Republic Services Sees Double-Digit Net Income Growth in Q2 2023

Republic Services (NYSE: RSG) reported double-digit growth in Q2 2023, pacing ahead of inflation and boosting organic growth.

The Phoenix-based company published its earnings, showing net income of $427.4 million, up from $371.9 million in Q2 2023.

"Growth continues to be broad-based, with strong results in our Recycling and Solid Waste and Environmental Solutions businesses," commented Jon Vander Ark, Republic president and CEO. 

Revenue reached $3.7 billion in Q2 2023, up from $3.4 billion in the previous year's quarter. Net income comprised of 11.5 percent of revenue. Adjusted EBITDA was $1.1 billion, with adjusted EBITDA margin reaching 30 percent. 

Recycled commodity prices fell, with an average price per ton of $119 in Q2 2023, down $99 from Q2 2022. However, recycled commodity prices increased by $14 from Q1 2023.

Acquisition activity remained strong in Q2 2023, with $926.9 million spent boosting Republic's recycling and solid waste business.

The solid quarterly performance led the company to adjust its full-year earnings guidance estimates:

Revenue: $14.775 billion to $14.850 billion

Adjusted EBITDA: $4.340 billion to $4.360 billion

Adjusted Free Cash Flow: $1.9 billion to $1.925 billion.

Adjusted Earnings Per Share: $5.33 to $5.38

Republic Services also announced a new partnership with polymer recycler Ravago, , coinciding with its positive earnings results. The joint venture, named Blue Polymers LLC, aims to advance plastics circularity.

The partnership will leverage Blue Polymers' "network of facilities" to manufacture 100 percent post-consumer recycled items and to supply plastic manufacturers with recycled materials.

The newly-developed facilities will process recycled polyethylene and polypropylene from Republic Services' Polymer Centers to generate resin for packaging and other products for use in food- and non-food-grade sustainable applications.

"Companies today are setting aggressive recycled content goals, and Republic Services has a unique opportunity to meet the demand for high-quality recycled plastics through our Polymer Centers and now the creation of Blue Polymers," commented Vander Ark. "Ravago's leadership in plastics recycling and compounding makes them a natural partner as we take the next step in advancing plastics circularity."