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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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