Republic Services Inc (NYSE:RSG) reported worse-than-expected fourth-quarter sales results and issued FY26 guidance below estimates on Tuesday.Republic Services reported quarterly earnings of $1.76 per share which beat the analyst consensus estimate of $1.62 per share. The company reported quarterly sales of $4.136 billion which missed the analyst consensus estimate of $4.207 billion.Republic Services said it sees FY2026 adjusted EPS of $7.20-$7.28, versus market estimates of $7.31. The company sees sales o ...

Core Insights - Republic Services, Inc. (RSG) reported mixed fourth-quarter 2025 results, with earnings exceeding estimates while revenues fell short [1][10] Financial Performance - RSG's earnings per share (EPS) for Q4 2025 was $1.76, beating the Zacks Consensus Estimate by 8.7% and reflecting an 11.4% increase year-over-year [1][10] - Total revenues for the quarter were $4.1 billion, missing the consensus estimate by 1.8% but showing a 2.2% year-over-year growth [1][10] Segment Performance - Collection segment revenues reached $2.8 billion, up 3.8% year-over-year but below the consensus estimate of $2.9 billion [3] - Environmental Solutions revenues were $422 million, down 12.4% year-over-year and missing the consensus projection of $438.2 million [3] - Transfer segment revenues were $214 million, increasing 5.4% year-over-year and surpassing the consensus estimate of $213.5 million [4] - Landfill segment revenues totaled $467 million, also up 5.4% year-over-year but falling short of the consensus projection of $484 million [4] - Other segment revenues were $200 million, rising 5.3% year-over-year but missing the consensus estimate of $208.6 million [4] Operating Results - Adjusted EBITDA for Q4 was $1.3 billion, reflecting a 3.4% increase from the previous year, with an adjusted EBITDA margin of 31.3%, up 30 basis points year-over-year [5][10] Balance Sheet and Cash Flow - At the end of Q4 2025, RSG had cash and cash equivalents of $76 million, down from $84 million at the end of Q3 2025 [6] - Long-term debt increased to $13 billion from $12.4 billion in the previous quarter [6] - Cash generated from operating activities was $981 million, with adjusted free cash flow at $242 million and capital expenditure of $577 million [6] 2026 Guidance - For 2026, RSG expects revenues between $17.05 billion and $17.15 billion, lower than the consensus mark of $17.33 billion [7] - The company anticipates adjusted EPS in the range of $7.20-$7.28, with the midpoint below the Zacks Consensus Estimate of $7.26 [7] - Adjusted EBITDA is projected to be between $5.475 billion and $5.525 billion, while adjusted free cash flow is expected to be $2.52 billion to $2.56 billion [7]

This story was originally published on Waste Dive. To receive daily news and insights, subscribe to our free daily Waste Dive newsletter. By the numbers: Q4 and full year 2025 Q4 revenue: $4.14B Up 2.2% year over year 2025 revenue: $16.59B Up 3.5% year over year Q4 net income: $545M Up 6.4% year over year Results: Republic Services missed its full-year 2025 projections in several metrics, with revenue coming in about $260 million below the $16.85 billion the company projected as the lower bound of its guid ...

Core Insights - Waste Connections, Inc. (WCN) reported fourth-quarter 2025 earnings that slightly exceeded the Zacks Consensus Estimate, with an 11.2% year-over-year increase in earnings and a 5% year-over-year growth in revenues [1][9] - Despite the earnings beat, the stock price fell by 6.6% following the results announcement on February 11, reflecting investor disappointment [1] - Over the past year, WCN shares have decreased by 14%, contrasting with a 3.5% decline in the industry and a 15.3% increase in the Zacks S&P 500 Composite [1] Segment Performance - The Solid Waste Collection segment generated $1.7 billion in revenues, marking a 5.8% year-over-year increase [2] - Revenues from the Solid Waste Disposal and Transfer segment rose by 5.4% year-over-year to $757.1 million, driven by solid core pricing [2] - The Solid Waste Recycling segment experienced a 14.3% decline in revenues, totaling $51.2 million [3] - The E&P Waste Treatment, Recovery and Disposal segment reported revenues of $171.1 million, reflecting a 16.9% year-over-year increase [3] - The Intermodal and Other segment saw revenues of $42.3 million, down 7.9% from the previous year [3] Operating Results - Adjusted EBITDA for the quarter was $731.9 million, an 8% decrease from the prior year, with an adjusted EBITDA margin of 32.4%, down 110 basis points year-over-year [4] - The company recorded an operating loss of $199.1 million, compared to an operating income of $420.8 million in the same quarter last year [4] Balance Sheet & Cash Flow - At the end of the fourth quarter of 2025, Waste Connections had cash and cash equivalents of $46 million, down from $117.6 million in the previous quarter [5] - The long-term debt and notes payable increased to $8.8 billion from $8 billion in the third quarter of 2025 [5] - The company generated $556.9 million in cash from operating activities, with adjusted free cash flow of $175.6 million and capital expenditures totaling $261.1 million [6] - During the quarter, Waste Connections paid out $89.9 million in dividends [6] FY26 Outlook - For the fiscal year 2026, Waste Connections anticipates revenues between $9.9 billion and $9.95 billion, with the Zacks Consensus Estimate at $9.95 billion [7] - Adjusted EBITDA is expected to be in the range of $3.3 billion to $3.325 billion [7] - Waste Connections currently holds a Zacks Rank of 4 (Sell) [7]

Shares of Waste Connections, Inc. (TSE:WCN – Get Free Report) have been given an average rating of “Strong Buy” by the ten research firms that are presently covering the firm, MarketBeat reports. One analyst has rated the stock with a hold rating and nine have issued a strong buy rating on the company. Get Waste Connections alerts: WCN has been the subject of a number of recent research reports. Wells Fargo & Company upgraded Waste Connections to a “strong-buy” rating in a report on Thursday, November 13th. ...

Core Viewpoint - GFL Environmental has transitioned from a high-growth startup in the municipal solid waste sector to a more established player, indicating a shift in its business model and growth strategy [1]. Group 1 - The company embodies the idea that what may be considered waste by one can be valuable to another, highlighting its focus on sustainability and resource recovery [1]. - The investment philosophy emphasizes optimism and adaptability in the face of market volatility, suggesting that the company is prepared for fluctuations while pursuing growth opportunities [1]. Group 2 - The article reflects a personal investment in GFL, indicating confidence in the company's future performance and potential for growth [2]. - There is a clear distinction made between personal opinions and professional advice, reinforcing the independent analysis of GFL's market position [2].

Core Viewpoint - GFL Environmental Inc reported strong fourth-quarter earnings, exceeding analyst expectations in both earnings per share and sales figures [1][2]. Financial Performance - The company posted quarterly earnings of 26 cents per share, surpassing the analyst consensus estimate of 14 cents per share [1]. - Quarterly sales reached $1.209 billion, exceeding the analyst consensus estimate of $1.190 billion [1]. Future Outlook - GFL Environmental projects FY2026 sales to be between $7.000 billion and $7.140 billion, compared to estimates of $7.070 billion [1]. Management Commentary - CEO Patrick Dovigi highlighted that the company's workforce of over 15,000 employees delivered results that exceeded expectations [2]. Stock Performance - Following the earnings announcement, GFL Environmental shares fell by 5.7%, trading at $41.51 [2]. Analyst Ratings and Price Targets - Barclays analyst William Grippin maintained an Overweight rating and raised the price target from $62 to $63 [3]. - Scotiabank analyst Konark Gupta maintained a Sector Outperform rating but lowered the price target from $57 to $56 [3]. - RBC Capital analyst Sabahat Khan maintained an Outperform rating and raised the price target from $59 to $60 [3].

Financial Performance - Q4 revenue reached $1.69 billion, reflecting a 7.3% year-over-year increase [1] - Full-year revenue for 2025 was $6.62 billion, up 7.8% year-over-year [1] - Q4 net income was $24.2 million, with full-year net income totaling $3.1 billion [1] - Core pricing increased by 6.4% in Q4 and 6.1% for the full year [1] Strategic Initiatives - The company announced a headquarters relocation to Miami Beach, Florida, while maintaining Canadian offices, aiming for inclusion in U.S. stock indices [1] - GFL's capital strategy involved selling stakes in its environmental services and infrastructure businesses, facilitating share buybacks and debt reduction [1] - The company plans to spend $1.5 billion to $2 billion on M&A in 2026, focusing on tuck-in acquisitions [1] Operational Insights - Overall volumes decreased by 2.3% in Q4 but increased by 0.5% for the full year [1] - The company expects C&D volumes to remain soft in the current year [1] - GFL anticipates growth in volumes in 2026 due to expansion into southern markets [1] Environmental Initiatives - GFL plans to invest $175 million in incremental growth capital for packaging extended producer responsibility policies, with over $100 million expected in Q1 [2] - The company is adjusting its guidance for renewable natural gas projects, lowering the adjusted EBITDA run rate from $175 million to a range of $125 million to $150 million [2] Future Projections - For 2026, GFL projects revenue to reach $7 billion, with adjusted EBITDA expected to be about $2.14 billion and adjusted free cash flow around $835 million [2] - The company aims to maintain net leverage in the low to mid 3x range [2]

Group 1: ClearBridge Investments Overview - ClearBridge Investments released its "ClearBridge Mid Cap Strategy" Q4 2025 investor letter, reporting underperformance compared to the Russell Midcap Index, which returned 0.16% during the period [1] - The underperformance was attributed to narrow market leadership and sentiment-driven trading, with weaknesses in information technology and real estate holdings impacting returns, while gains in select consumer discretionary stocks provided partial support [1] - The firm noted that elevated dispersion and uneven earnings reactions continued to shape mid-cap equity performance during the quarter [1] Group 2: Future Outlook - The portfolio management team expressed cautious optimism, indicating that improving clarity around policy, interest rates, and business investment could create a more favorable backdrop for active stock selection [1] - The widening valuation gaps and strengthening fundamentals across many mid-cap companies were highlighted as positive indicators for future performance [1] Group 3: Casella Waste Systems Inc. Insights - ClearBridge Investments initiated positions in Casella Waste Systems Inc. (NASDAQ:CWST), a residential waste services provider, following a transitory selloff related to minor acquisition integration issues [3] - The company has a high proportion of recurring revenue, which supports durable long-term growth, and limited exposure to near-term AI disruption [3] - Casella Waste Systems Inc. has a market capitalization of approximately $6.501 billion, with shares trading between $82.2 to $121.24 over the last 52 weeks [2] Group 4: Hedge Fund Interest - Casella Waste Systems Inc. was held by 26 hedge fund portfolios at the end of the third quarter, an increase from 24 in the previous quarter [4] - Despite the interest, the company is not among the 30 most popular stocks among hedge funds, with a belief that some AI stocks may offer greater promise for higher returns in a shorter time frame [4]

Performance Overview - Laughing Water Capital ("LWC") achieved a return of approximately 6.8% in Q4, resulting in a full-year return of about 3.9% after fees and expenses, compared to the SP500TR and R2000 which returned approximately 2.7% and 2.2% respectively in the same quarter [3] - Since inception, LWC's cumulative return is approximately 400%, outperforming the SP500TR's ~332% and the R2000's ~175% [4] Investment Philosophy - The company emphasizes investing in off-the-beaten-path businesses led by capable management, particularly during periods of uncertainty, believing this approach can yield outsized returns over time [6][8] - Despite the current market enthusiasm for sectors like artificial intelligence and technology, the company remains focused on fundamental business performance rather than market trends [7][8] Market Dynamics - Recent market trends have favored larger, growth-oriented companies, with a significant outperformance of large-cap stocks over small-cap stocks [10][15] - The SP500 has outperformed the equal-weight SP500 by 34% over the past three years, indicating a strong preference for larger companies [15] Specific Investments - Lifecore Biomedical is highlighted as a key investment, with expectations of significant growth due to its competitive advantages and increasing capacity utilization [13][14] - Liquidia Corp has seen early sales success with its drug Yutrephia, which has outperformed expectations, despite ongoing patent litigation with United Therapeutics [30][31] - NextNav Inc is positioned as a potential leader in providing a terrestrial backup to GPS, with bipartisan support for its proposal to repurpose spectrum for 5G use [36][39] Future Outlook - The company anticipates continued improvement in the fundamental performance of its investments, suggesting that over time, market recognition of these fundamentals will lead to better stock performance [62] - Management remains optimistic about the potential for significant upside in investments like Lifecore and Liquidia, while also acknowledging the challenges posed by market sentiment and timing [29][33]