RSG · 10-Q · 2026Q2 · Full report

Interest Rate Environment

REPUBLIC SERVICES, INC. · 2026-08-07 · Importance 48 · Surprise 14 · In source text

Interest expense increased in the three and six months ended June 30, 2026, primarily because Republic Services had a higher overall debt balance and higher interest rates than in the comparable 2025 periods. Cash paid for interest was $260 million in the first six months of 2026, up from $243 million in the first six months of 2025. As of June 30, 2026, the company had $1.8 billion of floating-rate debt; a 100-basis-point rate increase would raise annualized interest expense and net cash interest payments by approximately $18 million.

Key facts

• Average diesel fuel cost per gallon: $5.35 and $4.73 for the three and six months ended June 30, 2026, compared to $3.56 and $3.59 for the same periods in 2025. source
• As of June 30, 2026, Republic had $1.8 billion of principal floating rate debt and a 100 basis point change would change annualized interest expense and net cash payments by approximately $18 million. source
• The weighted average interest rate for borrowings outstanding as of June 30, 2026 was 3.974% and as of December 31, 2025 was 4.044%. source
• Borrowings under the Credit Facility in United States dollars bear interest at a Base Rate, a daily floating SOFR or a term SOFR plus a current applicable margin of 0.805% based on our Debt Ratings. source

Impact estimates