Republic Services(US:RSG)2025-10-31 01:44Revenue and Income - Revenue for the nine months ended September 30, 2025, increased by 3.9% to $12,456 million compared to $11,986 million for the same period in 2024[132] - Total revenue for the three months ended September 30, 2025, was $4,212 million, a 3.3% increase from $4,076 million in 2024[143] - Total revenue for the nine months ended September 30, 2025, reached $12,456 million, up from $11,986 million in 2024, reflecting a 3.9% growth[143] - Adjusted net income for the nine months ended September 30, 2025, was $1,646 million, or $5.26 per diluted share, compared to $1,535 million, or $4.87 per diluted share for the same period in 2024[137] - Net income attributable to Republic Services, Inc. for the three months ended September 30, 2025, was $550 million, or $1.76 per diluted share, compared to $566 million, or $1.80 per diluted share for the same period in 2024[134] Expenses and Costs - Expenses for the nine months ended September 30, 2025, included a cost of operations of $7,226 million, which was 58.0% of revenue[133] - Labor and related benefits for the three months ended September 30, 2025, were $812 million, representing 19.3% of total revenue[151] - Total cost of operations for the three months ended September 30, 2025, was $2,463 million, or 58.5% of total revenue[151] - Labor and related benefits increased for the nine months ended September 30, 2025, due to higher hourly and salaried wages, resulting in a total of $842 million, or 6.8% of revenue[162] - Selling, general and administrative expenses totaled $422 million, or 10.0% of revenue, for the three months ended September 30, 2025, compared to $406 million, also 10.0% of revenue in 2024[162] Restructuring and Charges - The company recorded restructuring charges of $3 million and $13 million for the three and nine months ended September 30, 2025, respectively[140] - The company expects to incur additional restructuring charges of approximately $3 million during the remainder of 2025[141] Operational Impact - Labor disruptions during the three and nine months ended September 30, 2025, had an impact of $56 million, including $16 million of customer credits and $40 million of cost of operations[142] - The average yield increased by 4.2%, contributing to revenue growth, while revenue from acquisitions net of divestitures added 1.3%[132] - Acquisitions, net of divestitures, contributed a 1.6% increase in revenue for the three months ended September 30, 2025, reflecting the company's growth strategy[152] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $3,315 million, an increase from $2,914 million in the same period of 2024[195] - Capital expenditures during the nine months ended September 30, 2025, were $1,310 million, compared to $1,357 million for the same period in 2024[202] - The company plans to invest at least $1.1 billion in acquisitions in 2025[194] Debt and Interest - Total interest expense for the three months ended September 30, 2025, was $143 million, up from $138 million in the same period in 2024, primarily due to a higher overall debt balance[165] - The total debt to EBITDA ratio was approximately 2.5 as of September 30, 2025, which is below the maximum allowed ratio of 3.75[210] - The company had $1,941 million of principal floating rate debt as of September 30, 2025, with a potential annualized interest expense change of approximately $19 million for a 100 basis point interest rate shift[233] Assets and Equity - Total assets as of September 30, 2025, amounted to $33,789 million, an increase from $31,814 million as of September 30, 2024[176] - Cash and cash equivalents increased to $84 million as of September 30, 2025, up from $74 million at December 31, 2024[190] - The company repurchased 2.6 million shares of common stock for $599 million during the nine months ended September 30, 2025, compared to 1.7 million shares for $321 million in the same period of 2024[202] Environmental and Market Factors - Environmental solutions revenue decreased by 1.4% and 0.7% during the three and nine months ended September 30, 2025, primarily due to reduced manufacturing and emergency response activities[152] - The average price for recycled commodities was $126 per ton for the three months ended September 30, 2025, down from $177 per ton in 2024[152] - A $10 per ton change in the price of recycled commodities would impact annual revenue and operating income by approximately $11 million[149] - A twenty-cent per gallon change in diesel fuel price would impact fuel costs by approximately $27 million annually, while the fuel recovery fee would change by about $38 million per year at current participation rates[154]