RSG · 10-Q · 2026Q2 · Full report

Operating Expense Trends

REPUBLIC SERVICES, INC. · 2026-08-07 · Importance 42 · Surprise 14 · No source text

Cost of operations increased to $4,929 million for the six months ended June 30, 2026 from $4,763 million, while remaining nearly flat at 57.7% of revenue. Labor and related benefits rose to $1,695 million, or 19.8% of revenue, from 19.9% of revenue as wages, merit increases, and acquisition-related growth outweighed lower collection volumes. Fuel costs rose to 3.5% of revenue from 2.8% as average diesel prices increased to $4.73 per gallon from $3.59. Selling, general and administrative expense declined to 10.2% of revenue from 10.3%, with lower other SG&A expense from a favorable legal settlement partly offset by professional services.

Key facts

• For the three and six months ended June 30, 2026, total cost of operations was $2,563 million (57.9% of revenue) and $4,929 million (57.7% of revenue), respectively. source
• Labor and related benefits as a percentage of revenue: 19.5% for the three months ended June 30, 2026 and 19.8% ($1,695 million) for the six months ended June 30, 2026 (vs 19.9% and 20.2% in 2025). source
• Depreciation, depletion and amortization expense was 9.7% of revenue for the three months ended June 30, 2026 and 9.7% for the six months ended June 30, 2026. source
• Amortization of other assets was $37 million and $73 million, or 0.8% of revenue, for the three and six months ended June 30, 2026, respectively (compared to $26M and $50M, or 0.6% in 2025). source
• Amortization of other intangible assets was $23 million and $46 million, or 0.5% of revenue, for the three and six months ended June 30, 2026, respectively. source

Impact estimates