$RSG

Teamsters Local 396's contracts with sanitation workers in multiple California counties expired, raising the possibility of a strike. Republic Services and Athens Services are negotiating with the union, with both companies stating their commitment to reaching agreements. The union warns of potential labor disruptions if contracts are not finalized.

Republic Services Inc. shares rose 1.58% to $209.56 on Friday, outperforming the S&P 500 and Dow Jones. This ended a three-day losing streak for the stock.

Goldman Sachs lowered its price target for Republic Services from $256 to $246 but maintained a buy rating. The stock is currently trading at $206.90, down 2.7% over the past year. The adjustment may impact investor sentiment and trading strategies.

Contracts for 4,000 Southern California sanitation workers, represented by Teamsters Local 396, expired on September 30. Employers, including Republic Services and Waste Management, failed to reach agreements. The union remains committed to bargaining but warns of potential labor disruptions.

Paychex, Republic Services, Moody’s, and Cintas are highlighted for their recurring revenue models and dividend growth. Paychex (PAYX) yields 4.47%, Republic Services (RSG) increased its dividend for 23 years, Moody’s (MCO) has strong analytics subscriptions, and Cintas (CTAS) has a 43-year dividend growth record. Each company's financials and risks are discussed.

Waste Management (WM) and Republic Services (RSG) reported 5.7% core pricing, expanding EBITDA margins. Rollins (ROL) saw commercial revenue grow 8.6%, despite a 45% stock decline. Cintas (CTAS) reported 10.9% revenue growth, record margins. Otis Worldwide (OTIS) saw service revenue grow 11%. All companies have strong dividend histories.

Republic Services (RSG) reported Q2 earnings of $1.84 per share, up from $1.75 a year earlier, and raised full-year targets. Revenue grew 4.6% driven by 5.3% price increases, despite a 1.6% volume decline. Adjusted EBITDA was $1.42 billion with a 32.1% margin. The company generated $2.38 billion in cash from operations, used for acquisitions and dividends. The board increased the quarterly dividend to $0.670 per share. However, volume declines and softer recycling prices pose challenges.

Republic Services (RSG) stock rose 7.1% in the past three months. Analysts expect 2026 revenue of $17.3B (+4% YoY) and EPS of $7.27 (+3.6% YoY). The company reports strong pricing, margin expansion, and growth in its Environmental Solutions business. It generated $2.4B in operating cash flow and $1.6B in free cash flow in H1 2026, with a raised full-year free cash flow guidance of $2.54B-$2.575B. The dividend was increased to $0.67 per share.

Republic Services (RSG) reported Q3 adjusted EPS of $1.85, beating estimates, with revenue up 4.6% YoY to $16.89B. The company benefits from inflation-linked municipal contracts and growth in RNG. It has a net margin of 12.94% and a debt-to-equity ratio of 1.12. Analysts' average price target is $245.26, implying 19% upside. Cascade Investment recently invested $129.3M in RSG.

Bill Gates' Cascade Investment acquired 3.06 million shares of Republic Services (RSG) between August 28 and September 11, increasing his stake to 117.05 million shares, or 38% of the company. Republic Services raised its quarterly dividend to $0.67 per share, with Gates set to receive $78.43 million from the upcoming payout. The company reported Q2 adjusted EPS of $1.85 and revenue of $4.43 billion, with full-year 2026 guidance of $7.23-$7.28 EPS on $17.20-$17.30 billion revenue.