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Republic Services Earnings Surpass Estimates in Q3, Revenues Miss

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Key Takeaways

  • Republic Services' Q3 EPS of $1.90 beat estimates by 7.3%, up 5% y/y.
  • Revenues of $4.2B missed estimates by 1% but grew 3.3% from the prior-year period.
  • Adjusted EBITDA rose 6.1% to $1.4B, with margins expanding 80 basis points to 32.8%.

Republic Services, Inc. (RSG - Free Report) reported mixed third-quarter 2025 results. Earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.

RSG’s earnings per share (EPS) of $1.90 beat the Zacks Consensus Estimate by 7.3% and gained 5% from the year-ago quarter. Revenues of $4.2 billion missed the consensus mark by 1% but gained 3.3% year over year.

The RSG stock has risen 5.7% in the past year, outperforming the marginal decline of the industry it belongs to and 22.6% growth of the Zacks S&P 500 Composite.

Republic Services, Inc. Price, Consensus and EPS Surprise

 

Republic Services, Inc. Price, Consensus and EPS Surprise

Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote

Republic Services’ Q3 Segmental Revenues

Revenues from Collection totaled $2.8 billion, rising 3.4% from the year-ago quarter, missing our estimate of $2.9 billion. Environmental Solutions' revenues (net) of $433 million declined 6.9% year over year, missing our projection of $483.9 million.

Revenues (net) in the Transfer and Landfill segments were $224 million and $516 million, increasing 5.7% and 13.9% on a year-over-year basis, respectively. Revenues of the Transfer and Landfill segments surpassed our estimations of $214.3 million and $476.7 million, respectively.

The Other segment’s revenues of $204 million were in line with the year-ago quarter and missed our estimate of $212.8 million.

Operating Results of RSG

Adjusted EBITDA for the quarter was $1.4 billion, up 6.1% from the year-ago quarter, meeting our estimate. The adjusted EBITDA margin was 32.8%, up 80 basis points from the year-ago quarter, surpassing our projection of 31.7%.

Balance Sheet & Cash Flow of RSG

Republic Services exited the third quarter of 2025 with cash and cash equivalents of $84 million compared with $122 million at the end of the second quarter of 2025. The long-term debt (net of current maturities) was $12.4 billion compared with $12.5 billion at the end of the preceding quarter.

RSG generated $1.2 billion in cash from operating activities in the third quarter of 2025. The adjusted free cash flow was $771 million. Capital expenditure was $456 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 Guidance

For 2025, RSG expects revenues of $16.68 billion. The guided range is lower than the consensus mark of $16.72 billion.

The company expects an adjusted EPS of $6.82-$6.90. The mid-point ($6.86) of the guided range is higher than the Zacks Consensus Estimate of $6.85. The adjusted EBITDA view is $5.28-$5.33 billion.

Earnings Snapshot

S&P Global Inc. (SPGI - Free Report) reported impressive third-quarter 2025 results.

SPGI’s adjusted earnings per share (EPS) of $4.73 surpassed the Zacks Consensus Estimate by 7.5% and gained 21.6% year over year. Revenues of $3.9 billion beat the consensus estimate by 1.4% and grew 8.7% year over year.

TransUnion (TRU - Free Report) reported impressive third-quarter 2025 results.

TRU’s quarterly adjusted earnings (adjusting 61 cents from non-recurring items) of $1.10 per share surpassed the consensus mark by 5.8% and increased by the same margin year over year. Total revenues of $1.2 billion outpaced the consensus mark by 3.1% and rose 7.8% from the year-ago quarter.


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