Investor Presentation March 2026 Owner: Aaron Updated? (Y/N): Y Tie-out: Alex Reviewed? (Y/N): Y Note: Changed Date Forward-Looking Statements Certain statements and information included herein constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995, including statements with respect to our anticipated 2026 financial results. Words such as "will," "expect," "anticipate," "estimate," "guidance" and similar words and phrases are used in this p ...

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue growth of 3.5% and adjusted EBITDA growth of nearly 7% [7] - Adjusted earnings per share reached $7.02, with adjusted free cash flow of $2.43 billion, reflecting a 200 basis points increase in adjusted free cash flow conversion to 45.8% [7][11] - The adjusted EBITDA margin expanded by 90 basis points to 32% for the full year [18] Business Line Data and Key Metrics Changes - Organic revenue in the environmental solutions business decreased total revenue by 2% in the fourth quarter, primarily due to a non-recurring emergency response job in 2024 [8][18] - Core price on total revenue was 5.8% in the fourth quarter, with core price on related revenue at 7.1% [15] - Volume declines were concentrated in construction and manufacturing end markets, with organic volume decreasing total revenue by 1% [16] Market Data and Key Metrics Changes - Commodity prices for recycling were $112 per ton in the fourth quarter, down from $153 per ton in the prior year [16] - The company expects average yield on related revenue in 2026 to be in the range of 4%-4.5% [15] Company Strategy and Development Direction - The company is focused on delivering differentiated capabilities, customer zeal, digital, and sustainability to secure new growth opportunities [7] - Investments in new technologies and AI-enabled tools are aimed at optimizing pricing and enhancing service delivery [9] - The company plans to invest approximately $1 billion in value-creating acquisitions in 2026, with a strong acquisition pipeline [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting stability but challenges in manufacturing and construction sectors [42][43] - The company anticipates another year of profitable growth in 2026, with revenue guidance of $17.05 billion to $17.15 billion [11][12] - Management highlighted the importance of maintaining pricing discipline in a challenging market environment [54] Other Important Information - The company made significant progress in sustainability initiatives, including fleet electrification and renewable natural gas projects [10][11] - Employee engagement scores improved to 87, with a record low turnover rate [11] Q&A Session Summary Question: Can you discuss the $400 million acquisitions made year-to-date? - The company acquired Hamm in Kansas City, which has strong disposal infrastructure, and is exploring additional opportunities in recycling and waste [25][26] Question: What are the expectations for margins in 2026? - The company expects 60-70 basis points of margin expansion in the underlying business, with various factors impacting overall margin performance [27][29] Question: Can you provide an update on the Polymer Center performance? - The company expects about a $30 million revenue uplift from polymer centers in 2026, with $10 million of incremental EBITDA [36] Question: What is the outlook for organic growth in Environmental Solutions? - The company anticipates relatively flat growth in Environmental Solutions for 2026, with some challenges in the first half due to tough comparisons [48] Question: How is the integration of Shamrock progressing? - The integration is going well, with expectations for future growth opportunities in the industrial water and liquids space [92]

Financial Data and Key Metrics Changes - The company achieved revenue growth of 3.3% and adjusted EBITDA growth of 6.1% in Q3 2025, with an adjusted EBITDA margin expansion of 80 basis points [4][10] - Adjusted earnings per share reached $1.90, and year-to-date adjusted free cash flow was $2.19 billion [4][14] - The customer retention rate remained strong at 94% [4] Business Line Data and Key Metrics Changes - Organic revenue growth was driven by strong pricing, with average yield on total revenue at 4% and related revenue at 4.9% [5][11] - Environmental solutions business faced a decline due to softness in manufacturing activity and lower event-driven volumes, impacting total company revenue by 140 basis points [6][13] - Adjusted EBITDA margin in the recycling and waste business was 34.3%, up 150 basis points compared to the prior year [13] Market Data and Key Metrics Changes - The average commodity price for recycling was $126 per ton, down from $177 per ton in the prior year, affecting organic revenue growth [12] - The company recorded approximately $100 million of event-driven revenue associated with hurricane and wildfire cleanups year-to-date [11] Company Strategy and Development Direction - The company aims for mid-single-digit revenue growth and faster growth in EBITDA and free cash flow, supported by disciplined pricing and strategic acquisitions [15] - Investments in sustainability, including polymer centers and renewable natural gas projects, are expected to contribute to long-term growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management noted persistent headwinds in construction and manufacturing markets but expressed confidence in the business model and operational execution [4][15] - The outlook for 2026 remains cautious, with expectations of overcoming commodity headwinds and stabilizing demand in environmental solutions [20][39] Other Important Information - The company has invested over $1 billion in strategic acquisitions year-to-date and returned $1.13 billion to shareholders through dividends and share repurchases [9][10] - The company is advancing its fleet electrification efforts, with plans to have over 150 electric vehicles by year-end [9] Q&A Session Summary Question: Long-term growth algorithm for 2026 - Management confirmed the long-term growth algorithm of mid-single-digit revenue growth and faster EBITDA growth, while acknowledging tougher comparisons in 2026 [20] Question: Event-driven volumes and revenue impact - Management provided a breakdown of event-driven revenue across quarters, totaling $100 million year-to-date [21] Question: Market conditions and volume performance - Management indicated that the slowdown in manufacturing and project work has impacted volumes, but they expect a rebound as conditions stabilize [23][50] Question: Pricing and cost spread outlook - Management expects a price-cost spread of 75 to 100 basis points above inflation, indicating a positive outlook for pricing [27][56] Question: M&A pipeline and opportunities - The M&A pipeline remains strong, with a focus on both recycling and waste, and environmental solutions [32][76] Question: Environmental solutions business expectations - Management anticipates growth in the environmental solutions business next year, despite current sluggishness [35][39] Question: Labor disruption impact - Management believes the impact of labor disruptions has been captured, with no significant residual effects expected [44][45] Question: EV targets and OEM production - Management remains confident in their EV targets despite potential delays from OEMs, citing strong customer demand [46] Question: Revenue impact from union contract settlements - Management acknowledged a revenue impact of $16 million from credits related to union contract settlements [86]

Core Insights - Republic Services reported $4.01 billion in revenue for Q1 2025, a year-over-year increase of 3.8% and an EPS of $1.58 compared to $1.45 a year ago, with a revenue surprise of -0.99% and an EPS surprise of +3.95% [1] Revenue Performance - Environmental solutions revenue was $466 million, slightly above the estimate of $465.80 million, reflecting a +6.1% year-over-year change [4] - Total collection revenue was $2.74 billion, below the estimate of $2.78 billion, with a year-over-year change of +3% [4] - Small-container collection revenue was $1.24 billion, matching the estimate, with a +4.5% year-over-year change [4] - Large-container collection revenue was $739 million, below the estimate of $773.91 million, with a +0.9% year-over-year change [4] - Other collection revenue was $18 million, slightly below the estimate of $18.04 million, with a +1.7% year-over-year change [4] - Other non-core revenue was $100 million, exceeding the estimate of $95.94 million, with a +7.6% year-over-year change [4] - Environmental solutions, net revenue was $449 million, below the estimate of $461.65 million, with a +6.1% year-over-year change [4] - Transfer revenue was $424 million, below the estimate of $449.22 million, with a +1.1% year-over-year change [4] - Landfill revenue was $723 million, below the estimate of $753.45 million, with a +2.6% year-over-year change [4] - Recycling processing and commodity sales revenue was $108 million, exceeding the estimate of $97.65 million, with a +13.1% year-over-year change [4] - Residential collection revenue was $743 million, slightly below the estimate of $748.33 million, with a +2.7% year-over-year change [4] Stock Performance - Shares of Republic Services returned +1.5% over the past month, outperforming the Zacks S&P 500 composite, which changed -5.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]