10-QPeriod: Q1 FY2026

REPUBLIC SERVICES, INC. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 8, 2026For Securities:RSG

Summary

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 billion, 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 billion, 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.

Financial Highlights

50 data points
Beta

Revenue

$4.11B

42.5% Gross Margin

Net Income

$525.00M

12.8% Net Margin

EPS (Diluted)

$1.70

Total Assets

$34.60B

Cash & Equivalents

$118.00M

Free Cash Flow

$751.00M

Financial Statements
Beta
Revenue$4.11B
Cost of Revenue$2.37B
Gross Profit$1.75B
SG&A Expenses$425.00M
Operating Income$830.00M
Net Income$525.00M
EPS (Basic)$1.70
EPS (Diluted)$1.70
Shares Outstanding (Basic)309.09M
Shares Outstanding (Diluted)309.27M

Key Highlights

  • 1Revenue increased 2.6% to $4.113 billion in Q1 2026, driven by a 3.4% increase in average yield.
  • 2Net income attributable to Republic Services, Inc. grew to $525 million, with diluted EPS rising to $1.70 from $1.58 year-over-year.
  • 3Operating income was $830 million, a slight increase from $804 million in Q1 2025, reflecting improved operational leverage.
  • 4Cash provided by operating activities was robust at $1.227 billion, indicating strong underlying cash generation.
  • 5The company completed acquisitions contributing $433 million in purchase price during Q1 2026, aligning with its growth strategy.
  • 6Total debt increased slightly to $13.864 billion, with a manageable debt-to-EBITDA ratio of approximately 2.6.
  • 7Share repurchases totaled $292 million in Q1 2026 under its $3.0 billion authorization.

Frequently Asked Questions

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.

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.

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.

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.