Core Viewpoint - Republic Services reported mixed second-quarter 2025 results, with earnings surpassing estimates while revenues fell short, indicating potential challenges ahead [2][7]. Financial Performance - Earnings per share (EPS) for Q2 2025 was $1.77, beating the Zacks Consensus Estimate by 1.1% and reflecting a 9.9% increase year-over-year [2]. - Total revenues amounted to $4.2 billion, which missed the consensus estimate but showed a 4.6% year-over-year growth [2]. Segmental Revenue Breakdown - Collection segment revenues were $2.8 billion, a 3.6% increase year-over-year, but below the estimated $2.9 billion [3]. - Environmental Solutions revenues were $462 million, down 2.3% year-over-year, missing the projected $492 million [3]. - Transfer segment revenues reached $221 million, up 6.3% year-over-year, exceeding the estimate of $213.5 million [4]. - Landfill segment revenues were $516 million, increasing 17.3% year-over-year, surpassing the expected $462.7 million [4]. - Other segment revenues totaled $214 million, a 4.9% increase year-over-year, also exceeding the estimate of $212.7 million [4]. Operating Results - Adjusted EBITDA for the quarter was $1.4 billion, an 8.2% increase from the previous year, beating the estimate of $1.3 billion [5]. - The adjusted EBITDA margin improved to 32.1%, up 100 basis points year-over-year, surpassing the estimated 31.4% [5]. Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q2 2025 were $122 million, up from $83 million at the end of Q1 2025 [6]. - Long-term debt decreased to $12.5 billion from $12.9 billion in the previous quarter [6]. - Cash generated from operating activities was $1.1 billion, with adjusted free cash flow at $693 million and capital expenditure of $423 million [6]. 2025 Guidance - The company revised its revenue expectations for 2025 to a range of $16.68-$16.75 billion, down from the previous estimate of $16.85-$16.95 billion [7]. - Adjusted EPS guidance for 2025 is set at $6.82-$6.90 [7]. Market Sentiment - Recent estimates for the company have shown a downward trend, indicating a potential shift in market sentiment [8][11]. - Republic Services currently holds a Zacks Rank 4 (Sell), suggesting expectations of below-average returns in the coming months [11]. Industry Comparison - Republic Services operates within the Zacks Waste Removal Services industry, where competitor Pentair plc has seen a 7.9% gain over the past month [12]. - Pentair reported revenues of $1.12 billion for the last quarter, reflecting a year-over-year increase of 2.2% [12].

Industry Overview - The Waste Management industry is benefiting from positive trends in government regulations, advanced technologies, and increased environmental awareness, with the global sector reaching $1.2 trillion in 2024 and projected to grow to $1.6 trillion by 2029 [1] - The industry is categorized into segments based on waste type, including industrial, commercial, domestic, and agricultural, with industrial waste gaining significance due to ongoing industrial expansion [3] - The Disposal services segment is the primary revenue-generating category, driven by the growing need for waste recycling [3] Future Trends - Environmental, Social, and Governance (ESG) goals are becoming increasingly important, with waste management playing a key role in improving ESG ratings and promoting sustainability [4] - Technology is crucial for the industry's growth, with AI being utilized to sort waste and enhance recycling efforts, leading to more effective and eco-friendly waste management [5] - The Waste-to-Energy (WTE) market is expected to grow from $48.1 billion in 2024 to $93 billion by 2034, with a CAGR of 6.8%, driven by rising waste generation and a focus on sustainable living [6] Financial Performance - The Zacks Waste Removal Services industry currently holds a Zacks Industry Rank of 189, placing it in the bottom 23% of 245 Zacks industries, indicating dull near-term prospects [8] - Over the past year, the industry has risen 5.3%, underperforming compared to the broader sector's 9.3% growth and the S&P 500's 16.6% rally [10] - The industry is trading at an EV-to-EBITDA of 13.68X, lower than the S&P 500's 17.77X and the sector's 11.44X, with historical trading ranging from 12.48X to 13.98X [13] Company Highlights - Montrose Environmental Group, Inc. (MEG) reported a 35.3% year-over-year revenue increase in Q2 2025, with a 69.8% surge in adjusted EBITDA, driven by strong internal execution and market conditions [18] - Zurn Elkay Water Solutions Corp (ZWS) achieved a 7.9% year-over-year revenue growth in Q2 2025, with an expanded adjusted EBITDA margin, supported by strategic initiatives and a new product launch [23][25] - Pentair (PNR) experienced a 2% year-over-year revenue growth in Q2, with a 14% increase in the bottom line, driven by transformation initiatives and strong performance in the Pool segment [29]

Core Viewpoint - Waste Connections reported strong second-quarter 2025 results, with earnings and revenues exceeding expectations, but the stock has underperformed the S&P 500 recently [1][2]. Financial Performance - Adjusted earnings per share were $1.29, surpassing the Zacks Consensus Estimate by 3.2% and increasing 4% year over year [2]. - Revenues reached $2.4 billion, slightly beating consensus estimates and growing 7.1% from the previous year [2]. Segment Performance - The Solid Waste Collection segment generated revenues of $1.6 billion, missing the estimate of $1.7 billion [3]. - The Solid Waste Disposal and Transfer segment saw revenues surge 71.1% year over year to $756 million, also missing projections [3]. - The E&P Waste Treatment, Recovery and Disposal segment's revenues increased 4.9% to $123.6 million, falling short of the estimate [4]. - The Solid Waste Recycling segment's revenues grew 3.5% to $63.3 million, missing the forecast [4]. - The Intermodal and Other segment's revenues gained marginally to $49.1 million, missing estimates as well [4]. Operating Results - Adjusted EBITDA was $731.8 million, down 6.9% from the previous year, with an adjusted EBITDA margin of 32.6% [5]. - Operating income totaled $424.7 million, compared to $459.5 million in the prior year [5]. Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q2 2025 were $62.4 million, down from $111.2 million in the previous quarter [6]. - Long-term debt decreased to $8.1 billion from $8.4 billion [6]. - Cash generated from operating activities was $611.4 million, with adjusted free cash flow at $402.6 million [7]. Future Outlook - For FY25, Waste Connections expects revenues of $9.45 billion, lower than the Zacks Consensus Estimate of $9.51 billion [8]. - Adjusted EBITDA is anticipated to be $3.12 billion, representing nearly 33% of total revenues [8]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates revisions for Waste Connections [9]. - The company currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [12]. Industry Comparison - Waste Connections operates within the Zacks Waste Removal Services industry, where competitor Pentair plc has shown a 1.6% gain over the past month [13]. - Pentair reported revenues of $1.12 billion, reflecting a year-over-year increase of 2.2% [13].

Group 1 - Healthcare Services (HCSG) is a stock that has shown strong year-to-date performance, returning approximately 31.1% compared to an average of 0% for Business Services stocks [4] - The Zacks Consensus Estimate for HCSG's full-year earnings has increased by 4.8% over the past 90 days, indicating improved analyst sentiment and earnings outlook [4] - HCSG currently holds a Zacks Rank of 1 (Strong Buy), suggesting it has favorable characteristics to outperform the market in the near term [3] Group 2 - The Business Services sector includes 254 individual stocks and has a Zacks Sector Rank of 6, which reflects the average Zacks Rank of stocks within the sector [2] - The Business - Services industry, which includes HCSG, consists of 26 stocks and is currently ranked 94 in the Zacks Industry Rank, with an average year-to-date gain of 8.4% [6] - Montrose Environmental (MEG), another stock in the Business Services sector, has outperformed with a year-to-date return of 47.8% and a Zacks Rank of 1 (Strong Buy) [5]

Core Insights - Shimmick Corporation reported a quarterly loss of $0.14 per share, which was better than the Zacks Consensus Estimate of a loss of $0.16, marking an earnings surprise of +12.50% [1] - The company generated revenues of $128.4 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 6.03% and showing significant growth from $90.61 million a year ago [2] - The stock has underperformed, losing about 15.4% since the beginning of the year, while the S&P 500 has gained 10% [3] Financial Performance - Over the last four quarters, Shimmick Corporation has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $132.8 million, while for the current fiscal year, the estimate is -$0.25 on revenues of $491 million [7] Industry Context - Shimmick Corporation operates within the Waste Removal Services industry, which is currently ranked in the bottom 24% of over 250 Zacks industries [8] - The performance of the stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Group 1 - TOMI Environmental Solutions, Inc. reported a quarterly loss of $0.06 per share, missing the Zacks Consensus Estimate of a loss of $0.03, compared to break-even earnings per share a year ago, indicating an earnings surprise of -100.00% [1] - The company posted revenues of $1.03 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 41.75%, and down from $3.01 million in the same quarter last year [2] - The stock has underperformed the market, losing about 3.8% since the beginning of the year, while the S&P 500 gained 10% [3] Group 2 - The current consensus EPS estimate for the coming quarter is -$0.02 on revenues of $2.12 million, and for the current fiscal year, it is -$0.11 on revenues of $7.87 million [7] - The Zacks Industry Rank for Waste Removal Services is currently in the bottom 24% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Company Performance - Aris Water Solutions reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.24 per share, representing an earnings surprise of -20.83% [1] - The company posted revenues of $124.09 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.61%, compared to year-ago revenues of $101.12 million [2] - Over the last four quarters, Aris Water Solutions has surpassed consensus revenue estimates four times, but has only exceeded EPS estimates once [2] Stock Performance - Aris Water Solutions shares have lost about 1.4% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current Zacks Rank for Aris Water Solutions is 5 (Strong Sell), indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.28 on revenues of $122.99 million, and for the current fiscal year, it is $1.04 on revenues of $485.6 million [7] - The outlook for the Waste Removal Services industry, where Aris Water Solutions operates, is currently in the bottom 28% of Zacks industries, which may impact stock performance [8]

分组1 - PureCycle Technologies reported a quarterly loss of $0.35 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.23, and compared to a loss of $0.32 per share a year ago, indicating a surprise of -52.17% [1] - The company generated revenues of $1.65 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 41.07%, while revenues were zero a year ago [2] - The stock has increased by approximately 26.8% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] 分组2 - The earnings outlook for PureCycle Technologies is uncertain, with current consensus EPS estimates of -$0.18 on $11.2 million in revenues for the coming quarter and -$0.49 on $33.9 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Waste Removal Services is in the bottom 26% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8]

Company Performance - Select Water Solutions, Inc. reported quarterly earnings of $0.1 per share, missing the Zacks Consensus Estimate of $0.13 per share, and down from $0.13 per share a year ago, representing an earnings surprise of -23.08% [1] - The company posted revenues of $364.22 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.28%, and down from $365.13 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Select Water Solutions, Inc. shares have lost about 31.9% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The current status of estimate revisions translates into a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $372.01 million, and for the current fiscal year, it is $0.54 on revenues of $1.47 billion [7] - The outlook for the Waste Removal Services industry, to which the company belongs, is currently in the bottom 30% of the Zacks industries, which may impact stock performance [8]

Our latest available data shows that MEG has returned about 10.9% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of -1.2% on a year-to-date basis. This shows that Montrose Environmental is outperforming its peers so far this year. One other Business Services stock that has outperformed the sector so far this year is Nomura Research Institute (NRILY) . The stock is up 38.4% year-to-date. The Business Services group has plenty of great stocks, but investo ...