Republic Services: Not Even This Defensive Compounder Is Immune

Republic Services remains a Hold, with strong fundamentals but a valuation offering limited margin of safety amid macro risks. RSG posted solid Q2 results, raising 2026 guidance for revenue ($17.2–$17.3B), Adj. EBITDA ($5.525–$5.55B), and Adj. FCF ($2.54–$2.575B). Dividend was boosted for the 23rd consecutive year, with a 7.2% increase and ongoing share repurchases, reflecting robust cash generation. Despite defensiveness, RSG faces macro headwinds—rising bankruptcies, construction weakness, and inflationary pressures—making current pricing fair but not compelling for new buys.

In my previous coverage of Republic Services ( RSG ), I reiterated its Hold rating, highlighting how the valuation offered a limited margin of safety regardless of its strong fundamentals. Following another solid quarter, RSG remains a Hold, as the valuation