Republic Services, Inc. Reports Second Quarter 2025 Results
Republic Services (NYSE:RSG) reported strong Q2 2025 financial results, with net income of $550 million ($1.75 per share), up from $512 million in Q2 2024. The company achieved adjusted EPS of $1.77, marking a 9.9% increase year-over-year.
Key highlights include total revenue growth of 4.6%, comprising 3.1% organic growth and 1.5% from acquisitions. The company expanded its adjusted EBITDA margin by 100 basis points to 32.1%, generating year-to-date cash flow from operations of $2.13 billion. Republic Services invested $888 million in acquisitions during H1 2025 and increased its quarterly dividend by approximately 8% to $0.625 per share.
The company updated its FY2025 guidance, maintaining adjusted EBITDA targets of $5.275-5.325 billion and raising adjusted free cash flow guidance to $2.375-2.415 billion.
Republic Services (NYSE:RSG) ha riportato solidi risultati finanziari per il secondo trimestre del 2025, con un utile netto di 550 milioni di dollari (1,75 dollari per azione), in aumento rispetto ai 512 milioni del secondo trimestre 2024. L'azienda ha raggiunto un EPS rettificato di 1,77 dollari, segnando un incremento del 9,9% su base annua.
I punti chiave includono una crescita totale dei ricavi del 4,6%, composta da una crescita organica del 3,1% e un 1,5% derivante da acquisizioni. La società ha ampliato il margine EBITDA rettificato di 100 punti base, raggiungendo il 32,1%, generando un flusso di cassa operativo da inizio anno di 2,13 miliardi di dollari. Republic Services ha investito 888 milioni di dollari in acquisizioni durante il primo semestre 2025 e ha aumentato il dividendo trimestrale di circa l'8%, portandolo a 0,625 dollari per azione.
L'azienda ha aggiornato le previsioni per il 2025, mantenendo gli obiettivi di EBITDA rettificato tra 5,275 e 5,325 miliardi di dollari e aumentando la guidance sul flusso di cassa libero rettificato a 2,375-2,415 miliardi di dollari.
Republic Services (NYSE:RSG) reportó sólidos resultados financieros en el segundo trimestre de 2025, con un ingreso neto de 550 millones de dólares (1,75 dólares por acción), aumentando desde 512 millones en el segundo trimestre de 2024. La compañía logró un EPS ajustado de 1,77 dólares, lo que representa un incremento del 9,9% interanual.
Los aspectos destacados incluyen un crecimiento total de ingresos del 4,6%, compuesto por un crecimiento orgánico del 3,1% y un 1,5% proveniente de adquisiciones. La empresa amplió su margen EBITDA ajustado en 100 puntos básicos hasta 32,1%, generando un flujo de caja operativo acumulado en el año de 2,13 mil millones de dólares. Republic Services invirtió 888 millones de dólares en adquisiciones durante el primer semestre de 2025 y aumentó su dividendo trimestral aproximadamente un 8%, hasta 0,625 dólares por acción.
La compañía actualizó su guía para el año fiscal 2025, manteniendo los objetivos de EBITDA ajustado entre 5,275 y 5,325 mil millones de dólares y elevando la proyección de flujo de caja libre ajustado a 2,375-2,415 mil millones de dólares.
Republic Services (NYSE:RSG)는 2025년 2분기 강력한 재무 실적을 보고했습니다. 순이익 5억 5천만 달러(주당 1.75달러)로 2024년 2분기의 5억 1,200만 달러에서 증가했습니다. 회사는 조정 주당순이익(EPS) 1.77달러를 기록하며 전년 대비 9.9% 성장했습니다.
주요 내용으로는 총 매출 4.6% 성장이 포함되며, 이는 3.1%의 유기적 성장과 1.5%의 인수합병 효과로 구성됩니다. 회사는 조정 EBITDA 마진을 100bp 확대하여 32.1%를 기록했으며, 연초부터 현재까지 영업활동 현금흐름은 21억 3천만 달러에 달합니다. Republic Services는 2025년 상반기에 8억 8,800만 달러를 인수에 투자했고, 분기 배당금을 약 8% 인상하여 주당 0.625달러로 올렸습니다.
회사는 2025 회계연도 가이던스를 업데이트하여 조정 EBITDA 목표를 52억 7,500만~53억 2,500만 달러로 유지하고, 조정 잉여 현금 흐름 가이던스를 23억 7,500만~24억 1,500만 달러로 상향 조정했습니다.
Republic Services (NYSE:RSG) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec un bénéfice net de 550 millions de dollars (1,75 dollar par action), en hausse par rapport à 512 millions au deuxième trimestre 2024. La société a enregistré un BPA ajusté de 1,77 dollar, soit une augmentation de 9,9 % d'une année sur l'autre.
Les points clés incluent une croissance totale du chiffre d'affaires de 4,6 %, composée d'une croissance organique de 3,1 % et de 1,5 % provenant d'acquisitions. La société a élargi sa marge EBITDA ajustée de 100 points de base pour atteindre 32,1 %, générant un flux de trésorerie opérationnel cumulé depuis le début de l'année de 2,13 milliards de dollars. Republic Services a investi 888 millions de dollars dans des acquisitions au premier semestre 2025 et a augmenté son dividende trimestriel d'environ 8 % à 0,625 dollar par action.
La société a mis à jour ses prévisions pour l'exercice 2025, maintenant ses objectifs d'EBITDA ajusté entre 5,275 et 5,325 milliards de dollars et augmentant ses prévisions de flux de trésorerie disponible ajusté à 2,375-2,415 milliards de dollars.
Republic Services (NYSE:RSG) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 550 Millionen US-Dollar (1,75 US-Dollar pro Aktie), gegenüber 512 Millionen US-Dollar im zweiten Quartal 2024. Das Unternehmen erzielte ein bereinigtes Ergebnis je Aktie (EPS) von 1,77 US-Dollar, was einem Anstieg von 9,9 % gegenüber dem Vorjahr entspricht.
Wichtige Highlights umfassen ein Gesamtumsatzwachstum von 4,6 %, bestehend aus 3,1 % organischem Wachstum und 1,5 % durch Akquisitionen. Das Unternehmen steigerte seine bereinigte EBITDA-Marge um 100 Basispunkte auf 32,1 % und generierte einen operativen Cashflow von 2,13 Milliarden US-Dollar seit Jahresbeginn. Republic Services investierte im ersten Halbjahr 2025 888 Millionen US-Dollar in Akquisitionen und erhöhte seine Quartalsdividende um etwa 8 % auf 0,625 US-Dollar pro Aktie.
Das Unternehmen aktualisierte seine Prognose für das Geschäftsjahr 2025 und behielt die Ziele für bereinigtes EBITDA von 5,275 bis 5,325 Milliarden US-Dollar bei, während es die Prognose für den bereinigten freien Cashflow auf 2,375 bis 2,415 Milliarden US-Dollar anhob.
- Net income increased to $550 million, up 7.4% from Q2 2024
- Adjusted EBITDA margin expanded 100 basis points to 32.1%
- Total revenue grew 4.6% with strong core price increases of 5.7%
- Generated robust year-to-date cash flow from operations of $2.13 billion
- Increased quarterly dividend by 8% to $0.625 per share
- Completed four renewable natural gas projects in Q2
- Raised adjusted free cash flow guidance for FY2025
- Recycled commodity price decreased by $24 per ton year-over-year to $149
- Volume growth was minimal at 0.2%
Insights
Republic Services delivered strong Q2 results with margin expansion and solid financial performance, demonstrating pricing power and operational efficiency.
Republic Services has delivered an impressive Q2 2025 performance that demonstrates the strength of its business model in the waste management sector. The company reported diluted EPS of
The most notable achievement is the significant margin expansion. Republic expanded its net income margin by
Revenue growth of
Cash generation remains robust with year-to-date cash flow from operations of
Management's confidence is reflected in their dividend increase of approximately
The company also highlighted the completion of four renewable natural gas projects during the quarter, underscoring its commitment to sustainability initiatives that could drive long-term value creation and potentially open new revenue streams.
- Reported Earnings Per Share of
$1.75 $1.77 - Expanded Net Income Margin 40 Basis Points and Adjusted EBITDA Margin 100 Basis Points
- Generated Year-to-Date Cash Flow from Operations of
$2.13 Billion $1.42 Billion - Invested Nearly
$900 Million - Updated Full-Year Financial Guidance
- Increased Quarterly Dividend by Approximately 8 Percent
"We are pleased with our second quarter results which demonstrate the resilience of our business model and the benefit of the investments in our differentiated capabilities," said Jon Vander Ark, president and chief executive officer. "We produced double-digit growth in EBITDA and 100 basis points of adjusted EBITDA margin expansion by continuing to price ahead of cost inflation and consistently executing our operational plan."
Second-Quarter and Year-to-Date 2025 Highlights:
- Total revenue growth of 4.6 percent includes 3.1 percent organic growth and 1.5 percent growth from acquisitions.
- Core price on total revenue increased revenue by 5.7 percent. Core price on related business revenue increased revenue by 7.0 percent, which consisted of 8.6 percent in the open market and 4.6 percent in the restricted portion of the business.
- Revenue growth from average yield on total revenue was 4.1 percent, and volume increased revenue by 0.2 percent. Revenue growth from average yield on related business revenue was 5.0 percent, and volume increased related business revenue by 0.2 percent.
- Net income was
$550 million - EPS was
$1.75 - Adjusted EPS, a non-GAAP measure, was
$1.77 - Adjusted EBITDA, a non-GAAP measure, was
$1.36 billion - Year-to-date cash flow from operations was
$2.13 billion - Year-to-date adjusted free cash flow, a non-GAAP measure, was
$1.42 billion - Year-to-date cash invested in acquisitions was
$888 million - Year-to-date cash returned to shareholders was
$407 million $45 million $362 million - The Company's average recycled commodity price per ton sold at its recycling centers during the second quarter was
$149 $24 - The Company completed and commenced operations on four renewable natural gas projects during the quarter.
Updated Full-Year 2025 Financial Guidance
Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy for the remainder of 2025. Please refer to the Reconciliation of Full-Year 2025 Financial Guidance section of this document for detail relating to the computation of non-GAAP measures as well as the Information Regarding Forward-Looking Statements section of this document.
The Company provided additional details as follows:
- Revenue: Now expected in the range of
$16.67 5 billion$16.75 0 billion - Adjusted EBITDA: Reiterated original guidance in the range of
$5.27 5 billion$5.32 5 billion - Adjusted Diluted Earnings per Share: Reiterated original guidance in the range of
$6.82 $6.90 - Adjusted Free Cash Flow: Increased original guidance to a range of
$2.37 5 billion$2.41 5 billion
Company Increases Quarterly Dividend
Republic continues to increase cash returns to shareholders, and previously announced that its Board of Directors approved a
Presentation of Certain Performance Metrics and Non-GAAP Measures
Adjusted diluted earnings per share, adjusted net income - Republic, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA by business type, adjusted EBITDA margin by business type and adjusted free cash flow are described in the Performance Metrics and Reconciliations of Certain Non-GAAP Measures section of this document.
About Republic Services
Republic Services, Inc. is a leader in the environmental services industry. Through its subsidiaries, the Company provides customers with the most complete set of products and services, including recycling, solid waste, special waste, hazardous waste and field services. Republic's industry-leading commitments to advance circularity and support decarbonization are helping deliver on its vision to partner with customers to create a more sustainable world. For more information, please visit RepublicServices.com.
For more information, contact: | |
Media Inquiries | Investor Inquiries |
Roman Blahoski (480) 718-0328 | Aaron Evans (480) 718-0309 |
SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION | |||
AND OPERATING DATA | |||
REPUBLIC SERVICES, INC. | |||
CONSOLIDATED BALANCE SHEETS | |||
(in millions, except per share amounts) | |||
June 30, | December 31, | ||
2025 | 2024 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 122 | $ 74 | |
Accounts receivable, less allowance for doubtful accounts and other of | 1,880 | 1,821 | |
Prepaid expenses and other current assets | 414 | 511 | |
Total current assets | 2,416 | 2,406 | |
Restricted cash and marketable securities | 224 | 208 | |
Property and equipment, net | 12,049 | 11,877 | |
Goodwill | 16,626 | 15,982 | |
Other intangible assets, net | 612 | 546 | |
Other assets | 1,470 | 1,383 | |
Total assets | $ 33,397 | $ 32,402 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 1,199 | $ 1,345 | |
Notes payable and current maturities of long-term debt | 421 | 862 | |
Deferred revenue | 490 | 485 | |
Accrued landfill and environmental costs, current portion | 141 | 159 | |
Accrued interest | 110 | 101 | |
Other accrued liabilities | 1,286 | 1,176 | |
Total current liabilities | 3,647 | 4,128 | |
Long-term debt, net of current maturities | 12,546 | 11,851 | |
Accrued landfill and environmental costs, net of current portion | 2,541 | 2,432 | |
Deferred income taxes and other long-term tax liabilities, net | 1,604 | 1,594 | |
Insurance reserves, net of current portion | 427 | 402 | |
Other long-term liabilities | 580 | 588 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, par value | — | — | |
Common stock, par value | 3 | 3 | |
Additional paid-in capital | 1,801 | 1,767 | |
Retained earnings | 10,455 | 9,774 | |
Treasury stock, at cost; 1 and 1 shares, respectively | (181) | (113) | |
Accumulated other comprehensive loss, net of tax | (28) | (26) | |
Total Republic Services, Inc. stockholders' equity | 12,050 | 11,405 | |
Non-controlling interests in consolidated subsidiary | 2 | 2 | |
Total stockholders' equity | 12,052 | 11,407 | |
Total liabilities and stockholders' equity | $ 33,397 | $ 32,402 | |
REPUBLIC SERVICES, INC. | |||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | |||||||
(in millions, except per share data) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Revenue | $ 4,235 | $ 4,048 | $ 8,244 | $ 7,910 | |||
Expenses: | |||||||
Cost of operations | 2,449 | 2,383 | 4,763 | 4,666 | |||
Depreciation, depletion and amortization | 463 | 413 | 897 | 812 | |||
Accretion | 28 | 27 | 57 | 53 | |||
Selling, general and administrative | 425 | 407 | 852 | 822 | |||
Loss (gain) on business divestitures and impairments, net | 3 | (2) | 1 | (2) | |||
Restructuring charges | 6 | 6 | 9 | 12 | |||
Operating income | 861 | 814 | 1,665 | 1,547 | |||
Interest expense | (145) | (128) | (285) | (268) | |||
Loss from unconsolidated equity method investments | (2) | (34) | (14) | (42) | |||
Interest income | 2 | 1 | 4 | 3 | |||
Other income, net | 4 | 1 | 15 | 13 | |||
Income before income taxes | 720 | 654 | 1,385 | 1,253 | |||
Provision for income taxes | 170 | 142 | 340 | 287 | |||
Net income | 550 | 512 | 1,045 | 966 | |||
Net income attributable to non-controlling interests in consolidated subsidiary | — | — | — | (1) | |||
Net income attributable to Republic Services, Inc. | $ 550 | $ 512 | $ 1,045 | $ 965 | |||
Basic earnings per share attributable to Republic Services, Inc. stockholders: | |||||||
Basic earnings per share | $ 1.76 | $ 1.62 | $ 3.34 | $ 3.06 | |||
Weighted average common shares outstanding | 313.1 | 314.9 | 313.0 | 315.1 | |||
Diluted earnings per share attributable to Republic Services, Inc. stockholders: | |||||||
Diluted earnings per share | $ 1.75 | $ 1.62 | $ 3.33 | $ 3.06 | |||
Weighted average common and common equivalent shares outstanding | 313.4 | 315.2 | 313.3 | 315.5 | |||
Cash dividends per common share | $ 0.580 | $ 0.535 | $ 1.160 | $ 1.070 | |||
REPUBLIC SERVICES, INC. | |||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(in millions) | |||
Six Months Ended June 30, | |||
2025 | 2024 | ||
Cash provided by operating activities: | |||
Net income | $ 1,045 | $ 966 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion, amortization and accretion | 954 | 865 | |
Non-cash interest expense | 37 | 35 | |
Stock-based compensation | 23 | 22 | |
Deferred tax provision | (8) | 48 | |
Provision for doubtful accounts, net of adjustments | 18 | 20 | |
Loss on disposition of assets and asset impairments, net | 1 | — | |
Loss from unconsolidated equity method investments | 14 | 42 | |
Other non-cash items | (5) | (1) | |
Change in assets and liabilities, net of effects from business acquisitions and divestitures: | |||
Accounts receivable | (51) | (69) | |
Prepaid expenses and other assets | 21 | 36 | |
Accounts payable | (13) | 19 | |
Capping, closure and post-closure expenditures | (21) | (22) | |
Remediation expenditures | (19) | (27) | |
Other liabilities | 138 | (47) | |
Proceeds for retirement of certain hedging relationships | — | 24 | |
Cash provided by operating activities | 2,134 | 1,911 | |
Cash used in investing activities: | |||
Purchases of property and equipment | (866) | (918) | |
Proceeds from sales of property and equipment | 8 | 5 | |
Cash used in acquisitions and investments, net of cash and restricted cash acquired | (963) | (201) | |
Cash received from business divestitures | 7 | 2 | |
Purchases of restricted marketable securities | (9) | (17) | |
Sales of restricted marketable securities | 8 | 16 | |
Cash used in investing activities | (1,815) | (1,113) | |
Cash used in financing activities: | |||
Proceeds from credit facilities and notes payable, net of fees | 20,025 | 10,484 | |
Proceeds from issuance of senior notes, net of discount and fees | 1,183 | 889 | |
Payments of credit facilities and notes payable | (21,030) | (11,274) | |
Issuances of common stock, net | (14) | (21) | |
Purchases of common stock for treasury | (59) | (168) | |
Cash dividends paid | (362) | (337) | |
Contingent consideration payments | (3) | (8) | |
Cash used in financing activities | (260) | (435) | |
Effect of foreign exchange rate changes on cash | 1 | 1 | |
Increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 60 | 364 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 203 | 228 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 263 | $ 592 | |
You should read the following information in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K as of and for the year ended December 31, 2024. All amounts below are in millions and as a percentage of our revenue, except per share data.
REVENUE
The following table reflects our total revenue by line of business for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Collection: | |||||||||||||||
Residential | $ 752 | 17.8 % | $ 733 | 18.1 % | $ 1,496 | 18.1 % | $ 1,457 | 18.4 % | |||||||
Small-container | 1,259 | 29.7 | 1,201 | 29.7 | 2,502 | 30.3 | 2,390 | 30.2 | |||||||
Large-container | 794 | 18.7 | 770 | 19.0 | 1,532 | 18.6 | 1,503 | 19.0 | |||||||
Other | 17 | 0.4 | 19 | 0.5 | 35 | 0.4 | 36 | 0.5 | |||||||
Total collection | 2,822 | 66.6 | 2,723 | 67.3 | 5,565 | 67.4 | 5,386 | 68.1 | |||||||
Transfer | 479 | 458 | 903 | 877 | |||||||||||
Less: intercompany | (258) | (250) | (494) | (486) | |||||||||||
Transfer, net | 221 | 5.2 | 208 | 5.1 | 409 | 5.0 | 391 | 4.9 | |||||||
Landfill | 854 | 761 | 1,577 | 1,466 | |||||||||||
Less: intercompany | (338) | (321) | (640) | (621) | |||||||||||
Landfill, net | 516 | 12.2 | 440 | 10.9 | 937 | 11.4 | 845 | 10.7 | |||||||
Environmental solutions | 478 | 490 | 944 | 929 | |||||||||||
Less: intercompany | (16) | (17) | (33) | (33) | |||||||||||
Environmental solutions, net | 462 | 10.9 | 473 | 11.7 | 911 | 11.1 | 896 | 11.3 | |||||||
Other: | |||||||||||||||
Recycling processing and commodity sales | 114 | 2.7 | 107 | 2.7 | 222 | 2.7 | 203 | 2.6 | |||||||
Other non-core | 100 | 2.4 | 97 | 2.3 | 200 | 2.4 | 189 | 2.4 | |||||||
Total other | 214 | 5.1 | 204 | 5.0 | 422 | 5.1 | 392 | 5.0 | |||||||
Total revenue | $ 4,235 | 100.0 % | $ 4,048 | 100.0 % | $ 8,244 | 100.0 % | $ 7,910 | 100.0 % | |||||||
The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Average yield | 4.1 % | 5.5 % | 4.3 % | 5.8 % | |||
Fuel recovery fees | (0.3) | — | (0.4) | (0.2) | |||
Total price | 3.8 | 5.5 | 3.9 | 5.6 | |||
Volume | 0.2 | (0.8) | (0.5) | (0.9) | |||
Change in workdays | — | — | (0.2) | 0.1 | |||
Recycling processing and commodity sales | — | 0.5 | 0.1 | 0.4 | |||
Environmental solutions | (0.9) | 0.4 | (0.3) | (0.4) | |||
Total internal growth | 3.1 | 5.6 | 3.0 | 4.8 | |||
Acquisitions / divestitures, net | 1.5 | 3.0 | 1.2 | 3.4 | |||
Total | 4.6 % | 8.6 % | 4.2 % | 8.2 % | |||
Core price | 5.7 % | 6.8 % | 5.9 % | 6.9 % | |||
Average yield is defined as revenue growth from the change in average price per unit of service, expressed as a percentage. Core price is defined as price increases to our customers and fees, excluding fuel recovery fees, net of price decreases to retain customers. We also measure changes in core price, average yield and volume as a percentage of related-business revenue, defined as total revenue excluding recycled commodities, fuel recovery fees and environmental solutions revenue, to determine the effectiveness of our pricing and organic growth strategies. The following table reflects core price, average yield and volume as a percentage of related-business revenue for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
As a % of Related Business | As a % of Related Business | ||||||
Core price | 7.0 % | 8.1 % | 7.2 % | 8.3 % | |||
Average yield | 5.0 % | 6.6 % | 5.2 % | 7.0 % | |||
Volume | 0.2 % | (1.0) % | (0.6) % | (1.0) % | |||
The following table reflects changes in average yield and volume, as a percentage of related business revenue by line of business, for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Yield | Volume | Yield | Volume | Yield | Volume | Yield | Volume | ||||||||
Collection: | |||||||||||||||
Residential | 5.1 % | (3.2) % | 6.0 % | (2.5) % | 5.3 % | (3.1) % | 6.4 % | (2.6) % | |||||||
Small-container | 6.0 % | (0.9) % | 9.6 % | (0.6) % | 6.1 % | (1.1) % | 10.1 % | (0.2) % | |||||||
Large-container | 5.5 % | (3.4) % | 6.6 % | (3.3) % | 5.6 % | (3.3) % | 6.8 % | (3.9) % | |||||||
Landfill: | |||||||||||||||
Municipal solid waste | 5.5 % | (2.1) % | 5.4 % | 1.1 % | 6.1 % | (2.8) % | 5.5 % | 1.4 % | |||||||
Construction and demolition waste | 3.9 % | 47.3 % | 3.5 % | (1.6) % | 4.0 % | 30.9 % | 4.7 % | (2.2) % | |||||||
Special waste | — % | 22.4 % | — % | (1.4) % | — % | 14.5 % | — % | (2.0) % | |||||||
COST OF OPERATIONS
The following table summarizes the major components of our cost of operations for the three and six months ended June 30, 2025 and 2024 (in millions of dollars and as a percentage of revenue):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Labor and related benefits | $ 844 | 19.9 % | $ 809 | 20.0 % | $ 1,662 | 20.2 % | $ 1,599 | 20.2 % | |||||||
Transfer and disposal costs | 279 | 6.6 | 288 | 7.1 | 533 | 6.5 | 552 | 7.0 | |||||||
Maintenance and repairs | 379 | 9.0 | 370 | 9.1 | 738 | 8.9 | 726 | 9.2 | |||||||
Transportation and subcontract costs | 302 | 7.1 | 301 | 7.4 | 594 | 7.2 | 581 | 7.3 | |||||||
Fuel | 116 | 2.7 | 121 | 3.0 | 230 | 2.8 | 247 | 3.1 | |||||||
Disposal fees and taxes | 96 | 2.3 | 90 | 2.2 | 179 | 2.2 | 174 | 2.2 | |||||||
Landfill operating costs | 104 | 2.5 | 96 | 2.4 | 193 | 2.3 | 186 | 2.4 | |||||||
Risk management | 109 | 2.6 | 102 | 2.5 | 213 | 2.6 | 197 | 2.5 | |||||||
Other | 220 | 5.2 | 206 | 5.1 | 421 | 5.1 | 404 | 5.1 | |||||||
Total cost of operations | $ 2,449 | 57.9 % | $ 2,383 | 58.8 % | $ 4,763 | 57.8 % | $ 4,666 | 59.0 % | |||||||
These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies. As such, you should take care when comparing our cost of operations by cost component to that of other companies and of ours for prior periods.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The following table summarizes our selling, general and administrative expenses for the three and six months ended June 30, 2025 and 2024 (in millions of dollars and as a percentage of revenue):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Salaries and related benefits | $ 280 | 6.6 % | $ 276 | 6.8 % | $ 573 | 6.9 % | $ 556 | 7.0 % | |||||||
Provision for doubtful accounts | 8 | 0.2 | 12 | 0.3 | 18 | 0.2 | 20 | 0.3 | |||||||
Other | 137 | 3.2 | 119 | 3.0 | 261 | 3.2 | 246 | 3.1 | |||||||
Total selling, general and administrative expenses | $ 425 | 10.0 % | $ 407 | 10.1 % | $ 852 | 10.3 % | $ 822 | 10.4 % | |||||||
These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies. As such, you should take care when comparing our selling, general and administrative expenses by cost component to those of other companies and of ours for prior periods.
PERFORMANCE METRICS AND RECONCILIATIONS OF CERTAIN NON-GAAP MEASURES
The following tables calculate EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA and adjusted EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, adjusted diluted earnings per share, and adjusted free cash flow, which are not measures determined in accordance with
Adjusted EBITDA and Adjusted EBITDA Margin
The following table calculates adjusted EBITDA and adjusted EBITDA margin for the three and six months ended June 30, 2025 and 2024 (in millions of dollars and as a percentage of revenue):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||
Net income attributable to Republic Services, Inc. and net income margin | $ 550 | 13.0 % | $ 512 | 12.6 % | 1,045 | 12.7 % | $ 965 | 12.2 % | |||||||
Net income attributable to non-controlling interests | — | — | — | 1 | |||||||||||
Provision for income taxes | 170 | 142 | 340 | 287 | |||||||||||
Other income, net | (4) | (1) | (15) | (13) | |||||||||||
Interest income | (2) | (1) | (4) | (3) | |||||||||||
Interest expense | 145 | 128 | 285 | 268 | |||||||||||
Depreciation, depletion and amortization | 463 | 413 | 897 | 812 | |||||||||||
Accretion | 28 | 27 | 57 | 53 | |||||||||||
EBITDA and EBITDA margin | $ 1,350 | 31.9 % | $ 1,220 | 30.1 % | $ 2,605 | 31.6 % | $ 2,370 | 30.0 % | |||||||
Loss from unconsolidated equity method investments | 2 | 34 | 14 | 42 | |||||||||||
Restructuring charges | 6 | 6 | 9 | 12 | |||||||||||
Loss (gain) on business divestitures and impairments, net | 3 | (2) | 1 | (2) | |||||||||||
Total adjustments | $ 11 | $ 38 | $ 24 | $ 52 | |||||||||||
Adjusted EBITDA and adjusted EBITDA margin | $ 1,361 | 32.1 % | $ 1,258 | 31.1 % | $ 2,629 | 31.9 % | $ 2,422 | 30.6 % | |||||||
Adjusted EBITDA and Adjusted EBITDA Margin by Business Type
The following table summarizes revenue, adjusted EBITDA and adjusted EBITDA margin by business type for the three and six months ended June 30, 2025 and 2024 (in millions of dollars and adjusted EBITDA margin as a percentage of revenue):
Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | |||||||||||
Recycling & | Environmental | Total | Recycling & | Environmental | Total | |||||||
Revenue | $ 3,773 | $ 462 | $ 4,235 | $ 3,575 | $ 473 | $ 4,048 | ||||||
Adjusted EBITDA(a) | $ 1,252 | $ 109 | $ 1,361 | $ 1,146 | $ 112 | $ 1,258 | ||||||
Adjusted EBITDA Margin | 33.2 % | 23.7 % | 32.1 % | 32.0 % | 23.7 % | 31.1 % | ||||||
Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |||||||||||
Recycling & | Environmental | Total | Recycling & | Environmental | Total | |||||||
Revenue | $ 7,333 | $ 911 | $ 8,244 | $ 7,014 | $ 896 | $ 7,910 | ||||||
Adjusted EBITDA(a) | $ 2,430 | $ 199 | $ 2,629 | $ 2,224 | $ 198 | $ 2,422 | ||||||
Adjusted EBITDA Margin | 33.1 % | 21.9 % | 31.9 % | 31.7 % | 22.1 % | 30.6 % | ||||||
(a) Certain corporate expenses, including selling, general and administrative expenses, and National Accounts revenue are allocated to the two business types. |
(b) Adjusted EBITDA Margin does not calculate due to rounding. |
The amounts shown for Recycling & Waste represent the sum of our Group 1 and Group 2 reportable segments, and Environmental Solutions represents our Group 3 reportable segment.
Adjusted Earnings Per Share
The following table calculates adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, and adjusted diluted earnings per share for the three and six months ended June 30, 2025 and 2024 (in millions of dollars except per share data):
Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | |||||||||||||||
Diluted | Diluted | |||||||||||||||
Net | Earnings | Net | Earnings | |||||||||||||
Pre-tax | Tax | Income - | per | Pre-tax | Tax | Income - | per | |||||||||
Income | Impact(1) | Republic | Share | Income | Impact(1) | Republic | Share | |||||||||
As reported | $ 720 | $ 170 | $ 550 | $ 1.75 | $ 654 | $ 142 | $ 512 | $ 1.62 | ||||||||
Gain on extinguishment of debt and other related costs | — | — | — | — | (8) | (2) | (6) | (0.02) | ||||||||
Restructuring charges | 6 | 2 | 4 | 0.01 | 6 | 2 | 4 | 0.01 | ||||||||
Loss (gain) on business divestitures and impairments, net(2) | 3 | 1 | 2 | 0.01 | (2) | (1) | (1) | — | ||||||||
Total adjustments | 9 | 3 | 6 | 0.02 | (4) | (1) | (3) | (0.01) | ||||||||
As adjusted | $ 729 | $ 173 | $ 556 | $ 1.77 | $ 650 | $ 141 | $ 509 | $ 1.61 | ||||||||
Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |||||||||||||||
Diluted | Diluted | |||||||||||||||
Net | Earnings | Net | Earnings | |||||||||||||
Pre-tax | Tax | Income - | per | Pre-tax | Tax | Income - | per | |||||||||
Income | Impact(1) | Republic | Share | Income | Impact(1) | Republic | Share | |||||||||
As reported | $ 1,385 | $ 340 | $ 1,045 | $ 3.33 | $ 1,253 | $ 288 | $ 965 | $ 3.06 | ||||||||
Gain on extinguishment of debt and other related costs | — | — | — | — | (8) | (2) | (6) | (0.02) | ||||||||
Restructuring charges | 9 | 2 | 7 | 0.03 | 12 | 3 | 9 | 0.02 | ||||||||
Loss (gain) on business divestitures and impairments, net(3) | 1 | — | 1 | — | (2) | (1) | (1) | — | ||||||||
Total adjustments | 10 | 2 | 8 | 0.03 | 2 | — | 2 | — | ||||||||
As adjusted | $ 1,395 | $ 342 | $ 1,053 | $ 3.36 | $ 1,255 | $ 288 | $ 967 | $ 3.06 | ||||||||
(1) | The income tax effect related to our adjustments includes both current and deferred income tax impact and is individually calculated based on the statutory rates applicable to each adjustment. |
(2) | The aggregate impact to adjusted diluted earnings per share totals to less than |
(3) | The aggregate impact to adjusted diluted earnings per share totals to less than |
We believe that presenting EBITDA and EBITDA margin is useful to investors because they provide important information concerning our operating performance exclusive of certain non-cash and other costs. EBITDA and EBITDA margin demonstrate our ability to execute our financial strategy, which includes reinvesting in existing capital assets to ensure a high level of customer service, investing in capital assets to facilitate growth in our customer base and services provided, maintaining our investment grade credit ratings and minimizing debt, paying cash dividends, repurchasing our common stock, and maintaining and improving our market position through business optimization. Although depreciation, depletion, amortization and accretion are considered operating costs in accordance with
We believe that presenting adjusted EBITDA and adjusted EBITDA margin, adjusted EBITDA margin by business type, adjusted pre-tax income, adjusted tax impact, adjusted net income - Republic, and adjusted diluted earnings per share provide an understanding of operational activities before the financial impact of certain items. We use these measures, and believe investors will find them helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods.
Gain on extinguishment of debt and other related costs. During the three and six months ended June 30, 2025, we did not recognize a gain or loss on extinguishment of debt and other related costs. During the three and six months ended June 30, 2024, we recognized a gain of
Restructuring charges. During the three and six months ended June 30, 2025, we incurred restructuring charges of
Loss (gain) on business divestitures and impairments, net. During the three and six months ended June 30, 2025, we recorded a loss on business divestitures and impairments of
Adjusted Free Cash Flow
The following table calculates our adjusted free cash flow, which is not a measure determined in accordance with
Six Months Ended June 30, | ||||
2025 | 2024 | |||
Cash provided by operating activities | $ 2,134 | $ 1,911 | ||
Property and equipment received | (727) | (773) | ||
Proceeds from sales of property and equipment | 8 | 5 | ||
Restructuring payments, net of tax | 5 | 7 | ||
Divestiture related tax payments | — | 1 | ||
Adjusted free cash flow | $ 1,420 | $ 1,151 | ||
We believe that presenting adjusted free cash flow provides useful information regarding our recurring cash provided by operating activities after certain expenditures or recoveries. It also demonstrates our ability to execute our financial strategy and is a key metric we use to determine compensation. The presentation of adjusted free cash flow has material limitations. Adjusted free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed, such as debt service requirements and dividend payments.
Purchases of property and equipment as reflected on our consolidated statements of cash flows represent amounts paid during the period for such expenditures. A reconciliation of property and equipment expenditures reflected on our consolidated statements of cash flows to property and equipment received during the period follows for the six months ended June 30, 2025 and 2024 (in millions of dollars):
Six Months Ended June 30, | ||
2025 | 2024 | |
Purchases of property and equipment per the unaudited consolidated statements of cash flows | $ 866 | $ 918 |
Adjustments for property and equipment received in a different period | (139) | (145) |
Property and equipment received during the period | $ 727 | $ 773 |
The adjustments noted above do not affect our net change in cash, cash equivalents, restricted cash and restricted cash equivalents as reflected in our consolidated statements of cash flows.
ACCOUNTS RECEIVABLE
As of June 30, 2025 and December 31, 2024, accounts receivable were
CASH DIVIDENDS
In April 2025, we paid a cash dividend of
SHARE REPURCHASE PROGRAM
During the three months ended June 30, 2025, there were no shares of common stock repurchased. As of June 30, 2025, the remaining authorized purchase capacity under our October 2023 repurchase program was approximately
RECONCILIATION OF FULL-YEAR 2025 FINANCIAL GUIDANCE
Adjusted EBITDA
The following is a summary of our anticipated adjusted EBITDA, which is not a measure determined in accordance with
(Anticipated) Year Ending | |
Net income attributable to Republic Services, Inc. | $ 2,090 - 2,100 |
Provision for income taxes | 485 - 490 |
Interest expense, net | 570 |
Depreciation, depletion, amortization and accretion | 1,920 - 1,930 |
Loss from unconsolidated equity method investments | 170 |
Restructuring charges | 15 |
Labor disruption | 25 - 50 |
Adjusted EBITDA | $ 5,275 - 5,325 |
We believe that presenting adjusted EBITDA provides an understanding of operational activities before the financial impact of certain items. We use this measure, and believe investors will find it helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods.
Adjusted Diluted Earnings per Share
The following is a summary of anticipated adjusted diluted earnings per share, which is not a measure determined in accordance with
(Anticipated) Year Ending | |
Diluted earnings per share | $ 6.72 - 6.74 |
Restructuring charges | 0.04 |
Labor disruption | 0.06 - 0.12 |
Adjusted diluted earnings per share | $ 6.82 - 6.90 |
We believe that presenting adjusted diluted earnings per share provides an understanding of operational activities before the financial impact of certain items. We use this measure, and believe investors will find it helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period. We have incurred comparable charges, costs and recoveries in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Our definition of adjusted diluted earnings per share may not be comparable to similarly titled measures presented by other companies.
Adjusted Free Cash Flow
Our anticipated adjusted free cash flow, which is not a measure determined in accordance with
(Anticipated) Year Ending | |
Cash provided by operating activities | $ 4,230 - 4,290 |
Property and equipment received | (1,895) - (1,935) |
Proceeds from sales of property and equipment | 10 |
Restructuring payments, net of tax | 10 |
Labor disruption, net of tax | 20 - 40 |
Adjusted free cash flow | $ 2,375 - 2,415 |
We believe that presenting adjusted free cash flow provides useful information regarding our recurring cash provided by operating activities after certain expenditures or recoveries. It also demonstrates our ability to execute our financial strategy and is a key metric we use to determine compensation. The presentation of adjusted free cash flow has material limitations. Adjusted free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed, such as debt service requirements and dividend payments. Our definition of adjusted free cash flow may not be comparable to similarly titled measures presented by other companies.
Our financial guidance is based on current economic conditions.
In July 2025, we began to experience labor disruptions in certain isolated markets. We estimated in the table above the impact we expect to incur in the year ended December 31, 2025, due to these labor disruptions. The impact to our consolidated financial statements will ultimately be determined by the duration of these disruptions.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about us that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "guidance," "expect," "will," "may," "anticipate," "plan," "estimate," "project," "intend," "should," "can," "likely," "could," "outlook" and similar expressions are intended to identify forward-looking statements. These statements include information about our plans, strategies, and expectations of future financial performance and prospects. Forward-looking statements are not guarantees of performance. These statements are based upon the current beliefs and expectations of our management and are subject to risk and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such expectations may not prove to be correct. Among the factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements are the impacts of the overall global economy and changing interest rates, impacts from international trade restrictions, tariffs, our ability to effectively integrate and manage companies we acquire, and to realize the anticipated benefits of any such acquisitions, the impact of work stoppages or other labor disruptions, the amount of the financial contribution of our sustainability initiatives, acts of war, riots or terrorism, and the impact of these acts on economic, financial and social conditions in
View original content to download multimedia:https://www.prnewswire.com/news-releases/republic-services-inc-reports-second-quarter-2025-results-302516504.html
SOURCE Republic Services, Inc.
FAQ
What were Republic Services (RSG) earnings per share in Q2 2025?
How much did Republic Services (RSG) spend on acquisitions in H1 2025?
What is Republic Services' (RSG) new dividend amount and payment date?
What is Republic Services' (RSG) updated revenue guidance for 2025?
How much cash did Republic Services (RSG) return to shareholders in 2025 so far?
