Republic Services (NYSE:RSG) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Republic Services (NYSE:RSG) issued its earnings results on Tuesday. The business services provider reported $1.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.62 by $0.14, FiscalAI reports. Republic Services had a net margin of 12.90% and a return on equity of 18.49%. The business had revenue of $4.14 billion for the quarter, compared to analysts’ expectations of $4.21 billion. During the same quarter in the previous year, the firm posted $1.58 EPS. The business’s revenue for the quarter was up 2.2% compared to the same quarter last year. Republic Services updated its FY 2026 guidance to 7.200-7.28 EPS.

Here are the key takeaways from Republic Services’ conference call:

• The company reported a strong 2025 performance with 3.5% revenue growth, ~7% adjusted EBITDA growth, $7.02 adjusted EPS, and $2.43B adjusted free cash flow, and provided 2026 guidance implying low-single-digit top-line and EBITDA growth and continued cash returns (including $854M of share repurchases in 2025).
• Organic volumes are a headwind — Q4 related-volume reduced revenue ~1% and Republic expects ~1% organic volume decline in 2026, driven by construction/manufacturing weakness and continued shedding of underperforming residential contracts (plus a ~60bp comp from 2025 disaster cleanup volumes); weather also pressured Q1 by an estimated $25–35M.
• Margin and productivity initiatives remain a focus — Republic expanded adjusted EBITDA margin ~90bps in 2025 and expects ~60–70bps of underlying margin expansion in 2026, driven in part by digital and AI investments (RISE routing, pricing analytics) that management says can unlock nine-figure efficiencies over time.
• Recycling and Environmental Solutions faced headwinds — recycled commodity prices declined (baseline ~$115/ton for 2026 vs. $153/ton prior-year Q4), recycling revenue was flat with commodity pressure a margin drag, and ES revenue fell ~$60M in Q4 (≈$50M due to a non-recurring emergency response job that did not repeat), leaving ES guidance roughly flat for 2026.
• Capital allocation and balance sheet posture — Republic invested ~$1.1B in acquisitions in 2025 and plans ~$1B in 2026 (~$400M already closed), expects those deals to add ~70bps to 2026 growth, and finished the year with $13.7B debt, ~2.6x leverage and $2B liquidity, while forecasting ~24% equivalent tax impact (including non-cash renewable-energy charges) and ~$575–585M net interest in 2026.

Republic Services Price Performance

RSG opened at $216.75 on Thursday. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.58 and a quick ratio of 0.58. Republic Services has a 1 year low of $201.42 and a 1 year high of $258.75. The stock’s 50 day simple moving average is $215.01 and its 200 day simple moving average is $220.07. The firm has a market cap of $67.10 billion, a price-to-earnings ratio of 31.64, a PEG ratio of 3.61 and a beta of 0.54.

Republic Services Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Thursday, April 2nd will be issued a $0.625 dividend. The ex-dividend date is Thursday, April 2nd. This represents a $2.50 annualized dividend and a dividend yield of 1.2%. Republic Services’s payout ratio is currently 37.20%.

Insider Buying and Selling

In other news, Director Katharine Weymouth bought 478 shares of the company’s stock in a transaction dated Tuesday, December 9th. The stock was bought at an average cost of $209.46 per share, for a total transaction of $100,121.88. Following the completion of the acquisition, the director owned 5,740 shares in the company, valued at approximately $1,202,300.40. This trade represents a 9.08% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. 0.11% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Republic Services

Several institutional investors and hedge funds have recently bought and sold shares of RSG. State Street Corp increased its stake in shares of Republic Services by 1.7% during the fourth quarter. State Street Corp now owns 9,695,747 shares of the business services provider’s stock valued at $2,054,820,000 after buying an additional 166,474 shares during the period. Morgan Stanley boosted its holdings in Republic Services by 38.6% in the fourth quarter. Morgan Stanley now owns 5,348,501 shares of the business services provider’s stock valued at $1,133,509,000 after acquiring an additional 1,490,719 shares in the last quarter. Wellington Management Group LLP increased its position in Republic Services by 18.9% during the 4th quarter. Wellington Management Group LLP now owns 5,070,130 shares of the business services provider’s stock valued at $1,074,513,000 after purchasing an additional 807,525 shares during the period. Charles Schwab Investment Management Inc. raised its holdings in Republic Services by 17.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,152,891 shares of the business services provider’s stock worth $456,264,000 after purchasing an additional 319,173 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in shares of Republic Services by 6.0% in the 3rd quarter. Bank of America Corp DE now owns 2,031,005 shares of the business services provider’s stock worth $466,075,000 after purchasing an additional 114,291 shares during the period. Hedge funds and other institutional investors own 57.73% of the company’s stock.

Wall Street Analysts Forecast Growth

RSG has been the subject of a number of analyst reports. Raymond James Financial restated an “outperform” rating and issued a $240.00 price objective on shares of Republic Services in a research report on Friday, October 31st. The Goldman Sachs Group started coverage on shares of Republic Services in a report on Monday, November 24th. They issued a “buy” rating and a $255.00 price target for the company. Wells Fargo & Company initiated coverage on shares of Republic Services in a report on Thursday, November 13th. They issued an “overweight” rating and a $238.00 price target on the stock. UBS Group set a $220.00 price objective on Republic Services in a research note on Monday, January 5th. Finally, Morgan Stanley decreased their target price on Republic Services from $230.00 to $225.00 and set an “equal weight” rating on the stock in a research note on Wednesday. Fourteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $245.62.

Republic Services News Summary

Here are the key news stories impacting Republic Services this week:

• Positive Sentiment: Q4 EPS beat and margin improvement — RSG reported $1.76 EPS (above estimates) with expanded net and adjusted EBITDA margins, showing underlying profitability resilience. Republic Services, Inc. Reports Fourth Quarter and Full-Year 2025 Results; Provides 2026 Full-Year Financial Guidance
• Positive Sentiment: Defensive sector positioning and steady growth commentary — management emphasized price-led growth and the stable, contract-driven nature of waste services, a dynamic that appeals in risk‑off environments. Republic Services Earnings Call Highlights Steady Growth
• Neutral Sentiment: Guidance is mixed — FY‑2026 EPS guidance of $7.20–$7.28 is broadly in line (slightly above some estimates) but revenue guidance ($17.05–$17.15B) is modest, leaving investors uncertain about growth trajectory. Can RSG Stock Turn Guidance Into Gains in 2026?
• Neutral Sentiment: Planned M&A / capex activity — company expects roughly $1B of acquisitions and is investing in fleet/capex; this supports long‑term growth but raises near‑term cash flow and free‑cash‑flow variability. Can RSG Stock Turn Guidance Into Gains in 2026?
• Negative Sentiment: Revenue missed estimates — Q4 revenue of ~$4.14B came in below consensus, signaling softer volume/momentum that worried investors despite the EPS beat. Republic Services’ Q4 Earnings Surpass Estimates, Revenues Fall Short
• Negative Sentiment: Analysts cut forecasts / cautious sell‑side reaction — several firms trimmed estimates and price targets after the results/guidance, amplifying downside pressure. These Analysts Slash Their Forecasts On Republic Services Following Q4 Results
• Negative Sentiment: Operating cash flow softness and higher capex could limit buybacks — investors noted weaker OCF versus last year after elevated capex, which may constrain shareholder returns near term. Republic Services slides as 2026 outlook and revenue come in light despite earnings beat
• Positive Sentiment: Unusually large call activity — heavy call buying suggests some traders are positioning for a rebound or volatility; this can support short-term upside if sentiment shifts. Options Activity Report

About Republic Services

Republic Services, Inc is a leading provider of non-hazardous solid waste and recycling services in the United States. The company offers a broad range of waste management solutions to residential, commercial, industrial and municipal customers, positioning itself as a full-service partner for everyday waste collection as well as specialized disposal needs.

Republic’s core operations include curbside and commercial collection, transfer and hauling, materials recovery and recycling facilities, and landfill disposal.