Republic Services (NYSE:RSG – Get Free Report) issued its earnings results on Thursday. The business services provider reported $1.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.93 by $0.01, FiscalAI reports. Republic Services had a return on equity of 18.65% and a net margin of 12.93%. The company had revenue of $4.56 billion for the quarter, compared to analysts’ expectations of $4.42 billion. During the same period last year, the business earned $1.90 EPS. Republic Services’s quarterly revenue was up 8.2% compared to the same quarter last year.
Here are the key takeaways from Republic Services’ conference call:
- Strong third-quarter performance and raised 2026 outlook: Revenue grew 8.2%, adjusted EPS was $1.94, and year-to-date adjusted free cash flow reached $2.28 billion. Republic increased its full-year 2026 guidance to $17.425–$17.475 billion of revenue, $5.5–$5.575 billion of adjusted EBITDA, and $2.565–$2.585 billion of adjusted free cash flow.
- Volume trends improved across commercial businesses: Small- and large-container volumes each increased 50 basis points, marking the first quarter in more than three years with simultaneous growth in both categories. Management expects industry Recycling & Waste volumes to turn positive in 2027, although residential volumes declined 4.3% in the quarter.
- Environmental Solutions delivered significant growth and margin expansion: Revenue increased 21% year over year, or approximately 9% excluding several large emergency-response projects, while adjusted EBITDA margin expanded 440 basis points to 25.4%. Management cited broad-based demand across industrial and hazardous-waste operations and expects continued growth into 2027.
- Higher diesel, healthcare, and prior-year comparisons pressured margins: Elevated fuel costs reduced adjusted EBITDA margin by 50 basis points, while unusually high healthcare claims and the absence of a prior-year rebate reduced it by another 60 basis points. Fuel recovery fees offset the cash impact of diesel inflation but are dilutive to margins when fuel prices rise.
- Investment programs support longer-term growth: Republic has invested $1.1 billion in acquisitions year to date and expects at least $1.2 billion for 2026, while AI pricing tools are already deployed and AI routing is expected to scale beginning in 2027. Management continues to target roughly $100 million of run-rate EBITDA benefit from digital initiatives by the end of 2028.
Republic Services Stock Up 3.2%
RSG stock traded up $7.64 during trading on Friday, reaching $243.92. The stock had a trading volume of 2,403,919 shares, compared to its average volume of 1,269,149. The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 1.12. The company has a market capitalization of $74.69 billion, a price-to-earnings ratio of 33.74, a P/E/G ratio of 3.80 and a beta of 0.39. Republic Services has a one year low of $196.41 and a one year high of $249.37. The company’s 50 day moving average is $222.47 and its two-hundred day moving average is $216.81.
Republic Services Announces Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Monday, January 4th will be given a $0.67 dividend. This represents a $2.68 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Monday, January 4th. Republic Services’s dividend payout ratio is presently 37.07%.
Insider Activity at Republic Services
In other Republic Services news, major shareholder Cascade Investment, L.L.C. bought 409,500 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were purchased at an average price of $221.49 per share, for a total transaction of $90,700,155.00. Following the purchase, the insider directly owned 116,166,330 shares of the company’s stock, valued at approximately $25,729,680,431.70. This represents a 0.35% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last quarter, insiders have purchased 6,254,462 shares of company stock worth $1,380,321,958. 0.12% of the stock is owned by company insiders.
Key Stories Impacting Republic Services
Here are the key news stories impacting Republic Services this week:
- Positive Sentiment: Q3 results exceeded expectations: Adjusted EPS was $1.94 versus the $1.93 consensus, while revenue climbed 8.2% year over year to $4.559 billion, ahead of the roughly $4.42 billion estimate. Net income rose to $592 million, or $1.93 per diluted share, from $550 million a year earlier. Pricing strength and growth in Environmental Solutions supported the performance. Republic Services Reports Third Quarter 2026 Results
- Positive Sentiment: Full-year outlook was raised: Republic Services increased its 2026 revenue guidance to approximately $17.425 billion–$17.475 billion, above the prior outlook and analyst expectations. The company also raised adjusted EBITDA and adjusted free-cash-flow expectations, signaling continued confidence in operating trends and cash generation. Republic Services 2026 Revenue Outlook
- Positive Sentiment: Large buyback adds a shareholder-return catalyst: The board authorized $5 billion in share repurchases running from January 2027 through December 2029. The authorization could support per-share earnings and provide additional demand for the stock. Republic Services Announces Share Buyback
- Positive Sentiment: Analyst support improved: Royal Bank of Canada raised its price target from $272 to $277 and maintained an “outperform” rating, implying further upside based on the reported share price. RBC Raises Republic Services Price Target
- Neutral Sentiment: Republic Services declared a quarterly dividend of $0.67 per share, maintaining an annualized payout of $2.68.
- Neutral Sentiment: The stock’s valuation remains a consideration, with a reported price-to-earnings ratio above 34 and analyst targets ranging widely, indicating that much of the strong outlook may already be reflected in the shares.
Analyst Ratings Changes
Several research firms have weighed in on RSG. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Republic Services from $270.00 to $258.00 in a report on Friday, October 9th. Citigroup raised their price target on shares of Republic Services from $247.00 to $259.00 and gave the company a “buy” rating in a research report on Friday, July 10th. Weiss Ratings upgraded Republic Services from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, August 21st. Raymond James Financial set a $235.00 target price on Republic Services in a report on Friday, October 9th. Finally, The Goldman Sachs Group cut their target price on Republic Services from $256.00 to $246.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. Twelve research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Republic Services has a consensus rating of “Moderate Buy” and a consensus price target of $245.25.
Get Our Latest Analysis on RSG
About Republic Services
Republic Services, Inc is an environmental services company that provides waste collection, recycling and disposal solutions for residential, commercial, industrial and municipal customers. Its services include curbside collection, dumpster and roll-off container services, transfer station operations, landfill management and recycling processing.
The company also provides specialized environmental services, including hazardous waste management, emergency response, remediation and other sustainability-related solutions for businesses and government organizations.
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