Republic Services, Inc. is a leading provider of environmental services in the United States and Canada, operating through a network of collection operations, transfer stations, recycling centers, landfills, and other facilities. The company offers a comprehensive range of services including recycling, solid waste, special waste, hazardous waste, and field services, with a strong commitment to sustainability and circularity **[0001060391-24-000142_rsg-20231231.htm:3]** **[0001060391-24-000203_exhibit991q12024.htm:2]** **[0001060391-24-000132_exhibit991q42023.htm:3]**. The company's revenue is primarily generated through several key service lines: collection services, transfer services, landfill services, environmental solutions, and recycling processing and commodity sales **[0001060391-24-000142_rsg-20231231.htm:167]** **[0001060391-24-000142_rsg-20231231.htm:70]** **[0001060391-24-000142_rsg-20231231.htm:66]**.

1. **Collection Services** - Involves the collection of waste materials for transport to transfer stations, landfills, or recycling centers, with contracts typically lasting up to three years.
2. **Landfill Services** - Generates revenue through tipping fees based on the volume and type of waste processed.
3. **Environmental Solutions** - Includes a variety of services such as waste treatment, field services, and emergency response, with revenue based on the volume and type of waste handled.
4. **Transfer Services** - Involves the transfer of waste from collection points to landfills or recycling centers.
5. **Recycling Processing and Commodity Sales** - Earns revenue from processing and selling recyclable materials.

6cf7cc4e3e94f956a542f03c3f9ff0fca53c466b7fe6e395771062967a59b539

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

d5a8d1b270fc2ce2b3d5dae3fb25fe9aa82dd213cffa51457240189fcfccda87

| Metric (USD Million) | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Group 1              | **1,844.0**  **[0001060391-24-000324_rsg-20240930.htm:50]**  | **1,809.7**  **[0001060391-24-000273_rsg-20240630.htm:47]**  | N/A     | N/A     | **1,731.4**  **[0001060391-23-000025_rsg-20230930.htm:51]**  | **1,657.4**  **[0001060391-23-000019_rsg-20230630.htm:48]**  | **1,840.3**  **[0001060391-23-000013_rsg-20230331.htm:45]**  | N/A     |
| Group 2              | **1,767.5**  **[0001060391-24-000324_rsg-20240930.htm:50]**  | **1,765.7**  **[0001060391-24-000273_rsg-20240630.htm:47]**  | N/A     | N/A     | **1,689.7**  **[0001060391-23-000025_rsg-20230930.htm:51]**  | **1,670.2**  **[0001060391-23-000019_rsg-20230630.htm:48]**  | **1,818.8**  **[0001060391-23-000013_rsg-20230331.htm:45]**  | N/A     |
| Group 3              | **464.7**  **[0001060391-24-000324_rsg-20240930.htm:50]**    | **472.6**  **[0001060391-24-000273_rsg-20240630.htm:47]**    | N/A     | N/A     | **404.8**  **[0001060391-23-000025_rsg-20230930.htm:51]**    | **398.3**  **[0001060391-23-000019_rsg-20230630.htm:48]**    | **430.2**  **[0001060391-23-000013_rsg-20230331.htm:45]**    | N/A     |

400d030d8f5f4e761b16ca67fe55e1f7e96c4af7016a5223b409114d004a9f2e

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Total Revenue**    | **3,529.7**  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | **3,581.1**  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | **3,725.9**  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | **3,825.9**  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | **3,831.6**  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | **3,861.7**  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | **4,048.0**  **[0001060391-24-000273_rsg-20240630.htm:47]**  | **4,076.2**  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| **Collection**       | 2,409.0  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 2,458.4  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 2,543.0  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 2,616.5  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 2,635.0  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 2,662.8  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 2,722.8  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 2,741.8  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| - Residential        | 679.6  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 685.1  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 700.8  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 718.2  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 719.2  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 723.3  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 733.4  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 739.7  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| - Small-container    | 1,032.8  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 1,056.3  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 1,086.9  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 1,126.3  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 1,168.3  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 1,189.0  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 1,200.9  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 1,209.1  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| - Large-container    | 683.1  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 701.9  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 737.5  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 753.0  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 730.0  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 732.8  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 770.2  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 774.6  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| - Other              | 13.5  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 15.1  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 17.8  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 19.0  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 17.5  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 17.7  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 18.3  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 18.4  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| **Transfer, net**    | 178.7  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 173.3  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 197.3  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 206.2  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 188.2  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 182.8  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 208.2  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 211.6  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| **Landfill, net**    | 382.0  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 392.6  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 431.0  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 436.3  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 419.6  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 404.4  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 440.2  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 452.8  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| **Environmental Solutions, net** | 417.4  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 408.3  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 398.3  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 404.8  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 413.4  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 423.3  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 472.6  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 464.7  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| **Other**            | 142.6  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 148.5  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 156.3  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 162.1  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 175.4  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 188.4  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 204.2  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 205.3  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| - Recycling processing and commodity sales | 58.7  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 71.1  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 79.5  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 76.3  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 85.7  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 95.5  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 107.5  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 107.6  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |
| - Other non-core     | 83.9  **[0001060391-23-000005_exhibit991q42022.htm:6]**  | 77.4  **[0001060391-23-000012_exhibit991q12023.htm:5]**  | 76.8  **[0001060391-23-000017_exhibit991q22023.htm:5]**  | 85.8  **[0001060391-23-000023_exhibit991q32023.htm:5]**  | 89.7  **[0001060391-24-000132_exhibit991q42023.htm:6]**  | 92.9  **[0001060391-24-000203_exhibit991q12024.htm:5]**  | 96.7  **[0001060391-24-000272_exhibit991q22024.htm:5]**  | 97.7  **[0001060391-24-000323_exhibit991q32024.htm:5]**  |

8300b5907e7ce430d8e7567b5fab7149bed854674be80f295b22381dc0fc7405

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

9bacc7dfc40e9bbfd0a8fe4729eae7f74e8deaa1439450f8ad048a3017e34091

| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|---------|
| Environmental Remediation Liabilities (Million USD) | 487.5 **[0001060391-24-000324_rsg-20240930.htm:14]** | 480.5 **[0001060391-24-000324_rsg-20240930.htm:14]** | 507.7 **[0001060391-24-000324_rsg-20240930.htm:14]** | 502.0 **[0001060391-24-000273_rsg-20240630.htm:13]** | 485.4 **[0001060391-24-000324_rsg-20240930.htm:14]** | 479.8 **[0001060391-24-000324_rsg-20240930.htm:14]** | 467.8 **[0001060391-24-000273_rsg-20240630.htm:13]** | 454.0 **[0001060391-24-000324_rsg-20240930.htm:14]** |
| Bridgeton Landfill Remediation Liability (Million USD) | 87.2 **[0001060391-24-000324_rsg-20240930.htm:14]** | 84.0 **[0001060391-24-000324_rsg-20240930.htm:14]** | 81.2 **[0001060391-24-000324_rsg-20240930.htm:14]** | 77.8 **[0001060391-24-000324_rsg-20240930.htm:14]** | 73.6 **[0001060391-24-000324_rsg-20240930.htm:14]** | 71.2 **[0001060391-24-000324_rsg-20240930.htm:14]** | 68.2 **[0001060391-24-000324_rsg-20240930.htm:14]** | 65.0 **[0001060391-24-000324_rsg-20240930.htm:14]** |
| Total Available Disposal Capacity (Billion In-Place Cubic Yards) | 5.0 **[0001060391-24-000273_rsg-20240630.htm:13]** | 5.1 **[0001060391-24-000324_rsg-20240930.htm:14]** | 5.1 **[0001060391-24-000324_rsg-20240930.htm:14]** | 5.1 **[0001060391-24-000324_rsg-20240930.htm:14]** | 5.1 **[0001060391-24-000324_rsg-20240930.htm:14]** | 5.1 **[0001060391-24-000324_rsg-20240930.htm:14]** | 5.072 **[0001060391-24-000324_rsg-20240930.htm:14]** | 5.1 **[0001060391-24-000324_rsg-20240930.htm:14]** |
| Number of Active Landfills | 206 **[0001060391-24-000324_rsg-20240930.htm:14]** | 206 **[0001060391-24-000273_rsg-20240630.htm:13]** | 208 **[0001060391-24-000324_rsg-20240930.htm:14]** | 208 **[0001060391-24-000324_rsg-20240930.htm:14]** | 207 **[0001060391-24-000324_rsg-20240930.htm:14]** | 207 **[0001060391-24-000273_rsg-20240630.htm:13]** | 208 **[0001060391-24-000324_rsg-20240930.htm:14]** | 208 **[0001060391-24-000324_rsg-20240930.htm:14]** |
| Number of Closed Landfills with Post-Closure Responsibility | 128 **[0001060391-23-000019_rsg-20230630.htm:13]** | 128 **[0001060391-24-000324_rsg-20240930.htm:14]** | 126 **[0001060391-24-000324_rsg-20240930.htm:14]** | 126 **[0001060391-24-000273_rsg-20240630.htm:13]** | 126 **[0001060391-23-000025_rsg-20230930.htm:15]** | 126 **[0001060391-24-000324_rsg-20240930.htm:14]** | 126 **[0001060391-24-000324_rsg-20240930.htm:14]** | 126 **[0001060391-24-000324_rsg-20240930.htm:14]** |

b9015d5a32988c118ad4e26f7366237755a0f4262a0cbfe8cfc29e89959297d2

Group 1

Group 2

Group 3

Corporate entities and other

East

Central

West

Corporate Entities

Total Revenue

c8245387f23986be5fd07016919ae3d2b35a73059b7f05507edb08087341b719

1. With the reported decline in organic volumes, particularly in cyclical areas like construction, how do you plan to offset these volume declines and sustain revenue growth in the face of potential economic headwinds?

2. Given the increasing exposure to RIN prices as more renewable natural gas projects come online, how will you mitigate earnings volatility associated with RIN price fluctuations, and what strategies are in place if RIN prices decrease significantly?

3. As you strive to improve margins in the Environmental Solutions segment, can you elaborate on the specific areas where you've adjusted the business mix or operations, and what further opportunities remain to enhance profitability in this segment?

4. Considering the challenges in broker-related small container volumes offsetting positive trends in open market volumes, what strategies are you implementing to address these volume declines and improve overall small container performance?

5. With inflation potentially moderating, how sustainable is your current pricing strategy, especially as you move more contracts to indices that run higher than CPI, and do you anticipate any pushback from customers as you implement these higher index-based price increases?

249fd8d5e6bd817ef841e2a910fe168eb3c34181680679bc270a1e12dc53fd36

- **Large national waste management companies**: Republic Services competes with these companies in the environmental services industry  **[0001060391-24-000142_rsg-20231231.htm:40]** .
- **Municipalities**: These entities operate their own collection and disposal facilities and have financial advantages due to tax revenue and opportunities for tax-exempt financing  **[0001060391-24-000142_rsg-20231231.htm:40]** .
- **Regional and local companies**: Numerous smaller companies also compete in the environmental services industry  **[0001060391-24-000142_rsg-20231231.htm:40]** .

f6346637af6d468a517157fb33299ceb830c7227adba11fea100b9d9d889aed7

Environmental Remediation Liabilities (Million USD)

Bridgeton Landfill Remediation Liability (Million USD)

Number of Active Landfills

Number of Closed Landfills with Post-Closure Responsibility

3847b026332ae9f0ceff3826c0d0309fdbe43b466af578335e585a09828b7424

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Revenue**: $16.075 billion to $16.125 billion  **[RSG_3394141_2]** .
  - **Adjusted EBITDA**: $4.9 billion to $4.925 billion  **[RSG_3394141_2]** .
  - **Adjusted EPS**: $6.15 to $6.20  **[RSG_3394141_2]** .
  - **Adjusted Free Cash Flow**: $2.15 billion to $2.17 billion  **[RSG_3394141_2]** .
  - **Commodity Prices**: Approximately $170 per ton  **[RSG_3394141_3]** .
  - **Full Year Equivalent Tax Impact**: Approximately 25.5%  **[RSG_3394141_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Volume Expectations**: Sequential improvement expected; Q2 slightly negative, second half flat to slightly positive  **[RSG_3381564_17]** .
  - **EBITDA Margin**: Environmental Solutions targeting 25% midterm; total company adjusted margin expanded by 120 basis points to 30.2%  **[RSG_3381564_3]** **[RSG_3381564_5]** .
  - **Recycling Commodity Prices**: Around $160 per ton  **[RSG_3381564_24]** .
  - **Environmental Solutions Margin Expansion**: Expected despite acquisition headwind  **[RSG_3381564_25]** .
  - **Cost Structure**: Benefits from new truck deliveries anticipated  **[RSG_3381564_10]** .
  - **Sustainability and Technology Investments**: Ongoing investments expected to contribute to growth  **[RSG_3381564_1]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Full Year Revenue**: $16.1 billion to $16.2 billion  **[RSG_3375296_3]** .
  - **Adjusted EBITDA**: $4.825 billion to $4.875 billion  **[RSG_3375296_3]** .
  - **Adjusted EPS**: $5.94 to $6.00  **[RSG_3375296_3]** .
  - **Adjusted Free Cash Flow**: $2.1 billion to $2.15 billion  **[RSG_3375296_3]** .
  - **Average Yield on Total Revenue**: 5.5% to 6%  **[RSG_3375296_4]** .
  - **Average Yield on Related Revenue**: 6.5% to 7%  **[RSG_3375296_4]** .
  - **Organic Volume Growth**: Flat to positive 50 basis points  **[RSG_3375296_4]** .
  - **Commodity Prices**: Approximately $135 per ton  **[RSG_3375296_4]** .
  - **Total Company Adjusted EBITDA Margin**: Approximately 30%  **[RSG_3375296_4]** .
  - **Depreciation, Amortization, and Accretion**: Approximately 11% of revenue  **[RSG_3375296_4]** .
  - **Net Interest Expense**: Approximately $545 million  **[RSG_3375296_4]** .
  - **Equivalent Tax Impact**: Approximately 26%, with an adjusted tax rate of 20% and $190 million of noncash charges  **[RSG_3375296_4]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information about the Q3 2024 earnings call for Republic Services (RSG), so specific guidance metrics for this period are unavailable.

5d6db6ed6a01ffea83b0a7424fdcd0696775007d05d2d5c75ac100b9212c2c99

6f712bae7a705587166ae464769d8127a028a1fd4d38221acad7ea27ea155b03

7fc06319770f1459b287ef415bf00dacc68f95410928c4dda94c6028008d6b29

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jon Vander Ark        | President and Chief Executive Officer                                    | 2021               | Jon Vander Ark was named **President and Chief Executive Officer** of Republic Services, Inc. in **2021**. He joined Republic Services in **2013** and has held various management roles  **[0001060391-24-000142_rsg-20231231.htm:16]** **[0001060391-23-000008_rsg-20221231.htm:15]** .                                               |
| Brian M. DelGhiaccio  | Executive Vice President, Chief Financial Officer                        | June 2020          | Brian M. DelGhiaccio was named **Executive Vice President, Chief Financial Officer** in **June 2020**. He has over 20 years of experience in various roles within the company  **[0001060391-24-000142_rsg-20231231.htm:16]** **[0001193125-24-090790_d547375ddef14a.htm:45]** .                                                          |
| Brian A. Bales        | Executive Vice President, Chief Development Officer                      | February 2015      | Brian A. Bales has been with Republic Services, Inc. for over 20 years. He was named **Executive Vice President, Chief Development Officer** in **February 2015**  **[0001060391-24-000142_rsg-20231231.htm:16]** **[0001193125-24-090790_d547375ddef14a.htm:45]** **[0001564590-23-004660_rsg-def14a_20230512.htm:43]** **[0001060391-23-000008_rsg-20221231.htm:15]** .                                                                 |
| Gregg K. Brummer      | Executive Vice President, Chief Operating Officer                        | August 2023        | Gregg K. Brummer was named **Executive Vice President, Chief Operating Officer** in **August 2023**. He joined Republic Services in January 2014  **[0001060391-24-000142_rsg-20231231.htm:16]** **[0001193125-24-090790_d547375ddef14a.htm:46]** .                                                                                        |
| Catharine D. Ellingsen| Executive Vice President, Chief Legal Officer, Chief Ethics & Compliance Officer, and Corporate Secretary | June 2016          | Catharine D. Ellingsen was named **Executive Vice President, Chief Legal Officer, Chief Ethics & Compliance Officer, and Corporate Secretary** in **June 2016**. She joined Republic Services in August 2001  **[0001193125-24-090790_d547375ddef14a.htm:46]** **[0001564590-23-004660_rsg-def14a_20230512.htm:44]** **[0001060391-23-000008_rsg-20221231.htm:15]** .                        |
| Amanda Hodges         | Executive Vice President, Chief Marketing Officer                        | November 2020      | Amanda Hodges was named **Executive Vice President, Chief Marketing Officer** in **November 2020**. She oversees marketing, communications, product development, customer engagement, and revenue management  **[0001060391-24-000142_rsg-20231231.htm:17]** **[0001193125-24-090790_d547375ddef14a.htm:46]** **[0001060391-23-000008_rsg-20221231.htm:15]** **[0001564590-23-004660_rsg-def14a_20230512.htm:44]** .                      |
| Courtney Rodriguez    | Executive Vice President, Chief Human Resources Officer                  | March 2023         | Courtney Rodriguez was named **Executive Vice President, Chief Human Resources Officer** in **March 2023**. She is responsible for all aspects of the company’s talent strategy  **[0001060391-24-000142_rsg-20231231.htm:17]** **[0001193125-24-090790_d547375ddef14a.htm:46]** .                                                        |
| Brian A. Goebel       | Special Advisor to the CFO                                               | March 1, 2024      | The documents do not provide specific information about Brian A. Goebel's role as Special Advisor to the CFO or his start date in that position. However, he was serving as Vice President and Chief Accounting Officer as of February 28, 2024  **[0001060391-24-000142_rsg-20231231.htm:196]** . |
| Elyse Carlsen         | Vice President, Chief Accounting Officer and Principal Accounting Officer| March 1, 2024      | Elyse Carlsen serves as the **Vice President, Chief Accounting Officer, and Principal Accounting Officer** at Republic Services, Inc. She assumed these roles effective **March 1, 2024**  **[0001060391-24-000145_xslF345X02/wk-form3_1709680284.xml:0]** **[0001060391-24-000324_rsg-20240930.htm:71]** .                                               |

6f24141e524729eef5211d6735580a42d4785c74b35ba31c1de0932ab08e6a26

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | October 2023  **[0001060391-24-000324_rsg-20240930.htm:22]** **[0001060391-24-000324_rsg-20240930.htm:67]**  |
| End Date/Duration        | December 31, 2026  **[0001060391-24-000324_rsg-20240930.htm:22]** **[0001060391-24-000324_rsg-20240930.htm:67]**  |
| Total additional amount  | **$3.0 billion**  **[0001060391-24-000324_rsg-20240930.htm:22]** **[0001060391-24-000324_rsg-20240930.htm:67]**  |
| Remaining authorization  | **$2.7 billion** as of September 30, 2024  **[0001060391-24-000324_rsg-20240930.htm:22]** **[0001060391-24-000324_rsg-20240930.htm:67]**  |
| Details                  | The program allows for share repurchases through open market purchases or privately negotiated transactions, with flexibility in timing, prices, and number of shares, subject to market conditions and management discretion.  **[0001060391-23-000025_rsg-20230930.htm:25]** **[0001060391-24-000142_rsg-20231231.htm:163]** **[0001060391-24-000273_rsg-20240630.htm:21]** **[0001060391-24-000205_rsg-20240331.htm:21]**  |

7165489110c026bf57df80504d64eebdb31d141172b309bd9b047e820ec46eed

**Annual guidance for FY 2024:**
- **Revenue**: Expected to trend toward the low end of their full-year revenue range  **[RSG_3404415_4]**  (lowered from $16.075B to $16.125B  **[RSG_3394141_2]** )  
- **Adjusted EBITDA**: Expected to achieve the high end of their full-year adjusted EBITDA range  **[RSG_3404415_4]**  (raised from $4.9B to $4.925B  **[RSG_3394141_2]** )  
- **EBITDA margin expansion**: 30 to 50 basis points across the cycle, with FY 2024 being stronger than this range  **[RSG_3404415_14]**  (no prior guidance)  
- **Environmental Solutions Segment margin expansion**: 80 to 100 basis points across the cycle  **[RSG_3404415_24]**  (no prior guidance)  

**Annual guidance for FY 2025:**
- **Revenue**: Mid-single-digit revenue growth  **[RSG_3404415_4]**  (no prior guidance)  
- **EBITDA**: Faster growth than revenue  **[RSG_3404415_4]**  (no prior guidance)  
- **EPS**: Faster growth than revenue  **[RSG_3404415_4]**  (no prior guidance)  
- **Free cash flow**: Faster growth than revenue  **[RSG_3404415_4]**  (no prior guidance)  

0dfb250d8953f31d5f8bbeed4c7d784972ebd8dc27f7075d1d1e74b8cfcf2387

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0001060391-24-000142_rsg-20231231.htm:112]**  | Present  | Current auditor   |

e3ec24a6ef573e9fe4aea286e60fd79cab04ec1e8a526d216cd1dd71815d1d28

129441efc93d31e95d9a90abb10152ce933fcea11d9a7e25741d1e85c022d171

- Total Revenue: $4,076.2 million (+7% YoY)  **[0001060391-24-000324_rsg-20240930.htm:30]**   
- Small-Container Collection: $1,209.1 million (+7% YoY)  **[0001060391-24-000324_rsg-20240930.htm:30]**   
- Environmental Solutions: $464.7 million (+15% YoY)  **[0001060391-24-000324_rsg-20240930.htm:30]**   
- Other (incl. Recycling & Non-Core): $205.3 million (**+27%** YoY), with Recycling at $107.6 million (**+41%** YoY)  **[0001060391-24-000324_rsg-20240930.htm:30]**   
- Group 1 Region: $1,844.0 million (+7% YoY)  **[0001060391-24-000324_rsg-20240930.htm:50]**   
- Group 3 Region: $464.7 million (+15% YoY)  **[0001060391-24-000324_rsg-20240930.htm:50]**   
- Operating Income: $846 million (+16% YoY)  **[0001060391-24-000324_rsg-20240930.htm:4]** **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:30]**   
- Net Income: $565.7 million (**+18%** YoY)  **[0001060391-24-000324_rsg-20240930.htm:4]** **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:30]**   
- Diluted EPS: $1.80 (**+19%** YoY)  **[0001060391-24-000324_rsg-20240930.htm:4]** **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:30]**   

f429dda8b6e0ffa9a7431ccabb2ad04ed6ffc8c489bccf174f5883ecc0f85f48

fffce7eca37be29852f856e84d59b4e2899f362ce5b07a9d93b14c4401e7f618

| Year  | Amount Due (in millions) | Debt Type                  | Interest Rate (%) | % of Total Debt |
|-------|--------------------------|----------------------------|-------------------|-----------------|
| 2024  | 595.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Commercial Paper           | 4.910 **[0001060391-24-000324_rsg-20240930.htm:60]**     | 4.7% = (595 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2024  | 92.6 **[0001060391-24-000324_rsg-20240930.htm:15]**             | Uncommitted Credit Facility| Variable **[0001060391-24-000324_rsg-20240930.htm:15]**  | 0.7% = (92.6 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2025  | 850.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 3.200 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 6.7% = (850 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2026  | 500.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 2.900 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 4.0% = (500 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2027  | 650.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 3.375 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 5.2% = (650 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2028  | 800.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 3.950 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 6.3% = (800 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2029  | 1,900.0 **[0001060391-24-000324_rsg-20240930.htm:15]**          | Senior Notes               | 4.875 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 15.1% = (1,900 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2030  | 600.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 2.300 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 4.8% = (600 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2031  | 650.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 1.450 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 5.2% = (650 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2032  | 750.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 1.750 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 6.0% = (750 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2033  | 1,350.0 **[0001060391-24-000324_rsg-20240930.htm:15]**          | Senior Notes               | 2.375 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 10.7% = (1,350 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2034  | 1,800.0 **[0001060391-24-000324_rsg-20240930.htm:15]**          | Senior Notes               | 5.000 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 14.3% = (1,800 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2035  | 330.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes/Debentures    | 6.086 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 2.6% = (330 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2040  | 399.9 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 6.200 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 3.2% = (399.9 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2041  | 385.7 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 5.700 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 3.1% = (385.7 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2050  | 400.0 **[0001060391-24-000324_rsg-20240930.htm:15]**            | Senior Notes               | 3.050 **[0001060391-24-000324_rsg-20240930.htm:15]**     | 3.2% = (400 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:15]** **[0001060391-24-000324_rsg-20240930.htm:26]** |
| 2054  | 1,418.5 **[0001060391-24-000324_rsg-20240930.htm:20]**          | Tax-exempt Financings      | 3.500 - 4.375 **[0001060391-24-000324_rsg-20240930.htm:15]** | 11.3% = (1,418.5 / 12,600) * 100 **[0001060391-24-000324_rsg-20240930.htm:20]** **[0001060391-24-000324_rsg-20240930.htm:26]** |

0fd4df1f64f9cc0e6ba8d9ad112e5f29580609eab04353101f33a111d453162c

4daf77bfdf1d6c5af260e5d69590ac7fa4262cd97dc55945b0c88ae3579b4530

f434d1820e008fffb6eca5942c65410e85a25d26b28fe21f90b2e1c96ffb2909

- **Double-digit underlying free cash flow growth** is expected in 2024, demonstrating strong cash generation capabilities.  **[RSG_3375296_16]**
- **Margin expansion** is anticipated in both the Solid Waste and Environmental Solutions businesses, with over **100 basis points of expansion** in Environmental Solutions due to the underlying business performance.  **[RSG_3375296_19]**   **[RSG_3375296_7]**
- The company is advancing its **efficiency programs**, expecting approximately **$10 million** of additional productivity improvements in 2024 from its **$100 million** efficiency program, and is progressing on **fleet electrification**, adding **50** electric vehicles in 2024, which positions it for future growth and sustainability leadership.  **[RSG_3375296_26]**   **[RSG_3375296_27]**

83c7545f1d56272af4d2f2373948bd1ad787ec4fec7c487ff27e35b1f06a4166

1. **Margin Guidance**  
   **Q:** Are margin declines in Q4 due to one-time items?  
   **A:** Management noted that the third quarter benefited from two significant one-time items: an insurance recovery adding **50 basis points** and a bad debt adjustment contributing **110 basis points** to Environmental Solutions, amounting to about **10 basis points** for the entire company.  **[RSG_3404415_5]**  Excluding these, margins were strong. The guidance for Q4 reflects a step down in margins more than normal seasonality due to the absence of these one-time benefits.  **[RSG_3404415_5]** 

2. **2025 Incremental Drivers**  
   **Q:** How much will sustainability initiatives contribute in 2025?  
   **A:** Sustainability innovations, including the RNG portfolio, polymer centers, and blue polymers, are expected to add approximately **$75 million** in revenue and **$30 million to $35 million** in EBITDA in 2025.  **[RSG_3404415_20]**  The Empower initiative is projected to contribute around **$10 million** next year, with full run-rate benefits of **$20 million** realized as it is fully deployed.  **[RSG_3404415_20]**  Additional gains from the RISE platform are anticipated, with about **$25 million** more to come, split between 2025 and 2026.  **[RSG_3404415_20]** 

3. **M&A Pipeline and Outlook**  
   **Q:** Can you update us on the M&A pipeline?  
   **A:** The company expects to close around **$300 million** in acquisitions this year, down from the initial **$500 million** target.  **[RSG_3404415_11]**  A strong pipeline is building, and management anticipates a robust first half next year.  **[RSG_3404415_11]**  The commitment to M&A remains strong, with expectations for meaningful contributions moving forward.  **[RSG_3404415_11]** 

4. **Volume Trends and Construction Softness**  
   **Q:** Should we expect softness in volumes to continue?  
   **A:** The industry has experienced a flat to slightly negative demand environment over the past **12 to 18 months**.  **[RSG_3404415_10]**  Construction softness, particularly in the large container business, has impacted volumes.  **[RSG_3404415_10]**  However, management is optimistic about future growth due to underbuilt housing and potential increases in construction activity, with signs of improvement starting in the fourth quarter and into 2025.  **[RSG_3404415_10]** 

5. **Pricing Strategy and CPI Contracts**  
   **Q:** Will the pricing spread between open market and restricted contracts continue?  
   **A:** The current spread of around **400 basis points** between open market and restricted pricing is higher than historical levels and is expected to narrow as inflation indices decrease.  **[RSG_3404415_7]**  The company has shifted **61%** of contracts historically tied to headline CPI to more favorable terms, aiming to maintain pricing above cost inflation and drive margin expansion.  **[RSG_3404415_7]** 

6. **Electric Vehicle Adoption**  
   **Q:** How is your EV strategy progressing towards 2028 targets?  
   **A:** The company is on track with its EV strategy, having ordered about **100 electric vehicles**.  **[RSG_3404415_12]**  Management acknowledges challenges but emphasizes the importance of early infrastructure planning and understanding incentives to accelerate adoption.  **[RSG_3404415_12]**  The introduction of fully electric trucks from Oshkosh is a game changer, allowing a full day's operation without sacrificing payload.  **[RSG_3404415_12]** 

7. **Internal Cost Inflation Trends**  
   **Q:** How is internal inflation trending compared to CPI?  
   **A:** Internal cost inflation is moderating, with labor cost inflation around **4.5%**.  **[RSG_3404415_21]**  Maintenance costs have improved due to new truck deliveries and reduced turnover, allowing more work to be done in-house at lower labor rates.  **[RSG_3404415_21]**  Parts inflation has also eased, leading to overall cost inflation expected to decelerate modestly into 2025.  **[RSG_3404415_21]** 

8. **Environmental Solutions Margin Improvement**  
   **Q:** What's driving margin improvement in Environmental Solutions?  
   **A:** Margins in Environmental Solutions have improved to approximately **24% EBITDA** due to optimized customer mix, tactical pricing, and cost management.  **[RSG_3404415_15]**  Strategic efforts include focusing on more profitable verticals, enhancing labor utilization, and leveraging systems and technology to support growth.  **[RSG_3404415_15]** 

9. **2025 Capital Spending**  
   **Q:** How will 2025 capital spending for sustainability compare to 2024?  
   **A:** Capital spending in 2025 for sustainability initiatives like the polymer center and EV investments is expected to be relatively consistent with 2024, possibly slightly higher.  **[RSG_3404415_22]**  Investments in RNG are made through joint ventures and accounted for like acquisitions rather than capital expenditures.  **[RSG_3404415_22]**  Overall, CapEx as a percentage of revenue is not expected to change significantly.  **[RSG_3404415_22]** 

10. **Customer Pricing Amid Lower Inflation**  
    **Q:** Are customers still accepting price increases as inflation moderates?  
    **A:** Management finds operating in a **3.5% to 4%** inflation environment favorable.  **[RSG_3404415_25]**  Customers continue to accept price increases necessary to offset cost inflation, allowing the company to maintain margins while providing employees with regular wage increases.  **[RSG_3404415_25]** 

11. **Volume Outlook and Churn**  
    **Q:** What are your expectations for volume growth and churn?  
    **A:** The company anticipates volume growth as economic indicators improve over the next **3 to 9 months**.  **[RSG_3404415_26]**  Some churn is expected due to strategic repricing and exiting less profitable contracts, especially following acquisitions.  **[RSG_3404415_26]**  Despite current construction volume declines, rational pricing behavior is maintaining profitability.  **[RSG_3404415_26]** 

12. **Digital Initiatives and Future Capabilities**  
    **Q:** What digital initiatives are planned for 2025 and beyond?  
    **A:** With the RISE platform in place, the company aims to optimize route sequencing and adherence, where each minute saved can add about **$5 million** annually.  **[RSG_3404415_29]**  Future initiatives include automating transactional processes in order-to-cash, expected to yield benefits into **2026 and 2027**.  **[RSG_3404415_29]**  These efforts enhance employee experience, customer service, and operational efficiency.  **[RSG_3404415_29]** 

13. **Recycling Center Investments**  
    **Q:** Are there plans for further automation in recycling centers?  
    **A:** Annual investments are made to upgrade recycling centers with new optical sorters and automation to produce higher-quality products.  **[RSG_3404415_30]**  While some labor may be added, the focus is on improving product quality and increasing circularity.  **[RSG_3404415_30]**  Plans include building new facilities where needed and continuing to upgrade the existing **75 to 77** centers.  **[RSG_3404415_30]** 

14. **Environmental Solutions Growth Outlook**  
    **Q:** How is the organic growth outlook for Environmental Solutions?  
    **A:** While there has been some customer churn due to strategic pricing, management is focused on testing customer willingness to pay for valued services.  **[RSG_3404415_23]**  Volume has been relatively flat, but pricing has exceeded expectations.  **[RSG_3404415_23]**  There are plans to drive both unit growth and margin expansion in 2025.  **[RSG_3404415_23]** 

15. **Core Price Deceleration**  
    **Q:** What factors contributed to core price deceleration this quarter?  
    **A:** The deceleration is primarily due to the expected anniversary of new fees introduced last year and a sequential step down in the restricted portion of the business from **5.6% to 4.9%**.  **[RSG_3404415_9]**  This reflects lower inflation indices, and as long as the company maintains the spread over cost inflation, margin expansion can continue.  **[RSG_3404415_9]** 

16. **M&A Pace and Target Margins**  
    **Q:** Has M&A activity slowed, and how are target margins affected?  
    **A:** M&A activity has varied due to market conditions, but the company's enthusiasm remains unchanged.  **[RSG_3404415_17]**  Management remains disciplined, closing approximately one out of every eight opportunities.  **[RSG_3404415_17]**  The focus is on strategic fit and financial returns, with less emphasis on current margins and more on potential post-integration improvements.  **[RSG_3404415_17]** 

17. **Labor Availability and Wage Inflation**  
    **Q:** How is labor availability affecting operations and wages?  
    **A:** Labor turnover has decreased by **100 basis points** year-over-year, with labor cost inflation around **4.5%**.  **[RSG_3404415_8]**  Labor availability is improving overall, though challenges remain for certain positions like technicians.  **[RSG_3404415_8]**  The company is addressing this by investing in technical education and training programs.  **[RSG_3404415_8]** 

18. **Margin Expansion Outlook for 2025**  
    **Q:** What is the outlook for margin expansion in 2025?  
    **A:** While specific guidance for 2025 is not provided, management expects to grow revenue at mid-single digits and EBITDA slightly faster, implying **30 to 50 basis points** of margin expansion.  **[RSG_3404415_14]**  This aligns with the company's long-term strategy to enhance profitability.  **[RSG_3404415_14]** 

19. **Q4 Guidance and Seasonality**  
    **Q:** Is the Q4 guidance conservative given seasonal trends?  
    **A:** Management acknowledged that while margins typically step down from Q3 to Q4 due to seasonality, they are focused on full-year results and feel good about where they will end up in Q4.  **[RSG_3404415_18]**  They do not emphasize precise quarterly updates but rather provide markers for expectations.  **[RSG_3404415_18]** 

20. **2025 Rollover Acquisitions and Interest Expense**  
    **Q:** What should we consider regarding rollover acquisitions and interest expense in 2025?  
    **A:** Rollover impact from acquisitions already closed is expected to contribute **10 to 20 basis points** to 2025 growth, with potential upside from fourth-quarter deals.  **[RSG_3404415_28]**  Interest expense may increase slightly due to debt maturities being refinanced at higher current rates, but no significant impact is anticipated.  **[RSG_3404415_28]** 

486ad1c37550c51f5d951f5c91c7a60cd7409a304b45048485db517ee54ff893

- **Price increases have led to volume loss in some areas**, indicating limits to the company's pricing power. The CEO stated, "*We've lost some volume... You don't understand the ceiling on price until you take it there.*"  **[RSG_3362194_26]**
- **Margin expansion from the Environmental Solutions business is expected to decelerate in 2024**, reducing a key driver of profit growth. The CFO noted, "*We would expect that margin expansion to decelerate from what you saw in '23.*"  **[RSG_3362194_19]**
- **Weakness in construction activity is negatively impacting volume growth in the recycling and solid waste business**, with the company noting they are "*on the lower end*" of volume growth due to construction being "*a soft spot*".  **[RSG_3362194_12]**

174004777d895796675866d72357b86601a68eb5871a4719b77c3d7baf9061fd

- **Republic Services' polymer center operations are exceeding expectations**, with customers stating they produce some of the cleanest recycled PET flake in the world. The company is operating in Indianapolis and plans to announce a third location on the East Coast.  **[RSG_3381564_4]**
- **Strong cross-selling opportunities in the Environmental Solutions business**, with a growing pipeline exceeding the previously discussed $150 million. Integration efforts are expected to unlock further value, capitalizing on customers' desire for single-source solutions.  **[RSG_3381564_7]**
- **The hazardous waste market is expected to remain tight**, with strong demand and structural undersupply in incineration capacity. This favorable market condition is projected to continue, benefiting Republic Services' profitability in this segment.  **[RSG_3381564_20]**

2913ae66d968e9696d7ca175b3958549bef6657cd63832bacbde6bcebfb7559f

- **Volume is expected to be slightly below original expectations** due to a **challenging construction market** caused by **high interest rates**, leading to muted commercial and residential construction activity, which negatively impacts temporary large container volume.  **[RSG_3394141_5]**
- **Delays in sustainability projects and polymer center start-ups** caused by permitting and equipment delays will impact the timing of revenue and earnings contributions from these projects. The company acknowledges that the start of **landfill gas energy projects** and the **polymer center** will be **later than expected**.  **[RSG_3394141_5]**
- **Pricing is expected to sequentially decline in Q3 and Q4**, and **margin expansion is anticipated to slow** in the second half of the year, due in part to index-based pricing and moderating cost inflation, which may reduce the spread between price and cost inflation.  **[RSG_3394141_6]** **[RSG_3394141_7]**

8a2851a28a75623f30139b0933fd45966700c9c6cb17560ae0535698aa5b70ac

1. **Margin Expansion Outlook**  
   **Q:** Can margins expand further beyond 32% in core solid waste?  
   **A:** Management believes that while **32% is achievable** in the near term ( **[RSG_3394141_7]** ), they expect consistent margin expansion of **30 to 50 basis points annually** in recycling and waste and **75 basis points plus** in Environmental Solutions ( **[RSG_3394141_7]** ,  **[RSG_3394141_21]** ). Over time, they aspire for margins across all business segments to converge and continue improving ( **[RSG_3394141_21]** ).

2. **Volume and Revenue Guidance**  
   **Q:** Will volumes meet expectations, and what's affecting revenue guidance?  
   **A:** Volumes will be slightly below original expectations due to a challenging construction market with muted residential and commercial activity ( **[RSG_3394141_5]** ). However, pricing remains strong, and management is optimistic that the slowdown is transitory ( **[RSG_3394141_5]** ). Revenue guidance is also impacted by delays in sustainability projects like landfill gas to energy and the polymer center, pushing some revenues into later periods ( **[RSG_3394141_5]** ).

3. **Pricing Trends**  
   **Q:** Will pricing decelerate in the second half, affecting margins?  
   **A:** Pricing peaked in Q1 and is expected to sequentially decline in Q3 and Q4 due to index-based pricing impacts ( **[RSG_3394141_6]** ). Despite cost inflation moderating, management expects the spread between price and cost to decrease slightly, but margins will continue to expand, driven by maintaining a favorable price-cost spread ( **[RSG_3394141_6]** ,  **[RSG_3394141_12]** ).

4. **M&A Appetite in Hazardous Waste**  
   **Q:** Is there interest in larger acquisitions in hazardous waste?  
   **A:** Management looks at all opportunities that create shareholder value and fit strategically, including larger, significant deals ( **[RSG_3394141_8]** ). While they average **20 deals a year**, mostly small tuck-ins, they remain active and open to substantial acquisitions that align with their goals ( **[RSG_3394141_8]** ,  **[RSG_3394141_17]** ).

5. **Environmental Services Organic Growth**  
   **Q:** What's driving growth in Environmental Services?  
   **A:** The segment saw **mid-single-digit organic growth** in Q2 2024 ( **[RSG_3394141_11]** ). This improvement is due to annual price increases taking full effect and efforts to price for value, optimize customer mix, and cross-sell opportunities ( **[RSG_3394141_11]** ,  **[RSG_3394141_13]** ). Management expects organic growth to continue for the remainder of the year ( **[RSG_3394141_11]** ).

6. **Free Cash Flow Conversion**  
   **Q:** Can free cash flow conversion improve further?  
   **A:** Management expects consistent improvement in free cash flow conversion, aiming for **50 to 75 basis points** of improvement annually from the base business ( **[RSG_3394141_15]** ). They are working on overcoming factors like the expiration of bonus depreciation through operational efficiencies ( **[RSG_3394141_15]** ).

7. **Intentional Shedding of Brokered Business**  
   **Q:** Why is there intentional shedding in the small container business?  
   **A:** The company accelerated the exit of lower-margin brokered business acquired through M&A ( **[RSG_3394141_13]** ). This strategic move affected volumes but improved the quality of revenue, with open market small container showing positive unit growth excluding broker-related losses ( **[RSG_3394141_13]** ,  **[RSG_3394141_23]** ).

8. **EV Infrastructure and Fleet Expansion**  
   **Q:** How many EVs can current infrastructure support?  
   **A:** The infrastructure being installed can support **hundreds of electric vehicles**, well beyond the initial target of **50 EVs** ( **[RSG_3394141_10]** ). By investing upfront in grid connections, the company can modularly add charging stations as the fleet grows over a five-year plan at each site ( **[RSG_3394141_10]** ).

9. **Cost Management Outlook**  
   **Q:** How are costs trending into 2025?  
   **A:** Costs are moderating across maintenance, transportation, and labor, with sequential improvements from Q1 to Q2 ( **[RSG_3394141_18]** ). Management expects continued cost moderation in the second half of the year, supporting margin expansion ( **[RSG_3394141_18]** ,  **[RSG_3394141_21]** ).

10. **Sensitivity to RIN Prices**  
    **Q:** How sensitive is the company to changes in RIN prices?  
    **A:** The sensitivity is approximately **$1 million of operating income annually** for every **$0.10 change** in RIN prices ( **[RSG_3394141_25]** ). As more projects come online, this sensitivity will increase over time ( **[RSG_3394141_25]** ).

11. **Employee Attrition Levels**  
    **Q:** Where does employee attrition stand currently?  
    **A:** Attrition is at benchmark levels and represents the best performance over a longer run, excluding the unique period after COVID-19 onset ( **[RSG_3394141_27]** ). Management believes there is room for further improvement, though the rate will naturally slow ( **[RSG_3394141_27]** ).

12. **US Ecology Integration and ERP Rollout**  
    **Q:** When will the US Ecology ERP system be integrated?  
    **A:** The company expects to be on a common platform by early **2025** ( **[RSG_3394141_16]** ). This will enable better data insights, strategic pricing, and productivity improvements in the Environmental Solutions business ( **[RSG_3394141_16]** ,  **[RSG_3394141_19]** ).

13. **Digital Initiatives and Asset Management**  
    **Q:** What's the status of digital initiatives and expected benefits?  
    **A:** Approximately **$65 million** of the targeted **$100 million** in benefits from the RISE digital platform have been realized to date ( **[RSG_3394141_19]** ). An additional **$20 million** in benefits is expected from the new asset management system by **2026**, with phased deployment underway ( **[RSG_3394141_19]** ).

14. **Capital Allocation for M&A**  
    **Q:** How much will be spent on acquisitions going forward?  
    **A:** While not committing to a specific target, management indicates they could approach or exceed **$500 million** in acquisitions this year, depending on opportunities ( **[RSG_3394141_17]** ,  **[RSG_3394141_26]** ). They emphasize strategic fit and value creation over maintaining a set spending level ( **[RSG_3394141_26]** ).

15. **Pricing Index Transition**  
    **Q:** How is the shift to favorable pricing indices progressing?  
    **A:** About **60%** of the book historically linked to CPI is now on a favorable index or fixed rate increase ( **[RSG_3394141_22]** ). This shift should result in better performance than historical levels, even as inflation moderates ( **[RSG_3394141_22]** ).

a73a8a73c96b90e9f89602e2f59951b49dd744bbe0306df30465fc7b4b6840c1

1. **US Ecology Margin Outlook**  
   **Q:** What is the margin upside for US Ecology?  
   **A:** Management targets a **25% EBITDA margin** for US Ecology in the midterm by optimizing customer mix, pricing, cross-selling, and IT investments to enhance efficiency. They have a series of levers to reach this goal.  **[RSG_3381564_5]** 

2. **Pricing Trends and Inflation Impact**  
   **Q:** How is pricing expected to trend amid inflation?  
   **A:** Core pricing modestly exceeded expectations in Q1. Management expects pricing to decrease over the year but notes that **inflation remains stickier** than anticipated, suggesting potential to keep prices higher if interest rates remain elevated.  **[RSG_3381564_6]** 

3. **M&A Plans and Pipeline**  
   **Q:** What are the expectations for M&A activity?  
   **A:** After significant M&A spending of **$5.5 billion over the last 3 years**, including **$1.8 billion** last year, the pipeline remains strong in Recycling and Waste. They are pausing Environmental Solutions acquisitions until 2025 to focus on IT integration.  **[RSG_3381564_23]** 

4. **Hazardous Waste Incineration Demand**  
   **Q:** Is demand sufficient for new incinerator capacity?  
   **A:** The market is **structurally short supplied** on incineration. Even with new capacity coming online, management believes it will remain tight due to strong pipeline and potential PFAS regulations increasing volume into incineration.  **[RSG_3381564_20]** 

5. **Recycling Revenue Tailwinds**  
   **Q:** What is driving recycling revenue growth?  
   **A:** The increase in recycling revenue is driven by higher **recycled commodity prices**, with the overall basket price rising to **$153 per ton** in Q1 from **$130** at year-end, mainly due to commodity price uplift.  **[RSG_3381564_9]** 

6. **Polymer Center Performance**  
   **Q:** How is the first polymer center performing?  
   **A:** The first polymer center is **exceeding expectations**, producing some of the **cleanest recycled PET flake** in the world. Operations are running well, and the third location on the East Coast will be announced soon.  **[RSG_3381564_4]** 

7. **Volume Trends and Expectations**  
   **Q:** What are the expectations for volume growth?  
   **A:** Q1 volume was down due to weather and construction slowdown, with a **50 basis point** drag from weather. Management expects sequential improvement but anticipates Q2 volumes to be slightly negative before potentially turning flat or positive in the second half  **[RSG_3381564_5]** ,.  **[RSG_3381564_17]** 

8. **Turnover Rates and Labor Costs**  
   **Q:** How are turnover rates and labor costs trending?  
   **A:** Turnover rates are below **20%**, leading to better safety and customer service. Wage increases are already implemented, forming a step function in costs. Maintenance costs are expected to improve with newer trucks replacing older ones.  **[RSG_3381564_11]** 

9. **Impact of PFAS Regulations**  
   **Q:** How will PFAS regulations affect the business?  
   **A:** PFAS regulations are a **net positive**, with **$70 million to $90 million** in PFAS-related revenue last year. Management offers unique solutions for remediation and expects the opportunity to grow over time.  **[RSG_3381564_18]** 

10. **Sustainability Investments and CAPEX**  
    **Q:** What are the plans for sustainability investments?  
    **A:** The company plans to invest **$230 million** in JVs for landfill gas to energy and Blue Polymers in 2024, with most of the spending occurring in the first half of the year.  **[RSG_3381564_13]** 

11. **Residential Business Trends**  
    **Q:** Any trends in the residential business?  
    **A:** Management is focused on improving returns in the residential business, adopting a disciplined approach and avoiding low-return contracts. Competitive conduct is improving but still has room for further progress.  **[RSG_3381564_21]** 

783f78162c52f7a8f78799d90dbaa70bf469f17b4a0dd401443a8e0d5e3fd190

- The company’s **Environmental Services segment** is showing **strong organic growth**, with improved performance and expectations of continued organic growth throughout the year, indicating robust business momentum.  **[RSG_3394141_11]**
- The company remains **confident in its sustainability projects**, expecting continued value and growth even amid potential regulatory changes, highlighting resilience in their growth strategy.  **[RSG_3394141_4]**
- The company is achieving **strong free cash flow conversion of mid-40% of EBITDA**, with expectations for ongoing improvement, demonstrating robust cash generation capability.  **[RSG_3394141_15]**

7ce88245ee6c9c07fbd73432e32578d81affd06f48cf0dde028e43967638fdab

- *Bull case for Republic Services ($RSG):**
- **Margin Expansion Expected in 2024:** Management anticipates continued margin expansion in 2024, driven by pricing ahead of cost inflation and contributions from sustainability investments, including plastic circularity and renewable natural gas projects.  **[RSG_3362194_5]** ,  **[RSG_3362194_19]**
- **Cost Inflation Moderating and Operational Improvements:** The company is experiencing moderation in cost inflation, with improvements in equipment availability and employee retention, leading to lower labor and maintenance costs and enhancing margins.  **[RSG_3362194_6]**

bfe1310411ab180db5a74e77996ee0ca51ccc7cc61234976ed9d5b33f57718a8

1. **Margin Expansion Outlook**  
   **Q:** Why were margins ahead of guidance, and will that continue?  
   **A:** Margins were ahead of guidance due to a strong fourth quarter, with over **200 basis points** of margin expansion driven by favorable factors like special waste and positive weather conditions.  **[RSG_3375296_5]**  However, some of these were one-time events, so while momentum continues into 2024, they're not building plans based on the outsized Q4 performance.  **[RSG_3375296_5]** 

2. **M&A Activity and Pipeline**  
   **Q:** What's the outlook for M&A given the big year in 2023?  
   **A:** Despite a strong pipeline, they're anticipating a step-down in acquisition activity for 2024 compared to the **$1.86 billion** acquired in 2023.  **[RSG_3375296_11]**  This is due to the unpredictability of medium-sized deals rather than a weaker pipeline, and they'll remain disciplined in pursuing strategic fits with strong financial returns.  **[RSG_3375296_11]** 

3. **Free Cash Flow Guidance**  
   **Q:** Why is free cash flow growth lower than EBITDA growth?  
   **A:** Free cash flow growth is impacted by a **$45 million** headwind in cash taxes due to reduced bonus depreciation and a one-time IRS settlement in 2023.  **[RSG_3375296_15]**  This represents a **2.3%** headwind, meaning underlying free cash flow growth would be double-digit without these tax impacts.  **[RSG_3375296_15]** **[RSG_3375296_16]** 

4. **Cost Inflation and Savings**  
   **Q:** How are cost inflation trends and savings initiatives progressing?  
   **A:** Operating labor and transportation costs are stepping down year-over-year.  **[RSG_3375296_24]**  However, maintenance costs remain elevated due to an aging fleet caused by supply chain constraints.  **[RSG_3375296_24]**  They've made progress on their **$100 million** efficiency program, expecting about **$10 million** of the remaining **$35 million** in savings in 2024.  **[RSG_3375296_26]** 

5. **Environmental Services Growth**  
   **Q:** What's the outlook for Environmental Services and PFOS remediation?  
   **A:** Environmental Services saw flatness due to tough comps and lower rig counts.  **[RSG_3375296_6]**  However, PFOS remediation is a significant growth opportunity, potentially reaching a **nine-digit** revenue figure in 2024.  **[RSG_3375296_29]**  They offer end-to-end solutions and are well-positioned due to their national footprint.  **[RSG_3375296_29]** 

6. **Volume Trends and Pricing**  
   **Q:** How are volume trends and pricing impacting performance?  
   **A:** They're prioritizing price over volume, shedding less profitable contracts to improve yield.  **[RSG_3375296_8]**  Small container yield was strong at **11.2%**, aided by new AI technology to spot overages and contamination.  **[RSG_3375296_14]**  Volume growth is expected to be flat to **0.5%** positive in 2024, with Q1 being the low point due to weather impacts.  **[RSG_3375296_21]** 

7. **Fleet Electrification Progress**  
   **Q:** What's the status of fleet electrification efforts?  
   **A:** They currently have **11** electric trucks and plan to add **50** more this year, aiming for several hundred next year.  **[RSG_3375296_27]**  Starting with residential routes, the electric fleet is performing well, with the purpose-built McNeilus trucks showing promising uptime in full-route operations.  **[RSG_3375296_30]** 

8. **Macro Environment Outlook**  
   **Q:** How is the macro environment affecting the business?  
   **A:** The macro picture is mixed; high interest rates are suppressing housing activity, affecting large-container temporary volumes.  **[RSG_3375296_23]** **[RSG_3375296_28]**  Manufacturing is also mixed, but remediation projects are strong.  **[RSG_3375296_23]**  Despite cautious outlook due to global events and consumer debt, underlying demand remains largely positive.  **[RSG_3375296_23]** 

9. **Asset Management System Implementation**  
   **Q:** How will the new asset management system impact costs?  
   **A:** The new system digitizes maintenance operations, enhancing productivity and improving warranty recovery.  **[RSG_3375296_20]**  By eliminating manual processes, they're confident in capturing all warranty entitlements, which will positively affect maintenance and repairs expenses.  **[RSG_3375296_20]** 

10. **Supply Chain and Fleet Age**  
    **Q:** Are supply chain issues affecting fleet upgrades?  
    **A:** They're receiving about **80%** of the trucks they order due to supply chain constraints, leading to an aging fleet and higher maintenance costs.  **[RSG_3375296_24]** **[RSG_3375296_30]**  The gap is narrowing but isn't expected to close until 2025.  **[RSG_3375296_30]** 

11. **Recycling and Polymer Centers**  
    **Q:** How is the Las Vegas polymer center performing?  
    **A:** The Las Vegas center opened in December, and demand is strong—they could have sold output **five times** over.  **[RSG_3375296_12]**  Pricing and returns are ahead of expectations, encouraging expansion to Indianapolis and plans for at least two more centers.  **[RSG_3375296_12]** 

12. **Yield Deceleration Due to CPI**  
    **Q:** How will CPI trends impact pricing yield in 2024?  
    **A:** With headline CPI and industry indices stepping down since their peaks, they expect a sequential step-down in pricing yield throughout the year, from the highest in Q1 to the lowest in Q4.  **[RSG_3375296_13]**  Despite this, indices remain elevated at **5.5%** for water sewer trash and **6.4%** for garbage trash.  **[RSG_3375296_13]** 

13. **Margin Seasonality Expectations**  
    **Q:** How will seasonality affect margins in Q1?  
    **A:** Margins are expected to step down sequentially from Q4 to Q1 due to normal seasonality, higher labor taxes, and weather impacts.  **[RSG_3375296_9]**  Intense weather in January caused some volume losses, contributing to flatter margins compared to historical trends.  **[RSG_3375296_9]** 

14. **Environmental Services Margin Dilution**  
    **Q:** Will acquisitions dilute Environmental Services margins?  
    **A:** Acquisitions are expected to cause a **30 basis point** margin dilution overall.  **[RSG_3375296_17]**  However, the underlying Environmental Solutions business is projected to expand margins by over **100 basis points**, keeping them on track for **25%** or better margins excluding acquisitions.  **[RSG_3375296_17]** **[RSG_3375296_19]** 

15. **Weather Impact on Volumes**  
    **Q:** How did weather affect recent volumes?  
    **A:** January's intense weather led to volume losses, but most volumes have returned in February.  **[RSG_3375296_21]**  Some impacts will push out through the year, but the effect is expected to be modest, with flat to slight positive volume growth anticipated.  **[RSG_3375296_21]** 

c1403b8188f802ec00b8aa5d5454af74c91c90482273659ee7a0ba689812607b

- **There is a slowdown in parts of the Environmental Solutions business**, with **rig counts down** and a **facility shutdown** impacting performance.  **[RSG_3375296_6]**
- **Margin dilution from acquisitions is expected**, with **30 basis points of dilution**, and **greater dilution in Environmental Solutions than in solid waste**.  **[RSG_3375296_17]** **[RSG_3375296_18]**
- **Margins are expected to step down sequentially from Q4 to Q1** due to **intense weather in January causing loss of hauls and tons**, which may negatively impact performance.  **[RSG_3375296_9]**

d9907b2cb048e5bee75b8360269a8e6854c4d860086198012d78bd404272f73d

Republic Services Inc (RSG)

Financials