Republic Services, Inc.

What they do

Republic Services provides solid waste collection, transfer, recycling, and disposal services, as well as environmental solutions such as treatment, storage, and disposal facilities. As of June 30, 2026, it operated 389 collection operations, 260 transfer stations, 84 recycling centers, 208 active landfills, and 2 polymer centers, among other assets. The company also engages in renewable energy projects, including landfill gas-to-energy and renewable natural gas.

Revenue drivers

• Recycling and waste collection — Core collection and disposal services generate the majority of revenue; organic growth driven by price increases (core price on related business revenue was 6.4% in Q2 2026) and volume, though volume declined 1.9% in Q2 2026.
• Environmental solutions — Includes treatment, storage, and disposal facilities (24 TSDFs) and industrial wastewater treatment (10 facilities); contributed to revenue but organic growth declined 0.2% in Q2 2026.
• Recycled commodity sales — Revenue from selling recycled materials at 84 recycling centers; average price per ton was $136 in Q2 2026, down $13 year-over-year.
• Acquisitions — M&A contributed 1.1% to total revenue growth in Q2 2026; invested approximately $860 million in acquisitions in the first half of 2026.

Recent performance

In Q2 2026, Republic reported revenue of $4.43 billion, up 4.6% year-over-year, and net income of $566 million ($1.84 per diluted share). Adjusted EPS was $1.85, up 4.5%. Year-to-date cash flow from operations was $2.38 billion, and adjusted free cash flow was $1.58 billion. For the six months ended June 30, 2026, revenue increased 3.6% to $8.544 billion.

Strategy

Republic focuses on pricing in excess of cost inflation, driving profitable volume growth, and investing in sustainability initiatives such as renewable natural gas projects. The company aims to expand its addressable market within the environmental services industry, leveraging its market position, operating model, and digital capabilities. It continues to pursue value-creating acquisitions and has increased its quarterly dividend by approximately 7%.

Risks

• Economic downturn — A slowdown in economic activity could reduce waste volumes and demand for environmental services, impacting revenue.
• Recycled commodity price volatility — Lower recycled commodity prices (average $136 per ton in Q2 2026, down $13 year-over-year) could pressure margins.
• Integration of acquisitions — Failure to effectively integrate acquired companies could prevent realization of anticipated benefits and strain resources.
• Regulatory and environmental liabilities — Costs related to landfill post-closure, environmental remediation, and changing regulations could be material.

Outlook

Management increased full-year 2026 guidance for revenue to $17.200-$17.300 billion and adjusted diluted EPS to $7.23-$7.28. Adjusted EBITDA is expected between $5.525 billion and $5.550 billion, and adjusted free cash flow between $2.540 billion and $2.575 billion. The guidance assumes no significant changes in the overall economy for the remainder of 2026.