Republic Services Q4 EPS Up 7.9% but Revenue and Guidance Both Miss
Republic Services posted Q4 revenue of $4.14 billion, 2.2% growth but 1.8% below consensus, while adjusted EPS of $1.76 exceeded estimates by 7.9% due to disciplined pricing and cost controls. For fiscal 2026, it guided to $7.24 adjusted EPS and $5.5 billion EBITDA, missing consensus by 0.8% and $50 million respectively.
1. Q4 Financial Results
Republic Services delivered Q4 revenue of $4.14 billion, a 2.2% year-on-year increase but 1.8% below consensus forecasts. Adjusted EPS came in at $1.76, a 7.9% beat, supported by a 3.7% average yield on total revenue and ongoing cost-control measures driving a 31.3% EBITDA margin.
2. 2026 Guidance Details
Management guided to $7.24 adjusted EPS for fiscal 2026, missing estimates by 0.8%, and to $5.5 billion in EBITDA, $50 million shy of consensus. Operating margin guidance implies continued pricing discipline to offset expected volume headwinds in construction, manufacturing and residential segments.
3. Analyst Question Highlights
Analysts probed key topics including the $400 million in acquisitions anchored by the Hamm disposal deal, ramp-up of polymer centers in Indianapolis and Las Vegas targeting incremental revenue and EBITDA, a conservative organic growth outlook driven by manufacturing and construction softness, inflation expectations near 3.5% with yields planned to exceed inflation, and Environmental Solutions volume declines expected to normalize over time.