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Republic Services’ $984 Million Free Cash Flow Quarter: Is The Market Missing Its Margin Story?

Republic Services, Inc. reported its first quarter 2026 financial results, demonstrating moderate revenue growth alongside notable earnings and margin expansion despite challenges from lower commodity prices and increased fuel costs. The company achieved 2.6% revenue growth and 4.3% adjusted EBITDA growth, with EBITDA margin increasing by 50 basis points to 32.1%. Adjusted earnings per share stood at $1.70, and adjusted free cash flow rose significantly to $984 million, a year-over-year increase exceeding 35%, driven by improved EBITDA and working capital timing. These outcomes align with the company’s February full-year guidance. Organic revenue growth was supported primarily by consistent pricing efforts, with core price on total revenue at 5.7% and related revenue at 6.8%. However, volume declines persisted, with organic volume reducing total revenue by 0.8%, reflective of volume decreases in large and small container services and residential contracts, the latter affected by known contract losses.