Republic Raises Outlook as Revenue Growth Accelerates
The company lifted its 2026 adjusted EPS forecast to $7.23 to $7.28 a share.
Republic Services (RSG), the waste-services company, raised its full-year outlook after second-quarter revenue growth accelerated despite worsening volume pressure.
Revenue rose 4.6% to $4.43 billion from $4.24 billion a year earlier, accelerating from 2.6% growth in the first quarter and 2.2% in the fourth quarter. Net income increased 2.9% to $566 million, while diluted earnings rose 5.1% to $1.84 a share. Adjusted EPS increased 4.5% to $1.85, slowing from 7.6% growth in the prior quarter.
Recycling and waste organic growth strengthened to 3.7% from 2.8% in the first quarter, while Environmental Solutions improved to a 0.2% decline from a 1.3% contraction. Core price growth eased to 5.3% from 5.7%, and total-revenue volume fell 1.6%, twice the prior quarter's decline.
The core Recycling & Waste business drove the improvement. Revenue rose 5.3% to $3.972 billion, adjusted EBITDA increased 6.6% to $1.330 billion, and margin expanded 40 basis points to 33.5%. Small-container revenue grew 8.7% to $1.369 billion, helping collection increase its share of company revenue to 67.6%.
Environmental Solutions remained a drag. Revenue declined 0.9% to $458 million, adjusted EBITDA fell 17.7% to $93 million, and margin contracted 420 basis points to 20.2%. Companywide adjusted EBITDA rose 4.6% to $1.423 billion, with its margin holding at 32.1%. Reported EBITDA margin narrowed 120 basis points to 30.7% as losses from unconsolidated equity-method investments increased to $58 million from $2 million.
The 2026 outlook now calls for revenue of $17.20 billion to $17.30 billion, adjusted EBITDA of $5.525 billion to $5.550 billion, and adjusted free cash flow of $2.540 billion to $2.575 billion.
First-half operating cash flow increased 11.5% to $2.380 billion, and adjusted free cash flow rose at the same rate to $1.583 billion. Republic repurchased $659 million of shares, up from $59 million a year earlier, as acquisition spending declined to about $865 million. The company also increased its quarterly dividend 7.2% to $0.670 a share.