Republic Services reported a solid fourth quarter of 2024, with revenue of $4.046 billion and a 31.1% gross margin. Net income reached $512 million, delivering $1.63 per share, supported by $470 million of depreciation and amortization and $1.1357 billion of EBITDA. The year-over-year improvements in revenue, gross profit, operating income, and net income reflect the company’s scale benefits, pricing initiatives, and efficiency actions within a high-capital environment. Despite a QoQ revenue dip of 0.74%, the business generated meaningful operating cash flow of $1.022 billion and free cash flow of $524 million, underscoring durable cash generation even as capex remains elevated. Free cash flow per share stood at approximately $1.67, and cash taxes remained modest, aligning with Republic’s capital-light earnings profile within a heavy asset base.
Balance sheet and liquidity metrics illustrate a classic industrials profile: a large asset base, substantial long-term debt, and relatively tight working capital liquidity. Cash and cash equivalents were $74 million at period end against total debt of $12.96 billion and net debt of about $12.88 billion. The current ratio was 0.58 and the quick ratio 0.56, highlighting liquidity that is adequate for ongoing working-capital needs but sensitive to ongoing capex and debt-refinancing requirements. Interest coverage stood at roughly 6.1x, supporting a favorable but high-leverage balance sheet. Management is likely to emphasize sustaining EBITDA margins around 28% and leveraging free cash flow to fund ongoing capex and capital returns.
Looking ahead, the company’s reported metrics imply resilient earnings power and FCF generation, albeit within a debt-heavy framework. The key investor questions revolve around debt reduction trajectories, liquidity optimization, capital-allocation strategy (dividends vs. buybacks), and the degree to which pricing, volume, and efficiency gains can sustain margin resilience in 2025 and beyond.