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Republic Services lifts annual profit forecast on pricing gains

Published 10/26/2023, 06:01 PM
Updated 10/26/2023, 06:06 PM
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(Reuters) - Waste management firm Republic Services (NYSE:RSG) lifted its full-year profit forecast on Thursday, after price hikes boosted its third-quarter results.

"Our revenue growth was broad-based, including healthy pricing, positive organic volume growth and above-average contribution from acquisitions, which resulted in adjusted EBITDA growth of 9% and 70 basis points of margin expansion," said CEO Jon Vander Ark.

Peer Waste Management (NYSE:WM) beat its quarterly profit estimates on Tuesday, also benefiting from higher prices amid resilient demand for garbage disposal and collection.

Waste Management and Republic Services are the two biggest companies in the waste services industry, and along with municipal waste departments, they dominate garbage collection from homes and apartments in large parts of the United States.

Republic Services now expects full-year 2023 adjusted profit between $5.46 and $5.49 per share, up from its prior outlook of $5.33 to $5.38.

Its quarterly revenue also rose to $3.83 billion from $3.60 billion last year.

The Arizona-based company posted adjusted profit of $1.54 per share in the third-quarter, compared with $1.34 per share reported last year. It also authorized share buyback of $3 billion.

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