Core Insights - Republic Services, Inc. (RSG) reported mixed first-quarter 2025 results with earnings surpassing estimates while revenues fell short [1] - The company’s earnings per share (EPS) was $1.58, exceeding the Zacks Consensus Estimate by 4% and reflecting a 9% increase year-over-year [1] - Revenues totaled $4 billion, slightly missing the consensus estimate but showing a year-over-year growth of 3.8% [1] Financial Performance - RSG's stock has increased by 26.8% over the past year, outperforming the industry growth of 8.9% and the Zacks S&P 500 Composite growth of 6.7% [2] - Segment revenues included $2.7 billion from Collection, a 3% increase year-over-year, and $449 million from Environmental Solutions, which grew 5.9% but missed projections [3] - Transfer and Landfill segment revenues were $188 million and $421 million, reflecting increases of 2.7% and 4.2% year-over-year, respectively, but also missed estimates [4] Operating Results - Adjusted EBITDA for the quarter was $1.3 billion, an 8.8% increase from the previous year, surpassing estimates [5] - The adjusted EBITDA margin improved to 31.6%, up 140 basis points year-over-year, exceeding projections [5] Balance Sheet & Cash Flow - At the end of Q1 2025, RSG had cash and cash equivalents of $83 million, up from $74 million at the end of Q4 2024 [6] - Long-term debt increased to $12.9 billion from $11.9 billion in the previous quarter [6] - The company generated $1 billion in cash from operating activities, with adjusted free cash flow of $727 million and capital expenditures of $459 million [6] 2025 Guidance - For 2025, RSG expects revenues between $16.85 billion and $16.95 billion, with the midpoint exceeding the Zacks Consensus Estimate [8] - The company anticipates adjusted EPS in the range of $6.82 to $6.90, aligning with the consensus estimate [8] - Adjusted EBITDA guidance is set between $5.28 billion and $5.33 billion [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Numbe ...

Core Insights - Republic Services reported $4.01 billion in revenue for Q1 2025, a year-over-year increase of 3.8% and an EPS of $1.58 compared to $1.45 a year ago, with a revenue surprise of -0.99% and an EPS surprise of +3.95% [1] Revenue Performance - Environmental solutions revenue was $466 million, slightly above the estimate of $465.80 million, reflecting a +6.1% year-over-year change [4] - Total collection revenue was $2.74 billion, below the estimate of $2.78 billion, with a year-over-year change of +3% [4] - Small-container collection revenue was $1.24 billion, matching the estimate, with a +4.5% year-over-year change [4] - Large-container collection revenue was $739 million, below the estimate of $773.91 million, with a +0.9% year-over-year change [4] - Other collection revenue was $18 million, slightly below the estimate of $18.04 million, with a +1.7% year-over-year change [4] - Other non-core revenue was $100 million, exceeding the estimate of $95.94 million, with a +7.6% year-over-year change [4] - Environmental solutions, net revenue was $449 million, below the estimate of $461.65 million, with a +6.1% year-over-year change [4] - Transfer revenue was $424 million, below the estimate of $449.22 million, with a +1.1% year-over-year change [4] - Landfill revenue was $723 million, below the estimate of $753.45 million, with a +2.6% year-over-year change [4] - Recycling processing and commodity sales revenue was $108 million, exceeding the estimate of $97.65 million, with a +13.1% year-over-year change [4] - Residential collection revenue was $743 million, slightly below the estimate of $748.33 million, with a +2.7% year-over-year change [4] Stock Performance - Shares of Republic Services returned +1.5% over the past month, outperforming the Zacks S&P 500 composite, which changed -5.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Revenue growth of 4% was achieved in the first quarter, with adjusted EBITDA growth of 9% and an adjusted EBITDA margin expansion of 140 basis points to 31.6% [10][26] - Adjusted earnings per share reached $1.58, and adjusted free cash flow was $727 million, reflecting a 36% increase compared to the prior year [10][28] - The total debt stood at $13.4 billion, with total liquidity of $2.6 billion and a leverage ratio of approximately 2.6 times [28][29] Business Line Data and Key Metrics Changes - Organic volume on total revenue declined by 1.2%, primarily due to shedding underperforming contracts in the residential business and softness in construction and manufacturing end markets [13][24] - Environmental Solutions revenue increased by $25 million compared to the prior year, with an adjusted EBITDA margin of 20.1%, down from 20.5% in the previous year [27] - Recycling processing and commodity sales contributed positively, with commodity prices averaging $155 per ton, up from $153 per ton in the prior year [25] Market Data and Key Metrics Changes - Average yield on total revenue was 4.5%, while average yield on related revenue was 5.4% [22][23] - Severe weather negatively impacted volume performance by an estimated $25 million to $30 million during the quarter, particularly in January and February [24] Company Strategy and Development Direction - The company is focused on sustainability innovation investments, including plastic circularity and decarbonization, with ongoing development of polymer centers and renewable natural gas projects [15][17] - The acquisition of Shamrock Environmental was highlighted as a strategic move to enhance capabilities in industrial waste and wastewater treatment services [20] - The company aims to continue its balanced approach to capital allocation, with over $1 billion of investment opportunities in value-creating acquisitions anticipated for 2025 [21] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging demand environment in cyclical volumes, particularly in construction and manufacturing, but expressed optimism for a pickup in demand in the coming months [33][34] - The company reaffirmed its guidance for 2025, indicating a cautious but steady recovery in manufacturing and construction [36][37] - Management emphasized the importance of customer service delivery in maintaining high retention rates and pricing power [77] Other Important Information - The company was upgraded to a credit rating of A3 by Moody's, reflecting the stability of its revenue base and strong EBITDA margin profile [29] - Employee engagement scores are improving, and turnover rates are trending lower compared to the prior year, indicating a positive workplace environment [19] Q&A Session Summary Question: Comments on cyclical parts of the business - Management acknowledged ongoing softness in cyclical volumes, particularly in construction and manufacturing, but noted a potential pickup in March and April [33][34] Question: Outlook on 2025 guidance metrics - Management reaffirmed guidance without formal updates, indicating a focus on seasonal demand trends [36][37] Question: Margin expansion in solid waste - Margin expansion was driven by pricing exceeding cost inflation, with a mix of strong special waste volumes contributing positively [42][43] Question: Appetite for further M&A - The company remains active in M&A, focusing on strategic fits and financial returns, with a strong pipeline of opportunities [45][46] Question: KPIs for assessing end market health - Management looks at manufacturing output and industrial activity as key indicators, noting historic softness in these markets [55] Question: Environmental Solutions EBITDA margin - Management indicated that project timing and weather impacted margins, but expects long-term margin expansion [102][104] Question: Impact of weather on project work - Weather issues in Q1 affected project timing, but management is optimistic about recovery in subsequent months [90][91] Question: Pricing and retention rates - Improvements in service delivery have led to better customer retention and acceptance of price increases [77][78] Question: Polymer centers performance - Polymer centers are meeting inbound volume assumptions, with strong demand for recycled products [131][132] Question: M&A motivations of sellers - Broader uncertainty may encourage sellers to consider cashing out, but high-quality assets remain the focus [142] Question: Capital plan and tariff impacts - Minimal impact from tariffs is expected in 2025, with ongoing efforts to mitigate risks [116]

Core Viewpoint - Republic Services reported quarterly earnings of $1.58 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, and showing an increase from $1.45 per share a year ago, indicating a positive earnings surprise of 3.95% [1] - The company posted revenues of $4.01 billion for the quarter ended March 2025, which was slightly below the Zacks Consensus Estimate by 0.99%, but an increase from $3.86 billion year-over-year [2] Group 1: Earnings Performance - Republic Services has surpassed consensus EPS estimates for the last four quarters, with a notable surprise of 15.33% in the previous quarter [1][2] - The current consensus EPS estimate for the upcoming quarter is $1.73, with projected revenues of $4.27 billion, and for the current fiscal year, the EPS estimate is $6.86 on revenues of $16.89 billion [7] Group 2: Stock Performance and Market Comparison - Republic Services shares have increased approximately 20% since the beginning of the year, contrasting with the S&P 500's decline of 8.6% [3] - The stock currently holds a Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Outlook - The Waste Removal Services industry is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Republic Services may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Image source: The Motley Fool. Thursday, Apr 24, 2025 CALL PARTICIPANTS John Vander Ark: Chief Executive Officer Brian DelGhiaccio: Chief Financial Officer Need a quote from one of our analysts? Email [email protected] Revenue Growth: Revenue Growth: 4%, despite challenging winter weather and softness in cyclical volumes Adjusted EBITDA: 9% growth, achieving a 140 basis point expansion in adjusted EBITDA margin to 31.6% in Q1 2025 Adjusted EPS: $1.58 Adjusted Free Cash Flow: $727 million, a 36% increase fro ...

EXHIBIT 99.1 Republic Services, Inc. Reports First Quarter 2025 Results First-Quarter 2025 Highlights: Company Declared Quarterly Dividend Republic announced that its Board of Directors declared a regular quarterly dividend of $0.58 per share for shareholders of record on July 2, 2025. The dividend will be paid on July 15, 2025. 2 • 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 p ...

Republic Services, Inc. (RSG) is scheduled to release its first-quarter 2025 results on April 24, after market close. RSG has an impressive earnings surprise history. In the trailing four quarters, it surpassed the Zacks Consensus Estimate, with an average surprise of 9.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Republic Services, Inc. Price, Consensus and EPS Surprise Republic Services' Q1 Expectations The Zacks Consensus Estimate for the company's revenues is pegged at $ ...

In its upcoming report, Republic Services (RSG) is predicted by Wall Street analysts to post quarterly earnings of $1.52 per share, reflecting an increase of 4.8% compared to the same period last year. Revenues are forecasted to be $4.05 billion, representing a year-over-year increase of 4.9%.The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their i ...

The recent turmoil in the stock market has been notable, to say the least. With tariff announcements sending shockwaves through global markets, finding individual stocks to write about has been daunting, admittedly. While there is no doubt that there are many macroeconomicI am an investment professional with a background in both equity and real estate markets. I specialize in identifying long-only opportunities that offer safe and growing dividends, aiming to outperform the broader market on a risk-adjusted ...