Summary
Republic Services, Inc. (RSG) reported solid financial results for the third quarter and first nine months of 2023, demonstrating continued revenue growth and operational strength. The company saw a significant increase in revenue driven by a combination of acquisitions, price increases (average yield), and consistent volume, indicating effective pricing strategies and operational execution. Profitability also improved, with net income and diluted earnings per share showing substantial year-over-year gains, reflecting the company's ability to manage costs effectively despite inflationary pressures. Key financial metrics highlight the company's robust performance. Management provided an updated full-year 2023 adjusted earnings per share guidance, signaling confidence in continued profitability. The company's balance sheet remains strong, supported by healthy cash flows from operations, which are being strategically deployed towards capital expenditures, acquisitions, and returning value to shareholders through dividends and share repurchases. The diversified revenue streams across collection, transfer, landfill, and environmental solutions provide resilience, while ongoing investments in technology and infrastructure are expected to support future growth.
Financial Highlights
52 data points| Revenue | $3.83B |
| Cost of Revenue | $2.28B |
| Gross Profit | $1.54B |
| SG&A Expenses | $402.10M |
| Operating Income | $727.80M |
| Interest Expense | $127.60M |
| Net Income | $480.30M |
| EPS (Basic) | $1.52 |
| EPS (Diluted) | $1.52 |
| Shares Outstanding (Basic) | 316.06M |
| Shares Outstanding (Diluted) | 316.56M |
Key Highlights
- 1Revenue increased by 11.5% for the nine months ended September 30, 2023, to $11,132.9 million compared to $9,981.5 million in the prior year period.
- 2Net income attributable to Republic Services, Inc. increased to $480.2 million ($1.52 per diluted share) for Q3 2023 from $416.9 million ($1.32 per diluted share) in Q3 2022.
- 3For the nine months ended September 30, 2023, net income was $1,291.4 million ($4.07 per diluted share), up from $1,140.8 million ($3.60 per diluted share) in the comparable period of 2022.
- 4The company updated its full-year 2023 adjusted diluted earnings per share guidance to be between $5.46 and $5.49.
- 5Cash provided by operating activities increased to $2,719.3 million for the first nine months of 2023 from $2,380.0 million in the prior year period.
- 6The company repurchased approximately 1.3 million shares for $190.4 million during the first nine months of 2023.
- 7Total assets grew to $30,042.8 million as of September 30, 2023, from $29,052.9 million as of December 31, 2022, driven largely by goodwill from acquisitions.