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Dec 31, 2023
Republic Services Q4 2023 Earnings Report
Reported strong Q4 2023 results, exceeding expectations with double-digit growth in revenue, EBITDA, earnings, and free cash flow.
Key Takeaways
Republic Services reported a strong fourth quarter in 2023, with revenue growth of 8.6% and expansions in both net income and adjusted EBITDA margins. The company's EPS increased by 27.5% and adjusted EPS by 24.8%. They also invested $828 million in acquisitions and completed construction on its first Polymer Center.
Total revenue growth of 8.6 percent includes 5.7 percent organic growth and 2.9 percent growth from acquisitions.
EPS was $1.39 per share, an increase of 27.5 percent over the prior year.
Adjusted EBITDA was $1,145.2 million, and adjusted EBITDA margin was 29.9 percent of revenue, an increase of 260 basis points over the prior year.
Cash invested in acquisitions was $828 million.
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 expects another outsized year of growth in revenue, EBITDA, earnings and free cash flow in 2024. Their strong financial guidance is supported by pricing in excess of cost inflation, leveraging their digital tools to enhance productivity and improve customer loyalty, and continuing to invest in Sustainability Innovation to drive long-term value creation.
Positive Outlook
- Revenue to be in the range of $16.100 billion to $16.200 billion.
- Growth from average yield on total revenue to be in the range of 5.5% to 6.0%.
- Volume growth to be in the range of 0.0% to 0.5%.
- Average yield on related business revenue is expected to be in the range of 6.5% to 7.0%.
- Adjusted EBITDA to be in the range of $4.825 billion to $4.875 billion.
Challenges Ahead
- Financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2024.
- The 2024 financial guidance provided above only includes the expected contribution from acquisitions that closed through December 31, 2023.
- Property and equipment, net of proceeds from the sale of property and equipment, between $1.760 billion to $1.800 billion.
- Adjusted Diluted Earnings per Share to be in the range of $5.94 to $6.00.
- Adjusted Free Cash Flow to be in the range of $2.100 billion to $2.150 billion.
Revenue & Expenses
Visualization of income flow from segment revenue to net income