Image Source: TradingView
By Brian Nelson, CFA
Trash taker Republic Services (RSG) recently reported first-quarter 2026 results that beat expectations on both the top and bottom lines. Quarterly revenue growth came in at 2.6%, which includes 2.8% organic growth from its recycling and waste business, a 1.3% organic decline from its environmental solutions business, and 1.1% growth from acquisitions. Net income on an adjusted basis came in at $526 million, or $1.70 per diluted share, which compares to $496 million, or $1.58 per diluted share, in last year’s quarter. Republic expanded its net income margin and adjusted EBITDA margin by 50 basis points in the period.
Management had the following to say about the results:
We are off to a strong start and remain well positioned to achieve our full‑year objectives. Disciplined pricing and effective cost management drove solid earnings growth and 50 basis points of adjusted EBITDA margin expansion in the first quarter. We remain focused on executing our strategy and investing for growth to deliver long‑term value for our customers and shareholders.
Republic continues to price effectively. In the quarter, core price on total revenue increased revenue by 5.7%, while revenue growth from average yield on total revenue was 3.4%. Volume decreased revenue by 0.8% in the quarter. Cash provided by operating activities came in at $1.23 billion, up from $1.03 billion in last year’s quarter, while purchases of property and equipment totaled $476 million, resulting in free cash flow of $751 million in the period. We continue to like the garbage hauler’s pricing power, and it remains a core holding in the newsletter portfolios.
—–
Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.