By the numbers
Q4 net income: $512M
Up 16.4% versus prior year, with a margin of 12.7%
2024 revenue: $16.03B
Up 7.1% versus prior year
2024 net income: $2.04B
Up 18.1% YOY, with a margin of 12.7%
- Overall results: Republic Services reported another strong quarter to end the year, exceeding its 2024 guidance. Republic expanded its margin for adjusted earnings before income, taxes, depreciation and amortization by 1.4%. Of the company’s revenue growth, 4.5% came from organic growth and 2.6% came from acquisitions. "The Republic team finished the year strong," CEO Jon Vander Ark said on the company's earnings call on Thursday.
- M&A: Last year, Republic spent $358 million in strategic acquisitions, Vander Ark said. In 2025, Republic expects to spend $1 billion on M&A and “a good portion of that has been spent already,” Vander Ark said. On Friday, CenterOak Partners announced it had closed a deal with Republic to sell Shamrock Environmental. North Carolina-based Shamrock specializes in industrial waste and wastewater treatment services. Republic also acquired RecycleSource, a MRF operator and hauler in Pittsburgh in February.
- Volume and pricing: Volumes were down 1.2% in Q4 and 1.1% for the full year in 2024. The company attributed those to the shedding of certain residential contracts, as well as continued softness in construction and certain manufacturing end markets. Core price was 6.1% in Q4 and 6.5% for the full year, both down roughly a percentage point year over year.
- Fleet: The company ended the year with 52 electric collection vehicles and 22 facilities with "commercial-scale" electric vehicle charging infrastructure. Vander Ark said the company is not planning to slow down its investment in EVs, despite loosening fuel policies in California and nationally. He said customers continue to ask for the vehicles, and "we believe electric vehicles are a better product." Republic plans to have 150 EVs in its fleet by the end of 2025 and 30 facilities with charging infrastructure. The company has also maintained its fleet of vehicles fueled by compressed natural gas, but does not plan to buy any new such vehicles.
- Environmental solutions: Executives reported continued integration of environmental services acquisitions, including US Ecology. Margins will continue to improve in the business segment, but likely at a slower clip, CFO Brian DelGhiaccio said on the call. Republic is also working to achieve a once-yearly price increase cadence in the sector, like it does for solid waste and recycling.
- Recycling: Republic reported commodity prices were up year over year in 2024, boosting the company's revenue slightly. The company continues to invest in its polymer centers and Blue Polymers, its joint venture with Ravago. It projects spending $75 million on the polymer centers in 2025. Construction at the company's Indianapolis polymer center is complete, with equipment commissioning underway, Vander Ark said. The Blue Polymer facility in Buckeye, Arizona, is projected to be complete in late 2025.
- Sustainability initiatives: Across Blue Polymers and its Lightning Renewables joint venture, Republic invested $109 million in 2024, Vander Ark said. The company completed two renewable natural gas projects in the fourth quarter. It anticipates seven new projects will come online this year, with one completed in January, Vander Ark said on the call.
- 2025 guidance: Republic projects revenue will be $16.85 billion to $16.95 billion in 2025, with adjusted EBITDA of between $5.275 billion and $5.325 billion. Adjusted free cash flow is projects to be between $2.32 billion and $2.36 billion. "Our outlook is supported by pricing in excess of cost inflation, continued contribution from acquisitions, productivity enhancements from our digital tools and investments in sustainability innovation to drive long-term value creation," Vander Ark said.
