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Republic Services, Inc. Reports Fourth Quarter and Full-Year 2024 Results; Provides 2025 Full-Year Financial Guidance

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Republic Services Inc 185,25 € Republic Services Inc Chart +0,24%
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  • Exceeded Adjusted EBITDA, Adjusted Earnings Per Share and Adjusted Free Cash Flow Full-Year 2024 Guidance
  • Fourth Quarter Total Revenue Growth of 5.6 Percent
  • Fourth Quarter Earnings Per Share of $1.63 and Adjusted Earnings Per Share of $1.58
  • Expanded Fourth Quarter Net Income Margin 120 Basis Points and Adjusted EBITDA Margin 110 Basis Points
  • Generated Cash Flow from Operations of $3.94 Billion and Adjusted Free Cash Flow of $2.18 Billion in 2024
  • Returned $1.18 Billion to Shareholders in 2024

PHOENIX, Feb. 13, 2025 /PRNewswire/ -- Republic Services, Inc. (NYSE: RSG) today reported net income of $512 million, or $1.63 per diluted share, for the three months ended December 31, 2024, versus $440 million, or $1.39 per diluted share, for the comparable 2023 period. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended December 31, 2024, was $497 million, or $1.58 per diluted share, versus $446 million, or $1.41 per diluted share, for the comparable 2023 period.

"We delivered another strong year of results in 2024, made possible by effectively executing our strategy designed to meet the needs of our customers and profitably grow the business. We exceeded expectations and generated double-digit growth in EBITDA, earnings and free cash flow, and expanded adjusted EBITDA margin by 140 basis points during the year," said Jon Vander Ark, president and chief executive officer. "We continued to make investments across our business that support our differentiated capabilities and returned nearly $1.2 billion to shareholders through dividends and share repurchases."

Fourth-Quarter 2024 Highlights

  • Total revenue growth of 5.6 percent includes 4.3 percent organic growth and 1.3 percent growth from acquisitions.

  • 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 9.1 percent in the open market and 4.5 percent in the restricted portion of the business.

  • Revenue growth from average yield on total revenue was 4.4 percent, and volume decreased revenue by 1.2 percent. Revenue growth from average yield on related business revenue was 5.3 percent, and volume decreased related business revenue by 1.5 percent.

  • Net income was $512 million, or a margin of 12.7 percent.

  • EPS was $1.63 per share, an increase of 17.3 percent over the prior year.

  • Adjusted EPS, a non-GAAP measure, was $1.58 per share, an increase of 12.1 percent over the prior year.

  • Adjusted EBITDA, a non-GAAP measure, was $1.25 billion, and adjusted EBITDA margin, a non-GAAP measure, was 31.0 percent of revenue, an increase of 110 basis points over the prior year.

  • The Company's average recycled commodity price per ton sold at our recycling centers during the fourth quarter was $153. This represents an increase of $22 per ton over the prior year.

  • The Company completed and commenced operations on two renewable natural gas projects during the quarter.

Full-Year 2024 Highlights

  • Total revenue growth of 7.1 percent includes 4.5 percent organic growth and 2.6 percent growth from acquisitions.

  • Core price on total revenue increased revenue by 6.5 percent. Core price on related business revenue increased revenue by 7.8 percent, which consisted of 9.5 percent in the open market and 5.1 percent in the restricted portion of the business.

  • Revenue growth from average yield on total revenue was 5.1 percent, and volume decreased revenue by 1.1 percent. Revenue growth from average yield on related business revenue was 6.2 percent, and volume decreased related business revenue by 1.3 percent.

  • Net income was $2.04 billion, or a margin of 12.7 percent.

  • EPS was $6.49 per share, an increase of 18.6 percent over the prior year.

  • Adjusted EPS, a non-GAAP measure, was $6.46 per share, an increase of 15.2 percent over the prior year.

  • Adjusted EBITDA, a non-GAAP measure, was $4.98 billion and adjusted EBITDA margin, a non-GAAP measure, was 31.1 percent of revenue, an increase of 140 basis points over the prior year.

  • Cash provided by operating activities was $3.94 billion, an increase of 8.8 percent over the prior year.

  • Adjusted free cash flow, a non-GAAP measure, was $2.18 billion, an increase of 10.0 percent versus the prior year.

  • Cash invested in acquisitions, including an investment in a post-collection business, was $358 million.

  • Six renewable natural gas projects were completed and commenced operations during the year.

  • We commenced operations at our first Polymer Center in Las Vegas, and completed construction at our Polymer Center in Indianapolis.

  • Cash returned to shareholders was $1.18 billion, which included $490 million of share repurchases and $687 million of dividends paid.

  • The Company's average recycled commodity price per ton sold during the year was $164. This represents an increase of $47 per ton over the prior 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 in 2025. The financial guidance also includes the expected contribution from acquisitions that have closed to date. Please refer to the Reconciliation of 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. Full-year 2025 financial guidance is as follows:

  • Revenue: Republic expects revenue to be in the range of $16.850 billion to $16.950 billion. The Company expects growth from average yield on total revenue to be approximately 4 percent and average yield on related revenue to be approximately 5 percent. The Company expects the impact from volume on total revenue to be in the range of (0.25) percent to 0.25 percent.

  • Adjusted EBITDA: Republic expects adjusted EBITDA to be in the range of $5.275 billion to $5.325 billion.

  • Adjusted Diluted Earnings per Share: The Company expects adjusted diluted earnings per share to be in the range of $6.82 to $6.90.

  • Adjusted Free Cash Flow: Republic expects adjusted free cash flow to be in the range of $2.320 billion to $2.360 billion. The Company expects to receive between $1.860 billion to $1.900 billion of property and equipment, net of proceeds from the sale of property and equipment.

  • Acquisitions: Republic expects to invest approximately $1 billion in acquisitions in 2025.

"We expect to deliver another strong year of profitable growth in 2025," said Mr. Vander Ark. "Our outlook is supported by pricing in excess of cost inflation, continued contribution from acquisitions, productivity enhancements from our digital tools and investments in sustainability innovation to drive long-term value creation."

Company Declared Quarterly Dividend

Republic previously announced that its Board of Directors declared a regular quarterly dividend of $0.58 per share for shareholders of record on April 2, 2025. The dividend will be paid on April 15, 2025.

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

media@RepublicServices.com

investor@RepublicServices.com

 

SUPPLEMENTAL UNAUDITED FINANCIAL INFORMATION

AND OPERATING DATA





REPUBLIC SERVICES, INC.

CONSOLIDATED BALANCE SHEETS

 (in millions, except per share amounts)






December 31,


December 31,


2024


2023


(Unaudited)



ASSETS

Current assets:




Cash and cash equivalents

$                    74


$                  140

Accounts receivable, less allowance for doubtful accounts and other of $74 and $83, respectively

1,821


1,768

Prepaid expenses and other current assets

511


473

Total current assets

2,406


2,381

Restricted cash and marketable securities

208


164

Property and equipment, net

11,877


11,351

Goodwill

15,982


15,834

Other intangible assets, net

546


496

Other assets

1,383


1,184

Total assets

$             32,402


$             31,410

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:




Accounts payable

$               1,345


$               1,412

Notes payable and current maturities of long-term debt

862


932

Deferred revenue

485


467

Accrued landfill and environmental costs, current portion

159


141

Accrued interest

101


104

Other accrued liabilities

1,176


1,172

Total current liabilities

4,128


4,228

Long-term debt, net of current maturities

11,851


11,887

Accrued landfill and environmental costs, net of current portion

2,432


2,281

Deferred income taxes and other long-term tax liabilities, net

1,594


1,527

Insurance reserves, net of current portion

402


349

Other long-term liabilities

588


595

Commitments and contingencies




Stockholders' equity:




Preferred stock, par value $0.01 per share; 50 shares authorized; none issued


Common stock, par value $0.01 per share; 750 shares authorized; 313 and 321 issued including shares held in
treasury, respectively

3


3

Additional paid-in capital

1,767


2,901

Retained earnings

9,774


8,434

Treasury stock, at cost; 1 and 6 shares, respectively

(113)


(784)

Accumulated other comprehensive loss, net of tax

(26)


(12)

Total Republic Services, Inc. stockholders' equity

11,405


10,542

Non-controlling interests in consolidated subsidiary

2


1

Total stockholders' equity

11,407


10,543

Total liabilities and stockholders' equity

$             32,402


$             31,410

 

REPUBLIC SERVICES, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 (in millions, except per share data)










Three Months Ended December 31,


Year Ended December 31,


2024


2023


2024


2023

Revenue

$                 4,046


$                   3,832


$               16,032


$               14,965

Expenses:








Cost of operations

2,317


2,264


9,350


8,943

Depreciation, depletion and amortization

443


402


1,677


1,501

Accretion

27


25


107


98

Selling, general and administrative

447


431


1,674


1,609

Adjustment to withdrawal liability for a multiemployer pension
     fund


5



5

Gain on business divestitures and impairments, net


(2)


(1)


(4)

Restructuring charges

9


6


29


33

Operating income

803


701


3,196


2,780

Interest expense

(134)


(129)


(539)


(508)

Loss on extinguishment of debt



(2)


Loss from unconsolidated equity method investments

(139)


(95)


(255)


(94)

Interest income

2


2


9


6

Other income, net


4


23


7

Income before income taxes

532


483


2,432


2,191

Provision for income taxes

20


43


388


460

Net income

512


440


2,044


1,731

Net loss attributable to non-controlling interests in consolidated
      subsidiary



(1)


Net income attributable to Republic Services, Inc.

$                    512


$                      440


$                 2,043


$                 1,731

Basic earnings per share attributable to Republic Services, Inc.
stockholders:








Basic earnings per share

$                   1.63


$                     1.40


$                   6.50


$                   5.47

Weighted average common shares outstanding

313.4


315.1


314.4


316.2

Diluted earnings per share attributable to Republic Services, Inc.
stockholders:








Diluted earnings per share

$                   1.63


$                     1.39


$                   6.49


$                   5.47

Weighted average common and common equivalent shares
     outstanding

313.8


315.7


314.8


316.7

Cash dividends per common share

$                 0.580


$                   0.535


$                 2.230


$                 2.060

 

REPUBLIC SERVICES, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in millions)


Year Ended December 31,


2024


2023

Cash provided by operating activities:




Net income

$                2,044


$                  1,731

Adjustments to reconcile net income to cash provided by operating activities:




Depreciation, depletion, amortization and accretion

1,784


1,599

Non-cash interest expense

71


86

Stock-based compensation

42


41

Deferred tax provision

87


102

Provision for doubtful accounts, net of adjustments

27


53

Loss on extinguishment of debt

2


Gain on disposition of assets and asset impairments, net

(19)


(1)

Environmental adjustments

7


2

Loss from unconsolidated equity method investments

255


94

Other non-cash items

(10)


(1)

Change in assets and liabilities, net of effects from business acquisitions and divestitures:




Accounts receivable

(76)


(71)

Prepaid expenses and other assets

(171)


(30)

Accounts payable

(27)


83

Capping, closure and post-closure expenditures

(56)


(61)

Remediation expenditures

(62)


(55)

Other liabilities

14


43

Proceeds for retirement of certain hedging relationships

24


3

Cash provided by operating activities

3,936


3,618

Cash used in investing activities:




Purchases of property and equipment

(1,855)


(1,631)

Proceeds from sales of property and equipment

47


29

Cash used in acquisitions and investments, net of cash and restricted cash acquired

(753)


(2,065)

Cash received from business divestitures

2


6

Purchases of restricted marketable securities

(26)


(29)

Sales of restricted marketable securities

24


13

Other


10

Cash used in investing activities

(2,561)


(3,667)

Cash (used in) provided by financing activities:




Proceeds from credit facilities and notes payable, net of fees

24,020


39,221

Proceeds from issuance of senior notes, net of discount and fees

889


2,172

Payments of credit facilities and notes payable

(25,109)


(40,411)

Issuances of common stock, net

(14)


(1)

Purchases of common stock for treasury

(482)


(262)

Cash dividends paid

(687)


(638)

Contingent consideration payments

(15)


(19)

Cash (used in) provided by financing activities

(1,398)


62

Effect of foreign exchange rate changes on cash

(2)


1

(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents

(25)


14

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

228


214

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$                   203


$                     228

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 (when filed). 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 and year ended December 31, 2024 and 2023:


Three Months Ended December 31,


Year Ended December 31,


2024


2023


2024


2023

Collection:
















Residential

$      743


18.3 %


$      719


18.8 %


$     2,939


18.3 %


$     2,823


18.9 %

Small-container

1,221


30.2


1,168


30.5


4,820


30.1


4,439


29.7

Large-container

747


18.5


730


19.1


3,024


18.9


2,922


19.5

Other

17


0.4


18


0.5


72


0.4


69


0.4

Total collection

2,728


67.4


2,635


68.9


10,855


67.7


10,253


68.5

Transfer

445




418




1,780




1,699



Less: intercompany

(242)




(230)




(975)




(933)



Transfer, net

203


5.0


188


4.9


805


5.0


766


5.1

Landfill

747




713




2,981




2,885



Less: intercompany

(304)




(293)




(1,240)




(1,206)



Landfill, net

443


11.0


420


11.0


1,741


10.9


1,679


11.2

Environmental solutions

499




427




1,907




1,701



Less: intercompany

(17)




(14)




(64)




(76)



Environmental solutions, net

482


11.9


413


10.8


1,843


11.5


1,625


10.9

Other:
















Recycling processing and commodity
sales

99


2.4


86


2.2


409


2.5


312


2.1

Other non-core

91


2.3


90


2.2


379


2.4


330


2.2

Total other

190


4.7


176


4.4


788


4.9


642


4.3

Total revenue

$   4,046


100.0 %


$   3,832


100.0 %


$   16,032


100.0 %


$   14,965


100.0 %

The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three months and year ended December 31, 2024 and 2023:


Three Months Ended December 31,


Year Ended December 31,






2024


2023


2024


2023





Average yield

4.4 %


6.3 %


5.1 %


6.1 %





Fuel recovery fees

(0.9)


(0.3)


(0.4)


(0.2)





Total price

3.5


6.0


4.7


5.9





Volume

(1.2)


0.3


(1.1)


0.5





Change in workdays

0.5


(0.1)


0.3






Recycling processing and commodity sales

0.2


0.5


0.5


(0.5)





Environmental solutions

1.3


(1.0)


0.1


0.1





Total internal growth

4.3


5.7


4.5


6.0





Acquisitions / divestitures, net

1.3


2.9


2.6


4.8





Total

5.6 %


8.6 %


7.1 %


10.8 %

















Core price

6.1 %


7.2 %


6.5 %


7.4 %





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 and year ended December 31, 2024 and 2023:


Three Months Ended December 31,


Year Ended December 31,


2024


2023


2024


2023


As a % of Related Business


As a % of Related Business

Average yield

5.3 %


7.7 %


6.2 %


7.3 %

Core price

7.3 %


8.8 %


7.8 %


8.9 %

Volume

(1.5) %


0.4 %


(1.3) %


0.7 %

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 and year ended December 31, 2024 and 2023:


Three Months Ended December 31,


Year Ended December 31,


2024


2023


2024


2023


Yield


Volume


Yield


Volume


Yield


Volume


Yield


Volume

Collection:
















Residential

5.6 %


(2.8) %


7.4 %


(2.4) %


5.9 %


(2.7) %


5.9 %


(0.5) %

Small-container

6.1 %


(0.3) %


11.2 %


0.2 %


8.4 %


(0.3) %


10.1 %


0.9 %

Large-container

5.9 %


(4.6) %


7.7 %


(1.4) %


6.2 %


(4.0) %


8.6 %


(0.9) %

Landfill:
















Municipal solid waste

5.6 %


(0.2) %


6.3 %


3.7 %


5.4 %


0.7 %


6.0 %


1.5 %

Construction and demolition waste

1.5 %


17.0 %


7.4 %


(2.1) %


3.9 %


3.8 %


6.6 %


(2.7) %

Special waste

— %


(0.8) %


— %


12.7 %


— %


(1.6) %


— %


12.4 %

COST OF OPERATIONS

The following table summarizes the major components of our cost of operations for the three months and year ended December 31, 2024 and 2023 (in millions of dollars and as a percentage of revenue):


Three Months Ended December 31,


Year Ended December 31,


2024


2023


2024


2023

Labor and related benefits

$        801


19.8 %


$          761


19.9 %


$       3,213


20.0 %


$       2,994


20.0 %

Transfer and disposal costs

270


6.7


267


7.0


1,101


6.9


1,055


7.1

Maintenance and repairs

363


9.0


352


9.2


1,468


9.2


1,388


9.3

Transportation and subcontract costs

328


8.1


290


7.6


1,212


7.6


1,171


7.8

Fuel

109


2.7


135


3.5


470


2.9


542


3.6

Disposal fees and taxes

87


2.1


86


2.2


351


2.2


348


2.3

Landfill operating costs

91


2.2


85


2.2


367


2.3


335


2.2

Risk management

101


2.5


98


2.6


401


2.4


385


2.6

Other

198


4.9


190


4.9


796


5.0


725


4.9

Subtotal

2,348


58.0


2,264


59.1


9,379


58.5


8,943


59.8

Gain on certain divestitures and
impairments, net

(29)


(0.7)




(29)


(0.2)



Total cost of operations

$     2,319


57.3 %


$       2,264


59.1 %


$       9,350


58.3 %


$       8,943


59.8 %

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 and year ended December 31, 2024 and 2023 (in millions of dollars and as a percentage of revenue):


Three Months Ended December 31,


Year Ended December 31,


2024


2023


2024


2023

Salaries

$        294


7.3 %


$        280


7.3 %


$  1,129


7.0 %


$  1,050


7.0 %

Provision for doubtful accounts

7


0.2


15


0.4


27


0.2


53


0.4

Other

146


3.5


128


3.3


518


3.2


472


3.1

Subtotal

447


11.0


423


11.0


1,674


10.4


1,575


10.5

US Ecology acquisition integration and
deal costs



9


0.2




34


0.2

Total selling, general and
     administrative expenses

$        447


11.0 %


$        432


11.2 %


$  1,674


10.4 %


$  1,609


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 U.S. generally accepted accounting principles (U.S. GAAP), for the three months and year ended December 31, 2024 and 2023. Our definitions of the foregoing non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies.

Adjusted EBITDA and Adjusted EBITDA Margin

The following table calculates adjusted EBITDA and adjusted EBITDA margin for the three months and year ended December 31, 2024 and 2023 (in millions of dollars and as a percentage of revenue):


Three Months Ended December 31,


Year Ended December 31,


2024


2023


2024


2023

Net income attributable to
Republic Services, Inc. and net
income margin

$        512


12.7 %


$        440


11.5 %


2,043


12.7 %


$     1,731


11.6 %

Net loss attributable to
noncontrolling interests







1






Provision for income taxes

20




43




388




460



Other income, net




(4)




(23)




(7)



Interest income

(2)




(2)




(9)




(6)



Interest expense

134




129




539




508



Depreciation, depletion and
amortization

443




402




1,677




1,501



Accretion

27




25




107




98



EBITDA and EBITDA margin

$     1,134


28.0 %


$     1,033


27.0 %


$     4,723


29.5 %


$     4,285


28.6 %

Loss from unconsolidated equity
method investment

139




95




255




94



Loss on extinguishment of debt
and other related costs







2






Adjustment to withdrawal
liability for a multiemployer
pension fund




4







5



Restructuring charges

9




6




29




33



Gain on certain divestitures and
impairments, net

(29)




(2)




(30)




(4)



US Ecology acquisition
integration and deal costs




9







34



Total adjustments

$        119




$        112




$        256




$        162



Adjusted EBITDA and adjusted
EBITDA margin

$     1,253


31.0 %


$     1,145


29.9 %


$     4,979


31.1 %


$     4,447


29.7 %

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 and year ended December 31, 2024 (in millions of dollars and adjusted EBITDA margin as a percentage of revenue):



Three Months Ended December 31, 2024



Recycling &
Waste


Environmental
Solutions


Total

Revenue


$         3,564


$               482


$           4,046

Adjusted EBITDA(a)

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