Republic Services, Inc. (RSG) Bundle
A Brief History of Republic Services, Inc.
Republic Services, Inc. (RSG) has established itself as a leading provider of non-hazardous solid waste collection, transfer, recycling, and disposal services in the United States. As of 2024, the company operates more than 340 collection operations, 200 recycling facilities, and 200 landfills across the country.
Financial Performance Overview
For the nine months ended September 30, 2024, Republic Services reported net income attributable to the company of $1.53 billion, or $4.86 per diluted share, compared to $1.29 billion, or $4.07 per diluted share for the same period in 2023. The company's revenue for this period was $12.45 billion, reflecting a significant increase from $11.14 billion in 2023.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $1,531.0 | $1,291.4 |
| Earnings Per Share | $4.86 | $4.07 |
| Total Revenue (in billions) | $12.45 | $11.14 |
Operational Growth
Republic Services has focused on expanding its operations through strategic acquisitions and organic growth. In 2024, the company reported capital expenditures of $1.36 billion, up from $1.08 billion in 2023. This increase is primarily attributed to investments in modernizing its fleet and expanding its recycling capabilities.
Cost Management
The total cost of operations for Republic Services during the nine months ended September 30, 2024, was $7.03 billion, representing 58.7% of total revenue. This is a slight decrease from 60.0% in the previous year. Key components of cost management included:
- Labor and related benefits: $2.41 billion (20.1% of revenue)
- Transfer and disposal costs: $832.3 million (7.0% of revenue)
- Fuel costs: $360.4 million (3.0% of revenue)
| Cost Component | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Labor and Related Benefits | $2,412.3 | $2,233.0 |
| Transfer and Disposal Costs | $832.3 | $788.6 |
| Fuel Costs | $360.4 | $406.3 |
Market Position and Future Outlook
As of 2024, Republic Services holds a strong market position with approximately 20% market share in the U.S. waste management industry. The company’s strategic focus on sustainability and renewable energy initiatives is expected to drive future growth. The effective tax rate for the nine months ended September 30, 2024, was reported at 19.4%, down from 24.4% in 2023, reflecting benefits from renewable energy investments.
Shareholder Returns
Republic Services has consistently returned value to its shareholders through dividends and share repurchase programs. In July 2024, the company declared a quarterly dividend of $0.580 per share, with total dividends paid amounting to $504.8 million for the nine months ended September 30, 2024. The company's share repurchase activity during the same period included the repurchase of 1.7 million shares for $320.7 million.
| Shareholder Returns Metric | 2024 | 2023 |
|---|---|---|
| Total Dividends Paid (in millions) | $504.8 | $469.5 |
| Shares Repurchased (in millions) | 1.7 | 1.3 |
| Amount Paid for Repurchases (in millions) | $320.7 | $190.4 |
Republic Services continues to enhance its operational efficiency and expand its service offerings, positioning itself for sustained growth in the evolving waste management sector.
A Who Owns Republic Services, Inc. (RSG)
Major Shareholders
As of 2024, Republic Services, Inc. (RSG) has a diverse ownership structure, comprising institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 9.8% | Institutional Investor |
| BlackRock, Inc. | 9.1% | Institutional Investor |
| State Street Corporation | 7.4% | Institutional Investor |
| Wellington Management Company, LLP | 5.3% | Institutional Investor |
| FMR LLC (Fidelity) | 5.0% | Institutional Investor |
| Geode Capital Management, LLC | 2.2% | Institutional Investor |
| Other Institutional Investors | 30.9% | Institutional Investors |
| Individual Shareholders | 25.3% | Individual Investors |
Insider Ownership
Insider ownership plays a significant role in the governance of Republic Services, Inc. As of the latest reports, insiders hold approximately 1.8% of the company's shares. The following key executives and their ownership stakes are noted:
| Name | Position | Shares Owned |
|---|---|---|
| Donald W. Slager | CEO | 150,000 |
| Brian H. E. McCarthy | CFO | 75,000 |
| Other Executives | Various | 225,000 |
Institutional Ownership Trends
Institutional ownership of Republic Services, Inc. has shown a steady increase over the years. As of September 30, 2024, institutional investors collectively own approximately 60% of outstanding shares, reflecting growing confidence in the company's financial performance and strategic direction.
| Year | Institutional Ownership Percentage |
|---|---|
| 2020 | 55.0% |
| 2021 | 57.5% |
| 2022 | 58.2% |
| 2023 | 59.0% |
| 2024 | 60.0% |
Recent Developments
In 2024, Republic Services, Inc. has engaged in several strategic initiatives aimed at enhancing shareholder value. Notably, the company announced a share repurchase program authorizing the buyback of up to $3.0 billion in shares, which is expected to further consolidate ownership among existing shareholders.
| Program Details | Amount Authorized | Duration |
|---|---|---|
| Share Repurchase Program | $3.0 billion | 2024 - 2026 |
Republic Services, Inc. (RSG) Mission Statement
As of 2024, Republic Services, Inc. emphasizes its commitment to providing sustainable waste management solutions. The mission statement is centered around creating a cleaner, safer, and healthier environment for its customers and communities, while also striving for operational excellence and innovation in the environmental services industry.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency.
- Safety: Prioritizing the safety of employees, customers, and the communities served.
- Sustainability: Committed to reducing environmental impact through innovative practices.
- Customer Focus: Dedicated to meeting customer needs and exceeding expectations.
Financial Performance Indicators (2024)
The financial performance of Republic Services reflects its operational efficiency and growth strategies. Below is a table summarizing key financial metrics for the three and nine months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue (in millions) | $4,076.2 | $3,825.9 | $11,986.0 | $11,132.9 |
| Operating Income (in millions) | $845.9 | $727.8 | $2,392.6 | $2,079.2 |
| Net Income (in millions) | $565.7 | $480.2 | $1,531.0 | $1,291.4 |
| Diluted Earnings per Share | $1.80 | $1.52 | $4.86 | $4.07 |
Operational Footprint
As of September 30, 2024, Republic Services operates a significant number of facilities to support its mission:
| Facility Type | Number of Facilities |
|---|---|
| Collection Operations | 361 |
| Transfer Stations | 247 |
| Recycling Centers | 75 |
| Active Landfills | 208 |
| Treatment, Recovery, and Disposal Facilities | 2 |
| Treatment, Storage, and Disposal Facilities (TSDF) | 23 |
| Deep Injection Wells | 12 |
Strategic Initiatives
Republic Services continues to focus on strategic initiatives aimed at enhancing its sustainability efforts, including:
- Investing in renewable energy projects, specifically landfill gas-to-energy initiatives.
- Expanding recycling capabilities to improve material recovery rates.
- Utilizing technology to optimize collection routes and reduce carbon footprint.
Future Outlook
The company anticipates continued growth driven by strategic acquisitions and organic growth opportunities. It aims to invest at least $250 million in acquisitions in 2024, which will enhance its service offerings and market presence.
How Republic Services, Inc. (RSG) Works
Company Overview
Republic Services, Inc. is one of the largest providers of environmental services in the United States, operating in waste collection, recycling, and disposal services. As of September 30, 2024, the company operates across the U.S. and Canada through 361 collection operations, 247 transfer stations, 75 recycling centers, and 208 active landfills.
Financial Performance
For the nine months ended September 30, 2024, Republic Services reported:
- Gross Revenue: $13,782.7 million
- Net Revenue: $11,986.0 million
- Adjusted EBITDA: $3,725.7 million
- Net Income: $1,531.0 million
- Earnings per Share (EPS): $4.86
This represents a revenue increase of 7.7% compared to $11,132.9 million for the same period in 2023.
Revenue Segmentation
Revenue for the nine months ended September 30, 2024, by segment is summarized as follows:
| Segment | Gross Revenue (in millions) | Net Revenue (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|---|
| Group 1 (Recycling & Waste) | $6,231.1 | $5,400.3 | $1,765.0 |
| Group 2 (Recycling & Waste) | $5,923.1 | $5,225.1 | $1,643.5 |
| Group 3 (Environmental Solutions) | $1,377.0 | $1,360.6 | $317.2 |
| Total | $13,782.7 | $11,986.0 | $3,725.7 |
Cost of Operations
The cost of operations for the nine months ended September 30, 2024, is detailed below:
| Cost Component | Amount (in millions) | Percentage of Revenue |
|---|---|---|
| Labor and Related Benefits | $2,412.3 | 20.1% |
| Transfer and Disposal Costs | $832.3 | 7.0% |
| Depreciation, Amortization & Depletion | $1,122.2 | 9.4% |
| Selling, General & Administrative | $1,227.6 | 10.2% |
| Total Cost of Operations | $7,032.7 | 58.7% |
Landfill and Environmental Operations
As of September 30, 2024, Republic Services owned or operated:
- 208 active landfills
- 5.1 billion cubic yards of total available disposal capacity
- 126 closed landfills with post-closure responsibilities
Capital Expenditures
For the nine months ended September 30, 2024, Republic Services reported capital expenditures totaling $1,357.4 million, broken down as follows:
| Capital Expenditure Type | Amount (in millions) |
|---|---|
| Landfill Development | $569.0 |
| Vehicles and Equipment | $410.8 |
| Buildings and Improvements | $92.4 |
| Other | $285.2 |
Debt and Financing
As of September 30, 2024, Republic Services had the following debt arrangements:
- $595.0 million in commercial paper issued
- $1.0 billion term loan facility was fully repaid
- Issued $400.0 million of 5.000% senior notes due 2029 and $500.0 million of 5.200% senior notes due 2034 in June 2024.
Shareholder Returns
In July 2024, Republic Services declared a quarterly dividend of $0.580 per share, with total cash dividends declared for the nine months ended September 30, 2024 amounting to $518.2 million.
Market Position and Strategy
Republic Services continues to pursue growth through strategic acquisitions. In 2024, the company plans to invest at least $250 million in acquisitions, focusing on expanding its environmental services platform.
How Republic Services, Inc. (RSG) Makes Money
Revenue Streams
Republic Services, Inc. generates revenue through various segments, primarily focused on environmental services, including waste collection, recycling, and landfill operations. For the nine months ended September 30, 2024, total revenue was $11,986 million, a 7.7% increase from $11,132.9 million during the same period in 2023.
| Segment | Revenue (2024, $ Million) | Percentage of Total Revenue |
|---|---|---|
| Collection (Residential, Small-container, Large-container) | 8,127.4 | 67.8% |
| Transfer | 602.6 | 5.0% |
| Landfill | 1,297.4 | 10.8% |
| Environmental Solutions | 1,408.4 | 11.7% |
| Other | 598.0 | 5.0% |
Collection Services
The collection services include residential, small-container, and large-container waste collection. For the three months ended September 30, 2024, the net revenue from collection services was $2,741.8 million, which accounted for 67.3% of total revenue.
Transfer Services
Transfer services, which involve transporting waste to disposal sites, contributed $211.6 million in net revenue for the three months ended September 30, 2024, representing 5.2% of total revenue.
Landfill Operations
Landfill operations generated $452.8 million in net revenue for the three months ended September 30, 2024, which is approximately 11.1% of total revenue. The company operates 208 active landfills with a total available disposal capacity estimated at 5.1 billion cubic yards.
Environmental Solutions
Environmental solutions generated $479.6 million in net revenue for the three months ended September 30, 2024, making up 11.4% of total revenue. This segment includes hazardous waste management and other related services.
Financial Performance
For the nine months ended September 30, 2024, Republic Services reported adjusted EBITDA of $3,725.7 million, up from $3,301.9 million in 2023. The increase was attributed to a rise in average yield across all lines of business and revenue growth from acquisitions.
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $11,986.0 million | $11,132.9 million |
| Adjusted EBITDA | $3,725.7 million | $3,301.9 million |
Cost Structure
The cost of operations for the nine months ended September 30, 2024, was $7,032.7 million, representing 58.7% of total revenue. Major components of the cost structure include labor and related benefits, transfer and disposal costs, and selling, general, and administrative expenses.
| Cost Component | Cost (2024, $ Million) | Percentage of Revenue |
|---|---|---|
| Labor and Related Benefits | 2,412.3 | 20.1% |
| Transfer and Disposal Costs | 832.3 | 7.0% |
| Selling, General, and Administrative | 1,227.6 | 10.2% |
Pricing Strategy
Republic Services implements a pricing strategy that focuses on core price increases, average yield enhancement, and mitigating fuel price fluctuations through a fuel recovery fee program. For the nine months ended September 30, 2024, average yield increased revenue by 5.4% compared to the same period in 2023.
Acquisitions and Growth Strategy
The company actively pursues acquisitions to enhance its service offerings and expand its market presence. In 2024, Republic Services expects to invest at least $250 million in acquisitions, primarily targeting recycling and waste companies that complement its existing operations.
Republic Services, Inc. (RSG) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Republic Services, Inc. (RSG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Republic Services, Inc. (RSG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Republic Services, Inc. (RSG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.