Fri, Apr 25, 10:05 AM (23 days ago)
**Republic Services, Inc. (RSG) Q1 2025 Financial Performance Summary** **Financial Health and Performance Metrics:** - **Revenue:** $4,009 million, up 3.8% YoY. - **Net Income:** $495 million, up 9.0% YoY. - **Earnings per Share (EPS):** $1.58, up 9.7% YoY. - **Operating Income:** $804 million, up 9.9% YoY. - **Operating Margin:** 20.1%, up from 19.0% YoY. - **Cash Flow from Operations:** $1,025 million, up 26.1% YoY. **Profit Margins:** - **Gross Margin:** Not explicitly stated, but implied by operating income and revenue. - **Operating Margin:** 20.1%. - **Net Margin:** Approximately 12.3%. **Cash Flow:** - **Operating Cash Flow:** $1,025 million. - **Investing Cash Flow:** -$1,288 million, primarily due to acquisitions and capital expenditures. - **Financing Cash Flow:** $284 million, including debt issuance and share repurchases. **Earnings Changes:** - **Revenue Growth:** Driven by average yield increase (4.5%), acquisitions (0.9%), and recycling processing/commodity sales (0.3%). - **Volume Decline:** 1.2% due to residential, large-container, and small-container lines of business. - **Fuel Recovery Fees:** Decreased by 0.4% due to lower fuel prices. **Quarterly Performance Discussion:** - **Revenue Growth:** Positive pricing changes across all lines of business. - **Cost Management:** Increased labor costs offset by decreased fuel costs. - **Acquisitions:** Continued growth strategy with approximately $1 billion expected in 2025. - **Dividends and Share Repurchases:** $181 million in dividends paid and $55 million in share repurchases. **Trends and Uncertainties:** - **Economic Conditions:** Sensitivity to global economy, interest rates, and international trade restrictions. - **Weather Impact:** Adverse weather affected volume in certain lines of business. - **Regulatory Environment:** Compliance with evolving laws and regulations. - **Fuel and Commodity Prices:** Volatility in fuel and commodity prices impacts operating costs and revenue. **Future Operations Impact:** - **Capital Expenditures:** $459 million in Q1 2025, focusing on growth and efficiency. - **Debt Management:** $13.3 billion in total debt, with a focus on maintaining strong credit ratings. - **Environmental Solutions:** Growth in environmental solutions revenue driven by event-based volumes and price increases. **Ticker:** RSG