Republic Services' (RSG) Q1 results were largely in-line with peers, with good underlying results partially offset by volume and commodity-related headwinds, RBC Capital Markets said in a note Friday.

RBC said it expects a guidance revision in Q2, as the company reiterated 2026 guidance despite the beat. The company highlighted temporary large-container volumes, mainly construction-related, which improved 500 basis points quarter-over-quarter, with revenue for the business also growing for the first time in 2 years, according to the note.

Republic Services plans to bring 4 RNG projects online in 2026, which are expected to add about $10 million of incremental revenue and adjusted earnings before interest, taxes, depreciation, and amortization in 2026, $15 million in 2028 and 2029, and $20 million in 2030, the brokerage said.

Looking ahead, the brokerage sees upside to 2026 guidance from improving commodity prices, the macro environment, and incremental mergers and acquisitions activity.

RBC kept an outperform rating on Republic Services and raised the price target to $267 from $265.

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