Republic Services (RSG) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with 4.6% revenue growth to $4.43 billion and adjusted EBITDA margin of 32.1%, supported by technology, automation, and sustainability investments.

• Net income for Q2 2026 was $566 million ($1.84 per share), with adjusted net income at $569 million ($1.85 per share); first-half net income reached $1.09 billion and diluted EPS was $3.54.

• Customer retention exceeded 94%, with high net promoter scores and improved digital customer experience.

• Continued robust M&A activity, with $860 million invested in acquisitions in the first half and a focus on sustainability and technology enhancements.

• Raised full-year 2026 guidance for revenue, adjusted EBITDA, adjusted EPS, and adjusted free cash flow.

Financial highlights

• Adjusted earnings per share for Q2 2026 was $1.85; year-to-date adjusted free cash flow reached $1.58 billion.

• Core price on total revenue was 5.3%, with average yield at 3.4%; operating income for the first half was $1.73 billion.

• Cash provided by operating activities was $2.38 billion for the first half; capital expenditures totaled $868 million.

• Average recycled commodity price per ton was $136 in Q2, down from $149 last year.

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

Outlook and guidance

• Full-year 2026 revenue expected at $17.2–$17.3 billion; adjusted EBITDA $5.525–$5.55 billion; adjusted EPS $7.23–$7.28; adjusted free cash flow $2.54–$2.575 billion.

• Guidance reflects higher fuel recovery fee revenue, increased recycling commodity revenue, and acquisition contributions.

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

• Q3 margins expected flat year-over-year, with margin expansion anticipated in Q4; underlying business expected to deliver 60–70 basis points of margin expansion for the full year.

• At least $1.2 billion planned for acquisitions in 2026.