Republic Services sees 8.6 percent revenue growth in second quarter of 2024
Republic Services has released its financial results for the second quarter of 2024. The company has reported net income of $511.5 million, or $1.62 per diluted share, for the three months ended June 30, 2024, versus $427.4 million, or $1.35 per diluted share, for the comparable 2023 period. Excluding certain expenses and other items, on an adjusted basis, net income for the three months ended June 30, 2024, was $508.9 million, or $1.61 per diluted share, versus $446.7 million, or $1.41 per diluted share, for the comparable 2023 period.
"We continue to prioritize our differentiating capabilities – customer zeal, digital and sustainability – to help our customers achieve their operational and sustainability goals, and drive significant value for our stakeholders," said Jon Vander Ark, president and chief executive officer at Republic Services. "During the second quarter, we delivered double-digit growth in EBITDA and EPS, and expanded EBITDA margin by 110 basis points. Pricing in excess of cost inflation and solid operational execution underpinned strong results across the business. As a result of our performance and outlook for the remainder of the year, we are raising our full-year financial guidance."
Second-quarter and year-to-date 2024 highlights
- The second quarter's total revenue growth of 8.6 percent includes 5.6 percent organic growth and 3.0 percent growth from acquisitions.
- The second quarter's core price on total revenue increased revenue by 6.8 percent. Core price on related business revenue increased revenue by 8.1 percent, which consisted of 9.8 percent in the open market and 5.4 percent in the restricted portion of the business.
- The second quarter's revenue growth from the average yield on total revenue was 5.5 percent, and volume decreased revenue by 0.8 percent. Revenue growth from average yield on related business revenue was 6.6 percent, and volume decreased related business revenue by 1.0 percent.
- The second quarter's net income was $511.5 million, or a margin of 12.6 percent.
- The second quarter's EPS was $1.62 per share, an increase of 20.0 percent over the prior year.
- The second quarter's adjusted EPS, a non-GAAP measure, was $1.61 per share, an increase of 14.2 percent over the prior year.
- The second quarter's adjusted EBITDA, a non-GAAP measure, was $1,257.8 million, and adjusted EBITDA margin, a non-GAAP measure, was 31.1 percent of revenue, an increase of 110 basis points over the prior year.
- The second quarter's year-to-date cash invested in acquisitions, including an investment in a post-collection business, was $67.6 million.
- Year-to-date cash returned to shareholders was $504.4 million, which included $167.6 million of share repurchases and $336.8 million of dividends paid.
- The company's average recycled commodity price per ton sold at Republic Services' recycling centers during the second quarter was $173. This represents an increase of $54 per ton over the prior year.
- The company completed and commenced operations on one renewable natural gas project during the quarter.
Updated full-year 2024 financial guidance
Republic Services' financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2024.
The company provided additional details as follows:
- Revenue: Republic Services expects revenue to be in the range of $16.075 billion to $16.125 billion.
- Adjusted EBITDA: Republic Services expects adjusted EBITDA to be in the range of $4.900 billion to $4.925 billion.
- Adjusted diluted earnings per share: The company expects adjusted diluted earnings per share to be in the range of $6.15 to $6.20.
- Adjusted free cash flow: Republic Services expects adjusted free cash flow to be in the range of $2.150 billion to $2.170 billion.
