Republic Services, Inc. Reports First Quarter 2025 Results
Republic Services (NYSE: RSG) reported strong Q1 2025 financial results with net income of $495 million, or $1.58 per diluted share, up from $454 million ($1.44/share) in Q1 2024. The company achieved total revenue growth of 3.8%, including 2.9% organic growth and 0.9% from acquisitions.
Key highlights include core price increase of 6.1% on total revenue, adjusted EBITDA of $1.27 billion with margin expansion of 140 basis points to 31.6%, and cash flow from operations of $1,025 million. The company invested $826 million in acquisitions and returned $226 million to shareholders through dividends ($181M) and share repurchases ($45M).
Despite challenges from sluggish cyclical volumes and winter weather, Republic Services demonstrated business resilience through effective cost management and pricing strategies. The Board declared a quarterly dividend of $0.58 per share, payable July 15, 2025, to shareholders of record on July 2, 2025.
Republic Services (NYSE: RSG) ha riportato solidi risultati finanziari nel primo trimestre 2025 con un utile netto di 495 milioni di dollari, pari a 1,58 dollari per azione diluita, in aumento rispetto ai 454 milioni di dollari (1,44 dollari per azione) del primo trimestre 2024. L'azienda ha registrato una crescita totale dei ricavi del 3,8%, di cui il 2,9% organica e lo 0,9% derivante da acquisizioni.
I punti salienti includono un aumento del prezzo base del 6,1% sui ricavi totali, un EBITDA rettificato di 1,27 miliardi di dollari con un'espansione del margine di 140 punti base, raggiungendo il 31,6%, e un flusso di cassa operativo di 1.025 milioni di dollari. L'azienda ha investito 826 milioni di dollari in acquisizioni e ha restituito 226 milioni di dollari agli azionisti tramite dividendi (181 milioni) e riacquisto di azioni (45 milioni).
Nonostante le difficoltà dovute a volumi ciclici rallentati e condizioni invernali, Republic Services ha dimostrato resilienza grazie a una gestione efficace dei costi e strategie di pricing. Il Consiglio ha dichiarato un dividendo trimestrale di 0,58 dollari per azione, pagabile il 15 luglio 2025 agli azionisti registrati al 2 luglio 2025.
Republic Services (NYSE: RSG) reportó sólidos resultados financieros en el primer trimestre de 2025 con un ingreso neto de 495 millones de dólares, o 1,58 dólares por acción diluida, frente a los 454 millones de dólares (1,44 dólares por acción) del primer trimestre de 2024. La compañía logró un crecimiento total de ingresos del 3,8%, incluyendo un crecimiento orgánico del 2,9% y un 0,9% proveniente de adquisiciones.
Los aspectos destacados incluyen un aumento del precio base del 6,1% sobre los ingresos totales, un EBITDA ajustado de 1.270 millones de dólares con una expansión del margen de 140 puntos básicos hasta el 31,6%, y un flujo de caja operativo de 1.025 millones de dólares. La compañía invirtió 826 millones de dólares en adquisiciones y devolvió 226 millones a los accionistas mediante dividendos (181 millones) y recompra de acciones (45 millones).
A pesar de los desafíos derivados de volúmenes cíclicos lentos y el clima invernal, Republic Services mostró resiliencia empresarial gracias a una gestión eficaz de costos y estrategias de precios. La Junta declaró un dividendo trimestral de 0,58 dólares por acción, pagadero el 15 de julio de 2025 a los accionistas registrados al 2 de julio de 2025.
Republic Services (NYSE: RSG)는 2025년 1분기에 4억 9,500만 달러의 순이익을 기록하며 주당 희석 주당순이익 1.58달러를 달성, 2024년 1분기 4억 5,400만 달러(주당 1.44달러) 대비 증가한 강력한 실적을 발표했습니다. 회사는 총 매출이 3.8% 성장했으며, 이 중 2.9%는 유기적 성장, 0.9%는 인수합병에서 비롯되었습니다.
주요 내용으로는 총 매출에 대한 핵심 가격 인상 6.1%, 12억 7천만 달러의 조정 EBITDA와 140 베이시스 포인트 확대된 31.6%의 마진, 그리고 10억 2,500만 달러의 영업 현금 흐름이 포함됩니다. 회사는 인수에 8억 2,600만 달러를 투자했으며, 배당금(1억 8,100만 달러)과 자사주 매입(4,500만 달러)을 통해 주주들에게 2억 2,600만 달러를 환원했습니다.
경기 침체와 겨울 날씨라는 도전에도 불구하고 Republic Services는 효과적인 비용 관리와 가격 전략을 통해 사업의 회복력을 보여주었습니다. 이사회는 1주당 0.58달러의 분기 배당금을 선언했으며, 2025년 7월 15일에 2025년 7월 2일 기준 주주에게 지급될 예정입니다.
Republic Services (NYSE : RSG) a annoncé de solides résultats financiers pour le premier trimestre 2025 avec un bénéfice net de 495 millions de dollars, soit 1,58 dollar par action diluée, en hausse par rapport à 454 millions de dollars (1,44 dollar/action) au premier trimestre 2024. La société a réalisé une croissance totale du chiffre d'affaires de 3,8%, comprenant 2,9% de croissance organique et 0,9% provenant d'acquisitions.
Les points clés incluent une augmentation du prix de base de 6,1% sur le chiffre d'affaires total, un EBITDA ajusté de 1,27 milliard de dollars avec une expansion de la marge de 140 points de base à 31,6%, et un flux de trésorerie opérationnel de 1 025 millions de dollars. La société a investi 826 millions de dollars dans des acquisitions et a reversé 226 millions de dollars aux actionnaires sous forme de dividendes (181 millions) et de rachats d'actions (45 millions).
Malgré les défis liés à la faiblesse des volumes cycliques et aux conditions hivernales, Republic Services a démontré sa résilience grâce à une gestion efficace des coûts et des stratégies tarifaires. Le conseil d'administration a déclaré un dividende trimestriel de 0,58 dollar par action, payable le 15 juillet 2025 aux actionnaires inscrits au 2 juillet 2025.
Republic Services (NYSE: RSG) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 495 Millionen US-Dollar bzw. 1,58 US-Dollar pro verwässerter Aktie, gegenüber 454 Millionen US-Dollar (1,44 US-Dollar/Aktie) im ersten Quartal 2024. Das Unternehmen erzielte ein Gesamtumsatzwachstum von 3,8%, davon 2,9% organisches Wachstum und 0,9% durch Akquisitionen.
Zu den wichtigsten Highlights zählen eine Kernpreiserhöhung von 6,1% auf den Gesamtumsatz, ein bereinigtes EBITDA von 1,27 Milliarden US-Dollar mit einer Margenausweitung um 140 Basispunkte auf 31,6% sowie ein operativer Cashflow von 1.025 Millionen US-Dollar. Das Unternehmen investierte 826 Millionen US-Dollar in Akquisitionen und gab 226 Millionen US-Dollar an die Aktionäre zurück, davon 181 Millionen in Dividenden und 45 Millionen in Aktienrückkäufe.
Trotz Herausforderungen durch schleppende zyklische Volumina und Winterwetter zeigte Republic Services Geschäftsstärke durch effektives Kostenmanagement und Preisstrategien. Der Vorstand erklärte eine Quartalsdividende von 0,58 US-Dollar je Aktie, zahlbar am 15. Juli 2025 an Aktionäre, die am 2. Juli 2025 eingetragen sind.
- Net income increased to $495M from $454M YoY
- EPS grew 9.7% to $1.58 per share
- Adjusted EBITDA margin expanded 140 basis points to 31.6%
- Core price on total revenue increased by 6.1%
- Generated strong cash flow from operations of $1,025M
- Volume decreased revenue by 1.2%
- Related business volume declined 1.5%
- Sluggish cyclical volumes impacted topline results
- One less work day decreased revenue by 50 basis points
Insights
RSG delivered strong Q1 results with 9.7% EPS growth and impressive 140bps margin expansion despite volume challenges, demonstrating exceptional pricing power.
Republic Services' Q1 2025 results showcase a company effectively navigating economic headwinds through superior pricing power and cost discipline. The waste management leader delivered
The company's pricing strategy stands out as particularly effective — core price increased
Cash generation remains exceptionally strong with
The company's
- First Quarter Earnings Per Share of
$1.58 - Expanded First Quarter Net Income Margin 50 Basis Points and Adjusted EBITDA Margin 140 Basis Points
- Generated Cash Flow from Operations of
$1,025 Million $727 Million - Invested More Than
$800 Million - Named to Barron's 2025 100 Most Sustainable Companies List
"We are off to a solid start to the year, and our business continues to perform well even with increased volatility in the broader economy," said Jon Vander Ark, president and chief executive officer. "While topline results were impacted by sluggish cyclical volumes and challenging winter weather, we generated high single-digit growth in EBITDA and 140 basis points of adjusted EBITDA margin expansion by pricing ahead of cost inflation and effective cost management. Our ability to produce these results reflects the resiliency of our business model, and the financial benefits we are delivering by investing in our differentiating capabilities."
First Quarter 2025 Highlights:
- Total revenue growth of 3.8 percent includes 2.9 percent organic growth and 0.9 percent growth from acquisitions. The impact of one less work day decreased revenue by 50 basis points compared to the same period in 2024.
- Core price on total revenue increased revenue by 6.1 percent. Core price on related business revenue increased revenue by 7.3 percent, which consisted of 9.0 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 4.5 percent, and volume decreased revenue by 1.2 percent. Revenue growth from average yield on related business revenue was 5.4 percent, and volume decreased related business revenue by 1.5 percent.
- Net income was
$495 million - EPS was
$1.58 - Adjusted EPS, a non-GAAP measure, was
$1.58 - Adjusted EBITDA, a non-GAAP measure, was
$1.27 billion - Cash invested in acquisitions was
$826 million - Cash returned to shareholders was
$226 million $45 million $181 million - The Company's average recycled commodity price per ton sold at its recycling centers during the first quarter was
$155 $2 - The Company completed and commenced operations on one renewable natural gas project during the quarter.
- Republic was recognized by several leading organizations during the quarter, including:
- Barron's 2025 100 Most Sustainable Companies List
- Ethisphere's 2025 World's Most Ethical Companies® List
- Fortune's 2025 Most Innovative Companies List
Company Declared Quarterly Dividend
Republic announced that its Board of Directors declared a regular quarterly dividend of
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) | |||
March 31, | December 31, | ||
2025 | 2024 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 83 | $ 74 | |
Accounts receivable, less allowance for doubtful accounts and other of | 1,854 | 1,821 | |
Prepaid expenses and other current assets | 384 | 511 | |
Total current assets | 2,321 | 2,406 | |
Restricted cash and marketable securities | 222 | 208 | |
Property and equipment, net | 11,949 | 11,877 | |
Goodwill | 16,585 | 15,982 | |
Other intangible assets, net | 632 | 546 | |
Other assets | 1,394 | 1,383 | |
Total assets | $ 33,103 | $ 32,402 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 1,154 | $ 1,345 | |
Notes payable and current maturities of long-term debt | 421 | 862 | |
Deferred revenue | 504 | 485 | |
Accrued landfill and environmental costs, current portion | 159 | 159 | |
Accrued interest | 120 | 101 | |
Other accrued liabilities | 1,133 | 1,176 | |
Total current liabilities | 3,491 | 4,128 | |
Long-term debt, net of current maturities | 12,862 | 11,851 | |
Accrued landfill and environmental costs, net of current portion | 2,477 | 2,432 | |
Deferred income taxes and other long-term tax liabilities, net | 1,612 | 1,594 | |
Insurance reserves, net of current portion | 416 | 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 | 1,784 | 1,767 | |
Retained earnings | 10,087 | 9,774 | |
Treasury stock, at cost; 1 and 1 shares, respectively | (180) | (113) | |
Accumulated other comprehensive loss, net of tax | (31) | (26) | |
Total Republic Services, Inc. stockholders' equity | 11,663 | 11,405 | |
Non-controlling interests in consolidated subsidiary | 2 | 2 | |
Total stockholders' equity | 11,665 | 11,407 | |
Total liabilities and stockholders' equity | $ 33,103 | $ 32,402 | |
REPUBLIC SERVICES, INC. | |||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME | |||
(in millions, except per share data) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Revenue | $ 4,009 | $ 3,862 | |
Expenses: | |||
Cost of operations | 2,314 | 2,283 | |
Depreciation, depletion and amortization | 434 | 399 | |
Accretion | 28 | 27 | |
Selling, general and administrative | 427 | 414 | |
Gain on business divestitures and impairments, net | (2) | — | |
Restructuring charges | 4 | 6 | |
Operating income | 804 | 733 | |
Interest expense | (140) | (139) | |
Loss from unconsolidated equity method investments | (12) | (9) | |
Interest income | 2 | 1 | |
Other income, net | 11 | 13 | |
Income before income taxes | 665 | 599 | |
Provision for income taxes | 170 | 145 | |
Net income | 495 | 454 | |
Net income attributable to Republic Services, Inc. | $ 495 | $ 454 | |
Basic earnings per share attributable to Republic Services, Inc. stockholders: | |||
Basic earnings per share | $ 1.58 | $ 1.44 | |
Weighted average common shares outstanding | 313.0 | 315.3 | |
Diluted earnings per share attributable to Republic Services, Inc. stockholders: | |||
Diluted earnings per share | $ 1.58 | $ 1.44 | |
Weighted average common and common equivalent shares outstanding | 313.3 | 315.7 | |
Cash dividends per common share | $ 0.580 | $ 0.535 | |
REPUBLIC SERVICES, INC. | |||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(in millions) | |||
Three Months Ended March 31, | |||
2025 | 2024 | ||
Cash provided by operating activities: | |||
Net income | $ 495 | $ 454 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion, amortization and accretion | 462 | 426 | |
Non-cash interest expense | 18 | 22 | |
Stock-based compensation | 13 | 11 | |
Deferred tax provision | 1 | 47 | |
Provision for doubtful accounts, net of adjustments | 10 | 7 | |
Gain on disposition of assets and asset impairments, net | (3) | — | |
Loss from unconsolidated equity method investments | 12 | 9 | |
Other non-cash items | (2) | — | |
Change in assets and liabilities, net of effects from business acquisitions and divestitures: | |||
Accounts receivable | (18) | (1) | |
Prepaid expenses and other assets | 90 | 18 | |
Accounts payable | (42) | (1) | |
Capping, closure and post-closure expenditures | (8) | (9) | |
Remediation expenditures | (9) | (10) | |
Other liabilities | 6 | (162) | |
Cash provided by operating activities | 1,025 | 811 | |
Cash used in investing activities: | |||
Purchases of property and equipment | (459) | (515) | |
Proceeds from sales of property and equipment | 3 | 2 | |
Cash used in acquisitions and investments, net of cash and restricted cash acquired | (834) | (166) | |
Cash received from business divestitures | 3 | — | |
Purchases of restricted marketable securities | (3) | (12) | |
Sales of restricted marketable securities | 2 | 12 | |
Cash used in investing activities | (1,288) | (679) | |
Cash provided by (used in) financing activities: | |||
Proceeds from credit facilities and notes payable, net of fees | 11,372 | 6,437 | |
Proceeds from issuance of senior notes, net of discount and fees | 1,186 | — | |
Payments of credit facilities and notes payable | (12,018) | (6,441) | |
Issuances of common stock, net | (19) | (25) | |
Purchases of common stock for treasury | (55) | — | |
Cash dividends paid | (181) | (168) | |
Contingent consideration payments | (1) | (4) | |
Cash provided by (used in) financing activities | 284 | (201) | |
Effect of foreign exchange rate changes on cash | — | (1) | |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 21 | (70) | |
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 | $ 224 | $ 158 | |
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 months ended March 31, 2025 and 2024:
Three Months Ended March 31, | |||||||
2025 | 2024 | ||||||
Collection: | |||||||
Residential | $ 743 | 18.6 % | $ 723 | 18.7 % | |||
Small-container | 1,243 | 31.0 | 1,189 | 30.8 | |||
Large-container | 739 | 18.4 | 733 | 19.0 | |||
Other | 18 | 0.4 | 18 | 0.5 | |||
Total collection | 2,743 | 68.4 | 2,663 | 69.0 | |||
Transfer | 424 | 419 | |||||
Less: intercompany | (236) | (236) | |||||
Transfer, net | 188 | 4.7 | 183 | 4.7 | |||
Landfill | 723 | 705 | |||||
Less: intercompany | (302) | (301) | |||||
Landfill, net | 421 | 10.5 | 404 | 10.4 | |||
Environmental solutions | 466 | 440 | |||||
Less: intercompany | (17) | (16) | |||||
Environmental solutions, net | 449 | 11.2 | 424 | 11.0 | |||
Other: | |||||||
Recycling processing and commodity sales | 108 | 2.7 | 95 | 2.5 | |||
Other non-core | 100 | 2.5 | 93 | 2.4 | |||
Total other | 208 | 5.2 | 188 | 4.9 | |||
Total revenue | $ 4,009 | 100.0 % | $ 3,862 | 100.0 % | |||
The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31, | |||
2025 | 2024 | ||
Average yield | 4.5 % | 6.0 % | |
Fuel recovery fees | (0.4) | (0.4) | |
Total price | 4.1 | 5.6 | |
Volume | (1.2) | (0.9) | |
Change in workdays | (0.5) | 0.1 | |
Recycling processing and commodity sales | 0.3 | 0.4 | |
Environmental solutions | 0.2 | (1.1) | |
Total internal growth | 2.9 | 4.1 | |
Acquisitions / divestitures, net | 0.9 | 3.7 | |
Total | 3.8 % | 7.8 % | |
Core price | 6.1 % | 7.0 % | |
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 months ended March 31, 2025 and 2024:
Three Months Ended March 31, | |||
2025 | 2024 | ||
As a % of Related Business | |||
Core price | 7.3 % | 8.5 % | |
Average yield | 5.4 % | 7.3 % | |
Volume | (1.5) % | (1.1) % | |
The following table reflects changes in average yield and volume, as a percentage of related business revenue by line of business, for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31, | |||||||
2025 | 2024 | ||||||
Yield | Volume | Yield | Volume | ||||
Collection: | |||||||
Residential | 5.5 % | (2.9) % | 6.7 % | (2.6) % | |||
Small-container | 6.3 % | (1.3) % | 10.7 % | 0.3 % | |||
Large-container | 5.7 % | (3.3) % | 7.0 % | (4.4) % | |||
Landfill: | |||||||
Municipal solid waste | 6.8 % | (3.6) % | 5.7 % | 1.6 % | |||
Construction and demolition waste | 4.2 % | 11.0 % | 6.2 % | (2.9) % | |||
Special waste | — % | 6.3 % | — % | (2.5) % | |||
COST OF OPERATIONS
The following table summarizes the major components of our cost of operations for the three months ended March 31, 2025 and 2024 (in millions of dollars and as a percentage of revenue):
Three Months Ended March 31, | |||||||
2025 | 2024 | ||||||
Labor and related benefits | $ 818 | 20.4 % | $ 789 | 20.4 % | |||
Transfer and disposal costs | 253 | 6.3 | 263 | 6.8 | |||
Maintenance and repairs | 359 | 9.0 | 356 | 9.2 | |||
Transportation and subcontract costs | 292 | 7.3 | 280 | 7.3 | |||
Fuel | 114 | 2.8 | 126 | 3.3 | |||
Disposal fees and taxes | 83 | 2.1 | 84 | 2.2 | |||
Landfill operating costs | 90 | 2.2 | 91 | 2.3 | |||
Risk management | 104 | 2.6 | 96 | 2.5 | |||
Other | 201 | 5.0 | 198 | 5.1 | |||
Total cost of operations | $ 2,314 | 57.7 % | $ 2,283 | 59.1 % | |||
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 months ended March 31, 2025 and 2024 (in millions of dollars and as a percentage of revenue):
Three Months Ended March 31, | |||||||
2025 | 2024 | ||||||
Salaries and related benefits | $ 293 | 7.3 % | $ 280 | 7.2 % | |||
Provision for doubtful accounts | 10 | 0.3 | 7 | 0.2 | |||
Other | 124 | 3.1 | 127 | 3.3 | |||
Total selling, general and administrative expenses | $ 427 | 10.7 % | $ 414 | 10.7 % | |||
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 months ended March 31, 2025 and 2024 (in millions of dollars and as a percentage of revenue):
Three Months Ended March 31, | |||||||
2025 | 2024 | ||||||
Net income attributable to Republic Services, Inc. and net income margin | $ 495 | 12.3 % | $ 454 | 11.8 % | |||
Provision for income taxes | 170 | 145 | |||||
Other income, net | (11) | (13) | |||||
Interest income | (2) | (1) | |||||
Interest expense | 140 | 139 | |||||
Depreciation, depletion and amortization | 434 | 399 | |||||
Accretion | 28 | 27 | |||||
EBITDA and EBITDA margin | $ 1,254 | 31.3 % | $ 1,150 | 29.8 % | |||
Loss from unconsolidated equity method investments | 12 | 9 | |||||
Restructuring charges | 4 | 6 | |||||
Gain on business divestitures and impairments, net | (2) | — | |||||
Total adjustments | $ 14 | $ 15 | |||||
Adjusted EBITDA and adjusted EBITDA margin | $ 1,268 | 31.6 % | $ 1,165 | 30.2 % | |||
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 months ended March 31, 2025 and 2024 (in millions of dollars and adjusted EBITDA margin as a percentage of revenue):
Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |||||||||||
Recycling & | Environmental | Total | Recycling & | Environmental | Total | |||||||
Revenue | $ 3,560 | $ 449 | $ 4,009 | $ 3,438 | $ 424 | $ 3,862 | ||||||
Adjusted EBITDA(a) | $ 1,178 | $ 90 | $ 1,268 | $ 1,078 | $ 87 | $ 1,165 | ||||||
Adjusted EBITDA Margin | 33.1 % | 20.1 % | 31.6 % | 31.3 % | 20.5 % | 30.2 % | ||||||
(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 months ended March 31, 2025 and 2024 (in millions of dollars except per share data):
Three Months Ended March 31, 2025 | Three Months Ended March 31, 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 | $ 665 | $ 170 | $ 495 | $ 1.58 | $ 599 | $ 145 | $ 454 | $ 1.44 | ||||||||
Restructuring charges | 4 | 1 | 3 | 0.01 | 6 | 2 | 4 | 0.01 | ||||||||
Gain on business divestitures and impairments, net | (2) | — | (2) | (0.01) | — | — | — | — | ||||||||
Total adjustments | 2 | 1 | 1 | — | 6 | 2 | 4 | 0.01 | ||||||||
As adjusted | $ 667 | $ 171 | $ 496 | $ 1.58 | $ 605 | $ 147 | $ 458 | $ 1.45 | ||||||||
(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. |
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.
Restructuring charges. During the three months ended March 31, 2025 and 2024, we incurred restructuring charges of
Gain on business divestitures and impairments, net. During the three months ended March 31, 2025, we recorded a net gain 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
Three Months Ended March 31 | ||||
2025 | 2024 | |||
Cash provided by operating activities | $ 1,025 | $ 811 | ||
Property and equipment received | (304) | (283) | ||
Proceeds from sales of property and equipment | 3 | 2 | ||
Restructuring payments, net of tax | 3 | 5 | ||
Adjusted free cash flow | $ 727 | $ 535 | ||
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 three months ended March 31, 2025 and 2024 (in millions of dollars):
Three Months Ended March 31 | ||
2025 | 2024 | |
Purchases of property and equipment per the unaudited consolidated statements of cash flows | $ 459 | $ 515 |
Adjustments for property and equipment received in a different period | (155) | (232) |
Property and equipment received during the period | $ 304 | $ 283 |
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 March 31, 2025 and December 31, 2024, accounts receivable were
CASH DIVIDENDS
In January 2025, we paid a cash dividend of
SHARE REPURCHASE PROGRAM
During the three months ended March 31, 2025, we repurchased 0.2 million shares of our common stock for
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 increasing 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 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
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SOURCE Republic Services, Inc.
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