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Research Alert: Republic Services Beats Q1 Estimates On Pricing Power

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

RSG posted Q1 EPS of $1.70, beating consensus of $1.64 and growing 7.6% Y/Y, with revenue advancing 2.6% driven by pricing execution in a challenging operating environment. Core pricing remained robust at 5.7% while volume declines moderated to -0.8% from -1.2% in the prior year, suggesting stabilization trends across key segments. Margin expansion continued as a key earnings driver, with adjusted EBITDA margin improving 50 bps to 32.1% through effective cost management and pricing that outpaced cost inflation. The core collection business grew 3.5% and landfill operations delivered 8% revenue growth, with recycling achieving 33.6% margins, though environmental solutions faced headwinds with revenue declining 10% despite maintaining 19.2% margins. Cash generation was particularly strong, with adjusted free cash flow jumping 35.3% to $984M, supporting RSG's active capital allocation including $433M in acquisitions and $314M in share repurchases while maintaining the $0.625 quarterly dividend.

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