Republic Services sees earnings increase in Q4, revenue growth slows
The company expects to invest approximately $1 billion in acquisitions in 2026
Republic Services reported a fourth-quarter 2025 net income of $545 million, or $1.76 per diluted share, compared with $512 million, or $1.63 per diluted share, in the fourth quarter of 2024. Adjusted net income was 547 million dollars, or 1.76 dollars per diluted share, compared with 497 million dollars, or 1.58 dollars per diluted share, in the prior year period.
For the year ending December 31, 2025, net income was 2.14 billion dollars, or 6.85 dollars per diluted share, compared with 2.04 billion dollars, or 6.49 dollars per diluted share, in 2024. Adjusted net income for 2025 was 2.19 billion dollars, or 7.02 dollars per diluted share, compared with 2.03 billion dollars, or 6.46 dollars per diluted share, in 2024.
Fourth quarter 2025 results
Total revenue increased 2.2 percent year over year. This included 2.9 percent organic growth in the recycling and waste business, a 2.0 percent organic decline in the environmental solutions business, and 1.3 percent growth from acquisitions. In 2024, environmental solutions revenue included approximately 50 million dollars from a non-recurring emergency response project.
Core price on total revenue increased revenue by 5.8 percent. Core price on related business revenue increased revenue by 7.1 percent, consisting of 8.7 percent in the open market and 4.6 percent in the restricted portion of the business.
Revenue growth from average yield on total revenue was 3.7 percent, while volume decreased total revenue by 1.0 percent. Revenue growth from average yield on related business revenue was 4.5 percent, and volume decreased related business revenue by 1.2 percent.
Net income margin was 13.2 percent. Adjusted EBITDA was 1.30 billion dollars, with an adjusted EBITDA margin of 31.3 percent of revenue, up 30 basis points year over year.
The average recycled commodity price per ton sold at recycling centers during the quarter was 112 dollars, a decrease of 41 dollars per ton compared with the prior year.
Three renewable natural gas projects were completed and commenced operations during the quarter.
Full year 2025 results
Total revenue increased 3.5 percent. This included 3.2 percent organic growth in the recycling and waste business, a 1.0 percent organic decline in the environmental solutions business, and 1.3 percent growth from acquisitions.
Core price on total revenue increased revenue by 5.9 percent. Core price on related business revenue increased revenue by 7.1 percent, consisting of 8.7 percent in the open market and 4.6 percent in the restricted portion of the business.
Revenue growth from average yield on total revenue was 4.1 percent, and volume decreased total revenue by 0.6 percent. Revenue growth from average yield on related business revenue was 4.9 percent, and volume decreased related business revenue by 0.7 percent.
Net income margin was 12.9 percent. Adjusted EBITDA was 5.31 billion dollars, with an adjusted EBITDA margin of 32.0 percent of revenue, an increase of 90 basis points year over year.
Cash provided by operating activities totaled 4.30 billion dollars, up 9.2 percent. Adjusted free cash flow was 2.43 billion dollars, up 11.5 percent.
The company invested 1.1 billion dollars in acquisitions during 2025. Nine renewable natural gas projects were completed and commenced operations. Operations began at the Polymer Center in Indianapolis.
Cash returned to shareholders totaled 1.6 billion dollars, including 854 million dollars in share repurchases and 738 million dollars in dividends.
The average recycled commodity price per ton sold during the year was 135 dollars, a decrease of 29 dollars per ton compared with 2024.
2026 financial guidance
Republic Services expects full-year 2026 revenue in the range of 17.050 billion dollars to 17.150 billion dollars. Growth from average yield on total revenue is expected to range from 3.2 percent to 3.7 percent, with volume decline on total revenue of approximately 1.0 percent. Growth from average yield on related business revenue is expected to range from 4.0 percent to 4.5 percent.
Adjusted EBITDA is expected to range from 5.475 billion dollars to 5.525 billion dollars. Adjusted diluted earnings per share are expected to range from 7.20 dollars to 7.28 dollars. Adjusted free cash flow is expected to range from 2.520 billion dollars to 2.560 billion dollars.
The company expects to receive between 1.960 billion dollars and 2.000 billion dollars of property and equipment, net of proceeds from sales.
Republic Services expects to invest approximately 1 billion dollars in acquisitions in 2026. As of February 17, 2026, approximately 400 million dollars had been invested.
