10-Q · May 8, 2026
Republic Services, Inc. reported Q1 2026 earnings with revenue of $4.113 billion, a 2.6% increase compared to Q1 2025, exceeding prior estimates. Earnings per share (EPS) also rose to $1.70, reflecting a positive trend…
Earnings analysis · 10-Q
RSG earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Republic Services delivered strong Q3 results, with revenue up 8.2% year over year to $4,559 million, operating margin expanding to 20.2%, and diluted EPS increasing to $1.93 from $1.76. Group 1 and Environmental…
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Republic Services delivered strong Q3 results, with revenue up 8.2% year over year to $4,559 million, operating margin expanding to 20.2%, and diluted EPS increasing to $1.93 from $1.76. Group 1 and Environmental Solutions drove segment growth, while Group 2 EBITDA declined and volume remained a headwind. Operating cash flow improved, leverage remained within covenant limits at a 2.6 debt-to-EBITDA ratio, and management raised 2026 revenue guidance to $17.425 billion-$17.475 billion, supporting a bullish outlook despite higher debt, fuel costs, and environmental liabilities.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.93
What stood out
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Revenue Growth Accelerated
Q3 revenue increased to $4,559 million from $4,212 million, up 8.2% year over year and 2.9% sequentially from $4,430 million in Q2 2026. Core price increased revenue by 5.3%, while acquisitions contributed 1.3%.
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EPS Increased Year Over Year
Diluted EPS rose to $1.93 from $1.76 year over year and from $1.84 in Q2 2026. Adjusted diluted EPS was $1.94, compared with $1.90 in Q3 2025.
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Operating Margin Expanded
Operating income increased to $921 million from $836 million, and operating margin expanded to 20.2% from 19.9% year over year. Gross margin was approximately 41.6%, versus 41.5% in Q3 2025.
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Group 1 and Group 3 Strength
Group 1 Adjusted EBITDA increased 9.4% to $721 million, while Group 3 Environmental Solutions Adjusted EBITDA increased 47.3% to $134 million. Group 3 net revenue rose 22.2% to $529 million, primarily from higher emergency response activity.
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Operating Cash Flow Improved
Cash provided by operating activities increased to $3,519 million for the first nine months from $3,315 million a year earlier. Capital expenditures were $1,363 million, equal to approximately 10.4% of nine-month revenue, versus $1,310 million, or approximately 10.5%, in the prior-year period.
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Revenue Outlook Raised
Management raised 2026 revenue guidance to $17.425 billion-$17.475 billion and expects to invest at least $1.2 billion in acquisitions. Management also stated that liquidity is expected to fund operating and cash commitments for at least the next 12 months.
What to watch
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Higher Debt and Interest Expense
Total debt increased to $14,055 million from $13,581 million at December 31, 2025, while interest expense increased to $157 million from $143 million in Q3. The company had $2.3 billion of floating-rate debt, with a 100-basis-point rate increase estimated to raise annual interest expense by approximately $23 million.
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Receivables Pressure Cash Conversion
Nine-month accounts receivable increased $254 million and days sales outstanding rose to 42.4 days from 41.0 days year over year, reducing operating cash flow by $254 million through working-capital investment. The company also reported a $112 million net working-capital drag on operating cash flow versus $35 million in the prior-year period.
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Volume and Fuel Headwinds
Volume reduced Q3 revenue by 0.6%, primarily because of lower residential collection volume, while large-container volume was affected by slowing construction-related activity and manufacturing end markets. Fuel costs increased to $475 million for the first nine months from $349 million, with diesel averaging $5.01 per gallon versus $3.65.
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Environmental Liability Exposure
Accrued landfill and environmental costs totaled $2,810 million at September 30, 2026, including $423 million of environmental remediation liabilities. Management stated that using the high end of reasonably possible remediation estimates could increase the liability by approximately $276 million.
Management's outlook
The 10-Q provides 2026 revenue guidance of $17.425 billion to $17.475 billion and states that the company expects to invest at least $1.2 billion in acquisitions during 2026. No numeric EPS, adjusted EBITDA, or adjusted free cash flow guidance is provided in the filing; management stated that existing liquidity, operating cash flow, and financing activities are expected to fund commitments for at least the next 12 months.
Earlier filings 4
10-K · February 18, 2026
Republic Services positions itself as a vertically integrated environmental services leader in the U.S. and Canada, targeting a $163 billion addressable market through scale, local operating management and investments…
10-Q · October 31, 2025
Republic Services reported 2025 Q3 revenue of $4,212 million (up from $4,076 million in Q3 2024) and diluted EPS of $1.76 (down from $1.80). Operating income was $836 million (versus $846 million in the year-ago…
10-Q · July 30, 2025
Republic Services reported Q2 revenue of $4,235.0M and diluted EPS of $1.75, with operating income of $861M — all higher versus the year-ago quarter. Operating cash flow for the six months improved to $2,134M while the…
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