01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
Republic Services, Inc. reported solid financial results for the first quarter of 2026, demonstrating continued revenue growth and improved profitability.
Revenue increased by 2.6% to $4.113 billiona, driven by a 3.4% increase in average yield and contributions from acquisitions, partially offset by a slight decrease in overall volume. Net income attributable to the company rose to $525 million, resulting in diluted earnings per share of $1.70, up from $1.58 in the prior year's first quarter. The company's operational efficiency remains a focus, with cost of operations increasing at a slightly slower pace than revenue.
Strong cash flow generation from operations, totaling $1.227 billionb, provides ample liquidity for strategic investments. Republic Services continues its acquisition strategy, investing significantly in expanding its environmental services platform. The company also maintained its commitment to returning capital to shareholders through dividends and share repurchases, underscoring financial discipline and a focus on long-term shareholder value.
02—Key points
Key Highlights
- Revenue increased 2.6% to $4.113 billion in Q1 2026, driven by a 3.4% increase in average yield.
- Net income attributable to Republic Services, Inc. grew to $525 million, with diluted EPS rising to $1.70 from $1.58 year-over-year.
- Operating income was $830 million, a slight increase from $804 million in Q1 2025, reflecting improved operational leverage.
- Cash provided by operating activities was robust at $1.227 billion, indicating strong underlying cash generation.
- The company completed acquisitions contributing $433 million in purchase price during Q1 2026, aligning with its growth strategy.
- Total debt increased slightly to $13.864 billion, with a manageable debt-to-EBITDA ratio of approximately 2.6.
- Share repurchases totaled $292 million in Q1 2026 under its $3.0 billion authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Republic Services, Inc. kept $0.13.
- Revenue$4.11B100.0%
- Cost of revenue−$2.37B57.5%
- Gross profit$1.75B42.5%
- Operating costs−$917.0M22.3%
- Operating income$830.0M20.2%
- Interest, other & tax−$305.0M7.4%
- Net income$525.0M12.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.11B$4.01B | +2.6% |
| Cost of Revenue | $2.37B$2.31B | +2.2% |
| Gross Profit | $1.75B$1.70B | +3.1% |
| SG&A Expenses | $425.00M$427.00M | −0.5% |
| Operating Income | $830.00M$804.00M | +3.2% |
| Net Income | $525.00M$495.00M | +6.1% |
| EPS (Basic) | $1.70$1.58 | +7.6% |
| EPS (Diluted) | $1.70$1.58 | +7.6% |
| Shares Outstanding (Basic) | 309.09M312.97M | −1.2% |
| Shares Outstanding (Diluted) | 309.27M313.28M | −1.3% |
05—Questions
Frequently Asked Questions
What were the main drivers of revenue growth in the first quarter of 2026?
Revenue growth was primarily driven by an increase in average yield of 3.4%, reflecting positive pricing changes across business lines. Acquisitions also contributed 1.1% to revenue growth. These increases were partially offset by a 0.8% decrease in overall volume, mainly due to declines in large-container collection linked to slowing construction activity and some municipal contract losses.
How did Republic Services manage its costs in the first quarter?
The company focused on managing its cost of operations, which increased by 2.2% to $2.366 billion, a rate slightly lower than the revenue growth. Key cost components like labor and fuel saw increases, but were managed through pricing strategies and efficiency efforts. Selling, general, and administrative expenses remained relatively stable, decreasing slightly as a percentage of revenue.
What is the company's stance on acquisitions and capital allocation?
Republic Services continues to actively pursue its acquisition strategy, investing $433 million in business acquisitions during the quarter. The company plans to invest at least $1 billion in acquisitions in 2026. Simultaneously, it is returning capital to shareholders through dividends and a substantial share repurchase program, demonstrating a balanced approach to growth and shareholder returns.
Are there any significant environmental liabilities or legal proceedings to be aware of?
The company has accrued landfill and environmental liabilities totaling $2.779 billion. While there is an ongoing legal matter concerning the West Lake Landfill Superfund site with a revised cost estimate of $392 million, Republic Services is vigorously contesting its liability for certain materials. Generally, the company does not believe the outcome of its pending legal proceedings, individually or in aggregate, will have a material adverse impact on its financial position.
06—Continue