Republic Services (RSG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 9% year-over-year, with 5.6% organic growth and 3.0% from acquisitions, and first-half 2024 revenue increased 8.2% to $7.91 billion, driven by pricing, acquisitions, and improved recycling commodity prices.

• Adjusted EBITDA grew 13% year-over-year in Q2 2024, with margin expanding by 110 basis points to 31.1%.

• Adjusted EPS for Q2 2024 was $1.61, and full-year adjusted EPS guidance was raised to $6.15–$6.20.

• Net income for Q2 2024 was $511.5 million ($1.62 per diluted share), and for the first half of 2024, net income was $965.3 million.

• Customer retention remained above 94%, with improving Net Promoter Scores and strong pricing driving organic growth.

Financial highlights

• Q2 2024 total revenue was $4.05 billion, up 8.7% year-over-year, with core price on total revenue at 6.8% and average yield at 5.5%.

• Adjusted EBITDA for Q2 2024 was $1.26 billion, and net income margin was 12.6%.

• Year-to-date cash flow from operations reached $1.91 billion, and adjusted free cash flow was $1.15 billion.

• Capital expenditures for the first half of 2024 were $917.9 million, up from $714.3 million in 2023.

• Recycling commodity prices averaged $173/ton in Q2, up from $119/ton year-over-year, contributing to revenue growth.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $16.075–$16.125 billion, Adjusted EBITDA to $4.9–$4.925 billion, and Adjusted EPS to $6.15–$6.20.

• Adjusted Free Cash Flow guidance is $2.15–$2.17 billion.

• Guidance assumes commodity prices remain at $170/ton and includes acquisitions closed through June 30.

• Management expects continued revenue growth from pricing, acquisitions, and recycling, but notes potential headwinds from volume declines and market volatility.

• Quarterly dividend increased by 4.5 cents to $0.58 per share.