RSG · Republic Services, Inc.

Republic Services delivered solid Q1 2026 results with revenue of $4.1 billion, reflecting 2.6% growth driven by 2.8% organic growth in recycling and waste, offset by a 1.3% decline in environmental solutions, plus 1.1% from acquisitions. Core price contributed 5.7% to total revenue growth and 6.8% to related business revenue, with open market pricing up 8.4% and restricted at 4.4%. Average yield rose 3.4% on total revenue but volumes declined 0.8%, indicating pricing discipline amid softer demand. Net income rose to $525 million from $495 million, with EPS steady at $1.70 on both GAAP and adjusted bases, supported by margin expansion. Adjusted EBITDA reached $1.32 billion, with margin improving 50 basis points to 32.1%, fueled by effective cost management as cost of operations held at 57.5% of revenue despite higher labor and fuel. CEO Jon Vander Ark highlighted disciplined pricing and cost controls driving earnings growth, positioning the company to meet full-year goals through strategic investments. Cash generation was robust at $1.23 billion from operations, enabling $433 million in acquisitions, $476 million capex, and $507 million returned to shareholders ($314 million repurchases, $193 million dividends). Balance sheet remains strong with total assets at $34.6 billion and equity near $12 billion as of March 31. The board's $0.625 quarterly dividend, up from $0.580, underscores confidence in cash flows, payable July 15 to July 2 record holders. Recognition on Fortune's and Ethisphere's lists bolsters reputation, while recycled commodity prices fell to $120/ton from $155/ton.