Republic Services Inc.
RSGBusiness Overview
ticker: RSG step: 01 generated: 2026-05-13 source: quick-research
Republic Services Inc. (RSG) — Business Overview
Business Description
Republic Services is the #2 solid waste and environmental services company in the US (behind Waste Management), providing collection, recycling, disposal, and environmental solutions to residential, commercial, and industrial customers. With ~40,000 employees, ~200 landfills, and operations spanning 41 states, RSG generated ~$16.6B in revenue in FY2025. The company is expanding beyond traditional waste into environmental solutions (hazardous waste, PFAS remediation) and sustainability-driven services (renewable natural gas, recycled commodities).
Revenue Model
RSG earns revenue through three primary business types: Recycling & Waste (Group 1 — large-quantity customers, Group 2 — small/mid-size customers) and Environmental Solutions (Group 3 — hazardous waste, field services, remediation). Pricing is set through multi-year service agreements with annual escalators tied to CPI and fuel indices. Revenue is highly recurring — customers pay regular fees for waste collection and disposal. Vertical integration (RSG-owned landfills process waste from RSG trucks) maximizes margin retention.
Products & Services
- Solid waste collection — residential curbside, commercial dumpster, roll-off container services
- Landfill disposal — secure landfill disposal of municipal solid waste and C&D debris
- Recycling processing — single-stream MRF processing; sale of commodities (paper, metal, plastics)
- Renewable Natural Gas (RNG) — landfill gas capture and conversion to renewable energy (pipeline injection)
- Environmental Solutions — hazardous waste management, PFAS remediation, industrial cleaning
- Digital services — myRepublic customer portal, route optimization, smart container technology
Customer Base & Go-to-Market
Customers span residential households (via municipal contracts), small businesses (direct service), large commercial/industrial accounts, and government entities. RSG serves customers in 41 states. Municipal contracts provide stable base volumes; commercial contracts are competitively bid but often renewed due to switching costs (equipment, waste streams, compliance documentation).
Competitive Position
RSG is the clear #2 in US solid waste, behind Waste Management (~$23B revenue). The two companies together control ~50% of the US solid waste market, creating a rational duopoly in most geographies. The moat is permitting and infrastructure: building a new landfill in the US is virtually impossible (NIMBY + regulatory), making existing permitted capacity permanently scarce. RSG operates ~200 landfills with decades of remaining capacity.
Key Facts
- Founded: 1998 (merger of USA Waste Services and Allied Waste Industries predecessors)
- Headquarters: Phoenix, Arizona
- Employees: ~40,000
- Exchange: NYSE
- Sector / Industry: Industrials / Environmental & Facilities Services
- Market Cap: ~$65B (at ~$210/share, ~310M shares)
Financial Snapshot
ticker: RSG step: 04 generated: 2026-05-13 source: quick-research
Republic Services Inc. (RSG) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | ~$14.9B | ~$14.9B | $16.03B | +7.1% |
| Gross Margin | ~40% | ~41% | ~42% | +1pp |
| Operating Margin | ~17% | ~18% | ~19% | +1pp |
| Net Income | ~$1.5B | ~$1.7B | ~$1.8B | +6% |
| EPS (diluted) | ~$4.70 | $5.47 | ~$5.80 | +6% |
FY2025: Revenue $16.591B (+3.5% YoY); adj. FCF >$2.375B guidance for FY2025
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$3.2B |
| Free Cash Flow | $2.128B (+5.6% vs. FY2023) |
| Adj. Free Cash Flow | $2.18B |
| Cash & Equivalents | ~$200M |
| Total Debt | ~$13B |
Key Ratios (approximate)
- P/E: ~36x | EV/EBITDA: ~20x | FCF Yield: ~3.3%
- Revenue Growth (FY2024): +7.1% | FCF Margin: ~13%
Growth Profile
Republic Services has compounded revenue at ~7% and FCF at 10% annually, driven by pricing (ahead of cost inflation), acquisitions ($1B/year deployed), and volume recovery. FY2024 was exceptional — 7.1% revenue growth, 12% EBITDA growth, 140bps margin expansion, and $2.13B in FCF. FY2025 growth moderated to ~3.5% amid construction/industrial volume softness. The company targets $19.3B revenue and $2.7B earnings by 2028.
Forward Estimates
- FY2026 revenue guidance: $17.05–17.15B (+3%)
- FY2026 adj. FCF guidance: >$2.375B
- FY2026 acquisitions planned: ~$1B
- Analyst avg. price target: ~$245–270
- Long-term target: $19.3B revenue, $2.7B earnings by 2028
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $RSG.