Republic Services (RSG) Tops Q3 Estimates and Raises Its Revenue Forecast

Republic Services (RSG) reported third-quarter revenue of $4.56 billion, up 8.2% year on year and ahead of the $4.42 billion analysts expected, according to S&P Global data cited by StockStory. Adjusted earnings of $1.94 a share edged past the $1.93 consensus. The results came out after Thursday’s close, and the stock was up 5.2% at $248.65 as of 9:31 a.m. ET on Friday.

That put the shares above their previous 52-week closing high of $241.90 from 22 October. Republic had closed up 1.2% at $236.28 on Thursday, ahead of the report.

What stood out

Price did the work. Republic, which collects trash and recycling across the US, raised what it charges by enough to add 5.3 points to revenue growth, while collecting slightly less waste cost it 0.6 points, the release showed.

Environmental Solutions, the unit that handles industrial and hazardous waste, was the bright spot. Its adjusted EBITDA margin, a measure of operating profit before interest, taxes, and depreciation, rose 4.4 points to 25.4%, according to the release and call coverage. Chief Executive Jon Vander Ark said on the call that, setting aside a few large emergency-response jobs, the segment grew about 9%.

Company-wide margins slipped. The adjusted EBITDA margin fell a point to 31.8%, and management blamed higher diesel and health care costs, according to the call transcript.

The outlook

Republic now expects 2026 revenue of $17.425 billion to $17.475 billion, lifting the midpoint to $17.45 billion from $17.25 billion, according to Seeking Alpha and Investing.com. Most of that $200 million increase is fuel: Vander Ark said on the call that about $150 million comes from higher fuel recovery fees, the surcharges Republic passes on to customers when diesel costs rise. He added that those fees weigh on margins while fuel prices are climbing.

The board also approved $5 billion for share buybacks, the release said.

Before Friday, Republic had moved 5% or more on just one of the last 252 sessions, on 22 October, when it rose 5.0%. The stock went into the report up 11.5% this year.

Our take

A big revenue beat and a higher forecast explain the jump, but much of the extra revenue is fuel surcharges that pass straight through and squeeze margins. The pricing power and the turnaround in Environmental Solutions are the more durable parts. Next quarter we’d watch whether volumes stop shrinking and whether the margin recovers once diesel costs settle.