Republic Services Raises Price Target to $249 After Q1 EPS Beat, 32.1% EBITDA Margin
RSG•Republic Services reported Q1 2026 EPS of $1.70, a 7.6% year-over-year increase, beating estimates, with 2.6% revenue growth to $4.11B and a 32.1% adjusted EBITDA margin. Adjusted free cash flow reached $984M, funding $507M in shareholder returns, while CIBC raised its price target to $249.
1. Q1 2026 Financial Performance
Republic Services posted first-quarter 2026 EPS of $1.70, up 7.6% year-over-year, surpassing consensus estimates. Revenue rose 2.6% to $4.11 billion, while core price increases of 5.7% and disciplined cost management expanded the adjusted EBITDA margin to 32.1%.
2. Free Cash Flow and Shareholder Returns
The company generated $984 million in adjusted free cash flow, supporting $507 million in shareholder distributions through dividends and share repurchases. Strong cash generation underscores operational efficiency and financial flexibility.
3. Analyst Rating and Price Target Adjustment
CIBC maintained an Outperform rating on Republic Services but lowered its price target to $249 from $251, reflecting a modest valuation adjustment. The reaffirmed rating signals confidence in the company’s pricing power and margin trajectory despite the slight target revision.
