Republic Services (RSG) Q4 2024 earnings summary

Executive summary

• Delivered double-digit growth in adjusted EBITDA, EPS, and free cash flow for 2024, exceeding full-year guidance, with revenue growth of 7% and adjusted EBITDA growth of 12% year-over-year.

• Adjusted EBITDA margin expanded by 140 basis points for the year, with strong customer retention above 94% and high employee engagement.

• Fourth quarter revenue grew 5.6% year-over-year, with net income of $512 million and EPS of $1.63.

• Returned $1.18 billion to shareholders in 2024 through dividends and share repurchases.

• Continued investments in digital tools, sustainability, and innovation, including polymer centers and renewable natural gas (RNG) projects.

Financial highlights

• Full-year 2024 revenue grew 7.1% year-over-year, with 4.5% organic and 2.6% acquisition growth.

• Adjusted EBITDA margin expanded 140 basis points to 31.1% for the year; adjusted EBITDA reached $4.98 billion.

• Adjusted EPS reached $6.46, up 15.2%; adjusted free cash flow was $2.18 billion, up 10% year-over-year.

• Net income for 2024 was $2.04 billion (12.7% margin); cash from operations was $3.94 billion, up 8.8%.

• Total debt at year-end was $12.8 billion; leverage ratio at 2.6x; total liquidity $2.5 billion.

Outlook and guidance

• 2025 revenue expected between $16.85–$16.95 billion; adjusted EBITDA $5.275–$5.325 billion.

• Adjusted EPS guidance for 2025 is $6.82–$6.90; adjusted free cash flow $2.32–$2.36 billion.

• At least $1 billion targeted for value-creating acquisitions in 2025, with a strong pipeline in both recycling/waste and environmental solutions.

• Guidance assumes stable economic conditions and includes closed acquisitions.

• Organic volume growth in recycling and waste expected between -25 and +25 basis points.