Republic Services (RSG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 9% year-over-year, with 5.6% organic growth and 3.0% from acquisitions, and Adjusted EBITDA increased 13%, with margin expanding by 110 basis points and adjusted EPS of $1.61.

• Net income for Q2 2024 was $511.5 million ($1.62 per diluted share), up from $427.4 million ($1.35 per share) in Q2 2023; net income for the first half of 2024 was $965.3 million.

• Adjusted free cash flow year-to-date reached $1.15 billion, with cash flow from operations at $1.91 billion.

• Customer retention remained above 94%, with improved Net Promoter Scores and strong pricing offsetting volume declines in cyclical segments.

• Adjusted diluted EPS guidance for full-year 2024 was raised to $6.15–$6.20, reflecting strong operational performance.

Financial highlights

• Q2 2024 total revenue was $4.05 billion, up 8.7% year-over-year; operating income margin improved to 20.1% from 19.0%.

• Adjusted EBITDA for Q2 2024 was $1.26 billion, with margin expanding to 31.1%.

• Core price on total revenue was 6.8%, with average yield at 5.5%; volume decreased revenue by 0.8%.

• Recycling commodity prices averaged $173/ton, up from $119/ton last year, contributing 50 basis points to revenue growth.

• Year-to-date capital expenditures were $917.9 million, up from $714.3 million in 2023.

Outlook and guidance

• Full-year 2024 guidance: revenue of $16.075–$16.125 billion, Adjusted EBITDA of $4.9–$4.925 billion, Adjusted EPS of $6.15–$6.20, and Adjusted Free Cash Flow of $2.15–$2.17 billion.

• Guidance assumes commodity prices remain at $170/ton and includes contributions from acquisitions closed through June 30.

• Expect continued margin expansion, though at a slower pace in the second half due to moderating pricing and cost trends.