Republic Services, Inc. reported net income of $550 million, or $1.75 per diluted share, for the second quarter of 2025, an increase from $512 million, or $1.62 per diluted share, in the comparable 2024 period. Adjusted net income reached $556 million, or $1.77 per diluted share, surpassing analyst consensus estimates.
Total revenue for the quarter increased by 4.6% year-over-year to $4.24 billion, but fell short of market expectations. The company achieved an 8% growth in adjusted EBITDA and a 100 basis point expansion in adjusted EBITDA margin to 32.1%, driven by pricing ahead of cost inflation and operational execution.
Despite a modest 0.2% organic volume increase, primarily from event-driven landfill activity, year-to-date volume declined by 0.5%, reflecting softness in construction and manufacturing end markets. The Environmental Solutions segment saw an $11 million revenue decrease but maintained a flat adjusted EBITDA margin of 23.7%.
Republic Services updated its full-year 2025 revenue guidance to $16.68 billion to $16.75 billion, a slight reduction due to volume softness. However, adjusted EBITDA guidance of $5.275 billion to $5.325 billion and adjusted diluted EPS guidance of $6.82 to $6.90 were maintained.
Adjusted free cash flow guidance for 2025 was increased to $2.375 billion to $2.415 billion, benefiting from an $80 million cash tax benefit due to 100% bonus depreciation. The company also approved a 4.5-cent increase in its quarterly dividend to $0.625 per share, payable on October 15, 2025.
The company acknowledged localized labor disruptions experienced since July 2025, noting these were excluded from adjusted results. Republic Services also reported $963 million invested in acquisitions year-to-date, with plans to invest over $1 billion in 2025, and maintained a healthy leverage ratio of 2.5x total debt to EBITDA.
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