Core Viewpoint - The London Company Large Cap Strategy's fourth-quarter 2025 investor letter indicates a mixed market environment with US equities showing higher returns, while the portfolio underperformed compared to the Russell 1000 Index due to volatility and concentrated market leadership [1]. Group 1: Market Performance - In Q4 2025, US equities experienced a 2.4% increase in the Russell 3000 Index, marking the third consecutive quarter of higher returns [1]. - The London Company Large Cap portfolio returned 0.4% (0.2% net), underperforming the Russell 1000 Index's 2.4% increase [1]. Group 2: Economic Outlook - The economic and policy backdrop heading into 2026 presents a mix of confidence and doubt, with the portfolio aiming to support long-term wealth creation while managing downside risk [1]. Group 3: Republic Services, Inc. (NYSE:RSG) - Republic Services, Inc. is highlighted as a leading environmental services company with a market capitalization of $67.701 billion [2]. - The stock closed at $216.84 per share on February 18, 2026, with a one-month return of -0.51% and a 12-month increase of 6.07% [2]. - The London Company increased its exposure to Republic Services, citing its defensive and resilient business model despite short-term headwinds in the waste management industry [3]. - Operational strength through pricing power and cost controls has led to stronger margins for Republic Services [3]. - Recent insider buying is viewed as a positive indicator of the company's attractive valuation [3]. Group 4: Hedge Fund Interest - Republic Services is not among the 30 most popular stocks among hedge funds, with 51 hedge fund portfolios holding the stock at the end of Q3 2025, down from 60 in the previous quarter [4]. - While acknowledging Republic Services' potential, the company believes certain AI stocks may offer greater upside potential and less downside risk [4].

Republic Services Inc (NYSE:RSG) reported worse-than-expected fourth-quarter sales results and issued FY26 guidance below estimates on Tuesday.Republic Services reported quarterly earnings of $1.76 per share which beat the analyst consensus estimate of $1.62 per share. The company reported quarterly sales of $4.136 billion which missed the analyst consensus estimate of $4.207 billion.Republic Services said it sees FY2026 adjusted EPS of $7.20-$7.28, versus market estimates of $7.31. The company sees sales o ...

Republic Services Inc (NYSE:RSG) reported worse-than-expected fourth-quarter sales results and issued FY26 guidance below estimates on Tuesday.Republic Services reported quarterly earnings of $1.76 per share which beat the analyst consensus estimate of $1.62 per share. The company reported quarterly sales of $4.136 billion which missed the analyst consensus estimate of $4.207 billion.Republic Services said it sees FY2026 adjusted EPS of $7.20-$7.28, versus market estimates of $7.31. The company sees sales o ...

Core Insights - Republic Services, Inc. (RSG) reported mixed fourth-quarter 2025 results, with earnings exceeding estimates while revenues fell short [1][10] Financial Performance - RSG's earnings per share (EPS) for Q4 2025 was $1.76, beating the Zacks Consensus Estimate by 8.7% and reflecting an 11.4% increase year-over-year [1][10] - Total revenues for the quarter were $4.1 billion, missing the consensus estimate by 1.8% but showing a 2.2% year-over-year growth [1][10] Segment Performance - Collection segment revenues reached $2.8 billion, up 3.8% year-over-year but below the consensus estimate of $2.9 billion [3] - Environmental Solutions revenues were $422 million, down 12.4% year-over-year and missing the consensus projection of $438.2 million [3] - Transfer segment revenues were $214 million, increasing 5.4% year-over-year and surpassing the consensus estimate of $213.5 million [4] - Landfill segment revenues totaled $467 million, also up 5.4% year-over-year but falling short of the consensus projection of $484 million [4] - Other segment revenues were $200 million, rising 5.3% year-over-year but missing the consensus estimate of $208.6 million [4] Operating Results - Adjusted EBITDA for Q4 was $1.3 billion, reflecting a 3.4% increase from the previous year, with an adjusted EBITDA margin of 31.3%, up 30 basis points year-over-year [5][10] Balance Sheet and Cash Flow - At the end of Q4 2025, RSG had cash and cash equivalents of $76 million, down from $84 million at the end of Q3 2025 [6] - Long-term debt increased to $13 billion from $12.4 billion in the previous quarter [6] - Cash generated from operating activities was $981 million, with adjusted free cash flow at $242 million and capital expenditure of $577 million [6] 2026 Guidance - For 2026, RSG expects revenues between $17.05 billion and $17.15 billion, lower than the consensus mark of $17.33 billion [7] - The company anticipates adjusted EPS in the range of $7.20-$7.28, with the midpoint below the Zacks Consensus Estimate of $7.26 [7] - Adjusted EBITDA is projected to be between $5.475 billion and $5.525 billion, while adjusted free cash flow is expected to be $2.52 billion to $2.56 billion [7]

Core Viewpoint - The article discusses the performance and investment outlook for Republic Services (RSG), indicating a previous HOLD rating when the stock was priced at approximately $221 per share, suggesting it was trading at a high valuation [1]. Company Summary - Republic Services (RSG) was initially rated a HOLD over a year ago when its stock was valued at around $221 per share, reflecting concerns about its high trading valuation [1]. Analyst Background - The analyst has over 10 years of experience in the investment field, starting as an analyst and progressing to a management role, with a focus on dividend investing [1].

This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. By the numbers: Q4 and full year 2025 Q4 revenue: $4.14B Up 2.2% year over year 2025 revenue: $16.59B Up 3.5% year over year Q4 net income: $545M Up 6.4% year over year Results: Republic Services missed its full-year 2025 projections in several metrics, with revenue coming in about $260 million below the $16.85 billion the company projected as the lower bound of its guid ...

Austin, Feb. 18, 2026 (GLOBE NEWSWIRE) -- Smart Waste Management Market Size & Growth Insights: According to the SNS Insider, “The Smart Waste Management Market Size was valued at USD 3.55 billion in 2025 and is expected to reach USD 13.31 billion by 2035 and grow at a CAGR of 14.13% during 2026-2035.” Rising Urbanization and Increasing Population to Boost Market Expansion Globally Effective waste management solutions are required due to the growing trend of trash generation and urban population increase. B ...

Market Overview - Republic Services operates in a $163 billion annual revenue market across the United States and Canada, including $110 billion from the recycling and waste industry[16]. - The company aims to expand its addressable market by leveraging capabilities in customer engagement, digital solutions, and sustainability[16]. Recycling and Waste Management - Approximately 32% of municipal solid waste is currently recycled, with expectations for this percentage to increase as communities enhance recycling programs[27]. - The company processed and sold 2.2 million tons of materials from recycling centers in 2025, with an additional 1.8 million tons collected and delivered to third parties[85]. - The company has invested in advanced technology on recycling and waste collection vehicles to reduce recycling contamination over time[59]. - The company is investing in innovative recycling technology, including robotics and advanced sorting equipment, to enhance efficiency and maximize recycling efforts[89]. Operations and Infrastructure - Republic Services has commenced operations at its first Polymer Center in Las Vegas in 2024 and plans to open additional centers in Indianapolis and Allentown[27]. - The company operates over 180 electric collection vehicles and has established 32 commercial-scale electric charging facilities as of December 31, 2025[36]. - The average age of the fleet is 7.9 years, with 17,800 vehicles across various service lines, including residential and large-container[37]. - Approximately 67% of the total solid waste volume collected in 2025 was disposed of at landfills owned or operated by the company[76]. - Revenue from transfer stations accounted for approximately 5% of total revenue in 2025, with 255 transfer stations owned or operated[83]. - Landfill tipping fees charged to third parties represented approximately 12% of total revenue in 2025, with 207 active landfills and an estimated total disposal capacity of 5.0 billion in-place cubic yards[90]. Financial Performance - The quarterly dividend was increased to $0.625 per share in July 2025, representing an 8% increase over the prior year, marking the 22nd consecutive year of dividend increases[71]. - A $3.0 billion share repurchase authorization was approved, effective January 1, 2024, through December 31, 2026[72]. - In 2025, approximately 68% of total revenue was derived from the collection business, with residential services accounting for 18%, small-container services for 30%, large-container services for 19%, and other collection services for 1%[78]. - Approximately 11% of total revenue in 2025 was derived from environmental solutions, which include various waste management services[93]. Environmental Goals and Compliance - The company aims to reduce absolute Scope 1 and 2 greenhouse gas emissions by 35% by 2030, which has been approved by the Science Based Targets initiative[67]. - The company has achieved an interim goal of a 10% emissions reduction by 2025, relative to the 2017 baseline year[66]. - The company is subject to various environmental regulations, including the Oil Pollution Act and the Clean Air Act, which may impose additional compliance costs[130]. - The company operates under the Toxic Substances Control Act and the Atomic Energy Act, which regulate the treatment and disposal of hazardous materials[131]. - Compliance with existing and future legal and regulatory requirements, including those related to PFAS, may increase operational costs and require substantial capital expenditures[114]. Employee Engagement and Talent Management - Republic Services employs a robust people and talent agenda, with approximately 42,000 full-time employees, to maintain a safe and inclusive work environment[38]. - The average employee engagement score was 87 in 2025, which is 8 points above the national benchmark, with a goal to maintain scores at or above 88 by 2030[43]. - Approximately 99% of employees participated in the engagement survey in March 2025, which is 24% higher than the national benchmark[43]. - More than 1,200 leaders completed the Leadership Fundamentals program in 2025, with an additional 650 leaders expected to participate in 2026[44]. Risks and Challenges - The company may face increased competition from municipalities that operate their own waste management facilities, benefiting from tax revenue and financing opportunities[115]. - The company faces risks related to compliance with environmental regulations, which could increase operational costs and limit business growth[160]. - The company may incur additional liabilities under environmental laws in excess of current reserves due to hazardous substances present in waste collected or disposed of in landfills[185]. - The company may not succeed in executing broad-based pricing initiatives, which could impact cash flow generation necessary for growth and shareholder value enhancement[192]. - The loss of key personnel or challenges in attracting qualified talent could materially affect the company's financial condition and growth prospects[210]. Technology and Innovation - The company is increasingly dependent on technology, including AI, which is critical for driving profitable growth and delivering a consistent customer experience[205]. - Emerging technologies present both risks and opportunities, with potential substantial capital requirements that could negatively impact financial results if not managed properly[206]. - Cybersecurity incidents pose significant risks, potentially leading to business disruption, reputational harm, and increased compliance costs due to evolving regulations[207]. Capital and Financial Flexibility - As of December 31, 2025, the company had approximately $14 billion in principal value of debt and finance leases outstanding, which may limit financial flexibility[190]. - The capital-intensive nature of the environmental services industry may require additional funding if capital expenditures exceed current expectations[161]. - The company’s ability to maintain investment grade ratings on its debt is crucial for executing its financial strategy and managing interest expenses[191].

Core Insights - Republic Services reported revenue of $4.14 billion for the quarter ended December 2025, reflecting a 2.2% increase year-over-year, while EPS rose to $1.76 from $1.58 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $4.21 billion, resulting in a surprise of -1.76%, whereas the EPS exceeded expectations by 8.74% against a consensus estimate of $1.62 [1] Revenue Breakdown - Environmental solutions revenue was $422 million, below the average estimate of $438.21 million, marking a year-over-year decline of 12.5% [4] - Recycling & Waste revenue reached $3.71 billion, slightly below the estimated $3.78 billion [4] - Total Collection revenue was $2.83 billion, compared to an estimate of $2.87 billion, showing a year-over-year increase of 3.9% [4] - Small-container Collection revenue matched estimates at $1.29 billion, with a year-over-year increase of 5.4% [4] - Large-container Collection revenue was $768 million, below the estimated $791.85 million, reflecting a year-over-year increase of 2.8% [4] - Residential Collection revenue was $761 million, slightly below the estimate of $768.99 million, with a year-over-year increase of 2.4% [4] - Transfer revenue was $457 million, below the average estimate of $470.21 million, with a year-over-year increase of 2.7% [4] - Landfill revenue was $781 million, below the estimated $803.64 million, showing a year-over-year increase of 4.6% [4] - Other non-core revenue was $95 million, slightly below the estimate of $96.67 million, with a year-over-year increase of 4.4% [4] - Recycling processing and commodity sales revenue was $105 million, exceeding the estimate of $99.67 million, with a year-over-year increase of 6.1% [4] - Environmental solutions revenue was $435 million, below the average estimate of $465.3 million, marking a year-over-year decline of 12.8% [4] Stock Performance - Shares of Republic Services have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite, which declined by -1.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Aaron Evans: and the power of our differentiating capabilities. We maintained high levels of customer loyalty by consistently delivering premium product and services, effectively managing costs across the business, all while navigating a dynamic macroeconomic backdrop. Our solid earnings growth and meaningful margin expansion reflect our strategy in action and the dedication of our team to create long term value for our customers and shareholders. During 2025, we achieved revenue growth of 3.5%, generated a ...