RSG US S&P 500Russell 1000 Earnings call
Republic Services (RSG) · Q2 2026 results and valuation
Share price: $249.34 · 2026-11-11
Republic Services provides environmental services, including waste collection, recycling, and disposal of industrial and solid waste. The company operates a network of landfills, recycling centers, and treatment facilities for customers in the United States and Canada. Source: 10-K annual report (2026-02-18)
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026
Net income up 7.8% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+7.8%
Net income vs Q1 2026
Outlook given
Net income 566.1M vs 525.0M
Revenue +8.0%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Fuel recovery fees increased total revenue by 1.8%, which offset higher fuel expense and related surcharges.
Valuation
Is Republic Services undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.7% growth a year (3-year revenue growth), the model's fair value is $130.11 a share — the stock trades 92% above it. Today's price assumes 15.6% growth a year.
Current price
$249.34
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.6% for 10 yrs
Fair value / share
$130.11
Buy below
$97.58
Price vs fair value
Overvalued 92%
Price vs buy-below price
Overvalued 156%
Read between the lines
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Key theme
Republic Services delivered adjusted earnings per share of $1.85 and produced $1.58 billion of adjusted free cash flow on a year-to-date…
Source quote
“We delivered adjusted earnings per share of $1.85 and produced $1.58 billion of adjusted free cash flow on a year-to-date... We maintained adjusted EBITDA margin at 32.1% and overcame headwinds associated with event-driven landfill volumes received in the prior year. Our focus on delivering world-class essential services continues to support organic growth and enhance customer loyalty.”
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Guidance
Republic Services is optimistic, and again, it projects that it is going to grow from a top line perspective as well as related margin expansion in the second half of the year.
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Guidance
Republic Services also justs because of the timing of the acquisitions themselves, when it looks at the integration costs that it expects to incur, most of that's going to happen in the third and fourth quarter...
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Guidance
Republic Services expects to invest more than $1.2 billion in value-creating acquisitions in 2026.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“This was more than offset by large container volumes, which declined 2.2%, primarily due to continued softness in construction-related activity; residential volume, which declined 4.3% due to known contract losses;...”
“And so we've expanded, and you'll see it when you see the 10-Q, expanded to include some of those other cost increases so that you get to a relatively neutral...”
“During the quarter, we achieved revenue growth of 4.6% and generated adjusted EBITDA growth of 4.5%.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.08B | 4.70B | +8.0% | 4.88B | +4.0% |
| Gross profit | 2.51B | 2.33B | +7.7% | 2.43B | +3.3% |
| Operating income | 901.0M | 830.0M | +8.6% | 861.0M | +4.6% |
| Net income | 566.1M | 525.0M | +7.8% | 549.9M | +2.9% |
| EPS | 1.84 | 1.70 | +8.2% | 1.75 | +5.1% |
| P/E today 30.1 | 30.2 | 31.4 | −1.2 | 36.5 | −6.3 |
Topics
Most discussed now
- Any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Republic Services is...
- New Some of this is just that's a natural effect of a declining inflationary environment, which Republic Services has seen over the last...
- Organic revenue growth during the second quarter was driven by strong pricing across the business.
- New The integration of AI and advanced routing algorithms is expected to improve safety outcomes, strengthen service...
- New I'd say Republic Services' next frontier is really to use AI in that capacity and think about analytics and understand what...
Faded since Q1 2026
- Fading Republic Services' Net Promoter Score remains strong, reflecting its team's commitment to delivering exceptional customer value.
- Fading Republic Services continues to secure new growth opportunities by leveraging its differentiating capabilities, customer zeal, digital and…
- Fading Landfill volumes improved during the quarter as MSW volumes increased 1.4% and special waste revenue increased 9.9%.
- Fading Republic Services estimates severe weather negatively impacted volume performance by approximately $30 million during the quarter which was…
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Regulation FD disclosure · SEC 8-K
Republic Services, Inc. updated its 2026 guidance, projecting revenue between $17,200 million and $17,300 million, net income between $2,210 million and $2,220 million, and adjusted EBITDA between $5,525 million and $5,550 million.
- Other events · SEC 8-K
The Board of Directors approved a 4.5 cent increase in the regular quarterly dividend to $0.670 per share, to be paid on October 15, 2026.
- Other events · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Results of operations; Other events · SEC 8-K
Republic Services, Inc. declared a regular quarterly dividend of $0.625 per share for shareholders of record on July 2, 2026.
- Results of operations; Regulation FD disclosure · SEC 8-K
Republic Services, Inc. provided 2026 guidance with expected revenue between $17,050 million and $17,150 million, net income between $2,200 million and $2,220 million, and adjusted EBITDA between $5,475 million and $5,525 million.
- Articles or bylaws amended · SEC 8-K · routine
- Director or officer change; Other events · SEC 8-K
Republic Services, Inc. appointed Ian Craig to its Board of Directors on February 10, 2026, and declared a regular quarterly dividend of $0.625 per share.