Republic Services boosts margins and cash flow in Q2 2025, raises full-year outlook
Stronger pricing, steady acquisitions, and new RNG projects drive 100 basis point margin growth
Republic Services saw higher earnings in the second quarter of 2025 and raised its full-year free cash flow guidance. The company posted net income of US$550 million, or US$1.75 per diluted share, for the quarter ended June 30.
That compares with US$512 million, or US$1.62 per diluted share, in the same period last year. On an adjusted basis, net income was US$556 million, or US$1.77 per diluted share, up from US$509 million, or US$1.61 last year.
Revenue for the quarter grew by 4.6 percent, with 3.1 percent attributed to organic growth and 1.5 percent to acquisitions. The company said core pricing contributed to a 5.7 percent increase in total revenue.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to US$1.36 billion. The adjusted EBITDA margin was 32.1 percent, a year-over-year increase of 100 basis points.
Year-to-date cash flow from operations was US$2.13 billion, and adjusted free cash flow reached US$1.42 billion.
Republic Services said it invested US$888 million in acquisitions in the first half of the year and returned US$407 million to shareholders, including US$45 million in share repurchases and US$362 million in dividends.
The average price for recycled commodities at the company's recycling centres during the second quarter was US$149 per tonne, down US$24 from the previous year.
Four new renewable natural gas projects were completed and began operating during the quarter.
Updated 2025 guidance
Republic Services updated its 2025 full-year financial guidance. The company now expects:
- Revenue between US$16.675 billion and US$16.750 billion
- Adjusted EBITDA between US$5.275 billion and US$5.325 billion
- Adjusted diluted earnings per share between US$6.82 and US$6.90
- Adjusted free cash flow between US$2.375 billion and US$2.415 billion, an increase from previous projections
The company said its outlook assumes no major changes to economic conditions through the rest of the year.
Dividend increase
Republic Services previously announced an increase to its quarterly dividend. A dividend of US$0.625 per share will be paid on Oct. 15 to shareholders of record as of Oct. 2. The increase represents a rise of 4.5 cents per share.
