Republic Services’ third quarter results were met with a negative market reaction as revenue growth fell short of Wall Street expectations, with management citing continued softness in construction and manufacturing end markets as a key drag on volumes. CEO Jon Vander Ark pointed to strong pricing and disciplined operational execution as drivers of margin expansion, despite flat sales volumes and persistent headwinds in the Environmental Solutions business. Vander Ark stated, “Continued investment in our differentiated capabilities positions us well to drive sustainable growth and enhance long-term shareholder value.”
Is now the time to buy RSG? Find out in our full research report (it’s free for active Edge members).
Republic Services (RSG) Q3 CY2025 Highlights:
- Revenue: $4.21 billion vs analyst estimates of $4.24 billion (3.3% year-on-year growth, 0.8% miss)
- Adjusted EPS: $1.90 vs analyst estimates of $1.78 (6.5% beat)
- Adjusted EBITDA: $1.38 billion vs analyst estimates of $1.35 billion (32.8% margin, 2.4% beat)
- Operating Margin: 19.8%, in line with the same quarter last year
- Sales Volumes were flat year on year, in line with the same quarter last year
- Market Capitalization: $63.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Republic Services’s Q3 Earnings Call
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Patrick Brown (Raymond James) asked how nonrecurring event-driven landfill volumes and commodity headwinds will affect 2026 results. CEO Jon Vander Ark responded that mid-single-digit revenue growth remains the goal, but tougher comparisons are expected due to these factors.
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Noah Kaye (Oppenheimer & Company) questioned the sustainability of price-cost spread and pricing outlook for 2026. Vander Ark said the target is to keep yield 75–100 basis points above inflation, with cost discipline remaining central to strategy.
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Sabahat Khan (RBC Capital Markets) inquired about the acquisition pipeline and mix across business segments. Vander Ark confirmed a strong and balanced M&A pipeline, tilted toward Recycling & Waste, with Environmental Solutions opportunities as well.
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Kevin Chiang (CIBC) asked if there would be residual financial impacts from earlier labor disruptions. CFO Brian DelGhiaccio clarified that the $56 million in recorded costs likely captured all relevant impacts.
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Trevor Romeo (William Blair) probed whether the volume softness matched prior expectations and for details on monthly trends. Vander Ark noted that while early quarter trends were weaker than expected, stabilization has begun, with some recovery signs emerging.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) the performance and ramp-up of new Polymer Centers and RNG projects, (2) stabilization or growth in Environmental Solutions volumes as the business pipeline expands, and (3) continued effectiveness of pricing strategies amid inflation and competitive pressures. Progress in acquisition integration and sustained margin discipline will also be important markers of execution.
Republic Services currently trades at $206.44, down from $209.89 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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