Republic Services Earnings Surpass Estimates in Q2, Revenues Miss

Republic Services, Inc. RSG reported mixed second-quarter 2025 results. Earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.RSG’s earnings per share (EPS) of $1.77 beat the Zacks Consensus Estimate by 1.1% and gained 9.9% from the year-ago quarter. Revenues of $4.2 billion missed the consensus mark by a slight margin but increased 4.6% year over year.The RSG stock has risen 22.3% in the year-to-date period, outperforming the 9.9% rally of the industry it belongs to and 8.2% growth of the Zacks S&P 500 Composite.Republic Services, Inc. Price, Consensus and EPS Surprise  Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. QuoteRepublic Services’ Q2 Segmental RevenuesRevenues from Collection totaled $2.8 billion, increasing 3.6% from the year-ago quarter, missing our estimate of $2.9 billion. Environmental Solutions' revenues (net) of $462 million declined 2.3% year over year, missing our projected $492 million.Revenues (net) in the Transfer and Landfill segments were $221 million and $516 million, increasing 6.3% and 17.3% on a year-over-year basis, respectively. Revenues of the Transfer and Landfill segments surpassed our expectations of $213.5 million and $462.7 million, respectively.The Other segment’s revenues of $214 million grew 4.9% from the year-ago quarter’s actual and surpassed our expectation of $212.7 million.Operating Results of RSGAdjusted EBITDA for the quarter was $1.4 billion, increasing 8.2% from the year-ago quarter, beating our estimate of $1.3 billion. The adjusted EBITDA margin was 32.1%, up 100 basis points from the year-ago quarter, surpassing our estimation of 31.4%.Balance Sheet & Cash Flow of RSGRepublic Services exited the second quarter of 2025 with cash and cash equivalents of $122 million compared with $83 million at the end of the first quarter of 2025. The long-term debt (net of current maturities) was $12.5 billion compared with $12.9 billion at the end of the preceding quarter.RSG generated $1.1 billion in cash from operating activities in the second quarter of 2025. The adjusted free cash flow was $693 million. Capital expenditure was $423 million.Republic Services carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Republic Services’ 2025 GuidanceFor 2025, RSG lowered its revenue expectations to $16.68-$16.75 billion from the preceding quarter’s view of $16.85-$16.95 billion. The guided range is lower than the consensus mark of $16.87 billion.The company expects the adjusted EPS to be $6.82-$6.90. The mid-point ($6.86) of the guided range is lower than the Zacks Consensus Estimate of $6.87. The adjusted EBITDA view is $5.28-$5.33 billion.Earnings SnapshotWM WM reported impressive second-quarter 2025 results.WM’s quarterly adjusted earnings of $1.92 per share surpassed the consensus mark by 1.6% and gained 5.5% year over year. Total revenues of $6.4 billion beat the consensus mark by 1.4% and increased 19% from the year-ago quarter.Waste Connections, Inc. WCN posted impressive second-quarter 2025 results.WCN’s adjusted earnings (excluding 17 cents from non-recurring items) of $1.29 per share surpassed the Zacks Consensus Estimate by 3.2% and increased 4% year over year. Revenues of $2.4 billion beat the consensus estimate marginally and grew 7.1% from the year-ago quarter.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waste Management, Inc. (WM): Free Stock Analysis Report Republic Services, Inc. (RSG): Free Stock Analysis Report Waste Connections, Inc. (WCN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks