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Republic Services (RSG) Q1 2025 Earnings
The Motley Fool· 2025-04-24 22:12
Revenue Growth - Company achieved a revenue growth of 4% in Q1 2025, despite challenges from winter weather and cyclical volume softness [3][8] - Adjusted EBITDA grew by 9%, with a 140 basis point expansion in adjusted EBITDA margin to 31.6% [3][8] - Adjusted EPS was reported at $1.58, and adjusted free cash flow increased by 36% to $727 million [3][8] Pricing and Volume - Core price increased by 6.1% on total revenue and 7.3% on related revenue [10] - Average yield on total revenue was 4.5%, while related revenue saw a yield of 5.4% [10] - Total revenue volume decreased by 1.2%, with a 1.5% decline in related revenue, attributed to shedding underperforming contracts and weather impacts [10][11] Customer Retention and Acquisitions - Customer retention rate remained strong at over 94% [3][8] - The company invested $826 million in acquisitions during Q1 2025, including the acquisition of Shamrock Environmental [3][8] Environmental Solutions and Sustainability - Environmental Solutions revenue increased by $25 million year-over-year in Q1 2025 [3][11] - The company is advancing its sustainability initiatives, including the development of polymer centers and renewable natural gas projects, with seven RNG projects expected to commence operations in 2025 [4][9] Fleet Electrification - Fleet electrification efforts are ongoing, with 80 electric vehicles operational by the end of Q1 2025 and plans to exceed 150 by year-end [4][9] Credit Rating - The company's credit rating was upgraded to A3 by Moody's, reflecting the stability of its revenue base and strong EBITDA margin profile [3][11]