Republic Services, Inc. Reports Strong 2023 Financial Results

Republic Services, Inc. (Republic Services) (NYSE: RSG) released its fourth quarter and full-year 2023 earnings this week, noting that its results exceeded expectations.

The company ended the quarter seeing its total revenue grow to 8.6 percent with its net income finishing at $439.6 million, a sizeable increase from Q4 2022 which came in at $346.8 million. If you remove certain expenses and other items, this 2023 result finishes a bit higher for the quarter, on an adjusted basis at $446.4 million.

The entirety of 2023 also saw steady growth compared to the full year of 2022, finishing the year with a net income of $1.731 billion, up from $1.487 billion. Republic Services revenue also finished the year seeing a total revenue growth of 10.8 percent.

"We finished the year strong and produced results that exceeded our expectations," said Jon Vander Ark, president, and chief executive officer. "During 2023, we delivered double-digit growth in revenue, EBITDA, earnings, and free cash flow, while continuing to invest in the business to accelerate profitable growth."

Adjusted EBITDA for 2023’s final quarter at Republic Services was $1,145.2 million. Other highlights for Q4 include $828 million of cash invested in acquisitions, EPS increasing 27.5 percent to $1.39 per share, and the completion of the company’s first Polymer Center, located in Las Vegas, Nev.

“We continue to believe that investing in value creating acquisitions to further expand our business is the best use of our free cash flow. We invested $1.8 billion in acquisitions in 2023, including transactions in both recycling and waste and environmental solutions business,” said Vander Ark.

Republic Services finished the year strong, adding to an overall successful 2023 that saw cash provided by operating activities at $3.617 billion, an increase of 13.4 percent from 2022.

“The results we are generating are made possible by executing our strategy supported by our differentiated capabilities,” said Vander Ark.

Vander Ark added that he and Republic Services expect another year of growth in 2024, reaching a total revenue range of $16.1 billion and adjusted EBITDA to be in the range of $4.825 billion.

"We expect another outsized year of growth in revenue, EBITDA, earnings, and free cash flow in 2024," said Vander Ark. "Our strong financial guidance is supported by pricing in excess of cost inflation, leveraging our digital tools to enhance productivity and improve customer loyalty, and continuing to invest in Sustainability Innovation to drive long-term value creation."

Q4 2023

Net Income: $439.6 million

Adjusted EBITDA: $1.145 billion

Full Year 2023:

Net Income: $1.731 billion

Adjusted EBITDA: $4.447 billion

Adjusted Free Cash Flow: $1.9851 billion

Net Cash Provided by Operating Activities: $3.617 billion

2024 Guidance

Revenue: $16.1 billion

Adjusted EBITDA: $4.825 billion

Adjusted Free Cash Flow: $2.1 billion