Republic Services, Inc. Reports Fourth Quarter and Full-Year 2025 Results; Provides 2026 Full-Year Financial Guidance

PHOENIX, Feb. 17, 2026 /PRNewswire/ -- Republic Services, Inc. (NYSE: RSG) today reported net income of $545 million, or $1.76 per diluted share, for the three months ended December 31, 2025, versus $512 million, or $1.63 per diluted share, for 2024. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended December 31, 2025, was $547 million, or $1.76 per diluted share, versus $497 million, or $1.58 per diluted share, for the comparable 2024 period.

For the year ended December 31, 2025, net income was $2.14 billion, or $6.85 per diluted share, versus $2.04 billion, or $6.49 per diluted share, for 2024. Excluding certain expenses and other items, on an adjusted basis, net income for the year ended December 31, 2025, was $2.19 billion, or $7.02 per diluted share, versus $2.03 billion, or $6.46 per diluted share, for 2024.

"We delivered another strong year of results in 2025, underscoring the resilience of our business model and the strength of our differentiated capabilities. Through healthy pricing and disciplined cost management, we successfully navigated cyclical demand headwinds and exceeded expectations for full-year adjusted earnings and adjusted free cash flow," said Jon Vander Ark, president and chief executive officer. "We continued to invest across the business to position us for sustained, value-creating growth while returning $1.6 billion to shareholders through dividends and share repurchases."

Fourth-Quarter 2025 Highlights:

Full-Year 2025 Highlights:

2026 Financial Guidance

Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2026. The financial guidance also includes the expected contribution from acquisitions that have closed to date. Please refer to the Reconciliation of 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. Full-year 2026 financial guidance is as follows:

"We expect to deliver another year of profitable growth in 2026 in a macro environment that remains dynamic," said Mr. Vander Ark. "Our outlook is supported by continued pricing in excess of cost inflation, steady productivity gains from our digital tools, and ongoing investments in strategic acquisitions — all of which position us well to drive long-term value."

Company Declared Quarterly Dividend

Republic previously announced that its Board of Directors declared a regular quarterly dividend of $0.625 per share for shareholders of record on April 2, 2026. The dividend will be paid on April 15, 2026.

Presentation of Certain Performance Metrics and Non-GAAP Measures

Adjusted diluted earnings per share, adjusted net income - Republic, EBITDA, 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.

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

Aaron Evans (480) 718-0309

[email protected]

SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION

AND OPERATING DATA

REPUBLIC SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)

December 31,

2025

2024

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$ 76

$ 74

Accounts receivable, less allowance for doubtful accounts and other of $66 and $74, respectively

1,897

1,821

Prepaid expenses and other current assets

550

511

Total current assets

2,523

2,406

Restricted cash and marketable securities

259

208

Property and equipment, net

12,639

11,877

Goodwill

16,715

15,982

Other intangible assets, net

655

546

Other assets

1,575

1,383

Total assets

$ 34,366

$ 32,402

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$ 1,374

$ 1,345

Notes payable and current maturities of long-term debt

596

862

Deferred revenue

496

485

Accrued landfill and environmental costs, current portion

148

159

Accrued interest

109

101

Other accrued liabilities

1,205

1,176

Total current liabilities

3,928

4,128

Long-term debt, net of current maturities

12,985

11,851

Accrued landfill and environmental costs, net of current portion

2,608

2,432

Deferred income taxes and other long-term tax liabilities, net

1,884

1,594

Insurance reserves, net of current portion

436

402

Other long-term liabilities

556

588

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; 313 and 313 issued including shares held

in treasury, respectively

Additional paid-in capital

1,833

1,767

Retained earnings

11,161

9,774

Treasury stock, at cost; 5 and 1 shares, respectively

(1,000)

(113)

Accumulated other comprehensive loss, net of tax

(29)

(26)

Total Republic Services, Inc. stockholders' equity

11,968

11,405

Non-controlling interests in consolidated subsidiary

Total stockholders' equity

11,969

11,407

Total liabilities and stockholders' equity

$ 34,366

$ 32,402

REPUBLIC SERVICES, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share data)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Revenue

$ 4,136

$ 4,046

$ 16,591

$ 16,032

Expenses:

Cost of operations

2,404

2,317

9,630

9,350

Depreciation, depletion and amortization

458

443

1,814

1,677

Accretion

114

107

Selling, general and administrative

437

447

1,710

1,674

Adjustment to withdrawal liability for multiemployer

pension funds

—

Gain on business divestitures and impairments, net

—

(1)

Restructuring charges

Operating income

800

803

3,302

3,196

Interest expense

(146)

(134)

(574)

(539)

Loss on extinguishment of debt

—

(2)

Loss from unconsolidated equity method investments

(92)

(139)

(163)

(255)

Interest income

Other income, net

—

Income before income taxes

564

532

2,594

2,432

Provision for income taxes

455

388

Net income

545

512

2,139

2,044

Net income attributable to non-controlling interests in

consolidated subsidiary

—

(1)

Net income attributable to Republic Services, Inc.

$ 545

$ 512

$ 2,139

$ 2,043

Basic earnings per share attributable to Republic Services,

Inc. stockholders:

Basic earnings per share

$ 1.76

$ 1.63

$ 6.86

$ 6.50

Weighted average common shares outstanding

309.7

313.4

311.9

314.4

Diluted earnings per share attributable to Republic Services,

Inc. stockholders:

Diluted earnings per share

$ 1.76

$ 1.63

$ 6.85

$ 6.49

Weighted average common and common equivalent shares

outstanding

310.0

313.8

312.2

314.8

Cash dividends per common share

$ 0.625

$ 0.580

$ 2.410

$ 2.230

REPUBLIC SERVICES, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

Year Ended December 31,

2025

2024

Cash provided by operating activities:

Net income

$ 2,139

$ 2,044

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation, depletion, amortization and accretion

1,928

1,784

Non-cash interest expense

Deferred tax provision

269

Loss from unconsolidated equity method investments

163

255

Other non-cash items

Change in assets and liabilities, net of effects from business acquisitions and divestitures:

Accounts receivable

(87)

(76)

Prepaid expenses and other assets

(174)

(171)

Accounts payable

(14)

(27)

Capping, closure and post-closure expenditures

(70)

(56)

Remediation expenditures

(54)

(62)

Other liabilities

Proceeds for retirement of certain hedging relationships

—

Cash provided by operating activities

4,296

3,936

Cash used in investing activities:

Purchases of property and equipment

(1,887)

(1,855)

Proceeds from sales of property and equipment

Cash used in acquisitions and investments, net of cash and restricted cash acquired

(1,430)

(753)

Cash received from business divestitures

Other

(20)

(2)

Cash used in investing activities

(3,313)

(2,561)

Cash used in financing activities:

Proceeds from credit facilities and notes payable, net of fees

37,715

24,020

Proceeds from issuance of senior notes, net of discount and fees

1,183

889

Payments of credit facilities and notes payable

(38,206)

(25,109)

Issuances of common stock, net

(5)

(14)

Purchases of common stock for treasury

(870)

(482)

Cash dividends paid

(738)

(687)

Distributions paid to non-controlling interests in consolidated subsidiary

(1)

—

Contingent consideration payments

(16)

(15)

Cash used in financing activities

(938)

(1,398)

Effect of foreign exchange rate changes on cash

(2)

Increase in cash, cash equivalents, restricted cash and restricted cash equivalents

(25)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

203

228

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$ 249

$ 203

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 (when filed). 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 months and year ended December 31, 2025 and 2024:

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Collection:

Residential

$ 761

18.4 %

$ 743

18.3 %

$ 3,010

18.1 %

$ 2,939

18.3 %

Small-container

1,287

31.1

1,221

30.2

5,055

30.5

4,820

30.1

Large-container

768

18.6

747

18.5

3,098

18.7

3,024

18.9

Other

0.4

Total collection

2,833

68.5

2,728

67.4

11,233

67.7

10,855

67.7

Transfer

457

445

1,833

1,780

Less: intercompany

(243)

(242)

(985)

(975)

Transfer, net

214

5.2

203

5.0

848

5.1

805

5.0

Landfill

781

747

3,202

2,981

Less: intercompany

(314)

(304)

(1,282)

(1,240)

Landfill, net

467

11.3

443

11.0

1,920

11.6

1,741

10.9

Environmental solutions

435

499

1,828

1,907

Less: intercompany

(13)

(17)

(62)

(64)

Environmental solutions, net

422

10.2

482

11.9

1,766

10.6

1,843

11.5

Other:

Recycling processing and commodity sales

105

2.5

2.4

433

2.6

409

2.5

Other non-core

2.3

391

2.4

379

2.4

Total other

200

4.8

190

4.7

824

5.0

788

4.9

Total revenue

$ 4,136

100.0 %

$ 4,046

100.0 %

$ 16,591

100.0 %

$ 16,032

100.0 %

The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three months and year ended December 31, 2025 and 2024:

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Average yield

3.7 %

4.4 %

4.1 %

5.1 %

Fuel recovery fees

0.2

(0.9)

(0.1)

(0.4)

Total price

3.9

3.5

4.0

4.7

Volume

(1.0)

(1.2)

(0.6)

(1.1)

Change in workdays

—

0.5

(0.1)

0.3

Recycling processing and commodity sales

—

0.2

—

0.5

Environmental solutions

(2.0)

1.3

(1.0)

0.1

Other (1)

—

(0.1)

—

Total internal growth

0.9

4.3

2.2

4.5

Acquisitions / divestitures, net

1.3

2.6

Total

2.2 %

5.6 %

3.5 %

7.1 %

Core price

5.8 %

6.1 %

5.9 %

6.5 %

(1) Other represents customer credits recognized in connection with recent labor disruptions.

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 months and year ended December 31, 2025 and 2024:

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

As a % of Related Business

Core price

7.1 %

7.3 %

7.1 %

7.8 %

Average yield

4.5 %

5.3 %

4.9 %

6.2 %

Volume

(1.2) %

(1.5) %

(0.7) %

(1.3) %

The following table reflects changes in average yield and volume, as a percentage of related business revenue by line of business, for the three months and year ended December 31, 2025 and 2024:

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Yield

Volume

Yield

Volume

Yield

Volume

Yield

Volume

Collection:

Residential

4.5 %

(3.0) %

5.6 %

(2.8) %

4.9 %

(2.9) %

5.9 %

(2.7) %

Small-container

5.0 %

(0.5) %

6.1 %

(0.3) %

5.9 %

(1.0) %

8.4 %

(0.3) %

Large-container

5.0 %

(3.8) %

5.9 %

(4.6) %

5.4 %

(3.6) %

6.2 %

(4.0) %

Landfill:

Municipal solid waste

5.8 %

(2.2) %

5.6 %

(0.2) %

5.9 %

(2.8) %

5.4 %

0.7 %

Construction and demolition waste

6.5 %

(14.8) %

1.5 %

17.0 %

4.6 %

22.6 %

3.9 %

3.8 %

Special waste

— %

15.0 %

— %

(0.8) %

— %

15.4 %

— %

(1.6) %

COST OF OPERATIONS

The following table summarizes the major components of our cost of operations for the three months and year ended December 31, 2025 and 2024 (in millions of dollars and as a percentage of revenue):

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Labor and related benefits

$ 831

20.1 %

$ 801

19.8 %

$ 3,306

19.9 %

$ 3,213

20.0 %

Transfer and disposal costs

267

6.4

270

6.7

1,074

6.5

1,101

6.9

Maintenance and repairs

373

9.0

363

9.0

1,495

9.0

1,468

9.2

Transportation and subcontract costs

298

7.2

328

8.1

1,194

7.2

1,212

7.6

Fuel

116

2.8

109

2.7

466

2.8

470

2.9

Disposal fees and taxes

2.2

2.1

364

2.2

351

2.2

Landfill operating costs

2.3

2.2

389

2.3

367

2.3

Risk management

110

2.7

101

2.5

431

2.6

401

2.4

Other

222

5.4

198

4.9

871

5.2

796

5.0

Subtotal

2,404

58.1

2,348

58.0

9,590

57.7

9,379

58.5

Gain on certain divestitures and

impairments, net

—

(29)

(0.7)

—

(29)

(0.2)

Labor disruption

—

0.2

—

Total cost of operations

$ 2,404

58.1 %

$ 2,319

57.3 %

$ 9,630

57.9 %

$ 9,350

58.3 %

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.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

The following table summarizes our selling, general and administrative expenses for the three months and year ended December 31, 2025 and 2024 (in millions of dollars and as a percentage of revenue):

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Salaries and related benefits

$ 285

6.9 %

$ 294

7.3 %

$ 1,127

6.8 %

$ 1,129

7.0 %

Provision for doubtful accounts

0.3

0.2

Other

139

3.4

146

3.5

543

3.3

518

3.2

Total selling, general and

administrative expenses

$ 437

10.6 %

$ 447

11.0 %

$ 1,710

10.3 %

$ 1,674

10.4 %

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 months and year ended December 31, 2025 and 2024. 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 months and year ended December 31, 2025 and 2024 (in millions of dollars and as a percentage of revenue):

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

Net income attributable to

Republic Services, Inc. and net

income margin

$ 545

13.2 %

$ 512

12.7 %

2,139

12.9 %

$ 2,043

12.7 %

Net income attributable to non-

controlling interests

—

Provision for income taxes

455

388

Other income, net

—

(21)

(23)

Interest income

(2)

(8)

(9)

Interest expense

146

134

574

539

Depreciation, depletion and

amortization

458

443

1,814

1,677

Accretion

114

107

EBITDA and EBITDA margin

$ 1,195

28.9 %

$ 1,134

28.0 %

$ 5,067

30.5 %

$ 4,723

29.5 %

Loss from unconsolidated equity

method investments

139

163

255

Loss on extinguishment of debt

and other related costs

—

Restructuring charges

Gain on certain divestitures and

impairments, net

—

(29)

—

(30)

Adjustment to withdrawal liability

for multiemployer pension funds

—

Labor disruption

—

Total adjustments

100

119

240

256

Adjusted EBITDA and adjusted

EBITDA margin

$ 1,295

31.3 %

$ 1,253

31.0 %

$ 5,307

32.0 %

$ 4,979

31.1 %

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 months and year ended December 31, 2025 (in millions of dollars and adjusted EBITDA margin as a percentage of revenue):

Three Months Ended December 31, 2025

Recycling &

Waste

Environmental

Solutions

Total

Revenue

$ 3,714

$ 422

$ 4,136

Adjusted EBITDA (a)

$ 1,210

$ 85

$ 1,295

Adjusted EBITDA Margin

32.6 %

20.1 %

31.3 %

Year Ended December 31, 2025

Recycling &

Waste

Environmental

Solutions

Total

Revenue

$ 14,825

$ 1,766

$ 16,591

Adjusted EBITDA (a)

$ 4,935

$ 372

$ 5,307

Adjusted EBITDA Margin

33.3 %

21.1 %

32.0 %

(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.

Adjusted 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 months and year ended December 31, 2025 and 2024 (in millions of dollars except per share data):

Three Months Ended December 31, 2025

Three Months Ended December 31, 2024

Diluted

Net

Earnings

Net

Earnings

Pre-tax

Tax

Income -

per

Pre-tax

Tax

Income -

per

Income

Impact (1)

Republic

Income

Impact (1)

Republic

As reported

$ 564

$ 19

$ 545

$ 1.76

$ 532

$ 20

$ 512

$ 1.63

Restructuring charges

0.01

0.02

Labor disruption

—

(4)

(0.01)

—

Gain on certain divestitures and impairments, net

—

(29)

(7)

(22)

(0.07)

Settlements and withdrawals on pension plans (2)

—

Total adjustments

—

(20)

(5)

(15)

(0.05)

As adjusted

$ 572

$ 25

$ 547

$ 1.76

$ 512

$ 15

$ 497

$ 1.58

(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 three months ended December 31, 2025.

Year Ended December 31, 2025

Year Ended December 31, 2024

Diluted

Net

Earnings

Net

Earnings

Pre-tax

Tax

Income -

per

Pre-tax

Tax

Income -

per

Income

Impact (1)

Republic

Income

Impact (1)

Republic

As reported

$ 2,594

$ 455

$ 2,139

$ 6.85

$ 2,432

$ 389

$ 2,043

$ 6.49

Gain on extinguishment of debt and other related costs

—

(6)

(2)

(4)

(0.01)

Restructuring charges

0.05

0.07

Labor disruption

0.12

—

Gain on certain divestitures and impairments, net

—

(30)

(8)

(22)

(0.07)

Settlements and withdrawals on pension plans (2)

—

(8)

(2)

(6)

(0.02)

Total adjustments

0.17

(15)

(4)

(11)

(0.03)

As adjusted

$ 2,671

$ 479

$ 2,192

$ 7.02

$ 2,417

$ 385

$ 2,032

$ 6.46

(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 year ended December 31, 2025.

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.

Gain on extinguishment of debt and other related costs, net. During 2024 we recognized a loss of $2 million due to the amendment and restatement of the Credit Facility. Additionally, we recorded a net gain of $8 million attributable to the early settlement of certain cash flow hedges related to the Term Loan Facility. The gain was recognized as a reduction of interest expense.

Restructuring charges. During the three months and year ended December 31, 2025, we incurred restructuring charges of $7 million and $20 million, respectively, and during the three months and year ended December 31, 2024, we incurred restructuring charges of $9 million and $29 million, respectively. The 2025 charges primarily related to the design and implementation of a new accounts receivable system. The 2024 charges primarily related to the redesign of our asset management, and customer and order management software systems.

Labor disruption. During the year ended December 31, 2025, we experienced labor disruptions in certain isolated markets. The impact of these labor disruptions during the year ended December 31, 2025 was $56 million, including $16 million of customer credits and $40 million of cost of operations.

Gain on certain divestitures and impairments, net. During 2024, we recorded a gain on certain divestitures and impairments of $30 million, of which $29 million was due to a gain on the sale of a transfer station facility and $1 million related to a gain on business divestitures and impairments.

Settlements and withdrawals on pension plans. During 2025, we recorded a charge to earnings of $1 million for a withdrawal event at a multiemployer pension fund to which we contribute. During 2024, we recognized a settlement of our defined benefit pension plan. The settlement included a combination of lump-sum payments to participants who elected to receive them and the transfer of benefit obligations to a third-party insurance company under a group annuity contract. As a result of the settlements, we recognized a non-cash gain of $8 million related to the accelerated recognition of the proportional share of unamortized net actuarial gains in accumulated other comprehensive income. As we obtain updated information regarding multiemployer pension funds, the factors used in deriving our estimated withdrawal liabilities will be subject to change, which may adversely impact our reserves for withdrawal costs.

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 years ended December 31, 2025 and 2024 (in millions of dollars):

Year Ended December 31,

2025

2024

Cash provided by operating activities

$ 4,296

$ 3,936

Property and equipment received

(1,923)

(1,818)

Proceeds from sales of property and equipment

Restructuring payments, net of tax

Labor disruption, net of tax

—

Cash tax benefit for debt extinguishment and other related costs

—

(1)

Adjusted free cash flow

$ 2,433

$ 2,183

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 years ended December 31, 2025 and 2024 (in millions of dollars):

Year Ended December 31,

2025

2024

Purchases of property and equipment per the unaudited consolidated statements of cash

flows

$ 1,887

$ 1,855

Adjustments for property and equipment received in a different period

(37)

Property and equipment received during the period

$ 1,923

$ 1,818

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 December 31, 2025 and December 31, 2024, accounts receivable were $1,897 million and $1,821 million, net of allowance for doubtful accounts of $66 million and $74 million, respectively, resulting in days sales outstanding of 41.8, or 30.8 days net of deferred revenue, compared to 40.9, or 30.0 days net of deferred revenue, respectively.

CASH DIVIDENDS

In October 2025, we paid a cash dividend of $194 million to shareholders of record as of October 2, 2025. As of December 31, 2025, we recorded a quarterly dividend payable of $193 million to shareholders of record at the close of business on January 2, 2026, which was paid on January 15, 2026.

SHARE REPURCHASE PROGRAM

During the three months ended December 31, 2025, we repurchased 1.3 million shares of our common stock for $270 million at a weighted average cost per share of $215.57. As of December 31, 2025, the remaining authorized purchase capacity under our October 2023 repurchase program was approximately $1.7 billion.

RECONCILIATION OF 2026 FINANCIAL GUIDANCE

Adjusted EBITDA

The following is a summary of our anticipated adjusted EBITDA for the year ending December 31, 2026, which is not a measure determined in accordance with U.S. GAAP:

(Anticipated)

Year Ending

December 31, 2026

Net income attributable to Republic Services, Inc.

$ 2,200 - 2,220

Provision for income taxes (a)

505 - 515

Interest expense, net

575 - 585

Depreciation, depletion, amortization and accretion

1,980 - 1,990

Loss from unconsolidated equity method investments

190

Restructuring charges

Adjusted EBITDA

$ 5,475 - 5,525

(a) This presentation of Provision for income taxes includes grant income generated from investments in renewable energy assets.

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.

Adjusted Diluted Earnings per Share

The following is a summary of anticipated adjusted diluted earnings per share for the year ending December 31, 2026, which is not a measure determined in accordance with U.S. GAAP:

(Anticipated)

Year Ending

December 31, 2026

Diluted earnings per share

$ 7.14 - 7.22

Restructuring charges

0.06

Adjusted diluted earnings per share

$ 7.20 - 7.28

We believe that presenting adjusted diluted earnings per share 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 diluted earnings per share may not be comparable to similarly titled measures presented by other companies.

Adjusted Free Cash Flow

Our anticipated adjusted free cash flow for the year ending December 31, 2026, which is not a measure determined in accordance with U.S. GAAP, is calculated as follows:

(Anticipated)

Year Ending

December 31, 2026

Cash provided by operating activities

$ 4,460 - 4,540

Property and equipment received

(1,970) - (2,010)

Proceeds from sales of property and equipment

Restructuring payments, net of tax

Adjusted free cash flow

$ 2,520 - 2,560

Our financial guidance is based on current economic conditions.

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, 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.

SOURCE Republic Services, Inc.