Republic Services, Inc.

Republic Services said second-quarter revenue increased 4.6% and adjusted EBITDA increased 4.5%, while adjusted EBITDA margin was 32.1%. Adjusted earnings per share were $1.85, customer retention remained above 94%, and year-to-date adjusted free cash flow was $1.58 billion. On pricing, core price on total revenue was 5.3% and core price on related revenue was 6.4%; average yield on total revenue was 3.4% and on related revenue was 4%. Organic volume declined 1.6% on total revenue and 1.9% on related revenue. For the full year 2026, management raised guidance to revenue of $17.2 billion to $17.3 billion, adjusted EBITDA of $5.525 billion to $5.55 billion, adjusted EPS of $7.23 to $7.28, and adjusted free cash flow of $2.54 billion to $2.575 billion. Brian DelGhiaccio also said total debt was $14.2 billion, total liquidity was $2.8 billion, leverage was about 2.6x, and the company now expects an equivalent tax impact of approximately 24.5% for the year.

Jon Vander Ark emphasized that the quarter reflected the resilience of the model, strong execution, and the benefit of investment in technology, automation, and customer service. He framed AI and digital tools as long-term advantages for pricing, routing, call-center efficiency, safety, and customer retention, and said the company is using them in a way that favors scale players. He also sounded constructive on sustainability businesses, saying Polymer Centers, RNG, EV trucks, and PFAS-related work all support profitable growth and long-term value creation.

Brian DelGhiaccio focused on the quarter’s operating bridge and the guide increase. He cited core price on related revenue of 6.4%, fuel recovery fees adding 1.8% to total revenue, and commodity prices at $136 per ton versus $149 a year ago; he also said margin pressure from landfill event comps, net fuel, and recycled commodity prices was partly offset by 90 basis points of underlying margin expansion. On the balance sheet, he highlighted $1.58 billion of year-to-date adjusted free cash flow, $14.2 billion of debt, $2.8 billion of liquidity, and leverage of about 2.6x, and noted the year’s tax impact is now expected at approximately 24.5%.

Analysts focused on the EBITDA guide raise, Q3 margin cadence, pricing, Environmental Solutions, M&A, residential volume, and AI benefits. Management said most of the EBITDA increase came from higher commodity prices and incremental acquisitions, that Q3 margins should be roughly flat year over year with expansion in Q4, and that core pricing should stay around 6.2% to 6.4%. On Environmental Solutions, they said the business is slightly down year over year but improving sequentially, with momentum from emergency response, waste solutions, PFAS work, and a broader pipeline; on residential volumes, they said declines should narrow in 2027 but the company will keep prioritizing price and value over volume.