Financial Analysis

BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES We acquired various environmental services businesses during the years ended December 31, 2025 and 2024. The purchase price paid for these business acquisitions and the allocations of the purchase price follows: 2025 2024 Purchase price: Cash used in acquisitions, net of cash acquired of $8 and $1, respectively $ 1,063 $ 274 Holdbacks 20 7 Fair value, future minimum lease payments 1 Total $ 1,084 $ 281 Allocated as follows: Accounts receivable 29 6 Property and equipment 189 57 Other assets 23 4 Accounts payable (5) Accrued landfill and environmental costs (24) Other liabilities (44) (6) Fair value of tangible assets acquired and liabilities assumed 168 61 Excess purchase price to be allocated $ 916 $ 220 Excess purchase price allocated as follows: Other intangible assets $ 199 $ 44 Goodwill 717 176 Total allocated $ 916 $ 220 Certain of the purchase price allocations are preliminary and based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. For the acquisitions that closed during the year ended December 31, 2025, we expect that a majority of the goodwill and intangible assets recognized as a result of these acquisitions will not be deductible for tax purposes. These acquisitions are not material to the Company's results of operations, individually or in the aggregate. As a result, no pro forma financial information is provided. In February 2025, we …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Legal Proceedings We are subject to extensive and evolving laws and regulations and have implemented safeguards to respond to regulatory requirements. In the normal course of our business, we become involved in legal proceedings. Some may result in fines, penalties or judgments against us, or settlements, which may impact earnings and cash flows for a particular period. Although we cannot predict the ultimate outcome of any legal matter with certainty, we do not believe the outcome of any of our pending legal proceedings will have a material adverse impact on our consolidated financial position, results of operations or cash flows. As used herein, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding: (1) ordinary course accidents, general commercial liability and workers' compensation claims, which are covered by insurance programs, subject to customary deductibles, and which, together with insured employee health care costs, are discussed in Note 7, Other Liabilities ; and (2) environmental remediation liabilities, which are discussed in Note 8, Landfill and Environmental Costs. We accrue for legal proceedings when losses become probable and reasonably estimable. As of the end of each applicable reporting period, we review each of our legal proceedings and, where it is probable that a liability has been incurred, we accrue for all probable and reasonably estimable losses. Where we can reas …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT The carrying value of our credit facilities, finance leases and long-term debt as of December 31, 2025 and 2024 is listed in the following table, and is adjusted for unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting. Original issue discounts and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method. December 31, 2025 December 31, 2024 Maturity Interest Rate Principal Adjustments Carrying Value Principal Adjustments Carrying Value Credit facilities: Uncommitted Credit Facility Variable $ $ $ $ $ $ The Credit Facility Variable 425 425 514 514 Commercial Paper Variable 1,000 (1) 999 477 477 Senior notes: March 2025 3.200 500 500 November 2025 0.875 350 350 July 2026 2.900 500 500 500 (1) 499 November 2027 3.375 650 (1) 649 650 (2) 648 May 2028 3.950 800 (5) 795 800 (7) 793 April 2029 4.875 750 (5) 745 750 (6) 744 November 2029 5.000 400 (3) 397 400 (4) 396 March 2030 2.300 600 (3) 597 600 (4) 596 July 2030 4.750 500 (5) 495 February 2031 1.450 650 (5) 645 650 (5) 645 February 2032 1.750 750 (4) 746 750 (5) 745 March 2033 2.375 700 (5) 695 700 (6) 694 December 2033 5.000 650 (8) 642 650 (9) 641 April 2034 5.000 800 (9) 791 800 (10) 790 November 2034 5.200 500 (5) 495 500 (6) 494 March 2035 6.086 182 (10) 172 182 (11) 171 March 2035 5.150 700 (10) 690 March 2040 6.200 400 (3) …

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The following table disaggregates our revenue by service line for the years ended December 31 (in millions of dollars and as a percentage of revenue): 2025 2024 2023 Collection: Residential $ 3,010 18.1 % $ 2,939 18.3 % $ 2,823 18.9 % Small-container 5,055 30.5 4,820 30.1 4,439 29.7 Large-container 3,098 18.7 3,024 18.9 2,922 19.5 Other 70 0.4 72 0.4 69 0.4 Total collection 11,233 67.7 10,855 67.7 10,253 68.5 Transfer 1,833 1,780 1,699 Less: intercompany (985) (975) (933) Transfer, net 848 5.1 805 5.0 766 5.1 Landfill 3,202 2,981 2,885 Less: intercompany (1,282) (1,240) (1,206) Landfill, net 1,920 11.6 1,741 10.9 1,679 11.2 Environmental solutions 1,828 1,907 1,701 Less: intercompany (62) (64) (76) Environmental solutions, net 1,766 10.6 1,843 11.5 1,625 10.9 Other: Recycling processing and commodity sales 433 2.6 409 2.5 312 2.1 Other non-core 391 2.4 379 2.4 330 2.2 Total other 824 5.0 788 4.9 642 4.3 Total revenue $ 16,591 100.0 % $ 16,032 100.0 % $ 14,965 100.0 %

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EMPLOYEE BENEFIT PLANS Stock-Based Compensation In October 2020, our Board of Directors amended and restated the Republic Services, Inc. Executive Incentive Plan (the 2021 Plan) to remove references to the performance-based compensation exception that was previously permitted but is no longer applicable under Section 162(m) of the Internal Revenue Code. The purposes of the 2021 Plan are to promote the success of the Company; to provide designated Executive Officers with an opportunity to receive incentive compensation dependent upon that success; and to attract, retain and motivate such individuals. We currently have approximately 10 million shares of common stock reserved for future grants under the 2021 Plan. In February 2007, our Board of Directors approved the 2007 Stock Incentive Plan (the 2007 Plan); in May 2007 our shareholders approved the 2007 Plan. In March 2011, our Board of Directors approved the Amended and Restated 2007 Stock Incentive Plan (the Amended and Restated 2007 SIP); in May 2011 our shareholders approved the Amended and Restated 2007 SIP. In March 2013, our Board of Directors approved the Republic Services, Inc. Amended and Restated 2007 Stock Incentive Plan (the Republic Amended and Restated 2007 SIP); in May 2013 our shareholders approved the Republic Amended and Restated 2007 SIP (the 2007 Plan, the Amended and Restated 2007 SIP and the Republic Amended and Restated 2007 SIP are collectively referred to as the Amended and Restated 2007 Stock Incenti …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill A summary of the activity and balances in goodwill accounts by reporting segment follows: Balance as of December 31, 2024 Acquisitions Divestitures Adjustments and Other Balance as of December 31, 2025 Group 1 $ 7,492 $ 71 $ (1) $ 11 $ 7,573 Group 2 6,438 154 (1) 6 6,597 Group 3 2,052 492 (1) 2 2,545 Total $ 15,982 $ 717 $ (3) $ 19 $ 16,715 Balance as of December 31, 2023 Acquisitions Divestitures Adjustments and Other Balance as of December 31, 2024 Group 1 $ 7,312 $ 161 $ $ 19 $ 7,492 Group 2 6,445 (7) 6,438 Group 3 2,077 15 (40) 2,052 Total $ 15,834 $ 176 $ $ (28) $ 15,982 Other Intangible Assets, Net Other intangible assets, net, are primarily comprised of values assigned to customer relationships, which are amortized over periods ranging from 1 to 15 years. A summary of the activity and balances by intangible asset type follows: Gross Intangible Assets Accumulated Amortization Other Intangible Assets, Net as of December 31, 2025 Balance as of December 31, 2024 Acquisitions Adjustments and Other Balance as of December 31, 2025 Balance as of December 31, 2024 Additions Charged to Expense Adjustments and Other Balance as of December 31, 2025 Customer relationships $ 690 $ 198 $ (7) $ 881 $ (215) $ (81) $ 7 $ (289) $ 592 Other intangible assets 91 1 (8) 84 (20) (8) 7 (21) 63 Total $ 781 $ 199 $ (15) $ 965 $ (235) $ (89) $ 14 $ (310) $ 655 Gross Intangible Assets Accumulated Amortization Other Intangible Assets, Net as of Dec …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"INCOME TAXES The components of the provision for income taxes for the years ended December 31 follow: 2025 2024 2023 Current: Federal $ 81 $ 204 $ 260 Foreign 10 13 9 State 95 84 90 Deferred: Federal 240 55 72 Foreign (11) 2 (3) State 40 30 32 Provision for income taxes $ 455 $ 388 $ 460 On July 4, 2025, the One Big Beautiful Bill Act (the ""Act) was signed into law. The Act, among other things, implemented changes to the tax treatment relating to bonus depreciation, research and experimental expenditures and interest expense, and included phase-outs and restrictions on several clean energy tax incentives. The Act did not have a material impact on our effective tax rate. The reconciliations of the statutory federal income tax rate to our effective tax rate for the years ended December 31 follow: 2025 2024 2023 US Federal Statutory Tax Rate $ 545 21.0 % $ 510 21.0 % $ 460 21.0 % State and Local Income Taxes, Net of Federal Income Tax Effect (1) 110 4.2 107 4.4 97 4.4 Tax Credits Renewable energy assets (189) (7.3) (238) (9.8) (100) (4.6) Other (46) (1.8) (23) (0.9) (3) (0.1) Nontaxable or Nondeductible Items 42 1.6 37 1.5 36 1.6 Other Adjustments (7) (0.2) (5) (0.2) (30) (1.3) Effective Tax Rate $ 455 17.5 % $ 388 16.0 % $ 460 21.0 % (1) State taxes in California, Illinois, Massachusetts, & Texas made up the majority (greater than 50 percent) of the tax effect in this category for 2025, 2024, and 2023. The impact of foreign tax effects, effect of changes in tax laws or ra …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES A summary of the lease classification on our consolidated balance sheet as of December 31, 2025 and 2024 follows: 2025 2024 Assets Operating right-of-use lease assets Other assets $ 208 $ 232 Finance lease assets Property and equipment, net 318 294 Total leased assets $ 526 $ 526 Liabilities Current Operating Other accrued liabilities $ 48 $ 55 Finance Notes payable and current maturities of long-term debt 15 13 Long-term Operating Other long-term liabilities 177 189 Finance Long-term debt, net of current maturities 278 249 Total lease liabilities $ 518 $ 506 A summary of the lease cost reflected in our consolidated statements of income for the years ended December 31, 2025 and 2024 follows: 2025 2024 Operating lease cost Fixed lease cost Cost of operations $ 62 $ 50 Short-term lease cost Cost of operations 86 105 Variable lease cost Cost of operations 26 26 Finance lease cost Amortization of leased assets Depreciation, depletion and amortization 16 17 Interest on lease liabilities Interest expense 11 9 Variable lease cost Interest expense 25 26 Total lease cost $ 226 $ 233 During the years ended December 31, 2025 and 2024, we recognized changes in our operating right-of-use lease liabilities and assets, resulting from the recognition of non-cash lease expense of $47 million and $46 million, respectively. As of December 31, 2025, maturities for operating and finance lease liabilities were as follows: Operating Leases Finance Leases Total 2026 $ 59 $ 23 $ 82 2027 50 23 …

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New Accounting Pronouncements Accounting Standards Adopted Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The Company adopted ASU 2023-09 on a retrospective basis in this Annual Report on Form 10-K. The adoption of this ASU did not have a material impact on our consolidated financial statements. The required additional information can be found in Note 11, Income Taxes, in Part II, Item 8 of this Annual Report on Form 10-K for the year ended December 31, 2025. Accounting Standards Updates Issued but not yet Adopted as of December 31, 2025 Accounting Standards Update Codification Improvements In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2025-12, Codification Improvements: The amendments from this ASU address a range of various accounting topics that represent changes that clarify and make minor improvements to the existing codification. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the effect this guida …

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REVENUE Our operations primarily consist of providing environmental services. The following table disaggregates our revenue by service line for the years ended December 31 (in millions of dollars and as a percentage of revenue): 2025 2024 2023 Collection: Residential $ 3,010 18.1 % $ 2,939 18.3 % $ 2,823 18.9 % Small-container 5,055 30.5 4,820 30.1 4,439 29.7 Large-container 3,098 18.7 3,024 18.9 2,922 19.5 Other 70 0.4 72 0.4 69 0.4 Total collection 11,233 67.7 10,855 67.7 10,253 68.5 Transfer 1,833 1,780 1,699 Less: intercompany (985) (975) (933) Transfer, net 848 5.1 805 5.0 766 5.1 Landfill 3,202 2,981 2,885 Less: intercompany (1,282) (1,240) (1,206) Landfill, net 1,920 11.6 1,741 10.9 1,679 11.2 Environmental solutions 1,828 1,907 1,701 Less: intercompany (62) (64) (76) Environmental solutions, net 1,766 10.6 1,843 11.5 1,625 10.9 Other: Recycling processing and commodity sales 433 2.6 409 2.5 312 2.1 Other non-core 391 2.4 379 2.4 330 2.2 Total other 824 5.0 788 4.9 642 4.3 Total revenue $ 16,591 100.0 % $ 16,032 100.0 % $ 14,965 100.0 % Other non-core revenue consists primarily of revenue from National Accounts, which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators. Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. Intercompany revenue reflect …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT REPORTING Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating in geographic areas located across the United States and Canada. These groups are presented below as our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling and disposal. We generated $188 million, $182 million and $170 million of revenue in Canada for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025 and 2024, we had $136 million and $128 million, respectively, of long-lived assets in Canada. The remainder of our revenue and assets were related to our United States operations. Our chief operating decision maker (CODM) is Jon Vander Ark, President and Chief Executive Officer of Republic Services, Inc. Adjusted EBITDA is the single financial measure our CODM uses to evaluate segment profitability and returns, which informs resource allocation. For all segments, the CODM uses adjusted EBITDA to evaluat …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Managements Estimates and Assumptions In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more significant and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, landfill development costs and final capping, closure and post-closure costs; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, deferred taxes, uncertain tax positions and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in acquisitions. Each of these items is discussed in more detail elsewhere in these Notes to Consolidated Financial Statements. Our actual results may differ significantly from our estimates. Cash and Cash Equivalents We consider liquid investments with a maturity at the date of acquisition of three months or less to be cash equivalents. We may have net book credit balances in our primary disbursement accounts at the end of a reporting …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

SHARE REPURCHASES AND DIVIDENDS Available Shares We currently have approximately 10 million shares of common stock reserved for future grants under the Republic Services, Inc. 2021 Stock Incentive Plan. Share Repurchases In October 2020, our Board of Directors approved a $2.0 billion share repurchase authorization effective starting January 1, 2021, extending through December 31, 2023. In October 2023, our Board of Directors approved a $3.0 billion share repurchase authorization effective January 1, 2024 and extending through December 31, 2026. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the Board of Directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. The share repurchase program may be extended, suspended or discontinued at any time. On a quarterly basis, our Board of Directors reviews the intrinsic value of our stock and the parameters around which we repurchase our shares. Share repurchase activity during the years ended December 31, 2025, 2024 and 2023 follows (in millions, except per share amounts): 2025 2024 2023 Number of shares repurchased 3.8 2.5 1.8 Amount paid $ 864 $ 480 $ 262 Weighted average cost per share $ 224.50 $ 193.59 $ 145.72 The ave …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing