Republic Services (NYSE:RSG) Announces Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Republic Services (NYSE:RSG) posted its quarterly earnings results on Thursday. The business services provider reported $1.85 EPS for the quarter, topping analysts’ consensus estimates of $1.81 by $0.04, FiscalAI reports. The business had revenue of $4.43 billion during the quarter, compared to analysts’ expectations of $4.36 billion. Republic Services had a return on equity of 18.73% and a net margin of 12.94%.Republic Services’s quarterly revenue was up 4.6% on a year-over-year basis. During the same quarter last year, the company posted $1.77 earnings per share. Republic Services updated its FY 2026 guidance to 7.230-7.280 EPS.

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

• Republic raised its full-year 2026 guidance, now expecting revenue of $17.2–$17.3 billion, adjusted EBITDA of $5.525–$5.55 billion, adjusted EPS of $7.23–$7.28, and adjusted free cash flow of $2.54–$2.575 billion. The increase reflects acquisitions closed to date, higher fuel recovery fees, and improved recycling commodity prices.
• Second-quarter revenue grew 4.6% and adjusted EBITDA increased 4.5%, while the 32.1% EBITDA margin was maintained. Pricing remained strong, with 3.4% total-revenue yield and 4.0% related-revenue yield, exceeding underlying cost inflation and producing 90 basis points of margin expansion in the core business.
• Organic volume declined 1.9% on related revenue, primarily due to prior-year landfill event volumes, continued construction weakness, and a 4.3% decline in residential volume from contract losses. Management expects sequential improvement, but residential volumes may remain down roughly 3%–3.5% in the second half and about 2% in 2027.
• Environmental Solutions revenue improved sequentially and its EBITDA margin rose 100 basis points to 20.2%; management expects year-over-year revenue growth and further margin expansion in the second half. PFAS-related activity is growing across landfill, water-treatment, and remediation services, with revenue expected to exceed $100 million this year.
• Republic invested $860 million in acquisitions during the first half and expects more than $1.2 billion of value-creating acquisitions in 2026, while returning over $1 billion to shareholders through dividends and buybacks. AI-driven pricing and routing tools, Polymer Centers, RNG projects, and fleet electrification are being positioned as longer-term growth and efficiency opportunities.

Republic Services Stock Performance

Shares of RSG traded up $4.88 during midday trading on Friday, reaching $214.47. 1,922,824 shares of the stock were exchanged, compared to its average volume of 1,366,040. The company has a quick ratio of 0.67, a current ratio of 0.67 and a debt-to-equity ratio of 1.11. The stock’s 50 day simple moving average is $213.04 and its 200 day simple moving average is $214.95. Republic Services has a twelve month low of $196.41 and a twelve month high of $238.62. The company has a market cap of $65.98 billion, a P/E ratio of 30.38, a PEG ratio of 3.51 and a beta of 0.40.

Republic Services Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Friday, October 2nd will be issued a dividend of $0.67 per share. This is an increase from Republic Services’s previous quarterly dividend of $0.62. This represents a $2.68 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, October 2nd. Republic Services’s payout ratio is 35.87%.

Insider Activity

In other Republic Services news, major shareholder Cascade Investment, L.L.C. purchased 60,700 shares of the company’s stock in a transaction dated Monday, May 18th. The stock was bought at an average cost of $213.31 per share, for a total transaction of $12,947,917.00. Following the completion of the transaction, the insider owned 110,803,982 shares in the company, valued at approximately $23,635,597,400.42. This represents a 0.05% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director Sandra M. Volpe sold 1,800 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $211.28, for a total value of $380,304.00. Following the sale, the director directly owned 58 shares in the company, valued at $12,254.24. This represents a 96.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders acquired a total of 987,150 shares of company stock valued at $202,366,682 in the last quarter. Corporate insiders own 0.12% of the company’s stock.

Institutional Trading of Republic Services

Several large investors have recently modified their holdings of RSG. Morgan Stanley boosted its holdings in shares of Republic Services by 38.6% in the 4th quarter. Morgan Stanley now owns 5,348,501 shares of the business services provider’s stock valued at $1,133,509,000 after purchasing an additional 1,490,719 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of Republic Services by 18.9% during the 4th quarter. Wellington Management Group LLP now owns 5,070,130 shares of the business services provider’s stock worth $1,074,513,000 after buying an additional 807,525 shares in the last quarter. Alyeska Investment Group L.P. lifted its position in shares of Republic Services by 118.7% during the 4th quarter. Alyeska Investment Group L.P. now owns 1,011,541 shares of the business services provider’s stock worth $214,376,000 after buying an additional 548,926 shares during the last quarter. Man Group plc boosted its stake in Republic Services by 380.1% in the third quarter. Man Group plc now owns 667,603 shares of the business services provider’s stock valued at $153,202,000 after buying an additional 528,540 shares in the last quarter. Finally, Unisphere Establishment grew its position in Republic Services by 834.1% in the fourth quarter. Unisphere Establishment now owns 589,400 shares of the business services provider’s stock valued at $124,912,000 after acquiring an additional 526,300 shares during the last quarter. 57.73% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have recently commented on RSG. Citigroup lifted their target price on Republic Services from $247.00 to $259.00 and gave the stock a “buy” rating in a research note on Friday, July 10th. Royal Bank Of Canada raised their price target on Republic Services from $265.00 to $267.00 and gave the company an “outperform” rating in a report on Friday, May 8th. Morgan Stanley set a $232.00 price objective on shares of Republic Services in a report on Friday. UBS Group dropped their price objective on shares of Republic Services from $240.00 to $223.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 12th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Republic Services in a report on Friday, July 24th. Eleven research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $244.63.

Key Republic Services News

Here are the key news stories impacting Republic Services this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Adjusted EPS was $1.85, above the $1.81 consensus and up from $1.77 a year earlier. Revenue rose 4.6% year over year to $4.43 billion, surpassing estimates of $4.36 billion. Republic Services Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Republic raised its 2026 outlook. The company increased full-year revenue guidance to approximately $17.2 billion-$17.3 billion and projected adjusted EPS of $7.23-$7.28. It also raised EBITDA and cash-flow expectations, indicating continued operating momentum. Republic Services Raises Full-Year Guidance
• Positive Sentiment: The quarterly dividend increased approximately 7.2% to $0.67 per share. The payout boost reinforces the company’s shareholder-return appeal and confidence in its recurring cash flows. Republic Services Raises Dividend
• Positive Sentiment: Republic generated $2.38 billion in year-to-date operating cash flow, $1.58 billion in adjusted free cash flow and invested about $860 million in acquisitions during the first half of 2026. Republic Services Second-Quarter 2026 Results
• Neutral Sentiment: Barclays raised its price target from $233 to $240 but maintained an “equal weight” rating, signaling additional valuation upside while remaining cautious on the stock relative to peers. Barclays Price Target Update
• Negative Sentiment: Pricing gains came alongside volume pressure, and the new EPS range is slightly below the $7.29 analyst consensus, which could limit further upside if growth in underlying volumes remains weak.

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.