Republic Services, Inc. (NYSE: RSG) reported Q2 revenue of $4.43 billion, up 4.6% from $4.24 billion year over year and raised its full-year 2026 financial guidance for the second time this year.
Net income rose to $566 million from $550 million in Q2 2025.
“Our second quarter results reflect the strength and resilience of our business model, as we continue to execute our strategy and deliver differentiated value for our customers,” said Jon Vander Ark, president and CEO, on an earnings call. “Pricing in excess of cost inflation and our disciplined cost management supported accelerated growth in revenue and EBITDA.”
Adjusted EBITDA grew 4.5% while margin held flat at 32.1%, as the company overcame a 50-basis-point headwind from event-driven landfill volumes it received in the prior-year quarter.
Organic growth was driven almost entirely by pricing, the company reported. Core price on total revenue rose 5.3%, while core price on related business revenue, which excludes recycled commodities, fuel recovery fees and environmental solutions, increased 6.4%, made up of 7.8% in the open market and 4.1% in the restricted portion of the business.
Volume declined 1.6% on total revenue and 1.9% on related revenue. CFO Brian DelGhiaccio attributed most of that drop to the tough prior-year comp from event-driven landfill volumes, along with a 2.2% decline in large-container volume tied to continued softness in construction activity and a 4.3% drop in residential volume from known contract losses.
Recycled commodity prices rise
Recycled commodity prices averaged $136 per ton during the second quarter, down from $149 per ton a year earlier. Recycling processing and commodity sales revenue still increased $8 million during the quarter, as DelGhiaccio said higher volumes at the company’s polymer centers offset the lower per-ton pricing.
DelGhiaccio said current pricing is running around $140 per ton, which the company is using as the basis for the back half of the year in its updated guidance. That implies a full-year average commodity price of approximately $135 per ton, he noted.
Recycled commodity prices were a modest drag on the quarter’s margin performance. DelGhiaccio said the underlying business expanded margin by 90 basis points, offset by a 50-basis-point hit from the landfill event-volume comp, a 30-basis-point hit from net fuel costs and a 10-basis-point hit from recycled commodity prices.
On polymer centers, Vander Ark said production volume continues to increase across the network as the company optimizes processing operations. Construction on a third polymer center, in Allentown, Pennsylvania, is progressing, with commissioning planned to begin early next year.
Acquisitions and capital return
Republic invested $860 million in acquisitions during the first half of the year and expects to invest more than $1.2 billion in value-creating acquisitions across 2026, with the pipeline supporting continued activity in both the Recycling and Waste and Environmental Solutions businesses, the company reported.
Republic Services returned more than $1 billion to shareholders in the first half of the year through dividends and share repurchases, buying back approximately 1% of its outstanding shares. Republic also recently raised its dividend for the 23rd consecutive year — an increase of roughly 7% that brings the quarterly payout to $0.670 per share.
Total debt stood at $14.2 billion at quarter-end, with total liquidity of $2.8 billion and a leverage ratio of approximately 2.6x.
Environmental Solutions and guidance
Environmental Solutions revenue decreased total company revenue by 20 basis points in the quarter, in line with expectations, though the segment’s sequential revenue grew $53 million on higher event volumes and seasonal activity.
Segment adjusted EBITDA margin was 20.2%, up 100 basis points sequentially, according to the company.
Vander Ark said the sales pipeline continues to build across multiple end markets, and the company still expects year-over-year revenue growth in the segment in the second half of the year.
Citing the strength of the first half and continued momentum across the business, Republic increased its full-year 2026 guidance:
- Revenue: $17.2 billion to $17.3 billion
- Adjusted EBITDA: $5.525 billion to $5.55 billion
- Adjusted EPS: $7.23 to $7.28
- Adjusted free cash flow: $2.54 billion to $2.575 billion
Vander Ark said the updated guidance reflects higher-than-expected fuel recovery fee revenue through July, increased recycling commodity revenue based on current prices and the contribution of acquisitions closed to date.
DelGhiaccio said the company now expects an equivalent tax impact of approximately 24.5% for the year, up from its prior estimate.
Q2 2026 highlights:
- Revenue: $4.43 billion, up 4.6%, from $4.24 billion in Q2 2025
- Net income: $566 million, up 2.9%, from $550 million in Q2 2025
- Adjusted EBITDA: $1.42 billion, up 4.5%, at a 32.1% margin, flat year over year
- Adjusted EPS: $1.85, up from $1.77 in Q2 2025
- Recycled commodity price: $136 per ton, down from $149 per ton in Q2 2025
- Acquisitions: $860 million invested year-to-date; more than $1.2 billion expected for full-year 2026
