Executive Summary: Republic Services delivered a solid QQ3 2025 performance with top-line growth supported by a resilient services portfolio and continued focus on efficiency. Revenue for the quarter totaled $4.212 billion, up 3.3% year-over-year but down 0.54% quarter-over-quarter, signaling modest sequential softness amid a macro backdrop of inflationary pressures and capex intensity in an asset-heavy business. Operating income reached $836 million, translating to an operating margin of roughly 19.8%, while EBITDA was $961 million (EBITDA margin ≈ 22.8%). Net income stood at $550 million and earnings per share (EPS) was $1.76 for the period. Free cash flow per share (FCF/Share) was $2.36 and operating cash flow per share (OCF/Share) was $3.79, underscoring strong cash generation even as the balance sheet reflects substantial capital intensity.
Financial position and capital allocation remained robust: total debt to capitalization is a conservative 7.2%, and the cash conversion framework shows a cash flow to debt ratio of 1.28x, supporting a payout ratio of 33.1% of net income. However, liquidity metrics show some near-term constraints, with current and quick ratios reported at approximately 0.58x and a cash ratio of about 0.02x, implying limited cushion to fund working capital needs without cash flow generation. The company benefits from a steady, essential-service demand profile and a disciplined approach to capex, positioning it to fund dividends and potential strategic investments in fleet, facilities, and energy-from-waste initiatives. Overall, the QQ3 performance reinforces Republic Services’ ability to translate scale and operational efficiency into durable profitability and cash flow, while investors should monitor funding needs for ongoing capex and the evolution of working capital under varying volume and pricing dynamics.