Republic Services (NYSE:RSG) Issues Earnings Results

Republic Services (NYSE:RSG) announced its quarterly earnings results on Thursday. The business services provider reported $1.94 EPS for the quarter, topping the consensus estimate of $1.93 by $0.01, FiscalAI reports. The company had revenue of $4.56 billion during the quarter, compared to analyst estimates of $4.42 billion. Republic Services had a return on equity of 18.65% and a net margin of 12.93%. The firm’s revenue was up 8.2% on a year-over-year basis. During the same period in the prior year, the firm posted $1.90 earnings per share.

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

• Strong third-quarter performance and raised 2026 outlook: Revenue grew 8.2%, adjusted EPS was $1.94, and year-to-date adjusted free cash flow reached $2.28 billion. Republic increased its full-year 2026 guidance to $17.425–$17.475 billion of revenue, $5.5–$5.575 billion of adjusted EBITDA, and $2.565–$2.585 billion of adjusted free cash flow.
• Volume trends improved across commercial businesses: Small- and large-container volumes each increased 50 basis points, marking the first quarter in more than three years with simultaneous growth in both categories. Management expects industry Recycling & Waste volumes to turn positive in 2027, although residential volumes declined 4.3% in the quarter.
• Environmental Solutions delivered significant growth and margin expansion: Revenue increased 21% year over year, or approximately 9% excluding several large emergency-response projects, while adjusted EBITDA margin expanded 440 basis points to 25.4%. Management cited broad-based demand across industrial and hazardous-waste operations and expects continued growth into 2027.
• Higher diesel, healthcare, and prior-year comparisons pressured margins: Elevated fuel costs reduced adjusted EBITDA margin by 50 basis points, while unusually high healthcare claims and the absence of a prior-year rebate reduced it by another 60 basis points. Fuel recovery fees offset the cash impact of diesel inflation but are dilutive to margins when fuel prices rise.
• Investment programs support longer-term growth: Republic has invested $1.1 billion in acquisitions year to date and expects at least $1.2 billion for 2026, while AI pricing tools are already deployed and AI routing is expected to scale beginning in 2027. Management continues to target roughly $100 million of run-rate EBITDA benefit from digital initiatives by the end of 2028.

Republic Services Stock Up 3.2%

NYSE:RSG traded up $7.64 during mid-day trading on Friday, hitting $243.92. The company had a trading volume of 2,403,919 shares, compared to its average volume of 1,269,149. The business has a fifty day simple moving average of $222.47 and a 200-day simple moving average of $216.81. The firm has a market capitalization of $74.69 billion, a price-to-earnings ratio of 33.74, a PEG ratio of 3.80 and a beta of 0.39. Republic Services has a 1 year low of $196.41 and a 1 year high of $249.37. The company has a current ratio of 0.64, a quick ratio of 0.64 and a debt-to-equity ratio of 1.12.

Republic Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Monday, January 4th will be given a $0.67 dividend. The ex-dividend date of this dividend is Monday, January 4th. This represents a $2.68 annualized dividend and a yield of 1.1%. Republic Services’s dividend payout ratio (DPR) is 37.07%.

Key Stories Impacting Republic Services

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

• Positive Sentiment: Q3 results exceeded expectations: Adjusted EPS was $1.94 versus the $1.93 consensus, while revenue climbed 8.2% year over year to $4.559 billion, ahead of the roughly $4.42 billion estimate. Net income rose to $592 million, or $1.93 per diluted share, from $550 million a year earlier. Pricing strength and growth in Environmental Solutions supported the performance. Republic Services Reports Third Quarter 2026 Results
• Positive Sentiment: Full-year outlook was raised: Republic Services increased its 2026 revenue guidance to approximately $17.425 billion–$17.475 billion, above the prior outlook and analyst expectations. The company also raised adjusted EBITDA and adjusted free-cash-flow expectations, signaling continued confidence in operating trends and cash generation. Republic Services 2026 Revenue Outlook
• Positive Sentiment: Large buyback adds a shareholder-return catalyst: The board authorized $5 billion in share repurchases running from January 2027 through December 2029. The authorization could support per-share earnings and provide additional demand for the stock. Republic Services Announces Share Buyback
• Positive Sentiment: Analyst support improved: Royal Bank of Canada raised its price target from $272 to $277 and maintained an “outperform” rating, implying further upside based on the reported share price. RBC Raises Republic Services Price Target
• Neutral Sentiment: Republic Services declared a quarterly dividend of $0.67 per share, maintaining an annualized payout of $2.68.
• Neutral Sentiment: The stock’s valuation remains a consideration, with a reported price-to-earnings ratio above 34 and analyst targets ranging widely, indicating that much of the strong outlook may already be reflected in the shares.

Analysts Set New Price Targets

Several research firms have recently weighed in on RSG. Canadian Imperial Bank of Commerce reduced their price objective on Republic Services from $249.00 to $240.00 and set an “outperform” rating on the stock in a research note on Thursday, October 8th. Raymond James Financial set a $235.00 target price on Republic Services in a report on Friday, October 9th. Scotiabank reissued a “sector perform” rating and set a $236.00 target price on shares of Republic Services in a research report on Thursday, October 15th. Morgan Stanley cut their price target on shares of Republic Services from $232.00 to $219.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 13th. Finally, The Goldman Sachs Group reduced their price target on shares of Republic Services from $256.00 to $246.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. Twelve equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $245.25.

Insider Buying and Selling at Republic Services

In related news, major shareholder Cascade Investment, L.L.C. bought 324,810 shares of the stock in a transaction dated Friday, September 11th. The stock was acquired at an average price of $222.89 per share, for a total transaction of $72,396,900.90. Following the completion of the purchase, the insider owned 117,058,444 shares in the company, valued at $26,091,156,583.16. This represents a 0.28% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders bought a total of 6,254,462 shares of company stock valued at $1,380,321,958 over the last ninety days. 0.12% of the stock is owned by corporate insiders.

Republic Services Company Profile

Republic Services, Inc is an environmental services company that provides waste collection, recycling and disposal solutions for residential, commercial, industrial and municipal customers. Its services include curbside collection, dumpster and roll-off container services, transfer station operations, landfill management and recycling processing.

The company also provides specialized environmental services, including hazardous waste management, emergency response, remediation and other sustainability-related solutions for businesses and government organizations.