Republic Services Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did RSG Beat Earnings? Q1 2025 Results
Republic Services posted a solid start to 2025, reporting first-quarter earnings of $1.58 per share on revenue of $4.01 billion as disciplined pricing and cost management more than offset sluggish cyclical volumes and difficult winter weather conditions. The single most compelling story from the quarter was margin expansion: adjusted EBITDA reached $1.27 billion at a 31.6% margin, widening 140 basis points year-over-year, as the company priced ahead of cost inflation and drove cost of operations as a percentage of revenue down to 57.7% from 59.1%. Total revenue grew 3.8% year-over-year, supported by 7.3% core price increases on related business revenue, though volume declined 1.2% reflecting broader economic softness. Cash generation impressed as well, with operating cash flow climbing to $1.02 billion from $811 million in the prior year. The company deployed $826 million on acquisitions during the quarter — including a pair of Wisconsin haulers — and returned $226 million to shareholders, underscoring confidence in the durability of its business model amid heightened macroeconomic uncertainty.
- Core price on related business revenue increased 7.3% (9.0% open market, 4.6% restricted)
- Average yield on total revenue grew 4.5%
- Adjusted EBITDA margin expanded 140 basis points year-over-year to 31.6%
- Pricing ahead of cost inflation and effective cost management
- Cost of operations as a percentage of revenue improved to 57.7% from 59.1%
- Recycled commodity price per ton sold increased $2 year-over-year to $155
“We are off to a solid start to the year, and our business continues to perform well even with increased volatility in the broader economy. While topline results were impacted by sluggish cyclical volumes and challenging winter weather, we generated high single-digit growth in EBITDA and 140 basis points of adjusted EBITDA margin expansion by pricing ahead of cost inflation and effective cost management. Our ability to produce these results reflects the resiliency of our business model, and the financial benefits we are delivering by investing in our differentiating capabilities.”
Republic Services CEO, on the earnings call
RSG YoY Financials
RSG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.