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July 31, 2025 • 4 min read
When a company releases its quarterly earnings report, it provides a valuable look under the hood of its operations. Today, we're diving into the second-quarter 2025 10-Q filing from Republic Services, Inc. (ticker: RSG), a leader in the U.S. environmental services industry. Let's break down the numbers to see how this waste management giant is performing.
Republic Services manages the essential, everyday tasks of waste collection, transfer, disposal, and recycling for millions of customers. In its latest report for the quarter ending June 30, 2025, the company demonstrates steady growth, skillfully navigating cost pressures through strong pricing and strategic acquisitions.
Republic Services reported total revenue of $4.235 billion for the quarter, a 4.6% increase from the $4.048 billion generated in the same period last year. For the first six months of the year, revenue reached $8.244 billion, up from $7.910 billion in 2024.
A key takeaway is how the company achieved this growth. The report shows that "Core price"—which reflects price increases on the same volume of business—was a powerful 7.0% for the quarter (as a percentage of related business revenue). This indicates strong pricing power, allowing the company to pass on higher costs to customers. In contrast, volume growth was a modest 0.2%, suggesting that getting more from existing services, rather than a surge in new business, fueled the top-line increase. Acquisitions also played a role, contributing 1.5% to the revenue growth.
An income statement details the path from sales to profit, but its format can be dense. To clarify how Republic Services' revenue translates into earnings, this flow diagram I've created illustrates the major cost components for the second quarter of 2025.
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The company's revenue is primarily generated through three main business segments. The vast majority comes from its traditional recycling and solid waste services, which are split into two large operating units: Group 1 and Group 2. In the second quarter, these segments were nearly identical in size, with Group 1 generating $1.89 billion in revenue and Group 2 bringing in $1.89 billion. The third segment, Group 3 (Environmental Solutions), handles more specialized services like hazardous waste disposal and contributed $462 million in revenue.
As the diagram illustrates, the largest single expense across these operations is Cost of Operations, which includes labor, fuel, and maintenance, clocking in at $2.449 billion. Encouragingly, this figure fell to 57.9% of revenue from 58.8% in the prior-year quarter, signaling improved operational efficiency. Depreciation, Depletion, and Amortization (DD&A) is another major item at $463 million. This non-cash expense is typical for an asset-intensive company with a vast network of landfills, trucks, and facilities.
The company's efficiency translated into a stronger bottom line. Operating income rose to $861 million, up from $814 million in Q2 2024, with the operating margin ticking up slightly to 20.3%. Net income attributable to the company grew to $550 million, or $1.75 per diluted share, compared to $512 million, or $1.62 per share, a year ago.
This profitability supports direct returns to shareholders. The company increased its quarterly cash dividend to $0.580 per share. However, in a notable shift, Republic Services did not repurchase any of its own stock during the second quarter. This is a change from the same quarter in 2024 when it spent $168 million on buybacks. This pause may be linked to the company's aggressive acquisition strategy, which saw it spend $963 million on acquisitions and investments in the first half of 2025, a substantial increase from the $201 million spent in the same period of 2024.
In conclusion, Republic Services' latest filing paints a picture of a well-managed company effectively using its market position to drive profitability. By leaning on its pricing power and strategically acquiring smaller competitors, it is successfully offsetting rising operational costs. Management's confidence is reflected in its full-year guidance for 2025, anticipating revenue between $16.675 and $16.750 billion. The company continues to be a steady performer in a vital industry, adeptly balancing growth initiatives with shareholder returns.
Last updated: July 31, 2025