Republic Services Earnings Outpace Estimates in Q1, Revenues Miss

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]