436 | |||||||||
| Other long-term liabilities | 552 | 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 | 1,851 | 1,833 | |||||||||
| Retained earnings | 11,493 | 11,161 | |||||||||
Treasury stock, at cost; 6 and 5 shares, respectively | (1,336) | (1,000) | |||||||||
| Accumulated other comprehensive loss, net of tax | (31) | (29) | |||||||||
| Total Republic Services, Inc. stockholders' equity | 11,980 | 11,968 | |||||||||
| Non-controlling interests in consolidated subsidiary | 1 | 1 | |||||||||
| Total stockholders' equity | 11,981 | 11,969 | |||||||||
| Total liabilities and stockholders' equity | $ | 34,600 | $ | 34,366 | |||||||
4
| REPUBLIC SERVICES, INC. | |||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| (in millions, except per share data) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | $ | 4,113 | $ | 4,009 | |||||||
| Expenses: | |||||||||||
| Cost of operations | 2,366 | 2,314 | |||||||||
| Depreciation, depletion and amortization | 461 | 434 | |||||||||
| Accretion | 30 | 28 | |||||||||
| Selling, general and administrative | 425 | 427 | |||||||||
| Restructuring charges | 2 | 4 | |||||||||
| Gain on business divestitures and impairments, net | (1) | (2) | |||||||||
| Operating income | 830 | 804 | |||||||||
| Interest expense | (151) | (140) | |||||||||
| Loss from unconsolidated equity method investments | (52) | (12) | |||||||||
| Interest income | 2 | 2 | |||||||||
| Other income, net | 27 | 11 | |||||||||
| Income before income taxes | 656 | 665 | |||||||||
| Provision for income taxes | 131 | 170 | |||||||||
| Net income | 525 | 495 | |||||||||
| Net income attributable to non-controlling interests in consolidated subsidiary | — | — | |||||||||
| Net income attributable to Republic Services, Inc. | $ | 525 | $ | 495 | |||||||
| Basic earnings per share attributable to Republic Services, Inc. stockholders: | |||||||||||
| Basic earnings per share | $ | 1.70 | $ | 1.58 | |||||||
| Weighted average common shares outstanding | 309.1 | 313.0 | |||||||||
| Diluted earnings per share attributable to Republic Services, Inc. stockholders: | |||||||||||
| Diluted earnings per share | $ | 1.70 | $ | 1.58 | |||||||
| Weighted average common and common equivalent shares outstanding | 309.3 | 313.3 | |||||||||
| Cash dividends per common share | $ | 0.625 | $ | 0.580 | |||||||
5
| REPUBLIC SERVICES, INC. | |||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (in millions) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash provided by operating activities: | |||||||||||
| Net income | $ | 525 | $ | 495 | |||||||
| Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
| Depreciation, depletion, amortization and accretion | 491 | 462 | |||||||||
| Non-cash interest expense | 21 | 18 | |||||||||
| Deferred tax provision | 33 | 1 | |||||||||
| Loss from unconsolidated equity method investments | 52 | 12 | |||||||||
| Other non-cash items | 22 | 18 | |||||||||
| Change in assets and liabilities, net of effects from business acquisitions and divestitures: | |||||||||||
| Accounts receivable | (25) | (18) | |||||||||
| Prepaid expenses and other assets | 49 | 90 | |||||||||
| Accounts payable | 49 | (42) | |||||||||
| Capping, closure and post-closure expenditures | (9) | (8) | |||||||||
| Remediation expenditures | (11) | (9) | |||||||||
| Other liabilities | 30 | 6 | |||||||||
| Cash provided by operating activities | 1,227 | 1,025 | |||||||||
| Cash used in investing activities: | |||||||||||
| Purchases of property and equipment | (476) | (459) | |||||||||
| Proceeds from sales of property and equipment | 3 | 3 | |||||||||
| Cash used in acquisitions and investments, net of cash and restricted cash acquired | (437) | (834) | |||||||||
| Cash received from business divestitures | 1 | 3 | |||||||||
| Other | (1) | (1) | |||||||||
| Cash used in investing activities | (910) | (1,288) | |||||||||
| Cash (used in) provided by financing activities: | |||||||||||
| Proceeds from credit facilities and notes payable, net of fees | 15,310 | 11,372 | |||||||||
| Proceeds from issuance of senior notes, net of discount and fees | — | 1,186 | |||||||||
| Payments of credit facilities and notes payable | (15,035) | (12,018) | |||||||||
| Issuances of common stock, net | (14) | (19) | |||||||||
| Purchases of common stock for treasury | (292) | (55) | |||||||||
| Cash dividends paid | (193) | (181) | |||||||||
| Contingent consideration payments | (14) | (1) | |||||||||
| Cash (used in) provided by financing activities | (238) | 284 | |||||||||
| Effect of foreign exchange rate changes on cash | (1) | — | |||||||||
| Increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 78 | 21 | |||||||||
| 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 | $ | 327 | $ | 224 | |||||||
6
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 months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Collection: | |||||||||||||||||||||||
| Residential | $ | 747 | 18.2 | % | $ | 743 | 18.6 | % | |||||||||||||||
| Small-container | 1,306 | 31.8 | 1,243 | 31.0 | |||||||||||||||||||
| Large-container | 768 | 18.7 | 739 | 18.4 | |||||||||||||||||||
| Other | 17 | 0.4 | 18 | 0.4 | |||||||||||||||||||
Total collection | 2,838 | 69.1 | 2,743 | 68.4 | |||||||||||||||||||
| Transfer | 440 | 424 | |||||||||||||||||||||
| Less: intercompany | (240) | (236) | |||||||||||||||||||||
| Transfer, net | 200 | 4.9 | 188 | 4.7 | |||||||||||||||||||
| Landfill | 764 | 723 | |||||||||||||||||||||
| Less: intercompany | (311) | (302) | |||||||||||||||||||||
| Landfill, net | 453 | 11.0 | 421 | 10.5 | |||||||||||||||||||
| Environmental solutions | 417 | 466 | |||||||||||||||||||||
| Less: intercompany | (12) | (17) | |||||||||||||||||||||
| Environmental solutions, net | 405 | 9.8 | 449 | 11.2 | |||||||||||||||||||
| Other: | |||||||||||||||||||||||
Recycling processing and commodity sales | 112 | 2.7 | 108 | 2.7 | |||||||||||||||||||
| Other non-core | 105 | 2.5 | 100 | 2.5 | |||||||||||||||||||
| Total other | 217 | 5.2 | 208 | 5.2 | |||||||||||||||||||
| Total revenue | $ | 4,113 | 100.0 | % | $ | 4,009 | 100.0 | % | |||||||||||||||
The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Average yield | 3.4 | % | 4.5 | % | |||||||
| Fuel recovery fees | 0.2 | (0.4) | |||||||||
Total price | 3.6 | 4.1 | |||||||||
| Volume | (0.8) | (1.2) | |||||||||
| Change in workdays | — | (0.5) | |||||||||
| Recycling processing and commodity sales | — | 0.3 | |||||||||
| Environmental solutions | (1.3) | 0.2 | |||||||||
| Total internal growth | 1.5 | 2.9 | |||||||||
| Acquisitions / divestitures, net | 1.1 | 0.9 | |||||||||
| Total | 2.6 | % | 3.8 | % | |||||||
| Core price | 5.7 | % | 6.1 | % | |||||||
7
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 months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| As a % of Related Business | |||||||||||
| Core price | 6.8 | % | 7.3 | % | |||||||
| Average yield | 4.1 | % | 5.4 | % | |||||||
| Volume | (1.0) | % | (1.5) | % | |||||||
The following table reflects changes in average yield and volume, as a percentage of related business revenue by line of business, for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Yield | Volume | Yield | Volume | ||||||||||||||||||||
| Collection: | |||||||||||||||||||||||
| Residential | 4.7 | % | (5.2) | % | 5.5 | % | (2.9) | % | |||||||||||||||
| Small-container | 4.7 | % | (0.3) | % | 6.3 | % | (1.3) | % | |||||||||||||||
| Large-container | 4.5 | % | (2.5) | % | 5.7 | % | (3.3) | % | |||||||||||||||
| Landfill: | |||||||||||||||||||||||
| Municipal solid waste | 4.9 | % | 1.4 | % | 6.8 | % | (3.6) | % | |||||||||||||||
| Construction and demolition waste | 5.3 | % | (17.8) | % | 4.2 | % | 11.0 | % | |||||||||||||||
| Special waste | — | % | 9.9 | % | — | % | 6.3 | % | |||||||||||||||
COST OF OPERATIONS
The following table summarizes the major components of our cost of operations for the three months ended March 31, 2026 and 2025 (in millions of dollars and as a percentage of revenue):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Labor and related benefits | $ | 831 | 20.2 | % | $ | 818 | 20.4 | % | |||||||||||||||
| Transfer and disposal costs | 257 | 6.3 | 253 | 6.3 | |||||||||||||||||||
| Maintenance and repairs | 361 | 8.8 | 359 | 9.0 | |||||||||||||||||||
Transportation and subcontract costs | 293 | 7.1 | 292 | 7.3 | |||||||||||||||||||
| Fuel | 124 | 3.0 | 114 | 2.8 | |||||||||||||||||||
Disposal fees and taxes | 84 | 2.0 | 83 | 2.1 | |||||||||||||||||||
| Landfill operating costs | 92 | 2.2 | 90 | 2.2 | |||||||||||||||||||
| Risk management | 103 | 2.5 | 104 | 2.6 | |||||||||||||||||||
| Other | 221 | 5.4 | 201 | 5.0 | |||||||||||||||||||
| Total cost of operations | $ | 2,366 | 57.5 | % | $ | 2,314 | 57.7 | % | |||||||||||||||
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.
8
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The following table summarizes our selling, general and administrative expenses for the three months ended March 31, 2026 and 2025 (in millions of dollars and as a percentage of revenue):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Salaries and related benefits | $ | 301 | 7.3 | % | $ | 293 | 7.3 | % | |||||||||||||||
| Provision for doubtful accounts | 12 | 0.3 | 10 | 0.3 | |||||||||||||||||||
| Other | 112 | 2.7 | 124 | 3.1 | |||||||||||||||||||
| Total selling, general and administrative expenses | $ | 425 | 10.3 | % | $ | 427 | 10.7 | % | |||||||||||||||
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 months ended March 31, 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 months ended March 31, 2026 and 2025 (in millions of dollars and as a percentage of revenue):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net income attributable to Republic Services, Inc. and net income margin | $ | 525 | 12.8 | % | $ | 495 | 12.3 | % | |||||||||||||||
| Provision for income taxes | 131 | 170 | |||||||||||||||||||||
| Other income, net | (27) | (11) | |||||||||||||||||||||
| Interest income | (2) | (2) | |||||||||||||||||||||
| Interest expense | 151 | 140 | |||||||||||||||||||||
| Depreciation, depletion and amortization | 461 | 434 | |||||||||||||||||||||
| Accretion | 30 | 28 | |||||||||||||||||||||
| EBITDA and EBITDA margin | $ | 1,269 | 30.9 | % | $ | 1,254 | 31.3 | % | |||||||||||||||
| Loss from unconsolidated equity method investments | 52 | 12 | |||||||||||||||||||||
| Restructuring charges | 2 | 4 | |||||||||||||||||||||
| Gain on business divestitures and impairments, net | (1) | (2) | |||||||||||||||||||||
| Total adjustments | 53 | 14 | |||||||||||||||||||||
| Adjusted EBITDA and adjusted EBITDA margin | $ | 1,322 | 32.1 | % | $ | 1,268 | 31.6 | % | |||||||||||||||
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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 months ended March 31, 2026 and 2025 (in millions of dollars and adjusted EBITDA margin as a percentage of revenue):
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||
Recycling & Waste(b) | Environmental Solutions(b) | Total | Recycling & Waste | Environmental Solutions(b) | Total | |||||||||||||||||||||||||||||||||
Revenue | $ | 3,708 | $ | 405 | $ | 4,113 | $ | 3,560 | $ | 449 | $ | 4,009 | ||||||||||||||||||||||||||
Adjusted EBITDA(a) | $ | 1,244 | $ | 78 | $ | 1,322 | $ | 1,175 | $ | 93 | $ | 1,268 | ||||||||||||||||||||||||||
| Adjusted EBITDA Margin | 33.6 | % | 19.2 | % | 32.1 | % | 33.0 | % | 20.8 | % | 31.6 | % | ||||||||||||||||||||||||||
(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 months ended March 31, 2026 and 2025 (in millions of dollars except per share data):
Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | Diluted | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net | Earnings | Net | Earnings | |||||||||||||||||||||||||||||||||||||||||||||||
| Pre-tax | Tax | Income - | per | Pre-tax | Tax | Income - | per | |||||||||||||||||||||||||||||||||||||||||||
| Income | Impact(1) | Republic | Share | Income | Impact(1) | Republic | Share | |||||||||||||||||||||||||||||||||||||||||||
| As reported | $ | 656 | $ | 131 | $ | 525 | $ | 1.70 | $ | 665 | $ | 170 | $ | 495 | $ | 1.58 | ||||||||||||||||||||||||||||||||||
Restructuring charges(2) | 2 | — | 2 | — | 4 | 1 | 3 | 0.01 | ||||||||||||||||||||||||||||||||||||||||||
Gain on business divestitures and impairments, net(2) | (1) | — | (1) | — | (2) | — | (2) | (0.01) | ||||||||||||||||||||||||||||||||||||||||||
| Total adjustments | 1 | — | 1 | — | 2 | 1 | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
| As adjusted | $ | 657 | $ | 131 | $ | 526 | $ | 1.70 | $ | 667 | $ | 171 | $ | 496 | $ | 1.58 | ||||||||||||||||||||||||||||||||||
(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 three months ended March 31, 2026.
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 months ended March 31, 2026 and 2025, we incurred restructuring charges of $2 million and $4 million, respectively. The charges related to the design and implementation of our new accounts receivable system.
Gain on business divestitures and impairments, net. During the three months ended March 31, 2026 and 2025, we recorded a net gain on business divestitures and impairments of $1 million and $2 million, respectively.
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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 three months ended March 31, 2026 and 2025 (in millions of dollars):
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash provided by operating activities | $ | 1,227 | $ | 1,025 | ||||||||||
| Property and equipment received | (249) | (304) | ||||||||||||
| Proceeds from sales of property and equipment | 3 | 3 | ||||||||||||
| Restructuring payments, net of tax | 3 | 3 | ||||||||||||
| Adjusted free cash flow | $ | 984 | $ | 727 | ||||||||||
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 three months ended March 31, 2026 and 2025 (in millions of dollars):
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
Purchases of property and equipment per the unaudited consolidated statements of cash flows | $ | 476 | $ | 459 | ||||
Adjustments for property and equipment received in a different period | (227) | (155) | ||||||
| Property and equipment received during the period | $ | 249 | $ | 304 | ||||
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 March 31, 2026 and December 31, 2025, accounts receivable were $1,917 million and $1,897 million, net of allowance for doubtful accounts of $60 million and $66 million, respectively, resulting in days sales outstanding of 42.4, or 31.8 days net of deferred revenue, compared to 41.8, or 30.8 days net of deferred revenue, respectively.
CASH DIVIDENDS
In January 2026, we paid a cash dividend of $193 million to shareholders of record as of January 2, 2026. As of March 31, 2026, we recorded a quarterly dividend payable of $192 million to shareholders of record at the close of business on April 2, 2026, which was paid on April 15, 2026.
SHARE REPURCHASE PROGRAM
During the three months ended March 31, 2026, we repurchased 1.4 million shares of our common stock for $314 million at a weighted average cost per share of $218.29. As of March 31, 2026, the remaining authorized purchase capacity under our October 2023 repurchase program was approximately $1.3 billion.
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INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
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.
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FAQ
How did Republic Services (RSG) perform financially in Q1 2026?
Republic Services reported Q1 2026 revenue of $4.113 billion and net income of $525 million, or $1.70 per diluted share, up from $1.58 a year earlier. Adjusted EBITDA was $1.322 billion, with margin expanding to 32.1% of revenue.
What were Republic Services’ cash flow and free cash flow in Q1 2026?
Republic Services generated $1.227 billion of cash from operating activities in Q1 2026. After capital spending and related adjustments, adjusted free cash flow was $984 million. This strong cash generation supported both acquisitions and substantial shareholder returns during the quarter.
What dividend did Republic Services declare in May 2026?
On May 5, 2026, Republic Services’ board declared a regular quarterly dividend of $0.625 per share. Shareholders of record on July 2, 2026, will receive the dividend on July 15, 2026, reflecting continued commitment to cash returns.
How did Republic Services’ margins change in Q1 2026?
Republic Services expanded its Q1 2026 net income margin to 12.8% from 12.3% a year earlier. Adjusted EBITDA margin rose to 32.1%, up 50 basis points, supported by core price increases, cost control, and a favorable mix in its recycling and waste operations.
How did Republic Services’ environmental solutions and recycling businesses perform?
Environmental solutions net revenue was $405 million, down from $449 million, reflecting a 1.3% organic decline. Average recycled commodity price per ton was $120, down $35 year over year, while recycling processing and commodity sales revenue held at 2.7% of total revenue.