Republic Services, Inc. Reports Third Quarter 2025 Results

Core Insights - Republic Services, Inc. reported a net income of $550 million, or $1.76 per diluted share, for Q3 2025, a decrease from $566 million, or $1.80 per diluted share, in Q3 2024. Adjusted net income was $594 million, or $1.90 per diluted share, compared to $568 million, or $1.81 per diluted share, in the prior year [1][8][9] - The company achieved a total revenue growth of 3.3%, driven by 1.7% organic growth and 1.6% growth from acquisitions. Core pricing increased revenue by 5.9% [9][13] - Adjusted EBITDA for Q3 2025 was $1.38 billion, with an adjusted EBITDA margin of 32.8%, reflecting an 80-basis-point increase from the previous year [2][9][19] Financial Performance - Net income margin for Q3 2025 was 13.1%, while adjusted EBITDA margin was 32.8% [8][19] - Year-to-date cash flow from operations reached $3.32 billion, with adjusted free cash flow at $2.19 billion [8][9] - The company invested over $1 billion in acquisitions year-to-date and returned $1.13 billion to shareholders, including $584 million in share repurchases and $544 million in dividends [8][9] Revenue Breakdown - Total revenue for Q3 2025 was $4.21 billion, compared to $4.08 billion in Q3 2024 [9][13] - Revenue from collection services accounted for 67.3% of total revenue, with residential collection at $754 million and small-container collection at $1.27 billion [13] - Environmental solutions revenue was $433 million, while recycling processing and commodity sales contributed $107 million [13][21] Cost Structure - Total cost of operations for Q3 2025 was $2.46 billion, representing 58.5% of revenue, slightly up from 58.0% in Q3 2024 [16][19] - Labor and related benefits accounted for 19.3% of revenue, while selling, general, and administrative expenses were 10.0% of revenue [16][17] Strategic Outlook - The company continues to focus on sustainable and profitable growth, with ongoing investments in differentiated capabilities [2][6] - Republic Services expects revenue to be near the low end of its full-year 2025 guidance range, while reiterating all other financial components of its guidance [9]