Republic Services, Inc. Reports
● Reported Earnings Per Share of $1.93 and Adjusted Earnings Per Share of $1.94 ● Generated Year-to-Date Cash Flow from Operations of $3.52 Billion and Adjusted Free Cash Flow of $2.28 Billion ● Invested Approximately $1.1 Billion in Value-Creating Acquisitions Year-to-Date ● Updated Full-Year Financial Guidance ● Board Authorized $5 Billion for Share Repurchases ● Great Place to Work Certification for the 10thConsecutive Year
– Republic Services, Inc. (NYSE: RSG) today reported net income of $592 million, or $1.93 per diluted share, for the three months ended September 30, 2026, versus $550 million, or $1.76 per diluted share, for the comparable 2025 period. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended September 30, 2026, was $595 million, or $1.94 per diluted share, versus $594 million, or $1.90 per diluted share, for the comparable 2025 period.
“We delivered strong third quarter results that underscored the resilience of our business model and the effectiveness of our strategy," said Jon Vander Ark, president and chief executive officer. "Positive growth trends across the business and improved performance in Environmental Solutions reinforce our confidence in the opportunities ahead. We remain focused on disciplined pricing, effective cost management and strategic investments that are designed to strengthen our competitive position and create long-term value for our customers and shareholders.” 1 Third-Quarter and Year-to-Date 2026 Highlights : • Total revenue growth of 8.2 percent includes 4.8 percent organic growth from our recycling and waste business, 2.1 percent growth from our environmental solutions business, and 1.3 percent growth from acquisitions.
• Core price on total revenue increased revenue by 5.3 percent. Core price on related business revenue increased revenue by 6.3 percent, which consisted of 7.6 percent in the open market and 4.1 percent in the restricted portion of the business.
• Revenue growth from average yield on total revenue was 2.9 percent, and volume decreased revenue by 0.6 percent. Revenue growth from average yield on related business revenue was 3.5 percent, and volume decreased related business revenue by 0.7 percent.
• Adjusted EPS, a non-GAAP measure, was $1.94 per share, an increase of 2.1 percent over the prior year.
• Adjusted EBITDA, a non-GAAP measure, was $1.45 billion. Adjusted EBITDA margin, a non-GAAP measure, was 31.8 percent of revenue.
• Year-to-date cash returned to shareholders was $1.43 billion, which included $848 million of share repurchases and $577 million of dividends paid.
• The Company's average recycled commodity price per ton sold at its recycling centers during the third quarter was $142. This represents an increase of $16 per ton over the prior year.
• Republic was recognized by several leading organizations during the quarter, including:
Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy for the remainder of 2026. Please refer to the Reconciliation of Full-Year 2026 Financial Guidance section of this document for detail relating to the computation of non-GAAP measures as well as the Information Regarding Forward-Looking Statements section of this document. The Company updated its revenue, adjusted EBITDA, and adjusted free cash flow financial guidance as follows:
• Revenue: Increased most recent guidance to a range of $17.425 billion to $17.475 billion
Adjusted EBITDA: Increased most recent guidance to a range of $5.550 billion to $5.575 billion
• Adjusted Free Cash Flow: Increased most recent guidance to a range of $2.565 billion to $2.585 billion
On October 28, 2026, the Board of Directors approved a $5 billion share repurchase authorization effective January 1, 2027, and extending through December 31, 2029. As of September 30, 2026, the remaining purchase capacity under the prior repurchase authorization was $0.8 billion, which continues through December 31, 2026.
On October 28, 2026, the Board of Directors declared a regular quarterly dividend of $0.670 per share for shareholders of record on January 4, 2027. The dividend will be paid on January 15, 2027. Presentation of Certain Performance Metrics and Non-GAAP Measures Adjusted diluted earnings per share, adjusted net income - Republic, adjusted pre-tax income, adjusted tax impact, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA by business type, adjusted EBITDA margin by business type and adjusted free cash flow are described in the Performance Metrics and Reconciliations of Certain Non-GAAP Measures section of this document. 3
Republic Services, Inc. is a leader in the environmental services industry. Through its subsidiaries, the Company provides customers with the most complete set of products and services, including recycling, solid waste, special waste, hazardous waste and field services. Republic’s industry-leading commitments to advance circularity and support decarbonization are helping deliver on its vision to partner with customers to create a more sustainable world. For more information, please visit RepublicServices.com .
For more information, contact: Media Inquiries Investor Inquiries Roman Blahoski (480) 718-0328 John Weeks (480) 718-0309 media@RepublicServices.com investor@RepublicServices.com
SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION AND OPERATING DATA REPUBLIC SERVICES, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) September 30, ASSETS 2026 December 31, Current assets: (Unaudited) 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 92 $ 76 Accounts receivable, less allowance for doubtful accounts and other 2,126 1,897 of $59 and $66, respectively Prepaid expenses and other current 460 550 assets Total current assets 2,678 2,523 Restricted cash and marketable 279 259 securities Property and equipment, net 12,963 12,639 Goodwill 17,330 16,715 Other intangible assets, 779 655 net Other assets 1,483 1,575 Total assets $ 35,512 $ 34,366 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,448 $ 1,374 Notes payable and current maturities of 48 596 long-term debt Deferred revenue 481 496 Accrued landfill and environmental 158 148 costs, current portion Accrued interest 134 109 Other accrued liabilities 1,308 1,205 Total current liabilities 3,577 3,928 Long-term debt, net of current 14,007 12,985 maturities Accrued landfill and environmental 2,652 2,608 costs, net of current portion Deferred income taxes and other 2,030 1,884 long-term tax liabilities, net Insurance reserves, net of current 442 436 portion Other long-term liabilities 564 556 Commitments and contingencies Stockholders' equity: Preferred stock, par value $0.01 per — — share; 50 shares authorized; none issued Common stock, par value $0.01 per share; 750 shares authorized; 314 and 313 3 3 issued including shares held in treasury, respectively Additional paid-in capital 1,891 1,833 Retained earnings 12,253 11,161 Treasury stock, at cost; 9 and 5 shares, -1,876 -1,000 respectively Accumulated other comprehensive loss, -33 -29 net of tax Total Republic Services, Inc. 12,238 11,968 stockholders' equity Non-controlling interests in 2 1 consolidated subsidiary Total stockholders' equity 12,240 11,969 Total liabilities and stockholders' $ 35,512 $ 34,366 equity
REPUBLIC SERVICES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Nine Months Ended Cash provided by September 30, operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 1,684 $ 1,595 Adjustments to reconcile net income to cash provided by operating activities: Depreciation, depletion, 1,533 1,442 amortization and accretion Non-cash interest 59 57 expense Deferred tax provision 119 130 Loss from unconsolidated equity 158 72 method investments Other non-cash items 78 54 Change in assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivable -254 -78 Prepaid expenses and -49 -93 other assets Accounts payable 176 23 Capping, closure and post-closure -54 -38 expenditures Remediation -36 -31 expenditures Other liabilities 105 182 Cash provided by 3,519 3,315 operating activities Cash used in investing activities: Purchases of property -1,363 -1,310 and equipment Proceeds from sales of property and 9 10 equipment Cash used in acquisitions and investments, net of -1,117 -1,259 cash and restricted cash acquired Cash received from 2 7 business divestitures Other -4 -19 Cash used in investing -2,473 -2,571 activities Cash used in financing activities: Proceeds from credit facilities and 38,330 26,896 notes payable, net of fees Proceeds from issuance of senior notes, 1,183 1,183 net of discount and fees Payments of credit facilities and notes -39,061 -27,639 payable Issuances of common -3 -10 stock, net Purchases of common -856 -599 stock for treasury Cash dividends paid -577 -544 Distributions paid to non-controlling interests in — -1 consolidated subsidiary Contingent -22 -9 consideration payments Cash used in financing -1,006 -723 activities Effect of foreign exchange rate changes -1 1 on cash Increase in cash, cash equivalents, restricted cash and 39 22 restricted cash equivalents Cash, cash equivalents, restricted cash 249 203 and restricted cash equivalents at beginning of period Cash, cash equivalents, restricted cash $ 288 $ 225 and restricted cash equivalents at end of period
7 You should read the following information in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K as of and for the year ended December 31, 2025. All amounts below are in millions and as a percentage of our revenue, except per share data.
The following table reflects our total revenue by line of business for the three and nine months ended September 30, 2026 and 2025:
The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three and nine months ended September 30, 2026 and 2025:
1) Other represents customer credits recognized in connection with labor disruptions for the three and nine months ended September 30, 2025, and the impact of revenue recognized from the related customer contracts during the three and nine months ended September 30, 2026. 8 Average yield is defined as revenue growth from the change in average price per unit of service, expressed as a percentage. Core price is defined as price increases to our customers and fees, excluding fuel recovery fees, net of price decreases to retain customers. We also measure changes in core price, average yield and volume as a percentage of related-business revenue, defined as total revenue excluding recycled commodities, fuel recovery fees and environmental solutions revenue, to determine the effectiveness of our pricing and organic growth strategies. The following table reflects core price, average yield and volume as a percentage of related-business revenue for the three and nine months ended September 30, 2026 and 2025:
The following table reflects changes in average yield and volume, as a percentage of related business revenue by line of business, for the three and nine months ended September 30, 2026 and 2025:
The following table summarizes the major components of our cost of operations for the three and nine months ended September 30, 2026 and 2025 (in millions of dollars and as a percentage of revenue):
These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies. As such, you should take care when comparing our cost of operations by cost component to that of other companies and of ours for prior periods. 9
The following table summarizes our selling, general and administrative expenses for the three and nine months ended September 30, 2026 and 2025 (in millions of dollars and as a percentage of revenue):
These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies. As such, you should take care when comparing our selling, general and administrative expenses by cost component to those of other companies and of ours for prior periods.
The following tables calculate EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA and adjusted EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, adjusted diluted earnings per share, and adjusted free cash flow, which are not measures determined in accordance with U.S. generally accepted accounting principles (U.S. GAAP), for the three and nine months ended September 30, 2026 and 2025. Our definitions of the foregoing non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.
The following table calculates adjusted EBITDA and adjusted EBITDA margin for the three and nine months ended September 30, 2026 and 2025 (in millions of dollars and as a percentage of revenue):
The following table summarizes revenue, adjusted EBITDA and adjusted EBITDA margin by business type for the three and nine months ended September 30, 2026 and 2025 (in millions of dollars and adjusted EBITDA margin as a percentage of revenue):
(a) Certain corporate expenses, including selling, general and administrative expenses, and National Accounts revenue are allocated to the two business types.
The amounts shown for Recycling & Waste represent the sum of our Group 1 and Group 2 reportable segments, and Environmental Solutions represents our Group 3 reportable segment.
The following table calculates adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, and adjusted diluted earnings per share for the three and nine months ended September 30, 2026 and 2025 (in millions of dollars except per share data):
(1) The income tax effect related to our adjustments includes both current and deferred income tax impact and is individually calculated based on the statutory rates applicable to each adjustment.
(2) The aggregate impact to adjusted diluted earnings per share totals to less than $0.01 for the nine months ended September 30, 2026. 11 We believe that presenting EBITDA and EBITDA margin is useful to investors because they provide important information concerning our operating performance exclusive of certain non-cash and other costs. EBITDA and EBITDA margin demonstrate our ability to execute our financial strategy, which includes reinvesting in existing capital assets to ensure a high level of customer service, investing in capital assets to facilitate growth in our customer base and services provided, maintaining our investment grade credit ratings and minimizing debt, paying cash dividends, repurchasing our common stock, and maintaining and improving our market position through business optimization. Although depreciation, depletion, amortization and accretion are considered operating costs in accordance with U.S. GAAP, they represent the allocation of non-cash costs generally associated with long-lived assets acquired or constructed in prior years. We believe that presenting adjusted EBITDA and adjusted EBITDA margin, adjusted EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, and adjusted diluted earnings per share provide an understanding of operational activities before the financial impact of certain items. We use these measures, and believe investors will find them helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods.
Restructuring charges. During the three and nine months ended September 30, 2026 , we incurred restructuring charges of $ 4 million and $10 million , respectively, and during the three and nine months ended September 30, 2025, we incurred restructuring charges of $3 million and $13 million, respectively. The charges in these periods related primarily to the design and implementation of our new accounts receivable system.
Labor disruption. During the three and nine months ended September 30, 2025, we experienced labor disruptions in certain isolated markets. The impact of these labor disruptions during both the three and nine months ended September 30, 2025 was $56 million, including $16 million of customer credits and $40 million of cost of operations.
Gain on business divestitures and impairments, net. During the nine months ended September 30, 2026, we recorded a net gain on business divestitures and impairments of $1 million.
The following table calculates our adjusted free cash flow, which is not a measure determined in accordance with U.S. GAAP, for the nine months ended September 30, 2026 and 2025 (in millions of dollars):
Nine Months Ended September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash provided by operating $ 3,519 $ 3,315 activities Property and equipment -1,259 -1,183 received Proceeds from sales of property and 9 10 equipment Restructuring payments, 7 7 net of tax Labor disruption, net of — 42 tax Adjusted free cash flow $ 2,276 $ 2,191
We believe that presenting adjusted free cash flow provides useful information regarding our recurring cash provided by operating activities after certain expenditures or recoveries. It also demonstrates our ability to execute our financial strategy and is a key metric we use to determine compensation. The presentation of adjusted free cash flow has material limitations. Adjusted free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed, such as debt service requirements and dividend payments.
Purchases of property and equipment as reflected on our consolidated statements of cash flows represent amounts paid during the period for such expenditures. A reconciliation of property and equipment expenditures reflected on our consolidated statements of cash flows to property and equipment received during the period follows for the nine months ended September 30, 2026 and 2025 (in millions of dollars):
Nine Months Ended September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Purchases of property and equipment per the unaudited consolidated $ 1,363 $ 1,310 statements of cash flows Adjustments for property and equipment -104 -127 received in a different period Property and equipment received during $ 1,259 $ 1,183 the period
12 The adjustments noted above do not affect our net change in cash, cash equivalents, restricted cash and restricted cash equivalents as reflected in our consolidated statements of cash flows.
As of September 30, 2026 and December 31, 2025, accounts receivable were $2,126 million and $1,897 million, net of allowance for doubtful accounts of $59 million and $66 million, respectively, resulting in days sales outstanding of 42.4, or 32.8 days net of deferred revenue, compared to 41.8, or 30.8 days net of deferred revenue, respectively.
In July 2026, we paid a cash dividend of $191 million to shareholders of record as of July 2, 2026. As of September 30, 2026, we recorded a quarterly dividend payable of $205 million to shareholders of record at the close of business on October 2, 2026, which was paid on October 15, 2026.
During the three months ended September 30, 2026, we repurchased 0.9 million shares of our common stock for $197 million at a weighted average cost per share of $215.18. As of September 30, 2026, the remaining authorized purchase capacity under our October 2023 repurchase program was approximately $0.8 billion.
The following is a summary of our anticipated adjusted EBITDA, which is not a measure determined in accordance with U.S. GAAP, for the year ending December 31, 2026 (in millions of dollars):
(Anticipated) Year Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── Net income attributable to Republic $ 2,210 - 2,220 Services, Inc. Provision for income 520 - 525 taxes Other income, net -30 Interest expense, net 610 Depreciation, depletion, amortization 2,025 - 2,035 and accretion Loss from unconsolidated equity method 200 investments Restructuring charges 15 Adjusted EBITDA $ 5,550 - 5,575
We believe that presenting adjusted EBITDA provides an understanding of operational activities before the financial impact of certain items. We use this measure, and believe investors will find it helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Our definition of adjusted EBITDA may not be comparable to similarly titled measures presented by other companies.
Our anticipated adjusted free cash flow, which is not a measure determined in accordance with U.S. GAAP, for the year ending December 31, 2026, is calculated as follows (in millions of dollars):
(Anticipated) Year Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── Cash provided by $ 4,510 - 4,570 operating activities Property and equipment -1,970) - (2,010 received Proceeds from sales of property and 10 equipment Restructuring payments, 15 net of tax Adjusted free cash flow $ 2,565 - 2,585
13 We believe that presenting adjusted free cash flow provides useful information regarding our recurring cash provided by operating activities after certain expenditures or recoveries. It also demonstrates our ability to execute our financial strategy and is a key metric we use to determine compensation. The presentation of adjusted free cash flow has material limitations. Adjusted free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed, such as debt service requirements and dividend payments. Our definition of adjusted free cash flow may not be comparable to similarly titled measures presented by other companies.
Our financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy for the remainder of 2026.
This press release contains certain forward-looking information about us that is intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. Words such as “guidance,” “expect,” “will,” “may,” “anticipate,” “plan,” “estimate,” “project,” “intend,” “should,” “can,” “likely,” “could,” “outlook” and similar expressions are intended to identify forward-looking statements. These statements include information about our plans, strategies, and expectations of future financial performance and prospects. Forward-looking statements are not guarantees of performance. These statements are based upon the current beliefs and expectations of our management and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such expectations may not prove to be correct. Among the factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements are the impacts of the overall global economy and changing interest rates, impacts from international trade restrictions and tariffs, our ability to effectively integrate and manage companies we acquire, and to realize the anticipated benefits of any such acquisitions, the impact of prolonged work stoppages or other labor disruptions, the amount of the financial contribution of our sustainability initiatives, acts of war, riots or terrorism, and the impact of these acts on economic, financial and social conditions in the United States and Canada, as well as our dependence on large, long-term collection, transfer and disposal contracts. More information on factors that could cause actual results or events to differ materially from those anticipated is included from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025, particularly under Part I, Item 1A – Risk Factors. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such risk factors, or to assess the impact such risk factors might have on our business. We undertake no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. 14
Full text with the tables
EXHIBIT 99.1
Republic Services, Inc. Reports
Third Quarter 2026 Results
● Reported Earnings Per Share of $1.93 and Adjusted Earnings Per Share of
$1.94
● Generated Year-to-Date Cash Flow from Operations of $3.52 Billion and
Adjusted Free Cash Flow of $2.28 Billion
● Invested Approximately $1.1 Billion in Value-Creating Acquisitions
Year-to-Date
● Updated Full-Year Financial Guidance
● Board Authorized $5 Billion for Share Repurchases
● Great Place to Work Certification for the 10thConsecutive Year
PHOENIX (October 29, 2026)
– Republic Services, Inc. (NYSE: RSG) today reported net income of $592 million,
or $1.93 per diluted share, for the three months ended September 30, 2026,
versus $550 million, or $1.76 per diluted share, for the comparable 2025 period.
Excluding certain expenses and other items, on an adjusted basis, net income for
the three months ended September 30, 2026, was $595 million, or $1.94 per
diluted share, versus $594 million, or $1.90 per diluted share, for the
comparable 2025 period.
“We delivered strong third quarter results that underscored the resilience of
our business model and the effectiveness of our strategy," said Jon Vander Ark,
president and chief executive officer. "Positive growth trends across the
business and improved performance in Environmental Solutions reinforce our
confidence in the opportunities ahead. We remain focused on disciplined pricing,
effective cost management and strategic investments that are designed to
strengthen our competitive position and create long-term value for our customers
and shareholders.”
1
Third-Quarter and Year-to-Date 2026 Highlights :
• Total revenue growth of 8.2 percent includes 4.8 percent organic growth from
our recycling and waste business, 2.1 percent growth from our environmental
solutions business, and 1.3 percent growth from acquisitions.
• Core price on total revenue increased revenue by 5.3 percent. Core price on
related business revenue increased revenue by 6.3 percent, which consisted of
7.6 percent in the open market and 4.1 percent in the restricted portion of the
business.
• Revenue growth from average yield on total revenue was 2.9 percent, and volume
decreased revenue by 0.6 percent. Revenue growth from average yield on related
business revenue was 3.5 percent, and volume decreased related business revenue
by 0.7 percent.
• Net income was $592 million, or a margin of 13.0 percent.
• EPS was $1.93 per share, an increase of 9.7 percent over the prior year.
• Adjusted EPS, a non-GAAP measure, was $1.94 per share, an increase of 2.1
percent over the prior year.
• Adjusted EBITDA, a non-GAAP measure, was $1.45 billion. Adjusted EBITDA
margin, a non-GAAP measure, was 31.8 percent of revenue.
• Year-to-date cash invested in acquisitions was $1.12 billion.
• Year-to-date cash returned to shareholders was $1.43 billion, which included
$848 million of share repurchases and $577 million of dividends paid.
• The Company's average recycled commodity price per ton sold at its recycling
centers during the third quarter was $142. This represents an increase of $16
per ton over the prior year.
• Republic was recognized by several leading organizations during the quarter,
including:
◦ Great Place to Work certification for the 10 th consecutive year
◦ 3BL's 2026 100 Best Corporate Citizens list
2
Updated Full-Year 2026 Financial Guidance
Republic's financial guidance is based on current economic conditions and does
not assume any significant changes in the overall economy for the remainder of
2026. Please refer to the Reconciliation of Full-Year 2026 Financial Guidance
section of this document for detail relating to the computation of non-GAAP
measures as well as the Information Regarding Forward-Looking Statements section
of this document.
The Company updated its revenue, adjusted EBITDA, and adjusted free cash flow
financial guidance as follows:
• Revenue: Increased most recent guidance to a range of $17.425 billion to
$17.475 billion
•
Adjusted EBITDA: Increased most recent guidance to a range of $5.550 billion to
$5.575 billion
• Adjusted Free Cash Flow: Increased most recent guidance to a range of $2.565
billion to $2.585 billion
Board Authorized $5 Billion for Share Repurchases
On October 28, 2026, the Board of Directors approved a $5 billion share
repurchase authorization effective January 1, 2027, and extending through
December 31, 2029. As of September 30, 2026, the remaining purchase capacity
under the prior repurchase authorization was $0.8 billion, which continues
through December 31, 2026.
Company Declared Quarterly Dividend
On October 28, 2026, the Board of Directors declared a regular quarterly
dividend of $0.670 per share for shareholders of record on January 4, 2027. The
dividend will be paid on January 15, 2027.
Presentation of Certain Performance Metrics and Non-GAAP Measures
Adjusted diluted earnings per share, adjusted net income - Republic, adjusted
pre-tax income, adjusted tax impact, EBITDA, EBITDA margin, adjusted EBITDA,
adjusted EBITDA margin, adjusted EBITDA by business type, adjusted EBITDA margin
by business type and adjusted free cash flow are described in the Performance
Metrics and Reconciliations of Certain Non-GAAP Measures section of this
document.
3
About Republic Services
Republic Services, Inc. is a leader in the environmental services industry.
Through its subsidiaries, the Company provides customers with the most complete
set of products and services, including recycling, solid waste, special waste,
hazardous waste and field services. Republic’s industry-leading commitments to
advance circularity and support decarbonization are helping deliver on its
vision to partner with customers to create a more sustainable world. For more
information, please visit RepublicServices.com .
For more information, contact:
Media Inquiries Investor Inquiries
Roman Blahoski (480) 718-0328 John Weeks (480) 718-0309
media@RepublicServices.com investor@RepublicServices.com
4
SUPPLEMENTAL UNAUDITED
FINANCIAL INFORMATION
AND OPERATING DATA
REPUBLIC SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per
share amounts) September 30,
ASSETS 2026 December 31,
Current assets: (Unaudited) 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 92 $ 76
Accounts receivable, less
allowance for
doubtful accounts and other 2,126 1,897
of $59 and
$66, respectively
Prepaid expenses and other
current 460 550
assets
Total current assets 2,678 2,523
Restricted cash and
marketable 279 259
securities
Property and equipment, net 12,963 12,639
Goodwill 17,330 16,715
Other intangible assets, 779 655
net
Other assets 1,483 1,575
Total assets $ 35,512 $ 34,366
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,448 $ 1,374
Notes payable and current
maturities of 48 596
long-term debt
Deferred revenue 481 496
Accrued landfill and
environmental 158 148
costs, current portion
Accrued interest 134 109
Other accrued liabilities 1,308 1,205
Total current liabilities 3,577 3,928
Long-term debt, net of
current 14,007 12,985
maturities
Accrued landfill and
environmental 2,652 2,608
costs, net of current
portion
Deferred income taxes and
other 2,030 1,884
long-term tax liabilities,
net
Insurance reserves, net of
current 442 436
portion
Other long-term liabilities 564 556
Commitments and
contingencies
Stockholders' equity:
Preferred stock, par value
$0.01 per — —
share; 50 shares
authorized; none issued
Common stock, par value
$0.01 per share;
750 shares authorized; 314
and 313 3 3
issued including shares
held in
treasury, respectively
Additional paid-in capital 1,891 1,833
Retained earnings 12,253 11,161
Treasury stock, at cost; 9
and 5 shares, -1,876 -1,000
respectively
Accumulated other
comprehensive loss, -33 -29
net of tax
Total Republic Services,
Inc. 12,238 11,968
stockholders' equity
Non-controlling interests
in 2 1
consolidated subsidiary
Total stockholders' equity 12,240 11,969
Total liabilities and
stockholders' $ 35,512 $ 34,366
equity
5
REPUBL…
SERVIC…
INC.
UNAUDI…
CONSOL…
STATEM…
OF
INCOME
(in
millio…
except
per
share
data)
Revenue
Expens…
Cost of
operat…
Deprec…
deplet…
and
amorti…
Accret…
Sellin…
general
and
admini…
Restru…
charges
Gain on
busine…
divest…
and
impair…
net
Operat…
income
Intere…
expense
Loss
from
uncons…
equity
method
invest…
Intere…
income
Other
income,
net
Income
before
income
taxes
Provis…
for
income
taxes
Net
income
Net
income
attrib…
to
non-co…
intere…
in
consol…
subsid…
Net 4,559 4,212 13,103 12,456
income 2,663 2,463 7,593 7,226
attrib… 494 459 1,442 1,356
to 30 29 91 85
Republ… 447 422 1,316 1,274
Servic… 4 3 10 13
Inc. — — (1) —
Basic 921 836 2,652 2,502
earnin… (157) (143) (459) (428)
per (48) (57) (158) (72)
share 3 2 7 6
attrib… Three — 7 Nine 31 22
to Months 719 645 Months 2,073 2,030
Republ… Ended 126 95 Ended 389 435
Servic… Septem… 593 550 Septemb… 1,684 1,595
Inc. 30, (1) — 30, (1) —
stockh… 2026 592 2025 550 2026 1,683 2025 1,595
──────────────────────────────────────────────────────────────────────────────
Basic
earnin… $ 1.93 $ 1.76 $ 5.47 $ 5.10
per
share
Weight…
average
common 306.3 311.7 307.6 312.6
shares
outsta…
Diluted
earnin…
per
share
attrib…
to
Republ…
Servic…
Inc.
stockh…
Diluted
earnin… $ 1.93 $ 1.76 $ 5.47 $ 5.10
per
share
Weight…
average
common
and 306.5 312.0 307.8 312.9
common
equiva…
shares
outsta…
Cash
divide…
per $ 0.670 $ 0.625 $ 1.920 $ 1.785
common
share
6
REPUBLIC SERVICES,
INC.
UNAUDITED CONSOLIDATED
STATEMENTS OF CASH
FLOWS
(in millions) Nine Months Ended
Cash provided by September 30,
operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 1,684 $ 1,595
Adjustments to
reconcile net income
to
cash provided by
operating activities:
Depreciation,
depletion, 1,533 1,442
amortization
and accretion
Non-cash interest 59 57
expense
Deferred tax provision 119 130
Loss from
unconsolidated equity 158 72
method
investments
Other non-cash items 78 54
Change in assets and
liabilities, net of
effects from business
acquisitions and
divestitures:
Accounts receivable -254 -78
Prepaid expenses and -49 -93
other assets
Accounts payable 176 23
Capping, closure and
post-closure -54 -38
expenditures
Remediation -36 -31
expenditures
Other liabilities 105 182
Cash provided by 3,519 3,315
operating activities
Cash used in investing
activities:
Purchases of property -1,363 -1,310
and equipment
Proceeds from sales of
property and 9 10
equipment
Cash used in
acquisitions and
investments, net of -1,117 -1,259
cash and restricted
cash acquired
Cash received from 2 7
business divestitures
Other -4 -19
Cash used in investing -2,473 -2,571
activities
Cash used in financing
activities:
Proceeds from credit
facilities and 38,330 26,896
notes payable, net of
fees
Proceeds from issuance
of senior notes, 1,183 1,183
net of discount and
fees
Payments of credit
facilities and notes -39,061 -27,639
payable
Issuances of common -3 -10
stock, net
Purchases of common -856 -599
stock for treasury
Cash dividends paid -577 -544
Distributions paid to
non-controlling
interests in — -1
consolidated
subsidiary
Contingent -22 -9
consideration payments
Cash used in financing -1,006 -723
activities
Effect of foreign
exchange rate changes -1 1
on cash
Increase in cash, cash
equivalents,
restricted cash and 39 22
restricted cash
equivalents
Cash, cash
equivalents,
restricted cash 249 203
and restricted cash
equivalents at
beginning of period
Cash, cash
equivalents,
restricted cash $ 288 $ 225
and restricted cash
equivalents at end
of period
7
You should read the following information in conjunction with our audited
consolidated financial statements and notes thereto appearing in our Annual
Report on Form 10-K as of and for the year ended December 31, 2025. All amounts
below are in millions and as a percentage of our revenue, except per share data.
REVENUE
The following table reflects our total revenue by line of business for the three
and nine months ended September 30, 2026 and 2025:
T… N…
M… M…
E… E…
S… S…
3… 3…
… 2… 2… 2… 2…
──────────────────────────────────────────────────────────────────────────────
… $ 7… 1… % $ 7… 1… % $ 2… 1… % $ 2… … %
… 1… 3… 1… 3… 4… 3… 3… …
… 8… 1… 7… 1… 2… 1… 2… …
… 19 0… 17 0… 54 0… 53 …
… 3… 6… 2… 6… 8… 6… 8… …
…
… 5… 4… 1… 1…
… -… -… -… -…
…
… 2… 5… 2… 5… 6… 5… 6… …
…
… 8… 8… 2… 2…
… -… -… -… -…
…
… 5… 1… 5… 1… 1… 1… 1… …
…
… 5… 4… 1… 1…
…
… -… -… -… -…
…
…
… 5… 1… 4… 1… 1… 1… 1… …
…
…
…
…
… 1… 2… 1… 2… 3… 2… 3… …
…
…
… 1… 2… 97 2… 3… 2… 2… …
…
… 2… 5… 2… 4… 6… 5… 6… …
…
… $ 4… 1… % $ 4… 1… % $ 1… 1… % $ 1… … %
…
The following table reflects changes in components of our revenue, as a
percentage of total revenue, for the three and nine months ended September 30,
2026 and 2025:
Three Nine
Mont… Months
Ended Ended
Sept… Septe…
30, 30,
2026 2025 2026 2025
Aver… 2.9 % 4.0 % 3.2 % 4.2 %
yield
Fuel
reco… 1.8 — 1.3 -0.2
fees
Total 4.7 4.0 4.5 4.0
price
Volu… -0.6 -0.3 -1.0 -0.4
Chan…
in — — — -0.2
work…
Recy…
proc…
and 0.3 -0.2 0.1 —
comm…
sales
Envi… 2.1 -1.4 0.3 -0.7
solu…
Othe… 0.4 -0.4 0.1 -0.1
Total
inte… 6.9 1.7 4.0 2.6
grow…
Acqu…
/ 1.3 1.6 1.2 1.3
dive…
net
Total 8.2 % 3.3 % 5.2 % 3.9 %
Core 5.3 % 5.9 % 5.4 % 5.9 %
price
1) Other represents customer credits recognized in connection with labor
disruptions for the three and nine months ended September 30, 2025, and the
impact of revenue recognized from the related customer contracts during the
three and nine months ended September 30, 2026.
8
Average yield is defined as revenue growth from the change in average price per
unit of service, expressed as a percentage. Core price is defined as price
increases to our customers and fees, excluding fuel recovery fees, net of price
decreases to retain customers. We also measure changes in core price, average
yield and volume as a percentage of related-business revenue, defined as total
revenue excluding recycled commodities, fuel recovery fees and environmental
solutions revenue, to determine the effectiveness of our pricing and organic
growth strategies. The following table reflects core price, average yield and
volume as a percentage of related-business revenue for the three and nine months
ended September 30, 2026 and 2025:
Three Nine
Months Mont…
Ended Ended
Septe… Sept…
30, 30,
2026 2025 2026 2025
As a % As a
of % of
Relat… Rela…
Busin… Busi…
Core 6.3 % 7.2 % 6.5 % 7.2 %
price
Aver… 3.5 % 4.9 % 3.9 % 5.1 %
yield
Volu… -0.7 % -0.4 % -1.2 % -0.5 %
The following table reflects changes in average yield and volume, as a
percentage of related business revenue by line of business, for the three and
nine months ended September 30, 2026 and 2025:
… …
… …
… …
… …
… …
… … … …
… … … …
% … % … % … % …
% … % … % — % …
% … % … % … % …
% … % … % … % …
% … % … % … % …
% … % … % … % …
COST OF OPERATIONS
The following table summarizes the major components of our cost of operations
for the three and nine months ended September 30, 2026 and 2025 (in millions of
dollars and as a percentage of revenue):
T… N…
M… M…
E… E…
S… S…
2… 3… 2… 2… 3… 2…
──────────────────────────────────────────────────────────────────────────────
…
… $ 8… 1… % $ 8… 1… % $ 2… 1… % $ 2… … %
…
…
…
… 2… 6… 2… 6… 8… 6… 8… …
…
…
…
… 3… 8… 3… 9… 1… 8… 1… …
…
…
… 3… 8… 3… 7… 9… 7… 8… …
…
…
… 1… 4… 1… 2… 4… 3… 3… …
…
… 95 2… 95 2… 2… 2… 2… …
…
…
…
… 1… 2… 99 2… 3… 2… 2… …
…
… 1… 2… 1… 2… 3… 2… 3… …
…
… 2… 5… 2… 5… 6… 5… 6… …
… 2… 5… 2… 5… 7… 5… 7… …
… — — 40 1… — — 40 …
…
…
… $ 2… 5… % $ 2… 5… % $ 7… 5… % $ 7… … %
…
…
These cost categories may change from time to time and may not be comparable to
similarly titled categories used by other companies. As such, you should take
care when comparing our cost of operations by cost component to that of other
companies and of ours for prior periods.
9
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The following table summarizes our selling, general and administrative expenses
for the three and nine months ended September 30, 2026 and 2025 (in millions of
dollars and as a percentage of revenue):
T… N…
M… M…
E… E…
S… S…
2… 3… 2… 2… 3… 2…
──────────────────────────────────────────────────────────────────────────────
…
… $ 2… 6… % $ 2… 6… % $ 8… 6… % $ … 6… %
…
…
…
… 12 0… 9 0… 39 0… … 0…
…
…
… 1… 3… 1… 3… 3… 2… … 3…
…
…
… $ 4… 9… % $ 4… 1… % $ 1… 1… % $ … 1… %
…
…
…
These cost categories may change from time to time and may not be comparable to
similarly titled categories used by other companies. As such, you should take
care when comparing our selling, general and administrative expenses by cost
component to those of other companies and of ours for prior periods.
PERFORMANCE METRICS AND RECONCILIATIONS OF CERTAIN NON-GAAP MEASURES
The following tables calculate EBITDA, EBITDA margin, adjusted EBITDA, adjusted
EBITDA margin, adjusted EBITDA and adjusted EBITDA margin by business type,
adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic,
adjusted diluted earnings per share, and adjusted free cash flow, which are not
measures determined in accordance with U.S. generally accepted accounting
principles (U.S. GAAP), for the three and nine months ended September 30, 2026
and 2025. Our definitions of the foregoing non-GAAP financial measures may not
be comparable to similarly titled measures presented by other companies.
Adjusted EBITDA and Adjusted EBITDA Margin
The following table calculates adjusted EBITDA and adjusted EBITDA margin for
the three and nine months ended September 30, 2026 and 2025 (in millions of
dollars and as a percentage of revenue):
T… N…
M… M…
E… E…
S… S…
2… 3… 2… 2… 3… 2…
──────────────────────────────────────────────────────────────────────────────
…
…
…
…
…
… $ 5… 1… % $ 5… 1… % $ 1… 1… % $ 1… … %
…
…
…
…
…
…
…
… 1 — 1 —
…
…
…
…
… 1… 95 3… 4…
…
…
…
… — -7 -… -…
…
… -3 -2 -7 -6
…
… 1… 1… 4… 4…
…
…
… 4… 4… 1… 1…
…
…
… 30 29 91 85
…
… $ 1… 3… % $ 1… 3… % $ 4… 3… % $ 3… … %
…
…
…
…
… 48 57 1… 72
…
…
…
… 4 3 10 13
…
…
…
…
… — — -1 —
…
…
…
… — 56 — 56
…
… 52 1… 1… 1…
…
…
…
… $ 1… 3… % $ 1… 3… % $ 4… 3… % $ 4… … %
…
…
…
10
Adjusted EBITDA and Adjusted EBITDA Margin by Business Type
The following table summarizes revenue, adjusted EBITDA and adjusted EBITDA
margin by business type for the three and nine months ended September 30, 2026
and 2025 (in millions of dollars and adjusted EBITDA margin as a percentage of
revenue):
T… …
M… …
E… …
S… …
3… …
2… …
──────────────────────────────────────────────────────────────────────────────
R… E… R… E…
& S… T… & S… T…
W… W…
… $ 4… $ 5… $ 4… $ … $ … $ …
… $ 1… $ 1… $ 1… $ … $ … $ …
…
…
… 3… % 2… % 3… % … % … % … %
…
N… N…
M… M…
E… E…
S… S…
3… 3…
2… 2…
──────────────────────────────────────────────────────────────────────────────
R… E… … …
& S… T… & … …
W… …
… $ 1… $ 1… $ 1… $ 1… $ 1… $ 1…
… $ 3… $ 3… $ 4… $ 3… $ 2… $ 4…
…
…
… 3… % 2… % 3… % 3… % 2… % 3… %
…
(a) Certain corporate expenses, including selling, general and administrative
expenses, and National Accounts revenue are allocated to the two business types.
(b) Adjusted EBITDA Margin does not calculate due to rounding.
The amounts shown for Recycling & Waste represent the sum of our Group 1 and
Group 2 reportable segments, and Environmental Solutions represents our Group 3
reportable segment.
Adjusted Diluted Earnings Per Share
The following table calculates adjusted pre-tax income, adjusted tax impact,
adjusted net income - Republic, and adjusted diluted earnings per share for the
three and nine months ended September 30, 2026 and 2025 (in millions of dollars
except per share data):
T… …
M… …
E… …
S… …
3… …
2… …
──────────────────────────────────────────────────────────────────────────────
… …
N… … … …
P… T… I… … … … … …
- -
I… I… R… … … … … …
… $ 7… $ 1… $ 5… $ 1… $ 6… $ 95 $ 5… $ 1…
…
… 4 1 3 0… 3 1 2 0…
…
… — — — — 56 14 42 0…
…
…
…
…
… — — — — — — — —
…
…
…
… 4 1 3 0… 59 15 44 0…
…
… $ 7… $ 1… $ 5… $ 1… $ 7… $ 1… $ 5… $ 1…
…
N… …
M… …
E… …
S… …
3… …
2… …
──────────────────────────────────────────────────────────────────────────────
… …
N… … … …
P… T… I… … … … … …
- -
I… I… R… … … … … …
… $ 2… $ 3… $ 1… $ 5… $ 2… $ 4… $ 1… $ 5…
…
… 10 2 8 0… 13 4 9 0…
…
… — — — — 56 14 42 0…
…
…
…
…
… -1 — -1 — — — — —
…
…
…
… 9 2 7 0… 69 18 51 0…
…
… $ 2… $ 3… $ 1… $ 5… $ 2… $ 4… $ 1… $ 5…
…
(1) The income tax effect related to our adjustments includes both current and
deferred income tax impact and is individually calculated based on the statutory
rates applicable to each adjustment.
(2) The aggregate impact to adjusted diluted earnings per share totals to less
than $0.01 for the nine months ended September 30, 2026.
11
We believe that presenting EBITDA and EBITDA margin is useful to investors
because they provide important information concerning our operating performance
exclusive of certain non-cash and other costs. EBITDA and EBITDA margin
demonstrate our ability to execute our financial strategy, which includes
reinvesting in existing capital assets to ensure a high level of customer
service, investing in capital assets to facilitate growth in our customer base
and services provided, maintaining our investment grade credit ratings and
minimizing debt, paying cash dividends, repurchasing our common stock, and
maintaining and improving our market position through business optimization.
Although depreciation, depletion, amortization and accretion are considered
operating costs in accordance with U.S. GAAP, they represent the allocation of
non-cash costs generally associated with long-lived assets acquired or
constructed in prior years.
We believe that presenting adjusted EBITDA and adjusted EBITDA margin, adjusted
EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact,
adjusted net income - Republic, and adjusted diluted earnings per share provide
an understanding of operational activities before the financial impact of
certain items. We use these measures, and believe investors will find them
helpful, in understanding the ongoing performance of our operations separate
from items that have a disproportionate impact on our results for a particular
period. We have incurred comparable charges, costs and recoveries in prior
periods, and similar types of adjustments can reasonably be expected to be
recorded in future periods.
Restructuring charges. During the three and nine months ended September 30, 2026
, we incurred restructuring charges of $ 4 million and $10 million ,
respectively, and during the three and nine months ended September 30, 2025, we
incurred restructuring charges of $3 million and $13 million, respectively. The
charges in these periods related primarily to the design and implementation of
our new accounts receivable system.
Labor disruption. During the three and nine months ended September 30, 2025, we
experienced labor disruptions in certain isolated markets. The impact of these
labor disruptions during both the three and nine months ended September 30, 2025
was $56 million, including $16 million of customer credits and $40 million of
cost of operations.
Gain on business divestitures and impairments, net. During the nine months ended
September 30, 2026, we recorded a net gain on business divestitures and
impairments of $1 million.
Adjusted Free Cash Flow
The following table calculates our adjusted free cash flow, which is not a
measure determined in accordance with U.S. GAAP, for the nine months ended
September 30, 2026 and 2025 (in millions of dollars):
Nine Months Ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash provided by operating $ 3,519 $ 3,315
activities
Property and equipment -1,259 -1,183
received
Proceeds from sales of
property and 9 10
equipment
Restructuring payments, 7 7
net of tax
Labor disruption, net of — 42
tax
Adjusted free cash flow $ 2,276 $ 2,191
We believe that presenting adjusted free cash flow provides useful information
regarding our recurring cash provided by operating activities after certain
expenditures or recoveries. It also demonstrates our ability to execute our
financial strategy and is a key metric we use to determine compensation. The
presentation of adjusted free cash flow has material limitations. Adjusted free
cash flow does not represent our cash flow available for discretionary payments
because it excludes certain payments that are required or to which we have
committed, such as debt service requirements and dividend payments.
Purchases of property and equipment as reflected on our consolidated statements
of cash flows represent amounts paid during the period for such expenditures. A
reconciliation of property and equipment expenditures reflected on our
consolidated statements of cash flows to property and equipment received during
the period follows for the nine months ended September 30, 2026 and 2025 (in
millions of dollars):
Nine Months Ended
September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Purchases of property and
equipment per
the unaudited consolidated $ 1,363 $ 1,310
statements of
cash flows
Adjustments for property and
equipment -104 -127
received in a different period
Property and equipment received
during $ 1,259 $ 1,183
the period
12
The adjustments noted above do not affect our net change in cash, cash
equivalents, restricted cash and restricted cash equivalents as reflected in our
consolidated statements of cash flows.
ACCOUNTS RECEIVABLE
As of September 30, 2026 and December 31, 2025, accounts receivable were $2,126
million and $1,897 million, net of allowance for doubtful accounts of $59
million and $66 million, respectively, resulting in days sales outstanding of
42.4, or 32.8 days net of deferred revenue, compared to 41.8, or 30.8 days net
of deferred revenue, respectively.
CASH DIVIDENDS
In July 2026, we paid a cash dividend of $191 million to shareholders of record
as of July 2, 2026. As of September 30, 2026, we recorded a quarterly dividend
payable of $205 million to shareholders of record at the close of business on
October 2, 2026, which was paid on October 15, 2026.
SHARE REPURCHASE PROGRAM
During the three months ended September 30, 2026, we repurchased 0.9 million
shares of our common stock for $197 million at a weighted average cost per share
of $215.18. As of September 30, 2026, the remaining authorized purchase capacity
under our October 2023 repurchase program was approximately $0.8 billion.
RECONCILIATION OF FULL-YEAR 2026 FINANCIAL GUIDANCE
Adjusted EBITDA
The following is a summary of our anticipated adjusted EBITDA, which is not a
measure determined in accordance with U.S. GAAP, for the year ending December
31, 2026 (in millions of dollars):
(Anticipated)
Year Ending December 31,
2026
──────────────────────────────────────────────────────────────────────────────
Net income attributable
to Republic $ 2,210 - 2,220
Services, Inc.
Provision for income 520 - 525
taxes
Other income, net -30
Interest expense, net 610
Depreciation, depletion,
amortization 2,025 - 2,035
and accretion
Loss from unconsolidated
equity method 200
investments
Restructuring charges 15
Adjusted EBITDA $ 5,550 - 5,575
We believe that presenting adjusted EBITDA provides an understanding of
operational activities before the financial impact of certain items. We use this
measure, and believe investors will find it helpful, in understanding the
ongoing performance of our operations separate from items that have a
disproportionate impact on our results for a particular period. We have incurred
comparable charges, costs and recoveries in prior periods, and similar types of
adjustments can reasonably be expected to be recorded in future periods. Our
definition of adjusted EBITDA may not be comparable to similarly titled measures
presented by other companies.
Adjusted Free Cash Flow
Our anticipated adjusted free cash flow, which is not a measure determined in
accordance with U.S. GAAP, for the year ending December 31, 2026, is calculated
as follows (in millions of dollars):
(Anticipated)
Year Ending December 31,
2026
──────────────────────────────────────────────────────────────────────────────
Cash provided by $ 4,510 - 4,570
operating activities
Property and equipment -1,970) - (2,010
received
Proceeds from sales of
property and 10
equipment
Restructuring payments, 15
net of tax
Adjusted free cash flow $ 2,565 - 2,585
13
We believe that presenting adjusted free cash flow provides useful information
regarding our recurring cash provided by operating activities after certain
expenditures or recoveries. It also demonstrates our ability to execute our
financial strategy and is a key metric we use to determine compensation. The
presentation of adjusted free cash flow has material limitations. Adjusted free
cash flow does not represent our cash flow available for discretionary payments
because it excludes certain payments that are required or to which we have
committed, such as debt service requirements and dividend payments. Our
definition of adjusted free cash flow may not be comparable to similarly titled
measures presented by other companies.
Our financial guidance is based on current economic conditions and does not
assume any significant changes in the overall economy for the remainder of 2026.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about us that is
intended to be covered by the safe harbor for “forward-looking statements”
provided by the Private Securities Litigation Reform Act of 1995. Forward-
looking statements are statements that are not historical facts. Words such as
“guidance,” “expect,” “will,” “may,” “anticipate,” “plan,” “estimate,”
“project,” “intend,” “should,” “can,” “likely,” “could,” “outlook” and similar
expressions are intended to identify forward-looking statements. These
statements include information about our plans, strategies, and expectations of
future financial performance and prospects. Forward-looking statements are not
guarantees of performance. These statements are based upon the current beliefs
and expectations of our management and are subject to risks and uncertainties
that could cause actual results to differ materially from those expressed in, or
implied or projected by, the forward-looking information and statements.
Although we believe that the expectations reflected in the forward-looking
statements are reasonable, such expectations may not prove to be correct. Among
the factors that could cause actual results to differ materially from the
expectations expressed in the forward-looking statements are the impacts of the
overall global economy and changing interest rates, impacts from international
trade restrictions and tariffs, our ability to effectively integrate and manage
companies we acquire, and to realize the anticipated benefits of any such
acquisitions, the impact of prolonged work stoppages or other labor disruptions,
the amount of the financial contribution of our sustainability initiatives, acts
of war, riots or terrorism, and the impact of these acts on economic, financial
and social conditions in the United States and Canada, as well as our dependence
on large, long-term collection, transfer and disposal contracts. More
information on factors that could cause actual results or events to differ
materially from those anticipated is included from time to time in our reports
filed with the Securities and Exchange Commission, including our Annual Report
on Form 10-K for the year ended December 31, 2025, particularly under Part I,
Item 1A – Risk Factors. Additionally, new risk factors emerge from time to time
and it is not possible for us to predict all such risk factors, or to assess the
impact such risk factors might have on our business. We undertake no obligation
to update publicly any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by law.
14