Republic Services' Q4 Earnings Surpass Estimates, Revenues Fall Short

Republic Services, Inc. RSG reported mixed fourth-quarter 2025 results. Earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.

RSG’s earnings per share (EPS) of $1.76 beat the Zacks Consensus Estimate by 8.7% and grew 11.4% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by 1.8% but increased 2.2% year over year.

RSG stock has declined 6.1% in the past year compared with 4.5% decline of the industry. In contrast, the Zacks S&P 500 composite has risen 14% in the said time frame.

Q4 Segmental Revenues of Republic Services

Revenues from Collection totaled $2.8 billion, rising 3.8% from the year-ago quarter but missing the consensus estimate of $2.9 billion. Environmental Solutions' revenues (net) of $422 million declined 12.4% year over year, missing the consensus projection of $438.2 million.

Revenues (net) in the Transfer and Landfill segments were $214 million and $467 million, respectively, both increasing 5.4% on a year-over-year basis. Revenues of the Transfer segment surpassed the consensus estimate of $213.5 million, while the Landfill segment fell short of the consensus projection of $484 million.

The Other segment’s revenues of $200 million rose 5.3% from the year-ago quarter but missed the consensus estimate of $208.6 million.

Operating Results of RSG

Adjusted EBITDA for the quarter was $1.3 billion, up 3.4% from the year-ago quarter. The adjusted EBITDA margin was 31.3%, up 30 basis points from the year-ago quarter.

Key Balance Sheet and Cash Flow Figures

Republic Services exited the fourth quarter of 2025 with cash and cash equivalents of $76 million compared with $84 million at the end of the third quarter of 2025. The long-term debt (net of current maturities) was $13 billion compared with $12.4 billion at the end of the preceding quarter.

RSG generated $981 million in cash from operating activities in the fourth quarter of 2025. The adjusted free cash flow was $242 million. Capital expenditure was $577 million.

RSG’s 2026 Guidance

For 2026, RSG expects its revenues to be between $17.05 billion and $17.15 billion. The guided range is lower than the consensus mark of $17.33 billion.

The company anticipates adjusted EPS in the range of  $7.20-$7.28. The mid-point ($7.24) of the guided range is below the Zacks Consensus Estimate of $7.26. Adjusted EBITDA is estimated to be $5.475-$5.525 billion, while adjusted free cash flow is expected to be $2.52-$2.56 billion.

Republic Services currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Aptiv Plc APTV reported better-than-expected fourth-quarter 2025 results. APTV’s adjusted earnings per share of $1.86 beat the Zacks Consensus Estimate by 2.2% and increased 6.3% from the year-ago quarter. Aptiv’s revenues of $5.2 billion surpassed the consensus estimate by 1.5% and improved 5% year over year.

Broadridge Financial Solutions, Inc. BR posted impressive second-quarter fiscal 2026 results. BR’s adjusted earnings of $1.59 per share outpaced the consensus mark by 18.7% and rose 1.9% from the year-ago quarter. Broadridge’s total revenues of $1.7 billion surpassed the consensus mark by 7.6% and increased 7.9% year over year.

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This article originally published on Zacks Investment Research (zacks.com).

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