NYSE$RSG

Republic Services Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Republic Services reported strong Q2 2022 results, driven by effective pricing strategies and margin expansion.

Republic Services reported a strong second quarter of 2022, with a 21 percent increase in total revenue and a 21 percent increase in adjusted earnings per share over the prior year. The company's performance was driven by its ability to dynamically adjust price to offset higher levels of cost inflation and drive margin expansion. As a result, Republic Services raised its full-year financial guidance.

  • Total revenue growth of 21.4 percent includes 11.1 percent of organic growth and 10.3 percent of growth from acquisitions.
  • Second quarter revenue growth from average yield was 5.0 percent and volume increased revenue by 2.4 percent.
  • Second quarter EPS was $1.17 per share, and adjusted EPS was $1.32 per share, a 21.1 percent increase over the prior year.
  • Second quarter adjusted EBITDA was $1.0 billion and adjusted EBITDA margin was 29.6 percent of revenue.

Headline financials

Total Revenue

$3.96B

Previous: $3.33B+18.7%
EPS (adj)

$1.32

Previous: $1.09+21.1%
Adjusted EBITDA

$1.01B

No prior period
Adjusted EBITDA Margin

29.6%

Previous: 30.6%-3.3%
Net Income Margin

10.9%

No prior period
Capital Expenditures

-$647M

Previous: -$609M-6.4%
Free Cash Flow

-$275M

Previous: -$278M+0.8%
Net Income

$372M

Previous: $331M+12.3%
Operating Income

$590M

Previous: $518M+13.8%
Gross Profit

$1.89B

Previous: $1.68B+12.5%
Cash & Equivalents

$119M

Previous: $34M+251.2%
Total Assets

$28.2B

Previous: $23.9B+17.9%
Stock-Based Comp

$8.8M

Previous: $26M-66.2%

Revenue & EPS history

Republic Services · Revenue · Quarterly

$3.96B

Q2 2022+18.7%vs Q2 2021
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Republic Services · $3.03B total across 3 segments · Q2 2022

  • Collection
    $2.33B+12.5%
  • Landfill (net)
    $406M+10.3%
  • Environmental Solutions (net)
    $294M+904.4%

Forward guidance

Republic raised its full-year adjusted diluted EPS guidance to $4.77 to $4.80 and its full-year adjusted free cash flow guidance to $1,700 million to $1,725 million.

Tailwinds

  • Raised full-year adjusted diluted EPS guidance to $4.77 to $4.80
  • Raised full-year adjusted free cash flow guidance to $1,700 million to $1,725 million
  • Demonstrated ability to dynamically adjust price
  • Offset higher levels of cost inflation
  • Drive margin expansion in the underlying business

Headwinds

  • Ability to effectively integrate and manage companies we acquire, including US Ecology
  • Realize the anticipated benefits of any such acquisitions
  • Effects of the COVID-19 pandemic and actions taken in response thereto
  • Acts of war, riots or terrorism
  • Dependence on large, long-term collection, transfer and disposal contracts

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.6%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+3.0%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+5.9%

Q4 2013

Best reaction

-6.6%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+1.1%+4.5%
Q4 2025+0.4%+0.0%-0.9%
Q3 2025-2.1%-1.7%+3.4%
Q2 2025-0.4%+0.2%+1.0%
Q1 2025+1.2%+4.1%+5.0%
Q4 2024+3.1%+2.3%+3.3%
Q3 2024-0.8%-0.9%+8.9%
Q2 2024-4.9%-3.5%+3.6%
Q1 2024-3.8%-4.1%-5.9%
Q4 2023+0.6%-0.7%+3.6%
Q3 2023-1.1%+0.6%+8.7%
Q2 2023+0.4%-2.0%-3.7%
Q1 2023+5.4%+5.6%+2.8%
Q4 2022+4.1%+5.7%+4.7%
Q3 2022-0.3%-1.8%+2.4%
Q2 2022+1.1%+1.7%+1.7%
Q1 2022+1.2%-3.3%+0.6%
Q4 2021-5.8%-7.2%-0.9%
Q3 2021+4.2%+3.9%+4.6%
Q2 2021+2.6%+3.8%+7.1%
Q1 2021+1.9%+3.1%+0.5%
Q4 2020-1.8%-1.7%+8.4%
Q3 2020+3.4%+8.7%+1.9%
Q2 2020+4.7%+5.1%+8.1%
Q1 2020+1.7%+5.3%+12.5%
Q4 2019+2.0%+1.8%-13.7%
Q3 2019-0.4%-1.9%+0.9%
Q2 2019+4.1%+3.2%+0.8%
Q1 2019+1.6%+4.4%+6.6%
Q4 2018-0.9%+0.3%+0.7%
Q3 2018+1.0%+4.0%+9.6%
Q2 2018+2.7%+2.7%+3.7%
Q1 2018+3.9%+5.1%+5.1%
Q4 2017-4.1%-2.0%+6.7%
Q3 2017-1.0%-0.6%-0.5%
Q2 2017-0.8%-0.3%-0.7%
Q1 2017-0.4%+0.2%-0.3%
Q4 2016+2.8%+3.6%+7.2%
Q3 2016+1.3%+0.0%+8.5%
Q2 2016-0.8%-1.4%-2.2%
Q1 2016+1.2%
Q4 2015-0.2%
Q3 2015+0.1%
Q2 2015+2.3%
Q1 2015+3.7%
Q4 2014-3.2%
Q3 2014-2.4%
Q2 2014+0.9%
Q1 2014-1.3%
Q4 2013+5.9%
Q3 2013+3.0%
Q2 2013-2.4%
Q1 2013+3.3%
Q4 2012-1.4%
Q3 2012-6.6%
Q2 2012+3.9%
Q1 2012-0.1%
Q4 2011+0.1%
Q3 2011-3.6%
Q2 2011+0.0%
Q1 2011-0.1%
Q4 2007-1.4%
Q4 2010-1.4%
Q3 2010-5.0%
Q2 2010+1.5%
Q1 2009+4.7%
Q1 2010+0.2%
Q4 2009+1.7%
Q3 2008+3.2%
Q3 2009+3.2%
Q2 2009+2.6%
Q4 2008+2.6%
Q2 2008+2.6%

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