Republic Services RSG delivered solid first-quarter 2026 results, with earnings per share of $1.70, beating the Zacks Consensus Estimate of $1.64 by 3.7%. Earnings increased 7.6% from $1.58 in the year-ago quarter. Revenues rose 2.6% year over year to $4.11 billion and edged past the consensus mark of $4.10 billion.
How Is Republic Services Faring?
The North America Solid Waste Management market is projected to see a CAGR of 4.5% through 2031 (per Mordor Intelligence). In North America, waste generation has increased on the back of swift urbanization. A growing urban population across the United States and Canada is anticipated to raise solid waste production. The rising adoption of zero-waste initiatives and industrial growth across the region are contributing to a rise in commercial and industrial waste.
Per the United Nations Environment Programme, municipal solid waste generation is anticipated to reach 3.8 billion tons by 2050. Since 70% of RSG’s top line is generated from its collection segment over the past year, we expect the growing solid waste to necessitate an increase in collection frequency, translating into people willing to pay more for disposal. This would pave the way for Republic Services to charge higher subscription fees, thereby boosting its top line.
In 2022, 2023, 2024 and 2025, the company paid out $592.9 million, $650 million, $687 million and $738 million in dividends, and repurchased shares worth $203.5 million, $261.8 million, $482 million and $870 million, respectively. The consistency has persisted despite the fluctuations in RSG’s cash position, underscoring its dedication to returning value to investors. These initiatives positively impact earnings per share and attract income-seeking investors.
Despite these aforesaid upsides, there is always a certain amount of uncertainty about RSG’s ability to obtain or maintain permits, required for its landfill operation, waste processing, hazardous waste handling and more due to the associated difficulty and expenses. Permits often take years to obtain and are often subjected to resistance from citizens or other groups and political pressures. Addressing these challenges might raise costs and limit its ability to conduct business.
At the end of the first quarter of 2026, Republic Services’ current ratio stood at 0.67. This figure failed to surpass its industry peers, as the average was at 1.08. A current ratio of less than 1 does not bode well with investors as it hints at the company’s inefficiency at paying off short-term obligations.
Zacks Rank & Stocks to Consider
Republic Serviceshas a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Business Services sector are Corpay CPAY and Coursera COUR. These two companies currently carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Corpay has a long-term earnings growth expectation of 14.3%. CPAY delivered a trailing four-quarter earnings surprise of 2.1%, on average.
Coursera has a long-term earnings growth expectation of 41.4%. COUR delivered a trailing four-quarter earnings surprise of 5.6%, on average.
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This article originally published on Zacks Investment Research (zacks.com).
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