Republic Services grew Q2 2026 revenue 4.6% to $4.43B and diluted EPS 5.1% to $1.84 on price increases and fuel surcharges, while volume fell 1.6% on slower construction and lost municipal contracts.
Republic Services' second quarter of 2026 (three months to June 30) brought in $4.43 billion of revenue, up 4.6% from $4.24 billion a year earlier. Diluted earnings per share (profit divided by the share count) rose 5.1% to $1.84. Almost all of the growth came from charging more per job, not from doing more jobs. The number of pickups and landfill loads actually fell.
Revenue growth broke down like this, as shares of the prior-year quarter's revenue:
Revenue driver (Q2 2026 vs Q2 2025)
Contribution
Average yield (price per unit of service)
+3.4%
Fuel recovery fees
+1.8%
Total price
+5.2%
Volume
−1.6%
Recycling processing & commodity sales
+0.1%
Environmental solutions
−0.2%
Total internal (organic) growth
+3.5%
Acquisitions, net of divestitures
+1.1%
Total revenue growth
+4.6%
The filing credits the yield gain to "positive pricing changes in all lines of business." Core price, which is list-price increases before fuel fees and minus discounts given to keep customers, was 5.3% of total revenue, down from 5.7% a year ago. On the narrower "related-business" base the company also reports, average yield slowed to , and volume went from +0.2% to . Pricing is still doing the work, but less of it than a year ago.
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The 10-Q gives three specific reasons for the 1.6% volume decline:
Large-container collection (roll-off bins for construction sites and industrial customers) fell "primarily driven by a slowing in construction-related activity and certain manufacturing end markets." This is the economically sensitive part of the business.
Residential and small-container collection declined "primarily attributable to certain municipal contract losses." That is a competitive loss, not weaker demand.
Landfill construction and demolition volume dropped against a 2025 comparison inflated by "non-recurring Hurricane Helene recovery efforts." That part is a one-off comparison effect and will fade.
About 1.1 points of the 4.6% growth came from buying other companies. Without acquisitions, growth was 3.5%, and once fuel surcharges are removed, organic growth was only about 1.7%. The company spent $850 million in cash on acquisitions in the first half (vs. $862 million in H1 2025). Management says it expects to invest "at least $1.2 billion in acquisitions in 2026."
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$4,430M
$4,235M
+4.6%
Operating income
$901M
$861M
+4.6%
Operating margin
20.3%
20.3%
flat
Adjusted EBITDA
$1,423M
$1,361M
+4.6%
Pre-tax income
$699M
$720M
−2.9%
Net income (attributable to Republic)
$566M
$550M
+2.9%
Diluted EPS
$1.84
$1.75
+5.1%
Adjusted diluted EPS
$1.85
$1.77
+4.5%
Average yield (% of revenue)
+3.4%
+4.1%
−0.7 pts
Volume (% of revenue)
−1.6%
+0.2%
−1.8 pts
Recycled commodity price (per ton)
$136
$149
−8.7%
Effective tax rate
19.0%
23.6%
−4.6 pts
Operating margin is the share of revenue left after running the business, before interest and tax. Adjusted EBITDA is the company's own measure of profit before interest, tax, depreciation and a few one-off items. It is the figure Republic uses to judge its segments.
The profit line: steady operations, with help from tax credits and buybacks
The operating business held its margin, but that margin did not improve. Operating margin was 20.3% in both years. Cost of operations stayed at 57.9% of revenue, but the mix inside it changed:
Fuel cost rose from $116 million to $171 million (+47%). The filing puts the national average diesel price at $5.35 a gallon, against $3.56 a year earlier. Fuel recovery fees, the surcharge Republic passes to customers when diesel rises, added 1.8 points of revenue (about $76 million on the prior-year base, by our estimate). That covered the direct fuel increase, and the fuel-driven increase in transport and subcontract costs ($302M → $333M) absorbed much of the rest.
Labor fell to 19.5% of revenue from 19.9%. Wages rose with annual merit increases, but lower collection volumes partly offset this. Risk management (insurance and claims) also fell, from $109 million to $102 million.
Below operating income, GAAP profit (profit under standard US accounting rules) takes a detour. Pre-tax income actually fell 2.9%, to $699 million. The cause is a line called "loss from unconsolidated equity method investments," which jumped from $2 million to $58 million. These are stakes in renewable-energy partnerships that qualify for federal investment tax credits. Republic books its share of their accounting losses above the tax line and gets the credits in its tax bill. The filing says the tax provision reflects a $41 million net benefit from these renewable energy investments this quarter, plus $10 million from renewable natural gas and EV infrastructure projects. That is why the effective tax rate fell to 19.0% from 23.6%. The two lines largely offset each other. Readers should not treat the lower pre-tax profit as operational weakness, or the lower tax rate as a lasting improvement in earnings.
EPS grew faster than net income (5.1% vs 2.9%) because of buybacks. Diluted shares fell to 307.6 million from 313.4 million. Republic bought back 3.1 million shares for $659 million in the first half, compared with just $59 million a year earlier. Interest expense rose to $151 million from $145 million, which the filing attributes to "a higher overall debt balance and higher interest rates."
Segments: Group 1 pulled ahead, Group 2 stalled, Environmental Solutions slid
Republic reports two regional recycling-and-waste groups plus Environmental Solutions (industrial and hazardous waste services):
Segment
Net revenue Q2 2026
Q2 2025
Change
Adj. EBITDA Q2 2026
Q2 2025
Change
Group 1
$2,037M
$1,886M
+8.0%
$707M
$620M
+14.0%
Group 2
$1,935M
$1,887M
+2.5%
$623M
$628M
−0.8%
Group 3 (Environmental Solutions)
$458M
$462M
−0.9%
$93M
$113M
−17.7%
Group 1 grew on yield across all lines plus higher landfill solid-waste and small-container volumes. Its EBITDA margin rose to about 34.7% from 32.9%.
Group 2 grew revenue but EBITDA fell. Collection volumes dropped, and landfill C&D volumes were down against the prior-year Hurricane Helene cleanup. The filing cites higher "fuel, subcontract and labor costs."
Environmental Solutions revenue declined on "a decline in event-based volumes" (one-off cleanup and remediation jobs), while subcontract and fuel costs rose. Its EBITDA margin compressed to about 20.3% from 24.5%. This is the weakest part of the business this quarter.
Recycling and cash flow
The average price Republic received for recycled commodities (excluding glass and organics) fell to $136 a ton from $149. Higher volume at its Polymer Centers (plants that turn recycled plastic into resin) offset the price drop, so recycling added 0.1% to revenue overall. The company estimates that each $10/ton move in commodity prices shifts annual revenue and operating income by about $13 million. That is small relative to a roughly $17 billion revenue base.
Over the first six months, operating cash flow rose to $2,380 million from $2,134 million (+11.5%). Capital spending was flat at $868 million. Cash taxes paid fell to $79 million from $150 million, which is partly the same tax-credit effect. Dividends totaled $385 million.
Outlook
Takeaway: Republic's growth is almost entirely price. Average yield (+3.4%) and fuel surcharges (+1.8%) more than made up for a 1.6% volume decline driven by slower construction, softer manufacturing and lost municipal contracts. The yield rate is itself slowing (4.0% vs 5.0% on a related-business basis), so the room for error is shrinking. EPS grew faster than the business because of buybacks and tax-credit investments, not wider operating margins.
Management's guidance (updated in this 10-Q) for full-year 2026:
Revenue of $17.200–17.300 billion
Diluted EPS of $7.18–7.23, or $7.23–7.28 adjusted (excluding about $0.05 of restructuring charges)
At least $1.2 billion of acquisitions
First-half adjusted EPS was $3.55 ($3.54 reported plus $0.01 of restructuring). The guidance therefore implies roughly $3.68–3.73 of adjusted EPS in the second half, a modest step-up. First-half revenue of $8,544 million implies about $8.66–8.76 billion in H2.
Our read: The guidance looks achievable, because it rests on levers Republic controls. Pricing has been positive in every line of business, the company has stated its acquisition budget, and the buyback continues ($1.0 billion of authorization remained at June 30). The two things to watch in Q3:
Whether volume stabilizes. The Hurricane Helene comparison fades in the second half. If volume is still near −1.5% after that, the construction and industrial slowdown is the real driver, not a tough comparison.
Whether pricing keeps outrunning cost inflation. Average yield is decelerating. If it slows further while labor and subcontract costs keep rising, the flat 20.3% operating margin becomes a declining one.
Diesel is a lesser concern. The fuel recovery fee mechanism passed the 50%-higher fuel price through to customers this quarter.
Source: Republic Services Form 10-Q for the quarter ended June 30, 2026, filed August 7, 2026.