Republic Services Earnings Surpass Estimates in Q4, Revenues Miss

Core Insights - Republic Services, Inc. (RSG) reported mixed fourth-quarter 2024 results, with earnings exceeding estimates while revenues fell short [1][2]. Financial Performance - Earnings per share (EPS) of $1.58, excluding non-recurring items, surpassed the Zacks Consensus Estimate by 15.3% and grew 12.1% year-over-year [2]. - Revenues totaled $4 billion, missing the consensus mark slightly but increasing by 5.6% compared to the previous year [2]. - Adjusted EBITDA for the quarter was $1.3 billion, a 9.4% increase from the year-ago quarter, exceeding the estimate of $1.2 billion [5]. Segment Performance - Collection segment revenues were $2.7 billion, up 3.5% year-over-year, but missed projections of $2.8 billion [3]. - Transfer segment revenues were $203 million, an 8% increase year-over-year, but fell short of the $204.3 million projection [3]. - Landfill segment revenues reached $443 million, increasing by 5.5% year-over-year and meeting estimates [3]. - Other segment revenues were $190 million, rising 8% year-over-year but missing expectations of $199.8 million [4]. - Environmental solutions revenues were $482 million, a 16.7% year-over-year growth, surpassing projections of $458.4 million [4]. Balance Sheet and Cash Flow - At the end of Q4 2024, cash and cash equivalents were $74 million, down from $83.4 million at the end of Q3 2024 [6]. - Long-term debt was $11.9 billion, a slight decrease from $12 billion in the previous quarter [6]. - The company generated $1 billion in cash from operating activities, with adjusted free cash flow of $444 million and capital expenditures of $497.6 million [6]. 2025 Guidance - For 2025, RSG expects revenues between $16.85 billion and $16.95 billion, with the midpoint lower than the Zacks Consensus Estimate of $16.92 billion [8]. - The company anticipates adjusted EPS in the range of $6.82 to $6.90, which is higher than the consensus estimate of $6.77 [8]. - Adjusted EBITDA is projected to be between $5.28 billion and $5.33 billion [8].