Republic Services (RSG) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 2.6% year-over-year to $4.11 billion, driven by higher average yield, acquisitions, and fuel recovery fees, partially offset by lower environmental solutions revenue and volume declines.

• Net income attributable to stockholders rose to $525 million ($1.70 per diluted share), up from $495 million ($1.58 per share) in Q1 2025.

• Adjusted EBITDA reached $1.32 billion, up from $1.27 billion in the prior year, with margin expanding by 50 basis points to 32.1%.

• Adjusted free cash flow was $984 million, up over 35% year-over-year.

• High customer retention rate of 94% and strong net promoter score maintained.

Financial highlights

• Operating income was $830 million (20.2% margin), up from $804 million (20.1%) year-over-year.

• Core price on total revenue was 5.7%; average yield on total revenue was 3.4%.

• Volume decreased total revenue by 0.8%; severe weather was a $30 million headwind.

• Cash provided by operating activities was $1.23 billion; capital expenditures totaled $476 million.

• Total debt stood at $14 billion; liquidity at $1.8 billion; leverage ratio at 2.6x.

Outlook and guidance

• Full-year guidance reaffirmed; expect negative volume in Q2 and Q3, turning positive in Q4.

• Management expects continued investment in acquisitions, targeting at least $1 billion in 2026.

• Fuel recovery fees expected to offset higher fuel costs starting in Q2.

• Environmental solutions revenue expected to grow year-over-year in the second half.

• Additional restructuring charges of approximately $20 million are anticipated for the remainder of 2026, mainly for accounts receivable system upgrades.