RSG · 10-Q · 2026Q3 · Full report

Operating Income and Margins

REPUBLIC SERVICES, INC. · 2026-10-30 · Importance 49 · Surprise 32

Operating income for the nine months ended September 30, 2026 was $2,652 million, up from $2,502 million, and operating margin increased to 20.2% from 20.1%. Cost of operations was $7,593 million, or 58.0% of revenue, unchanged as a share of revenue from 2025; selling, general and administrative expense was $1,316 million, or 10.0% of revenue, versus $1,274 million and 10.2%. Maintenance and repairs declined 30 basis points as a percentage of revenue for the nine months, primarily due to revenue growth, while labor, fuel, and transportation costs increased. Higher diesel prices contributed to fuel costs: the nine-month average was $5.01 per gallon versus $3.65 in 2025; favorable actuarial developments reduced risk management expense.

Key facts

• In 2025, Republic Services' labor disruptions in certain isolated markets had a $56 million impact, including $16 million of customer credits and $40 million of cost of operations. source
• Republic Services' pre-tax income was $719 million for the three months and $2,073 million for the nine months ended September 30, 2026, versus $645 million and $2,030 million in the corresponding 2025 periods. source
• Republic Services' net income attributable to the company was $592 million for the three months and $1,683 million for the nine months ended September 30, 2026, or $1.93 and $5.47 per diluted share, versus $550 million and $1,595 million, or $1.76 and $5.10 per diluted share, in 2025. source
• Republic Services incurred restructuring charges of $4 million and $10 million in the three and nine months ended September 30, 2026, compared with $3 million and $13 million in 2025; the charges related to its new accounts receivable system. source