Republic Services(US:RSG) ZACKSยท2025-10-02 16:16Core Insights - Republic Services (RSG) reported mixed second-quarter 2025 results with earnings per share (EPS) of $1.77, surpassing the Zacks Consensus Estimate by 1.1% and increasing 9.9% year-over-year, while revenues of $4.2 billion missed the consensus mark but rose 4.6% year-over-year [1] Financial Performance - RSG's EPS of $1.77 beat estimates and showed a year-over-year increase of 9.9% [1] - Revenues of $4.2 billion fell short of consensus but represented a 4.6% increase from the previous year [1] Business Segments - The collection segment accounted for 68% of RSG's top line over the past three quarters, driven by an expected increase in municipal solid waste generation from 2.1 billion tons in 2023 to 3.8 billion tons by 2050, leading to higher collection frequency and subscription fees [2] Strategic Initiatives - RSG is adopting electric vehicles (EVs) to reduce environmental impacts and improve total cost of ownership, with plans to scale up its fleet of 52 EVs and 22 charging facilities as of 2024 [3] - The company is forming partnerships for electric trucks, positioning itself to enhance market competitiveness as EV technology advances [3] Shareholder Returns - RSG has consistently rewarded shareholders through dividends and share repurchases, paying out $592.9 million, $650 million, and $687 million in dividends from 2022 to 2024, alongside share repurchases of $203.5 million, $261.8 million, and $482 million during the same period [4] Competitive Landscape - The solid waste industry is highly competitive, with RSG facing pressure from large national waste management companies and regional players, necessitating increased investments that may impact profitability [5] Liquidity Position - RSG's current ratio at the end of Q2 2025 was 0.66, below the industry average of 1.03, although it improved by 11.9% year-over-year due to a decline in current debt, indicating a stronger liquidity position despite still being below 1 [6]