Republic Services, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported net income for the three months ended June 30, 2026, was $566 million ($1.84 per diluted share), compared to $550 million ($1.75 per diluted share) in the prior year period.
• Adjusted net income for the quarter was $569 million ($1.85 per diluted share), up from $556 million ($1.77 per diluted share) in the prior year.
• Total revenue for the quarter was $4,430 million, representing a 4.6% increase year-over-year.
• Adjusted EBITDA for the quarter was $1,423 million with a margin of 32.1%, consistent with the prior year.
• Year-to-date cash flow from operations was $2,380 million, and adjusted free cash flow was $1,583 million.
• Net income margin for the quarter was 12.8%.
• Cost of operations was $2,563 million (57.9% of revenue) for the quarter, compared to $2,449 million (57.9% of revenue) in the prior year.
• Selling, general and administrative expenses were $444 million (10.0% of revenue) for the quarter, compared to $425 million (10.0% of revenue) in the prior year.
• As of June 30, 2026, total assets were $35,159 million, with long-term debt net of current maturities at $13,521 million.
• Accounts receivable were $2,029 million, resulting in days sales outstanding of 41.7 days (31.8 days net of deferred revenue).

Guidance and Future Outlook

• Increased full-year 2026 revenue guidance to a range of $17.200 billion to $17.300 billion.
• Increased full-year 2026 adjusted EBITDA guidance to a range of $5.525 billion to $5.550 billion.
• Updated full-year 2026 adjusted diluted earnings per share guidance to a range of $7.23 to $7.28.
• Increased full-year 2026 adjusted free cash flow guidance to a range of $2,540 billion to $2,575 billion.
• Guidance assumes current economic conditions without significant changes in the overall economy for the remainder of 2026.

Business Segments and Product Lines

• Total revenue growth of 4.6% included 3.7% organic growth from the recycling and waste business, a 0.2% decline from the environmental solutions business, and 1.1% growth from acquisitions.
• Core price increases contributed 5.3% to total revenue growth; core price on related business revenue increased by 6.4% (7.8% in the open market and 4.1% in the restricted portion).
• Revenue growth from average yield on total revenue was 3.4%, while volume decreased revenue by 1.6%.
• Recycling processing and commodity sales average price per ton sold was $136, a decrease of $13 per ton compared to the prior year.
• Completed and commenced operations on two renewable natural gas projects during the quarter.
• Recycling & Waste segment revenue was $3,972 million with an adjusted EBITDA margin of 33.5% for the quarter.
• Environmental Solutions segment revenue was $458 million with an adjusted EBITDA margin of 20.2% for the quarter.

Market and Competitive Landscape

• Recognized by Dow Jones Best-in-Class Indices for the 10th consecutive year.
• Named to Forbes list of America's Best Employers for Company Culture.
• Overcame 50 basis points of margin headwind from event-driven landfill volumes received in the prior year.

Risks and Challenges

• Volume decreased revenue by 1.6% for the quarter and 1.2% year-to-date.
• Average recycled commodity price per ton decreased by $13 year-over-year.
• Restructuring charges of $4 million were incurred in the quarter, primarily related to the design and implementation of a new accounts receivable system.

Management Commentary and Tone

• Jon Vander Ark, President and CEO, stated that results reflect the strength and resilience of the business model, citing pricing in excess of cost inflation and disciplined cost management as drivers for accelerated revenue and EBITDA growth.
• Management expressed confidence in the strong operating performance and momentum across the business, leading to the increase in full-year financial guidance.

Other Key Points

• Invested approximately $860 million in value-creating acquisitions during the first half of 2026.
• Returned $1.04 billion to shareholders year-to-date, consisting of $651 million in share repurchases and $385 million in dividends paid.
• Board of Directors approved a 4.5-cent increase in the quarterly dividend, raising it to $0.670 per share; the dividend is payable on October 15, 2026, to shareholders of record on October 2, 2026.
• Repurchased 1.6 million shares of common stock for $337 million during the quarter at a weighted average cost of $206.70 per share.
• Remaining authorized purchase capacity under the October 2023 repurchase program was approximately $1.0 billion as of June 30, 2026.
• Year-to-date cash invested in acquisitions was $860 million.