Republic Services (RSG) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 8.2% to $4.559B; adjusted EBITDA increased 4.8% to $1.449B, and adjusted diluted EPS was $1.94.

• Pricing and fuel recovery gains supported growth despite lower collection volumes; Environmental Solutions improved and management cited positive growth trends.

Financial highlights

• Q3 operating income was $921M vs. $836M; attributable net income was $592M vs. $550M.

• Q3 adjusted EBITDA margin was 31.8% vs. 32.8% a year earlier; net fuel, prior-year landfill event volumes and healthcare costs reduced margin by 50, 40 and 60 bps, respectively.

• 9M revenue rose 5.2% to $13.103B; adjusted EBITDA was $4.194B vs. $4.012B, and adjusted diluted EPS was $5.49 vs. $5.26.

• 9M operating cash flow was $3.519B; adjusted free cash flow was $2.276B vs. $2.191B.

• Recycling processing and commodity sales increased $15M; Q3 recycled commodity prices were $142 per ton vs. $126 a year earlier.

Outlook and guidance

• FY26 guidance: revenue $17.425B–$17.475B, adjusted EBITDA $5.550B–$5.575B and adjusted free cash flow $2.565B–$2.585B.

• Guidance midpoint increased vs. July by $200M for revenue, including $150M from fuel fees and $50M from Environmental Solutions, and by $25M for adjusted EBITDA.

• Guidance assumes current economic conditions continue, with no significant change in the overall economy through year-end.

• Long-term targets include mid-single-digit revenue growth, faster growth in EBITDA, EPS and free cash flow, and 30–50 bps annual EBITDA margin expansion; 2027 guidance is due in February.

• Management expects positive industry volume growth in 2027 if macro conditions remain supportive; residential volume is expected to decline ~2%.