Republic Services margin grows despite lower net income

Republic Services, Inc. has reported a net income of $550 million for the third quarter of 2025. Compared to last year's period, this number is down slightly from $566 million. The strong outcome was expected as the company has continued to price ahead of cost inflation. 

Third-quarter and year-to-date 2025 highlights:

• Total revenue growth of 3.3 percent includes 1.7 percent organic growth and 1.6 percent growth from acquisitions
• Core price on total revenue increased revenue by 5.9 percent. Core price on related business revenue increased revenue by 7.2 percent, which consisted of 8.6 percent in the open market and 4.8 percent in the restricted portion of the business
• Revenue growth from average yield on total revenue was 4.0 percent, and volume decreased total revenue by 0.3 percent. Revenue growth from average yield on related business revenue was 4.9 percent, and volume decreased related business revenue by 0.4 percent
• Net income was $550 million, or a margin of 13.1 percent
• EPS was $1.76 per share
• Adjusted EPS, a non-GAAP measure, was $1.90 per share
• Adjusted EBITDA, a non-GAAP measure, was $1.38 billion, and adjusted EBITDA margin, a non-GAAP measure, was 32.8 percent of revenue, an increase of 80 basis points over the prior year
• Year-to-date cash flow from operations was $3.32 billion
• Year-to-date adjusted free cash flow, a non-GAAP measure, was $2.19 billion
• Year-to-date cash invested in acquisitions was $1.01 billion
• Year-to-date cash returned to shareholders was $1.13 billion, which included $584 million of share repurchases and $544 million of dividends paid
• The company's average recycled commodity price per ton sold at its recycling centers during the third quarter was $126. This represents a decrease of $51 per ton over the prior year
• The company completed and commenced operations on one renewable natural gas project during the quarter
• The company expects revenue to be near the low end of its full-year 2025 guidance range. The company reiterates all other financial components of its 2025 guidance

"We delivered strong third-quarter results as we continue to execute our strategy for sustainable, profitable growth," said Jon Vander Ark, president and chief executive officer. "Despite ongoing cyclical volume pressures, our ability to price ahead of cost inflation and disciplined operational execution drove an 80-basis-point expansion in adjusted EBITDA margin. These results underscore the resiliency of our business model and the value from continued investments in our differentiated capabilities."