Core Insights - Clean Harbors Inc. is a leading provider of environmental, energy, and industrial services in North America, specializing in hazardous waste management and industrial cleaning, competing with major players like Waste Management and Republic Services [1] Financial Performance - Clean Harbors reported earnings per share of $1.62 for the quarter, exceeding analysts' expectations of $1.61, with a return on equity of 14.61% and a net margin of 6.51% [3][6] - The company's revenue for the quarter was $1.5 billion, surpassing forecasts of $1.46 billion, representing a 4.8% increase from the same quarter last year [3] Stock Performance - The stock recently reached a 52-week high of $284.57, with the last traded price at $281.45, indicating strong investor interest and confidence [2][6] - The trading volume was 62,414 shares, up from a previous close of $269.08, reflecting positive market sentiment [2] Valuation Metrics - Clean Harbors has a price-to-earnings (P/E) ratio of approximately 38.74, indicating that investors are willing to pay a premium for its earnings [4] - The price-to-sales ratio is about 2.53, and the enterprise value to sales ratio is around 2.97, reflecting the company's market value relative to its sales [4] - The enterprise value to operating cash flow ratio is approximately 20.65, showing the company's valuation in relation to its cash flow from operations [4] Financial Health - The company maintains a debt-to-equity ratio of approximately 1.26, indicating a balanced approach to financing its assets [5] - A current ratio of around 2.33 suggests a strong ability to cover short-term liabilities with short-term assets [5]

Core Viewpoint - Republic Services Inc reported disappointing fourth-quarter sales results and provided FY26 guidance that fell short of market expectations [1][2] Financial Performance - The company reported quarterly earnings of $1.76 per share, exceeding the analyst consensus estimate of $1.62 per share [1] - Quarterly sales amounted to $4.136 billion, which was below the analyst consensus estimate of $4.207 billion [1] FY26 Guidance - Republic Services projected FY2026 adjusted EPS in the range of $7.20 to $7.28, compared to market estimates of $7.31 [2] - The company anticipates sales between $17.050 billion and $17.150 billion, while expectations were for $17.328 billion [2] Stock Market Reaction - Following the earnings announcement, Republic Services shares declined by 4.9%, trading at $210.30 [2] Analyst Ratings and Price Targets - BMO Capital analyst Devin Dodge maintained an Outperform rating but reduced the price target from $251 to $248 [3] - Morgan Stanley analyst Toni Kaplan kept an Equal-Weight rating and lowered the price target from $230 to $225 [3]

Republic Services Inc (NYSE:RSG) reported worse-than-expected fourth-quarter sales results and issued FY26 guidance below estimates on Tuesday.Republic Services reported quarterly earnings of $1.76 per share which beat the analyst consensus estimate of $1.62 per share. The company reported quarterly sales of $4.136 billion which missed the analyst consensus estimate of $4.207 billion.Republic Services said it sees FY2026 adjusted EPS of $7.20-$7.28, versus market estimates of $7.31. The company sees sales o ...

Core Insights - Republic Services, Inc. (RSG) reported mixed fourth-quarter 2025 results, with earnings exceeding estimates while revenues fell short [1][10] Financial Performance - RSG's earnings per share (EPS) for Q4 2025 was $1.76, beating the Zacks Consensus Estimate by 8.7% and reflecting an 11.4% increase year-over-year [1][10] - Total revenues for the quarter were $4.1 billion, missing the consensus estimate by 1.8% but showing a 2.2% year-over-year growth [1][10] Segment Performance - Collection segment revenues reached $2.8 billion, up 3.8% year-over-year but below the consensus estimate of $2.9 billion [3] - Environmental Solutions revenues were $422 million, down 12.4% year-over-year and missing the consensus projection of $438.2 million [3] - Transfer segment revenues were $214 million, increasing 5.4% year-over-year and surpassing the consensus estimate of $213.5 million [4] - Landfill segment revenues totaled $467 million, also up 5.4% year-over-year but falling short of the consensus projection of $484 million [4] - Other segment revenues were $200 million, rising 5.3% year-over-year but missing the consensus estimate of $208.6 million [4] Operating Results - Adjusted EBITDA for Q4 was $1.3 billion, reflecting a 3.4% increase from the previous year, with an adjusted EBITDA margin of 31.3%, up 30 basis points year-over-year [5][10] Balance Sheet and Cash Flow - At the end of Q4 2025, RSG had cash and cash equivalents of $76 million, down from $84 million at the end of Q3 2025 [6] - Long-term debt increased to $13 billion from $12.4 billion in the previous quarter [6] - Cash generated from operating activities was $981 million, with adjusted free cash flow at $242 million and capital expenditure of $577 million [6] 2026 Guidance - For 2026, RSG expects revenues between $17.05 billion and $17.15 billion, lower than the consensus mark of $17.33 billion [7] - The company anticipates adjusted EPS in the range of $7.20-$7.28, with the midpoint below the Zacks Consensus Estimate of $7.26 [7] - Adjusted EBITDA is projected to be between $5.475 billion and $5.525 billion, while adjusted free cash flow is expected to be $2.52 billion to $2.56 billion [7]

Core Viewpoint - The article discusses the performance and investment outlook for Republic Services (RSG), indicating a previous HOLD rating when the stock was priced at approximately $221 per share, suggesting it was trading at a high valuation [1]. Company Summary - Republic Services (RSG) was initially rated a HOLD over a year ago when its stock was valued at around $221 per share, reflecting concerns about its high trading valuation [1]. Analyst Background - The analyst has over 10 years of experience in the investment field, starting as an analyst and progressing to a management role, with a focus on dividend investing [1].

Market Overview - Republic Services operates in a $163 billion annual revenue market across the United States and Canada, including $110 billion from the recycling and waste industry[16]. - The company aims to expand its addressable market by leveraging capabilities in customer engagement, digital solutions, and sustainability[16]. Recycling and Waste Management - Approximately 32% of municipal solid waste is currently recycled, with expectations for this percentage to increase as communities enhance recycling programs[27]. - The company processed and sold 2.2 million tons of materials from recycling centers in 2025, with an additional 1.8 million tons collected and delivered to third parties[85]. - The company has invested in advanced technology on recycling and waste collection vehicles to reduce recycling contamination over time[59]. - The company is investing in innovative recycling technology, including robotics and advanced sorting equipment, to enhance efficiency and maximize recycling efforts[89]. Operations and Infrastructure - Republic Services has commenced operations at its first Polymer Center in Las Vegas in 2024 and plans to open additional centers in Indianapolis and Allentown[27]. - The company operates over 180 electric collection vehicles and has established 32 commercial-scale electric charging facilities as of December 31, 2025[36]. - The average age of the fleet is 7.9 years, with 17,800 vehicles across various service lines, including residential and large-container[37]. - Approximately 67% of the total solid waste volume collected in 2025 was disposed of at landfills owned or operated by the company[76]. - Revenue from transfer stations accounted for approximately 5% of total revenue in 2025, with 255 transfer stations owned or operated[83]. - Landfill tipping fees charged to third parties represented approximately 12% of total revenue in 2025, with 207 active landfills and an estimated total disposal capacity of 5.0 billion in-place cubic yards[90]. Financial Performance - The quarterly dividend was increased to $0.625 per share in July 2025, representing an 8% increase over the prior year, marking the 22nd consecutive year of dividend increases[71]. - A $3.0 billion share repurchase authorization was approved, effective January 1, 2024, through December 31, 2026[72]. - In 2025, approximately 68% of total revenue was derived from the collection business, with residential services accounting for 18%, small-container services for 30%, large-container services for 19%, and other collection services for 1%[78]. - Approximately 11% of total revenue in 2025 was derived from environmental solutions, which include various waste management services[93]. Environmental Goals and Compliance - The company aims to reduce absolute Scope 1 and 2 greenhouse gas emissions by 35% by 2030, which has been approved by the Science Based Targets initiative[67]. - The company has achieved an interim goal of a 10% emissions reduction by 2025, relative to the 2017 baseline year[66]. - The company is subject to various environmental regulations, including the Oil Pollution Act and the Clean Air Act, which may impose additional compliance costs[130]. - The company operates under the Toxic Substances Control Act and the Atomic Energy Act, which regulate the treatment and disposal of hazardous materials[131]. - Compliance with existing and future legal and regulatory requirements, including those related to PFAS, may increase operational costs and require substantial capital expenditures[114]. Employee Engagement and Talent Management - Republic Services employs a robust people and talent agenda, with approximately 42,000 full-time employees, to maintain a safe and inclusive work environment[38]. - The average employee engagement score was 87 in 2025, which is 8 points above the national benchmark, with a goal to maintain scores at or above 88 by 2030[43]. - Approximately 99% of employees participated in the engagement survey in March 2025, which is 24% higher than the national benchmark[43]. - More than 1,200 leaders completed the Leadership Fundamentals program in 2025, with an additional 650 leaders expected to participate in 2026[44]. Risks and Challenges - The company may face increased competition from municipalities that operate their own waste management facilities, benefiting from tax revenue and financing opportunities[115]. - The company faces risks related to compliance with environmental regulations, which could increase operational costs and limit business growth[160]. - The company may incur additional liabilities under environmental laws in excess of current reserves due to hazardous substances present in waste collected or disposed of in landfills[185]. - The company may not succeed in executing broad-based pricing initiatives, which could impact cash flow generation necessary for growth and shareholder value enhancement[192]. - The loss of key personnel or challenges in attracting qualified talent could materially affect the company's financial condition and growth prospects[210]. Technology and Innovation - The company is increasingly dependent on technology, including AI, which is critical for driving profitable growth and delivering a consistent customer experience[205]. - Emerging technologies present both risks and opportunities, with potential substantial capital requirements that could negatively impact financial results if not managed properly[206]. - Cybersecurity incidents pose significant risks, potentially leading to business disruption, reputational harm, and increased compliance costs due to evolving regulations[207]. Capital and Financial Flexibility - As of December 31, 2025, the company had approximately $14 billion in principal value of debt and finance leases outstanding, which may limit financial flexibility[190]. - The capital-intensive nature of the environmental services industry may require additional funding if capital expenditures exceed current expectations[161]. - The company’s ability to maintain investment grade ratings on its debt is crucial for executing its financial strategy and managing interest expenses[191].

Core Insights - Republic Services reported revenue of $4.14 billion for the quarter ended December 2025, reflecting a 2.2% increase year-over-year, while EPS rose to $1.76 from $1.58 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $4.21 billion, resulting in a surprise of -1.76%, whereas the EPS exceeded expectations by 8.74% against a consensus estimate of $1.62 [1] Revenue Breakdown - Environmental solutions revenue was $422 million, below the average estimate of $438.21 million, marking a year-over-year decline of 12.5% [4] - Recycling & Waste revenue reached $3.71 billion, slightly below the estimated $3.78 billion [4] - Total Collection revenue was $2.83 billion, compared to an estimate of $2.87 billion, showing a year-over-year increase of 3.9% [4] - Small-container Collection revenue matched estimates at $1.29 billion, with a year-over-year increase of 5.4% [4] - Large-container Collection revenue was $768 million, below the estimated $791.85 million, reflecting a year-over-year increase of 2.8% [4] - Residential Collection revenue was $761 million, slightly below the estimate of $768.99 million, with a year-over-year increase of 2.4% [4] - Transfer revenue was $457 million, below the average estimate of $470.21 million, with a year-over-year increase of 2.7% [4] - Landfill revenue was $781 million, below the estimated $803.64 million, showing a year-over-year increase of 4.6% [4] - Other non-core revenue was $95 million, slightly below the estimate of $96.67 million, with a year-over-year increase of 4.4% [4] - Recycling processing and commodity sales revenue was $105 million, exceeding the estimate of $99.67 million, with a year-over-year increase of 6.1% [4] - Environmental solutions revenue was $435 million, below the average estimate of $465.3 million, marking a year-over-year decline of 12.8% [4] Stock Performance - Shares of Republic Services have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite, which declined by -1.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue growth of 3.5% and adjusted EBITDA growth of nearly 7% [8] - Adjusted earnings per share reached $7.02, with adjusted free cash flow of $2.43 billion, reflecting a 200 basis points increase in adjusted free cash flow conversion to 45.8% [8][24] - The adjusted EBITDA margin expanded by 90 basis points to 32% for the full year [23] Business Line Data and Key Metrics Changes - Organic revenue in the Environmental Solutions business decreased total revenue by 2% in the fourth quarter, primarily due to a non-recurring emergency response project in 2024 [9][23] - Core price on total revenue was 5.8% in the fourth quarter, with core price on related revenue at 7.1% [19] - Volume declines were concentrated in construction and manufacturing end markets, leading to a 1% reduction in total revenue [9][20] Market Data and Key Metrics Changes - Commodity prices for recycling were $112 per ton in the fourth quarter, down from $153 per ton in the prior year [21] - The company expects average yield on related revenue in 2026 to be in the range of 4%-4.5% [19] - The overall macroeconomic environment is characterized as stable, with specific weaknesses in manufacturing and construction impacting volume [49][50] Company Strategy and Development Direction - The company is focused on digital investments and sustainability initiatives, including the deployment of AI-enabled tools to enhance pricing and operational efficiency [10][12] - The acquisition pipeline remains strong, with plans to invest approximately $1 billion in value-creating acquisitions in 2026 [17] - The company aims to maintain a disciplined approach to pricing, prioritizing price over volume to ensure returns on work [58] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding early signs of economic recovery, particularly in the western U.S., but noted ongoing challenges in the construction sector [110] - The company anticipates another year of profitable growth in 2026, with revenue guidance in the range of $17.05 billion to $17.15 billion [16] - Management highlighted the importance of maintaining customer loyalty and delivering exceptional value as key components of their strategy [6][7] Other Important Information - The company reported a strong employee engagement score of 87 and a record low turnover rate in 2025 [15] - Total debt at the end of the year was $13.7 billion, with total liquidity of $2 billion [24] - The company expects net interest expense in 2026 to be in the range of $575 million to $585 million [24] Q&A Session Summary Question: Can you discuss the $400 million in acquisitions year to date? - Management confirmed the acquisition of a company called Hamm, which provides strong disposal infrastructure, and noted that the remaining $600 million in potential acquisitions is still under consideration [30][31] Question: What are the expectations for margins in 2026? - Management indicated that underlying business expansion is expected to contribute 60-70 basis points to margin growth, with some headwinds from commodity prices and acquisitions [35] Question: Can you provide an update on the Polymer Center performance? - Management expects about a $30 million revenue uplift from the Polymer Centers in 2026, with approximately $10 million of incremental EBITDA [42] Question: What is the outlook for organic growth in Environmental Solutions? - Management anticipates relatively flat growth for the Environmental Solutions business in 2026, with some challenges in the first half due to tough comparisons [54] Question: How is the company addressing the emergency response growth gap? - Management acknowledged challenges in winning event-based work and emphasized the need to adjust pricing strategies to align with market conditions [103] Question: What are the inflation expectations for 2026? - Management expects an inflationary environment of approximately 3.5% for 2026 [111]

Republic Services (NYSE:RSG) Q4 2025 Earnings call February 17, 2026 05:00 PM ET Company ParticipantsAaron Evans - VP of Investor RelationsBrian DelGhiaccio - CFOJon Vander Ark - CEOShlomo Rosenbaum - Managing DirectorYehuda Silverman - Equity Research AssociateConference Call ParticipantsAdam Bubis - Analyst and Engineering Construction AnalystBryan Nicholas Burgmeier - Equity Research AnalystDavid John Manthey - Senior Research AnalystJerry Revich - Managing Director and Senior Equity Research AnalystJohn ...

Republic Services (NYSE:RSG) Q4 2025 Earnings call February 17, 2026 05:00 PM ET Speaker7Good afternoon, and welcome to the Republic Services fourth quarter and full year 2025 investor conference call. Republic Services is traded on the New York Stock Exchange under the symbol RSG. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. ...