Loading...
•
Jun 30, 2023
Republic Services Q2 2023 Earnings Report
Republic Services reported a revenue increase driven by organic growth and acquisitions, expanded margins, and raised full-year financial guidance.
Key Takeaways
Republic Services reported strong second-quarter results with a 9 percent increase in total revenue, driven by organic growth and acquisitions. The company expanded net income margin by 60 basis points and adjusted EBITDA margin by 40 basis points. As a result, the company raised its full-year financial guidance.
Total revenue growth of 9.1 percent includes 4.7 percent of organic growth and 4.4 percent of growth from acquisitions.
Adjusted EPS was $1.41 per share, an increase of 6.8 percent over the prior year.
Adjusted EBITDA was $1,116.1 million and adjusted EBITDA margin was 30.0 percent of revenue.
Year-to-date cash invested in acquisitions was $926.9 million, all of which was in the recycling and solid waste business.
Republic Services
Republic Services
Republic Services Revenue by Segment
Revenue by Segment
Collection Revenue
CapyFin.comLandfill (net) Revenue
CapyFin.comEnvironmental Solutions Revenue
CapyFin.comRecycling & Other Revenue
CapyFin.com Forward Guidance
Republic Services raised its full-year 2023 financial guidance, expecting revenue to be in the range of $14.775 billion to $14.850 billion, adjusted EBITDA to be in the range of $4.340 billion to $4.360 billion, adjusted diluted earnings per share to be in the range of $5.33 to $5.38, and adjusted free cash flow to be in the range of $1.900 billion to $1.925 billion.
Positive Outlook
- Revenue is expected to be in the range of $14.775 billion to $14.850 billion.
- Growth from average yield on total revenue of approximately 6.0%.
- Volume growth to be approximately 0.5%.
- Average yield on related business revenue is expected to be approximately 7.0%.
- Adjusted EBITDA is expected to be in the range of $4.340 billion to $4.360 billion.
Challenges Ahead
- Financial guidance is based on current economic conditions.
- Guidance does not assume any significant changes in the overall economy in 2023.
- New risk factors emerge from time to time and it is not possible to predict all such risk factors.
- The impacts of the overall global economy and increasing interest rates.
- Our ability to effectively integrate and manage companies we acquire, including US Ecology, and to realize the anticipated benefits of any such acquisitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income