AI Takeaway
Republic Services (RSG) delivered steady FY2025 growth with revenue rising 3.3% to $19.0B, net income up 4.7% to $2.1B, and operating cash flow surging 9.1% to $4.3B, reflecting disciplined pricing and cost management in the solid waste industry.
Revenue
$19.03B
++3.31% YoY
EPS (Basic)
$6.86
++5.54% YoY
Operating Income
$3.3B
++3.32% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
RSG grew total revenue 3.3% YoY to $19.03B in FY2025 (from $18.42B in FY2024), consistent with the company's strategy of leveraging pricing power in its essential waste services business to offset inflationary cost pressures.
Source: Source: 10-K Income Statement
Operating margin held essentially flat at 17.35% (vs. 17.35% prior year), as cost of revenue grew 3.0% to $9.63B and SG&A rose a modest 2.2% to $1.71B, demonstrating effective cost discipline even as D&A increased 8.2% to $1.81B reflecting ongoing capital investment.
Source: Source: 10-K Income Statement & Cash Flow Statement
Operating cash flow jumped 9.1% to $4.30B in FY2025 (from $3.94B), significantly outpacing net income growth of 4.7%, underscoring the high cash-generative nature of RSG's asset-intensive waste management business.
Source: Source: 10-K Cash Flow Statement
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Upgrade to unlockRSG carries $13.71B in long-term debt as of FY2025, up 6.8% YoY, against a current ratio of only 0.64, meaning current liabilities exceed current assets. In a rising interest rate environment, refinancing risk and interest expense could pressure future earnings and free cash flow.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.76 versus the $1.64 analyst consensus — a +7.4% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $19.03B | $18.42B | +3.31% |
Cost of Revenue | $9.63B | $9.35B | +2.99% |
Operating Income | $3.3B | $3.2B | +3.32% |
Net Income | $2.14B | $2.04B | +4.70% |
EPS (Basic) | $6.86 | $6.50 | +5.54% |
EPS (Diluted) | $6.85 | $6.49 | +5.55% |
SG&A Expense | $1.71B | $1.67B | +2.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $34.37B | $32.4B | +6.06% |
Current Assets | $2.52B | $2.41B | +4.86% |
Current Liabilities | $3.93B | $4.13B | -4.84% |
Stockholders' Equity | $11.97B | $11.4B | +4.94% |
Cash & Equivalents | $76M | $74M | +2.70% |
Long-Term Debt | $13.71B | $12.84B | +6.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.3B | $3.94B | +9.15% |
Investing Cash Flow | $-3.31B | $-2.56B | -29.36% |
Financing Cash Flow | $-938M | $-1.4B | +32.90% |
Share Buybacks | $870M | $482M | +80.50% |
D&A | $1.81B | $1.68B | +8.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.4% | 17.4% | +0.00% |
Net Margin | 11.2% | — | — |
ROE | 17.9% | — | — |
ROA | 6.2% | — | — |
Current Ratio | $0.642 | — | — |
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Republic Services grew revenue 3.3% YoY to $19.03B in FY2025, up from $18.42B in FY2024. This growth was driven by the company's pricing power in essential solid waste services, which helped offset inflationary cost pressures.
RSG delivered consistent FY2025 results: revenue of $19.03B (+3.3%), net income of $2.14B (+4.7%), diluted EPS of $6.85 (+5.5%), and operating cash flow of $4.30B (+9.1%). The company also nearly doubled share buybacks to $870M, signaling strong confidence in its financial position.
RSG shows strong profitability and cash generation with a 17.35% operating margin and $4.30B in operating cash flow, but carries significant leverage with $13.71B in long-term debt and a current ratio of only 0.64. Overall, the company's predictable cash flows support its leveraged capital structure, though rising debt warrants attention.
Key risks for RSG include its high long-term debt load of $13.71B (up 6.8% YoY), a current ratio below 1.0 at 0.64, and a 29.4% surge in investing outflows to -$3.31B reflecting heavy capital commitments. Additionally, environmental regulatory risk and potential cost inflation remain ongoing concerns for the waste management business.
Yes, RSG significantly accelerated its share repurchase program in FY2025, buying back $870M worth of shares—an 80.5% increase from $482M in FY2024. This contributed to diluted EPS growth of 5.5% ($6.85 vs. $6.49), outpacing net income growth of 4.7%.