Republic Services(US:RSG)2025-10-30 20:10Financial Performance - Reported net income for Q3 2025 was $550 million, or $1.76 per diluted share, compared to $566 million, or $1.80 per diluted share in Q3 2024[2] - Adjusted net income for Q3 2025 was $594 million, or $1.90 per diluted share, versus $568 million, or $1.81 per diluted share in Q3 2024[2] - Net income for the nine months ended September 30, 2025, was $1,595 million, an increase from $1,531 million in 2024[19] - Adjusted diluted earnings per share for Q3 2025 were $1.90, compared to $1.81 in Q3 2024[30] Revenue and Growth - Total revenue for Q3 2025 was $4.21 billion, reflecting a growth of 3.3%, with 1.7% organic growth and 1.6% growth from acquisitions[7] - Total revenue for the nine months ended September 30, 2025, was $12,456 million, up from $11,986 million in 2024, reflecting a growth of 3.9%[21] - Revenue for the Recycling & Waste segment in Q3 2025 was $3,779 million, with adjusted EBITDA of $1,295 million and a margin of 34.3%[28] Cash Flow and Investments - Year-to-date cash flow from operations was $3.32 billion, and adjusted free cash flow was $2.19 billion[4] - Cash provided by operating activities increased to $3,315 million for the nine months ended September 30, 2025, compared to $2,914 million in 2024[19] - Cash used in investing activities for the nine months ended September 30, 2025, was $2,571 million, compared to $1,749 million in 2024[19] - The company invested more than $1 billion in value-creating acquisitions year-to-date[4] Shareholder Returns - Cash returned to shareholders year-to-date was $1.13 billion, including $584 million in share repurchases and $544 million in dividends paid[4] - The company declared a quarterly dividend of $0.625 per share for shareholders of record on January 2, 2026[9] - Cash dividends paid increased to $544 million for the nine months ended September 30, 2025, from $505 million in 2024[19] - During the three months ended September 30, 2025, the company repurchased 2.3 million shares for $539 million at an average cost of $232.00 per share[41] Costs and Expenses - Total cost of operations for the nine months ended September 30, 2025, was $7,226 million, compared to $7,033 million in 2024, representing an increase of 2.8%[23] - Total selling, general and administrative expenses for Q3 2025 were $422 million, representing 10.0% of revenue, compared to $406 million and 10.0% in Q3 2024[24] - Labor and related benefits accounted for 19.9% of total revenue for the nine months ended September 30, 2025, slightly down from 20.1% in 2024[23] Operational Metrics - The average recycled commodity price per ton sold was $126, a decrease of $51 per ton compared to the prior year[7] - The average yield for the nine months ended September 30, 2025, was 5.1%, down from 6.5% in 2024[22] - Accounts receivable as of September 30, 2025, totaled $1,900 million, with days sales outstanding at 41.0 days, compared to 40.9 days in December 2024[39] Adjustments and Charges - Total adjustments for adjusted earnings in Q3 2025 were $59 million, leading to an adjusted net income of $594 million[30] - Restructuring charges incurred in Q3 2025 amounted to $3 million, down from $8 million in Q3 2024[34] - Interest expense for Q3 2025 was $143 million, slightly up from $138 million in Q3 2024[27] - The provision for income taxes in Q3 2025 was $95 million, compared to $81 million in Q3 2024[27] Risks and Future Outlook - The company expects revenue to be near the low end of its full-year 2025 guidance range[7] - The company acknowledges risks that could impact future performance, including labor disruptions and economic conditions[44] - Labor disruptions impacted the company by $56 million during the three and nine months ended September 30, 2025, including $16 million in customer credits and $40 million in operational costs[36]