Republic Services (RSG) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 4.6% year-over-year to $4.43 billion, with adjusted EBITDA up 4.5% and margin steady at 32.1%.

• Net income for Q2 2026 was $566 million ($1.84 per diluted share), and adjusted net income was $569 million ($1.85 per share).

• For the first half of 2026, revenue rose 3.6% to $8.54 billion, net income reached $1.09 billion, and adjusted EBITDA was $2.75 billion.

• Continued investments in technology, automation, sustainability, and expansion of Polymer Centers and renewable natural gas projects.

• Customer retention exceeded 94%, with high net promoter scores and improved employee engagement.

Financial highlights

• Q2 adjusted EPS was $1.85; year-to-date adjusted free cash flow reached $1.58 billion.

• Operating income for the first half was $1.73 billion; cash from operations was $2.38 billion.

• Core price on total revenue was 5.3%, average yield 3.4%, and fuel recovery fees increased revenue by 1.8%.

• Total debt stood at $14.2 billion, with liquidity of $2.8 billion and a leverage ratio of 2.6x.

• Cost of operations was 57.7%–57.9% of revenue for the first half and Q2.

Outlook and guidance

• Full-year 2026 guidance raised: revenue $17.2–$17.3 billion, adjusted EBITDA $5.525–$5.55 billion, adjusted EPS $7.23–$7.28, and adjusted free cash flow $2.54–$2.575 billion.

• Guidance includes higher fuel recovery fee revenue, increased recycling commodity revenue, and closed acquisitions.

• Q3 margins expected flat year-over-year, with margin expansion anticipated in Q4.

• Additional restructuring charges of $14 million expected in 2026, mainly for accounts receivable system implementation.

• Guidance assumes no significant changes in economic conditions for the remainder of 2026.