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 - In 2025, the company achieved revenue growth of 3.5% and adjusted EBITDA growth of nearly 7% [5] - 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% [5][17] - The adjusted EBITDA margin expanded by 90 basis points to 32% for the full year [16] Business Line Data and Key Metrics Changes - Organic revenue in the environmental solutions business decreased total revenue by 2% in Q4, primarily due to a non-recurring emergency response job in 2024 [6][16] - Average yield on total revenue was 3.7%, while average yield on related revenue was 4.5% [12] - The company expects organic volume to decrease total revenue by approximately 1% in 2026, with landfill volumes from cleanup efforts in 2025 creating a headwind [14][45] Market Data and Key Metrics Changes - Commodity prices for recycling were $112 per ton in Q4, down from $153 per ton in the prior year [14] - The company reported a core price on total revenue of 5.8% in Q4, with core price on related revenue at 7.1% [12] - The company anticipates average yield on related revenue in a range of 4%-4.5% for 2026 [12] Company Strategy and Development Direction - The company is focused on delivering differentiated capabilities, customer zeal, digital, and sustainability to secure new growth opportunities [5] - Investments in AI-enabled tools and advanced analytics are expected to enhance profitability and drive sustained operating leverage [6][7] - The company plans to invest approximately $1 billion in value-creating acquisitions in 2026, with a strong acquisition pipeline in recycling and waste [10] Management's Comments on Operating Environment and Future Outlook - Management characterized the macroeconomic environment as stable, with weaker manufacturing and construction sectors leading to negative demand in recycling and waste [40] - The company expects to deliver another year of profitable growth in 2026, with revenue guidance in the range of $17.05 billion to $17.15 billion [10] - Management remains cautiously optimistic about early signs of economic momentum, particularly in special waste [42] Other Important Information - The company made significant progress in sustainability initiatives, including the development of its Polymer Center network and renewable natural gas projects [8][9] - Employee engagement scores improved to 87, with a record low turnover rate [9] - Total debt at the end of 2025 was $13.7 billion, with a leverage ratio of approximately 2.6 times [17] Q&A Session Summary Question: Can you discuss the $400 million in acquisitions year to date? - The company acquired Hamm in Kansas City, which has strong disposal infrastructure, and is looking at additional attractive opportunities in recycling and waste [22][23] Question: Can you elaborate on margin expectations? - The company expects 60-70 basis points of margin expansion, with various factors impacting margins including commodity prices and landfill volumes [25][27] Question: What is the outlook for the Polymer Center performance? - The company expects about $30 million in revenue uplift from polymer centers in 2026, with $10 million of incremental EBITDA [34] Question: How is the emergency response business performing? - The company is seeing a longer sales cycle and expects to see the results of recent efforts in the second half of the year [93] Question: What are the expectations for PFAS remediation revenue? - The company anticipates PFAS remediation revenue in the range of $50 million to $75 million for the year, with a positive long-term outlook [74]

Core Insights - Republic Services reported mixed results for Q3 2025, with revenue increasing by 3.3% year over year to $4.2 billion, while net income decreased by 2.8% to $550 million, resulting in a margin of 13.1% [1] - The company's adjusted EBITDA rose by 6.1% year over year to $1.38 billion, with a margin of 32.8% [1] Revenue and Volumes - The core recycling and waste business saw revenue growth of 4.7% to $3.8 billion year over year, driven by strong performance in construction and demolition (C&D) and special waste activities [1] - C&D landfill volumes increased by 45%, largely due to $35 million in hurricane recovery efforts in the Carolinas, while special waste volumes rose by 18% [1] - Residential volumes declined by 2.4%, attributed to the intentional shedding of certain contracts [1] Recycling Initiatives - Republic began commercial production at the Indianapolis Polymer Center in July, with expectations for the Blue Polymer center to start production in late Q4 [1] - The company is planning further development of co-located facilities in Allentown, Pennsylvania, next year [1] - Despite a decline in commodity prices from $177 to $126 per ton year over year, demand at recycling centers remains strong [1] Environmental Services - Revenue for the environmental services segment fell by approximately 6.9% to $433 million, impacted by lower event-based volumes and ongoing weakness in the manufacturing sector [1] - The company is adjusting its pricing strategy for event-based work to better align with volume [1] Fleet Electrification - Republic's fleet electrification initiative continues to receive support from OEMs and customers, with 137 electric collection vehicles in operation by the end of the quarter, aiming for over 150 by year-end [1] Renewable Energy Projects - The company launched another renewable natural gas facility during the quarter, with six RNG facilities operational and a target of seven by year-end [1] - Republic is exploring landfill-gas-to-electricity projects to meet rising electricity demand [1] Labor Costs - Republic incurred $56 million in costs related to labor disputes this year, including revenue credits for missed services, with disputes concluding in October [1] - Employee turnover rates are trending lower compared to 2024 [1]

Core Insights - The company experienced a revenue growth of 4.6% in Q2 2025, driven by strong core pricing in waste and recycling segments despite ongoing demand challenges in construction and manufacturing markets [5][23][15] - Adjusted EBITDA increased by 8% with a 100 basis point margin expansion, primarily due to pricing above cost inflation and event-related landfill activities [6][35] - The full-year 2025 revenue guidance was updated to a range of $16.675 billion to $16.75 billion, reflecting a reduction of approximately $190 million at the midpoint due to weak construction and manufacturing volumes [11][31] Revenue and Volume Performance - Environmental Solutions revenue decreased by $11 million in Q2 2025, attributed to lower event volumes and softness in manufacturing end markets [2][35] - Residential and large container volumes declined by 3.2% and 3.4%, respectively, due to soft construction activity and shedding of underperforming contracts [3][34] - Organic volume increased by 20 basis points, supported by hurricane cleanup in the Carolinas and wildfire remediation in Los Angeles, but was partially offset by declines in collection categories [6][25] Pricing and Customer Metrics - Core pricing on related revenue was 7%, with open market pricing at 8.6% and restricted pricing at 4.6% for Q2 2025 [7][33] - Customer retention rate exceeded 94%, indicating strong customer loyalty [7][24] - Average yield on total revenue was 4.1%, with an average yield on related revenue at 5% [33][24] Financial Metrics - Adjusted free cash flow for the first half of 2025 reached $1.42 billion, with full-year guidance raised to $2.375 billion to $2.415 billion, reflecting an $80 million cash tax benefit from bonus depreciation [8][31] - Total debt stood at $13.1 billion, with total liquidity at $3 billion and a leverage ratio of approximately 2.5x as of the end of Q2 2025 [9][36] - Year-to-date capital expenditures totaled $727 million, representing 38% of projected full-year spend [8][36] Sustainability and Strategic Initiatives - The Indianapolis Polymer Center began commercial production in July 2025, with six renewable natural gas projects commenced year-to-date [10][27] - The company aims to have over 150 electric collection vehicles in service by year-end 2025, with 27 facilities equipped with commercial-scale EV charging infrastructure [10][28] - Nearly $900 million was invested in acquisitions year-to-date, with a pipeline supporting more than $1 billion in potential deals for 2025 [9][29] Management Commentary - The CEO emphasized a commitment to pricing discipline amid volume challenges, stating that the company will prioritize price over volume when necessary [15][41] - Management described the current demand environment as the most challenging in over a decade, particularly in construction markets [15][51] - The CFO noted that $65 million of the revenue guidance reduction was due to recycling and waste volume weakness, with the remainder largely stemming from Environmental Solutions [14][39]