Republic Services, Inc. Reports Fourth Quarter and Full-Year 2023 Results; Provides 2024 Full-Year Financial Guidance

PHOENIX, Feb. 27, 2024

For the year ended December 31, 2023, net income was $1,731.0 million, or $5.47 per diluted share, versus $1,487.6 million, or $4.69 per diluted share, for the comparable 2022 period. Excluding certain benefits and expenses, on an adjusted basis, net income for the year ended December 31, 2023 was $1,775.1 million, or $5.61 per diluted share, versus $1,562.8 million, or $4.93 per diluted share, for the comparable 2022 period.

"We finished the year strong and produced results that exceeded our expectations," said Jon Vander Ark, president and chief executive officer. "During 2023, we delivered double-digit growth in revenue, EBITDA, earnings and free cash flow, while continuing to invest in the business to accelerate profitable growth."

Fourth-Quarter 2023 Highlights: 

• Total revenue growth of 8.6 percent includes 5.7 percent organic growth and 2.9 percent growth from acquisitions.
• Core price on total revenue increased revenue by 7.2 percent. Core price on related business revenue increased revenue by 8.8 percent, which consisted of 10.6 percent in the open market and 6.0 percent in the restricted portion of the business.
• Revenue growth from average yield on total revenue was 6.3 percent, and volume increased revenue by 0.3 percent. Revenue growth from average yield on related business revenue was 7.7 percent, and volume increased related business revenue by 0.4 percent.
• Net income was $439.6 million, or a margin of 11.5 percent.
• EPS was $1.39 per share, an increase of 27.5 percent over the prior year.
• Adjusted EPS, a non-GAAP measure, was $1.41 per share, an increase of 24.8 percent over the prior year.
• Adjusted EBITDA, a non-GAAP measure, was $1,145.2 million, and adjusted EBITDA margin, a non-GAAP measure, was 29.9 percent of revenue, an increase of 260 basis points over the prior year.
• Cash invested in acquisitions was $828 million.
• The Company completed construction on its first Polymer Center, located in Las Vegas.
• The Company's average recycled commodity price per ton sold during the fourth quarter was $131. This represents an increase of $19 per ton from the third quarter of 2023 and an increase of $43 per ton over the prior year.

Full-Year 2023 Highlights: 

• Total revenue growth of 10.8 percent includes 6.0 percent organic growth and 4.8 percent growth from acquisitions.
• Core price on total revenue increased revenue by 7.4 percent. Core price on related business revenue increased revenue by 8.9 percent, which consisted of 10.9 percent in the open market and 5.6 percent in the restricted portion of the business.
• Revenue growth from average yield on total revenue was 6.1 percent, and volume increased revenue by 0.5 percent. Revenue growth from average yield on related business revenue was 7.3 percent, and volume increased related business revenue by 0.7 percent.
• Net income was $1,731.0 million, or a margin of 11.6 percent.
• EPS was $5.47 per share, an increase of 16.6 percent over the prior year.
• Adjusted EPS, a non-GAAP measure, was $5.61 per share, an increase of 13.8 percent over the prior year.
• Adjusted EBITDA, a non-GAAP measure, was $4,447.1 million and adjusted EBITDA margin, a non-GAAP measure, was 29.7 percent of revenue, an increase of 60 basis points over the prior year.
• Cash provided by operating activities was $3,617.8 million, an increase of 13.4 percent over the prior year.
• Adjusted free cash flow, a non-GAAP measure, was $1,985.1 million, an increase of 13.9 percent versus the prior year. Adjusted free cash flow exceeded the Company's guidance.
• Cash invested in acquisitions was $1.8 billion.
• Five renewable natural gas projects were completed and commenced operations during the year.
• Cash returned to shareholders was $899.9 million, which included $261.8 million of share repurchases and $638.1 million of dividends paid.
• The Company's average recycled commodity price per ton sold during the year was $117. This represents a decrease of $53 per ton over the prior year.

2024 Financial Guidance

Republic's financial guidance is based on current economic conditions and does not assume any significant changes in the overall economy in 2024. Please refer to the Reconciliation of 2024 Financial Guidance section of this document for detail relating to the computation of non-GAAP measures as well as the Information Regarding Forward-Looking Statements section of this document.