Republic Services (RSG) Q4 2024 earnings summary

Executive summary

• Delivered double-digit growth in adjusted EBITDA, EPS, and free cash flow for 2024, exceeding full-year guidance, with strong revenue and margin growth.

• Achieved 7.1% revenue growth, 12% Adjusted EBITDA growth, 140 basis points of margin expansion, and $2.18B in Adjusted Free Cash Flow for 2024.

• Customer retention rate remained above 94%, supported by high service quality and digital innovation.

• Returned $1.18B to shareholders in 2024 through dividends and share repurchases.

• Advanced sustainability initiatives, including polymer centers, renewable natural gas (RNG) projects, and fleet electrification.

Financial highlights

• Adjusted EBITDA margin expanded 140 basis points year-over-year to 31.1%.

• Adjusted earnings per share reached $6.46 for 2024, up 15.2%.

• Adjusted Free Cash Flow was $2.18B, up 10% from the prior year.

• Total debt at year-end was $12.8B, with a leverage ratio of 2.6x and liquidity of $2.5B.

• Full-year 2024 revenue rose 7.1% year-over-year, with 4.5% organic and 2.6% acquisition growth.

Outlook and guidance

• 2025 revenue expected between $16.85B and $16.95B, with average yield growth of ~4%.

• Adjusted EBITDA guidance for 2025 is $5.275B–$5.325B; Adjusted EPS projected at $6.82–$6.90.

• Adjusted Free Cash Flow projected at $2.32B–$2.36B; $1B+ planned for value-creating acquisitions.

• At least $1B planned for acquisitions in 2025, with a strong pipeline in recycling, waste, and environmental solutions.

• Guidance assumes stable economic conditions and includes closed acquisitions.