WS Investor
07 Aug 2026, 09:58
Republic Services Stock Edges Lower Despite Higher 2026 Guidance and Solid Q2 Results
Republic Services (NYSE: RSG) shares are down about 0.3% in premarket trading Friday despite the waste-management company reporting higher second-quarter earnings and raising its full-year 2026 guidance.
Q2 net income increased to $566 million, or $1.84 per share, from $550 million and $1.75 a year earlier. Adjusted EPS rose 4.5% to $1.85, while total revenue increased 4.6%.
Pricing Supports Growth Despite Lower Volumes
Republic’s core pricing increased revenue by 5.3%, helping offset weaker volumes, which reduced revenue by 1.6%. Adjusted EBITDA reached $1.42 billion, with the adjusted EBITDA margin holding steady at 32.1%.
Cash generation also remained strong. Year-to-date adjusted free cash flow reached $1.58 billion, while Republic invested approximately $860 million in acquisitions during the first half of 2026.
Republic Raises 2026 Guidance
Management increased its full-year revenue forecast to $17.2 billion–$17.3 billion and adjusted EBITDA guidance to $5.525 billion–$5.550 billion. Adjusted free cash flow is now expected at $2.54 billion–$2.575 billion, while adjusted EPS is projected at $7.23–$7.28.
Republic also increased its quarterly dividend by approximately 7% to $0.67 per share.
The slight premarket decline despite the guidance increase may reflect some investor caution around declining volumes and relatively modest earnings growth. Overall, however, the report points to resilient pricing, strong cash generation and continued capital returns.
Republic Services (NYSE: RSG) shares are down about 0.3% in premarket trading Friday despite the waste-management company reporting higher second-quarter earnings and raising its full-year 2026 guidance.
Q2 net income increased to $566 million, or $1.84 per share, from $550 million and $1.75 a year earlier. Adjusted EPS rose 4.5% to $1.85, while total revenue increased 4.6%.
Pricing Supports Growth Despite Lower Volumes
Republic’s core pricing increased revenue by 5.3%, helping offset weaker volumes, which reduced revenue by 1.6%. Adjusted EBITDA reached $1.42 billion, with the adjusted EBITDA margin holding steady at 32.1%.
Cash generation also remained strong. Year-to-date adjusted free cash flow reached $1.58 billion, while Republic invested approximately $860 million in acquisitions during the first half of 2026.
Republic Raises 2026 Guidance
Management increased its full-year revenue forecast to $17.2 billion–$17.3 billion and adjusted EBITDA guidance to $5.525 billion–$5.550 billion. Adjusted free cash flow is now expected at $2.54 billion–$2.575 billion, while adjusted EPS is projected at $7.23–$7.28.
Republic also increased its quarterly dividend by approximately 7% to $0.67 per share.
The slight premarket decline despite the guidance increase may reflect some investor caution around declining volumes and relatively modest earnings growth. Overall, however, the report points to resilient pricing, strong cash generation and continued capital returns.
