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RSG's adjusted earnings of $1.94 per share increased 2.1% year over year and surpassed the Zacks Consensus Estimate of $1.92 by 1%. Revenues rose 8.2% to $4.56 billion and beat the consensus mark of $4.41 billion by 3.4%.
Pricing strength and improved Environmental Solutions performance supported growth. Core price on total revenues increased 5.3%, while adjusted EBITDA rose to $1.45 billion. However, the adjusted EBITDA margin contracted 100 basis points to 31.8%.
Republic Services, Inc. Price, Consensus and EPS Surprise
Average yield on total revenues increased 2.9% in the quarter, while fuel recovery fees contributed 1.8% to revenue growth. Total volume reduced revenues by 0.6% compared with a 0.3% decline in the prior-year quarter. Acquisitions contributed 1.3% to revenue growth.
On related business revenues, core price increased 6.3%, comprising 7.6% growth in open-market pricing and 4.1% in restricted pricing. Average yield improved 3.5%, while volume declined 0.7%.
Underlying landfill trends were mixed. Municipal solid waste volume increased 0.6%, whereas special waste volume rose 6.4%. Construction and demolition waste volume declined 38.2% compared with 45.2% growth a year earlier.
Republic Posts Growth Across Collection Lines
Collection revenues increased to $3.04 billion from $2.84 billion a year earlier. Small-container revenues rose to $1.38 billion from $1.27 billion, while large-container revenues advanced to $859 million from $797 million. Residential revenues increased to $782 million from $754 million.
Landfill revenues, net of intercompany activity, remained unchanged at $516 million. Transfer revenues, net, increased to $242 million from $224 million.
Environmental Solutions revenues, net, climbed to $529 million from $433 million, while recycling processing and commodity sales increased to $122 million from $107 million. Average recycled commodity prices rose $16 year over year to $142 per ton.
RSG's Environmental Solutions Margin Improves
Adjusted EBITDA increased to $1.45 billion from $1.38 billion a year earlier. Recycling & Waste adjusted EBITDA rose to $1.32 billion from $1.29 billion, although the segment's margin declined to 32.6% from 34.2%.
Environmental Solutions adjusted EBITDA increased year over year to $134 million from $91 million. The segment's adjusted EBITDA margin expanded 440 basis points to 25.4%, reflecting improved profitability despite softer consolidated margins.
Operating costs increased year over year to $2.66 billion from $2.46 billion but declined to 58.4% of revenues from 58.5%. Fuel costs climbed to $180 million from $120 million, while transportation and subcontract costs increased to $363 million from $302 million.
Selling, general and administrative expenses rose year over year to $447 million from $422 million. However, these expenses declined to 9.8% of revenues from 10%.
Republic Generates Strong Cash Flow & Returns Capital
Cash provided by operating activities increased to $3.52 billion in the first nine months of 2026 from $3.32 billion a year earlier. The adjusted free cash flow rose to $2.28 billion from $2.19 billion.
Republic invested $1.12 billion in acquisitions during the first nine months and returned $1.43 billion to shareholders, including $848 million in share repurchases and $577 million in dividends.
The company also authorized a $5-billion share repurchase program covering 2027 through 2029. Additionally, its board declared a quarterly dividend of 67 cents per share, payable Jan. 15, 2027.
RSG Strengthens Financial Position
Republic reported third-quarter net income of $592 million, up from $550 million a year earlier. GAAP earnings increased 9.7% to $1.93 per share from $1.76.
Operating income increased to $921 million from $836 million, while interest expenses rose to $157 million from $143 million.
Republic ended September with $92 million in cash and cash equivalents compared with $76 million at the end of 2025. Long-term debt, excluding current maturities, stood at $14.01 billion compared with $12.99 billion at the end of 2025.
RSG Raises 2026 Financial Guidance
Republic increased its 2026 revenue outlook to $17.43-$17.48 billion from the previous quarter’s view of $17.2-$17.3 billion. The Zacks Consensus Estimate is pinned at $17.29 billion.
Adjusted EBITDA is projected at $5.55-$5.58 billion, reflecting management's confidence in business performance.
The company also raised its adjusted free cash flow guidance to $2.57-$2.59 billion. Operating cash flow is anticipated between $4.51 billion and $4.57 billion.
Management highlighted disciplined pricing, effective cost management and strategic investments as key priorities. The updated outlook assumes current economic conditions without significant changes in the broader economy during the remainder of 2026.
ADP’s adjusted earnings of $2.83 per share beat the Zacks Consensus Estimate of $2.78 by 1.8%. The figure increased 14% from the year-ago quarter’s actual.
Revenues of $5.49 billion surpassed the consensus mark of $5.47 billion by 0.4% and rose 6% year over year.
Adjusted earnings of $2.15 per share lagged the Zacks Consensus Estimate of $2.18 by 1.4%. The reported figure increased 8.6% from the year-ago quarter's $1.98.
Revenues rose 6.3% year over year to $6.85 billion, surpassing the consensus estimate of $6.8 billion by 0.7%.
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Republic Services Q3 Earnings Beat Estimates, Revenues Rise 8.2%
Key Takeaways
Republic Services (RSG - Free Report) reported better-than-expected third-quarter 2026 results.
RSG's adjusted earnings of $1.94 per share increased 2.1% year over year and surpassed the Zacks Consensus Estimate of $1.92 by 1%. Revenues rose 8.2% to $4.56 billion and beat the consensus mark of $4.41 billion by 3.4%.
Pricing strength and improved Environmental Solutions performance supported growth. Core price on total revenues increased 5.3%, while adjusted EBITDA rose to $1.45 billion. However, the adjusted EBITDA margin contracted 100 basis points to 31.8%.
Republic Services, Inc. Price, Consensus and EPS Surprise
Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote
RSG Maintains Pricing Strength Amid Volume Pressure
Average yield on total revenues increased 2.9% in the quarter, while fuel recovery fees contributed 1.8% to revenue growth. Total volume reduced revenues by 0.6% compared with a 0.3% decline in the prior-year quarter. Acquisitions contributed 1.3% to revenue growth.
On related business revenues, core price increased 6.3%, comprising 7.6% growth in open-market pricing and 4.1% in restricted pricing. Average yield improved 3.5%, while volume declined 0.7%.
Underlying landfill trends were mixed. Municipal solid waste volume increased 0.6%, whereas special waste volume rose 6.4%. Construction and demolition waste volume declined 38.2% compared with 45.2% growth a year earlier.
Republic Posts Growth Across Collection Lines
Collection revenues increased to $3.04 billion from $2.84 billion a year earlier. Small-container revenues rose to $1.38 billion from $1.27 billion, while large-container revenues advanced to $859 million from $797 million. Residential revenues increased to $782 million from $754 million.
Landfill revenues, net of intercompany activity, remained unchanged at $516 million. Transfer revenues, net, increased to $242 million from $224 million.
Environmental Solutions revenues, net, climbed to $529 million from $433 million, while recycling processing and commodity sales increased to $122 million from $107 million. Average recycled commodity prices rose $16 year over year to $142 per ton.
RSG's Environmental Solutions Margin Improves
Adjusted EBITDA increased to $1.45 billion from $1.38 billion a year earlier. Recycling & Waste adjusted EBITDA rose to $1.32 billion from $1.29 billion, although the segment's margin declined to 32.6% from 34.2%.
Environmental Solutions adjusted EBITDA increased year over year to $134 million from $91 million. The segment's adjusted EBITDA margin expanded 440 basis points to 25.4%, reflecting improved profitability despite softer consolidated margins.
Operating costs increased year over year to $2.66 billion from $2.46 billion but declined to 58.4% of revenues from 58.5%. Fuel costs climbed to $180 million from $120 million, while transportation and subcontract costs increased to $363 million from $302 million.
Selling, general and administrative expenses rose year over year to $447 million from $422 million. However, these expenses declined to 9.8% of revenues from 10%.
Republic Generates Strong Cash Flow & Returns Capital
Cash provided by operating activities increased to $3.52 billion in the first nine months of 2026 from $3.32 billion a year earlier. The adjusted free cash flow rose to $2.28 billion from $2.19 billion.
Republic invested $1.12 billion in acquisitions during the first nine months and returned $1.43 billion to shareholders, including $848 million in share repurchases and $577 million in dividends.
The company also authorized a $5-billion share repurchase program covering 2027 through 2029. Additionally, its board declared a quarterly dividend of 67 cents per share, payable Jan. 15, 2027.
RSG Strengthens Financial Position
Republic reported third-quarter net income of $592 million, up from $550 million a year earlier. GAAP earnings increased 9.7% to $1.93 per share from $1.76.
Operating income increased to $921 million from $836 million, while interest expenses rose to $157 million from $143 million.
Republic ended September with $92 million in cash and cash equivalents compared with $76 million at the end of 2025. Long-term debt, excluding current maturities, stood at $14.01 billion compared with $12.99 billion at the end of 2025.
RSG Raises 2026 Financial Guidance
Republic increased its 2026 revenue outlook to $17.43-$17.48 billion from the previous quarter’s view of $17.2-$17.3 billion. The Zacks Consensus Estimate is pinned at $17.29 billion.
Adjusted EBITDA is projected at $5.55-$5.58 billion, reflecting management's confidence in business performance.
The company also raised its adjusted free cash flow guidance to $2.57-$2.59 billion. Operating cash flow is anticipated between $4.51 billion and $4.57 billion.
Management highlighted disciplined pricing, effective cost management and strategic investments as key priorities. The updated outlook assumes current economic conditions without significant changes in the broader economy during the remainder of 2026.
RSG carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
ADP (ADP - Free Report) reported impressive first-quarter fiscal 2027 results.
ADP’s adjusted earnings of $2.83 per share beat the Zacks Consensus Estimate of $2.78 by 1.8%. The figure increased 14% from the year-ago quarter’s actual.
Revenues of $5.49 billion surpassed the consensus mark of $5.47 billion by 0.4% and rose 6% year over year.
Waste Management (WM - Free Report) posted mixed third-quarter 2026 results.
Adjusted earnings of $2.15 per share lagged the Zacks Consensus Estimate of $2.18 by 1.4%. The reported figure increased 8.6% from the year-ago quarter's $1.98.
Revenues rose 6.3% year over year to $6.85 billion, surpassing the consensus estimate of $6.8 billion by 0.7%.