Republic Services Delivers Strong Q4 and Full Year 2024 Results, Exceeding Guidance on Key Metrics
Republic Services, a leading provider of waste management services in North America, has announced its strong performance for the fourth quarter and full year 2024. The company's CEO, Jon Vander Ark, highlighted that Republic Services finished the year with world-class service delivery and innovative solutions for customers, executing on their strategy to profitably grow the business.
In a conference call on February 13, 2025, Republic Services reported adjusted EBITDA, EPS, and free cash flow that exceeded full-year guidance. Key highlights include revenue growth of 7%, generated adjusted EBITDA growth of 12%, expanded adjusted EBITDA margin by 140 basis points, delivered adjusted earnings per share of $6.46, and produced $2.18 billion of adjusted free cash flow.
The company's customer retention rate remained strong at more than 94%, with favorable trends in their Net Promoter Score due to the value of offerings and quality of service delivery. Fourth-quarter organic revenue growth was driven by solid pricing across the business, with average yield on total revenue at 4.4% and average yield on related revenue at 5.3%. This level of pricing helped drive 110 basis points of EBITDA margin expansion during the quarter.
However, Republic Services experienced organic volume decline on total revenue of 1.2% in the quarter, concentrated in shedding underperforming contracts in the residential business and continued softness in construction and certain manufacturing end markets.
Innovative technology has been a key focus area for the company. The deployment of Empower, their new fleet and equipment management system, is underway, expected to deliver $20 million of annual cost savings once fully implemented. Additionally, cameras are being used on recycling and waste collection routes to identify overfilled containers and recycling contamination, enabled by their RISE digital platform. This technology generated more than $60 million in incremental revenue in the first year of operation.
Republic Services has also made significant investments in sustainability innovation, positioning themselves for continued growth and long-term value creation. The development of Polymer Centers and Blue Polymers joint venture facilities continues to progress, with construction complete at their Indianapolis Polymer Center and equipment commissioning underway. This facility is expected to contribute earnings in the second half of 2025.
