Feb 17 (Reuters) - Republic Services RSG.N forecast 2026 profit and revenue below Wall Street estimates on Tuesday, as soft demand for its mainstay environmental solutions business persists.

Shares of the garbage management firm fell over 2% after the bell.

Demand for the company's waste collection and treatment services remains subdued due to ongoing weakness in its core construction and manufacturing markets.

U.S. manufacturing activity declined through October, November and December, as President Donald Trump's tariff policies resulted in higher input costs and falling orders for factories.

An affordability crisis in the country's housing market also weighs on residential projects, with fewer building permits issued for future construction.

Republic Services expects an annual adjusted profit per share of $7.20 to $7.28 in 2026, below analysts' average estimate of $7.31, according to data compiled by LSEG.

Its annual revenue forecast also missed expectations at $17.05 billion to $17.15 billion, below estimates of $17.33 billion.

Price increases across the Arizona-based company's businesses, however, helped its topline and profit margins improve during the fourth quarter.

"Through healthy pricing and disciplined cost management, we successfully navigated cyclical demand headwinds," said CEO Jon Vander Ark.

Quarterly adjusted profit rose 11.4% from a year ago to $1.76 per share, compared with estimates of $1.62 per share.

Total revenue for the quarter rose 2.2% to $4.14 billion.

(Reporting by Anshuman Tripathy and Aatreyee Dasgupta in Bengaluru; Editing by Jonathan Ananda)

((Anshuman.Tripathy@thomsonreuters.com;))