Republic Services Delivers Double-Digit Revenue Growth in Q1 2022

Republic Services, Inc. (NYSE: RSG) showed 14 percent revenue growth in Q1 2022 as it maintains its merger and acquisition activity.

The Phoenix-based waste services company reported a net income of $352 million comprising 11.9 percent of revenue for the first quarter.

"We delivered double-digit growth in revenue, EBITDA and free cash flow while making investments to expand our environmental solutions business and further build our differentiated capabilities," ," said Jon Vander Ark, president and chief executive officer. "Our results demonstrate the positive impact our strategic investments are making in the business, not only for today, but for years to come."

Core price was a major contributor to the revenue boost. Republic stated that core price increased revenue by 6 percent. Q1 2022 core price was 7.6 percent in the open market.

Republic saw an average recycled commodity price of $201 per ton in Q1 2022, up $68 per ton from the previous year's quarter.

Adjusted EBITDA reached $903.5 million in Q1, with an adjusted EBITDA margin of 30.4 percent of revenue. 

Republic lauded the recent acquisition of US Ecology which is expected to bring an anticipated $100 million of cross-selling revenue opportunity with the combination of portfolios. It announced that is already has invested more than $65 million in acquisition costs as of the end of Q1 2022. 

"We are excited to welcome US Ecology employees to the Republic team," said Jon Vander Ark, president and chief executive officer, in a statement. "With US Ecology's deep expertise in specialty waste handling, this acquisition strengthens our position as a leading environmental services company offering one of the most complete sets of products and services to our customers."

It stated that cash provided by operating activities in Q1 was $705.6 million, up 6.7 percent year over year (YOY). Adjusted free cash flow reached $530.9 million, a growth of 14.4 percent over Q1 2021.

Cash provided by operating activities was $705.6 million, an increase of 6.7 percent versus the prior year. Adjusted free cash flow, a non-GAAP measure, was $530.9 million, an increase of 14.4 percent versus the prior year.

Vander Ark commented on the joint partnership with Archaea Energy to advances toward its 2030 sustainability goal of increasing biogas use. The 39 renewable natural gas (RNG) projects will be the country's largest RNG portfolio build-out to date. Republic and Archaea will convert landfill gas into pipeline-quality RNG that can be used for a variety of applications to displace gas from fossil fuels, according to the companies.

The majority of the projects are expected to come online between 2023 and 2027.

"This joint venture together with along our 17 landfill gases are expected to generate approximately $100 million as we continue to be recognized for our commitment to sustainability," Vander Ark said.