Republic Services, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income for the three months ended September 30, 2026, was $592 million ($1.93 per diluted share), compared to $550 million ($1.76 per diluted share) in the prior year period.
• Adjusted net income for the quarter was $595 million ($1.94 per diluted share), compared to $594 million ($1.90 per diluted share) in the prior year.
• Total revenue for the quarter was $4,559 million, representing an 8.2% increase year-over-year.
• Net income margin was 13.0% for the quarter.
• Adjusted EBITDA was $1.45 billion with an adjusted EBITDA margin of 31.8%.
• Year-to-date cash flow from operations was $3.52 billion, and adjusted free cash flow was $2.28 billion.
• Year-to-date revenue was $13,103 million, compared to $12,456 million in the prior year.
• Year-to-date net income was $1,683 million, compared to $1,595 million in the prior year.
• Year-to-date adjusted EBITDA was $4.19 billion with a margin of 32.0%.
• Year-to-date diluted earnings per share were $5.47, compared to $5.10 in the prior year.
• Year-to-date adjusted diluted earnings per share were $5.49, compared to $5.26 in the prior year.
• Accounts receivable were $2,126 million as of September 30, 2026, resulting in 42.4 days sales outstanding (32.8 days net of deferred revenue).
• Total current liabilities were $3,577 million, and long-term debt was $14,007 million as of September 30, 2026.

Guidance and Future Outlook:

• Updated full-year 2026 revenue guidance to a range of $17.425 billion to $17.475 billion.
• Updated full-year 2026 adjusted EBITDA guidance to a range of $5.550 billion to $5.575 billion.
• Updated full-year 2026 adjusted free cash flow guidance to a range of $2.565 billion to $2.585 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 8.2% included 4.8% organic growth from the recycling and waste business, 2.1% growth from the environmental solutions business, and 1.3% growth from acquisitions.
• Core price on total revenue increased revenue by 5.3%.
• Core price on related business revenue increased revenue by 6.3% (7.6% in the open market and 4.1% in the restricted portion).
• Revenue growth from average yield on total revenue was 2.9%, while volume decreased revenue by 0.6%.
• Recycling processing and commodity sales revenue was $122 million for the quarter, with an average recycled commodity price of $142 per ton (an increase of $16 per ton over the prior year).
• Recycling & Waste segment adjusted EBITDA margin was 32.6% for the quarter.
• Environmental Solutions segment adjusted EBITDA margin was 25.4% for the quarter.

Market and Competitive Landscape:

• Republic Services is recognized as a leader in the environmental services industry providing recycling, solid waste, special waste, hazardous waste, and field services.
• The company received Great Place to Work certification for the 10th consecutive year.
• The company was named to 3BL's 2026 100 Best Corporate Citizens list.

Risks and Challenges:

• Forward-looking statements are subject to risks including impacts from the global economy, changing interest rates, international trade restrictions, and tariffs.
• Risks include the ability to effectively integrate acquired companies and realize anticipated benefits.
• Potential impacts from prolonged work stoppages or labor disruptions are noted.
• Dependence on large, long-term collection, transfer, and disposal contracts is a key risk factor.
• In the prior year (2025), labor disruptions in certain isolated markets impacted results by $56 million.

Management Commentary and Tone:

• President and CEO Jon Vander Ark stated the company delivered strong third-quarter results underscoring the resilience of the business model and the effectiveness of its strategy.
• Management highlighted positive growth trends across the business and improved performance in Environmental Solutions.
• Management expressed confidence in future opportunities, focusing on disciplined pricing, effective cost management, and strategic investments.

Other Key Points:

• The Board of Directors authorized a $5 billion share repurchase program effective January 1, 2027, extending through December 31, 2029.
• As of September 30, 2026, the remaining purchase capacity under the prior repurchase authorization was $0.8 billion.
• The Board declared a regular quarterly dividend of $0.670 per share for shareholders of record on January 4, 2027, payable on January 15, 2027.
• Year-to-date cash returned to shareholders was $1.43 billion, including $848 million in share repurchases and $577 million in dividends paid.
• Year-to-date cash invested in acquisitions was $1.12 billion.
• During the three months ended September 30, 2026, the company repurchased 0.9 million shares for $197 million at a weighted average cost of $215.18 per share.
• Restructuring charges for the quarter were $4 million, primarily related to the design and implementation of a new accounts receivable system.
• A net gain of $1 million was recorded on business divestitures and impairments for the nine months ended September 30, 2026.