Republic Services Stock Earnings Reports

Republic Services delivered a solid Q3 2025 driven by disciplined pricing, operational execution and portfolio strength. Key financials: revenue +3.3%, adjusted EBITDA +6.1% with EBITDA margin expanding 80 bps to 32.8%, adjusted EPS $1.90, and year-to-date adjusted free cash flow of $2.19 billion. Core pricing remained strong (core price on total revenue 5.9%; on related revenue 7.2%) while average yield on related revenue was 4.9%. Volumes were mixed: collection volumes declined (residential shedding, softer construction/manufacturing), while C&D and special waste rose due to event-driven activity (hurricane/wildfire cleanup contributing ~$100M YTD revenue). Environmental Solutions (ES) saw notable weakness — revenue down ~$32M YoY and EBITDA margin at 20.3% — from softness in manufacturing, lower event/E&P activity and fewer emergency response jobs, though management says demand stabilized late in the quarter and pipeline is expanding. Sustainability and innovation progress: commercial production began at the Indianapolis Polymer Center; Blue Polymers JV expected to start late Q4; six RNG projects started YTD (seven expected in 2025); fleet electrification advancing (137 EVs in service, >150 expected by year-end; 32 sites with commercial EV charging). Capital allocation: >$1B in strategic acquisitions YTD, returned $1.13B to shareholders YTD (dividends + buybacks), total debt $13.4B, liquidity $2.7B, leverage ~2.5x; capex YTD $1.18B (62% of full-year plan). Outlook/strategy: management reiterates a long-term algorithm of mid-single-digit revenue growth with EBITDA, EPS and free cash flow growing faster and 30–50 bps of EBITDA margin expansion per year; 2026 guidance not provided yet, but management warns of tougher comps ( ~$100M of event-driven landfill revenue at high incremental margin in 2025 that won’t repeat) and expects price/cost spread to remain positive (they expect yields ~75–100 bps above cost inflation). M&A pipeline remains active, tilted toward Recycling & Waste but with opportunities in ES; buybacks are opportunistic and expected to continue.