Republic Services (RSG) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 increased 3.8% year-over-year to $4.01 billion, driven by higher average yield, acquisitions, and growth in recycling and environmental solutions.

• Net income was $495 million ($1.58 per diluted share), up from $454 million ($1.44 per share) year-over-year.

• Adjusted EBITDA grew to $1.27 billion, with margin expanding 140 basis points to 31.6%.

• Customer retention remained above 94%, supported by improved Net Promoter Scores and service quality.

• Continued investment in digital tools, sustainability, and innovation, including Polymer Centers and renewable natural gas projects.

Financial highlights

• Adjusted earnings per share reached $1.58 for the quarter, up 9.7% year-over-year.

• Adjusted free cash flow was $727 million, up from $535 million year-over-year.

• Operating income increased to $804 million (20.1% margin) from $733 million (19.0%) year-over-year.

• Cash provided by operating activities was $1,025 million, up from $811 million year-over-year.

• Total debt stood at $13.4 billion, with total liquidity of $2.6 billion and a leverage ratio of 2.6x.

Outlook and guidance

• Guidance for 2025 reaffirmed, with expectations for continued pricing ahead of cost inflation and seasonal strength in Q2 and Q3.

• Management expects to invest approximately $1 billion in acquisitions in 2025, continuing the growth strategy.

• Volume growth guidance assumes slow and steady recovery in manufacturing and construction, not a sharp rebound.