RSG - Earnings call transcript Q4 2024 | Republic Services, Inc.

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Operator

Good afternoon, and welcome to the Republic Services Fourth Quarter and Full Year 2024 Investor Conference Call. Republic Services is traded on the New York Stock Exchange under the symbol RSG. [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Aaron Evans, Vice President of Investor Relations. ahead. go Please

Aaron Evans

on to Quarter like Vander to Republic CFO, the our performance. discuss I Full welcome Year Fourth are our DelGhiaccio, and and Jon today XXXX Services to CEO; our would Brian everyone call Conference Ark, Call.

to results. moment uncertainties information, financial actual would different we risks everyone and information may to which that be from forward-looking like I on statements, today's including remind some and materially discuss call take a contains forward-looking involve

Our factors expectations. results material the which call, is date discuss call, to SEC differ that to XX, should February conference If is this listen sensitive. you today the actual of filings a be cause the could that of to XXXX. rebroadcaster discuss materially original in The from you time recording future, we sensitive

of note Services, Republic expressed this in property any that form rebroadcast prohibited. Inc. Any consent Services is the the of Please retransmission or call Republic of without is strictly call redistribution, written

Our a SEC discussion along website which republicservices.com. activities, includes of call, business our and with release, reconciliation at tables GAAP of available on a this are Republic's earnings recording filings, press

management dates, our When investor participates routinely are scheduled, posted events the Republic's in investor addition, times In are team presentations and conferences. on website.

like I'd over to Jon. the that, to With call turn

Jon Vander Ark

execute the and strong. deliver customers world-class We Thanks, Aaron. innovative business. strategy Good Republic for afternoon, everyone, grow and the our thank year The team service you for to joining finished us. solutions profitably and our

full year free efforts, As a our flow adjusted cash of that we EBITDA, delivered exceeded and team's the result guidance. EPS

EBITDA adjusted by of of $X.XX share X%, $X.XX earnings XXX of and cash XX%, achieved basis revenue expanded adjusted generated During flow. delivered free growth EBITDA adjusted XXXX, billion of produced per points, growth margin adjusted we

to differentiated positioned and digital for stakeholders, value our customer well create be capabilities, sustainability. through opportunities capture our new long-term to zeal, continue We and

Regarding zeal. customers

enhanced customer growth, loyalty. continues world-class focus to essential delivering support services on and organic Our

customer at more than Our strong retention XX%. remained rate

yield was cost of average X.X%. see and solid Promoter yield XXX in of and organic of basis service help pricing continue was value our business. pricing exceed level our offerings the by This related favorable revenue the was quarter to the on to across We quality revenue Net Average driven on growth Fourth to trends revenue continued X.X% Score the inflation margin during EBITDA due points and quarter. total our drive expansion of delivery.

softness the losses business, volume concentrated Organic residential on in revenue and in certain manufacturing markets. to end the X.X% and declined in continued were quarter. Volume underperforming construction contracts total shedding

Turning to our expanding digital capabilities.

to continue to implementation experience the advance employees. We the and for digital tools both customers of improve

the and designed recovery. of is Deployment Empower completed system to of to fully system new million be enhanced management Empower, new equipment our increase is Deployment will and productivity of anticipated deliver warranty cost is once the savings implemented. by Empower estimate end technician We maintenance of annual fleet underway. XXXX. $XX

is continue operation. of We the overfilled technology enabled and recycling technology generated in by first and $XX cameras more utilize to from in on recycling which benefit RISE to incremental revenue our This identify routes. contamination, waste We year platform. containers our million digital innovative than collection

Blue is is to facility co-located Polymers Indianapolis with and Construction complete of in continues to growth Polymers be and to our a continued operation plastic believe Blue value and joint Polymer that on move Polymer commissioning forward. innovation natural facilities for long-term us that sustainability our gas Moving We investments venture completed Center This production underway. Development and sustainability. equipment position our Centers expected circularity by is renewable creation. at mid-XXXX.

in Indianapolis year. this the from the contribution earnings second of expect Polymer We Center half

Center. Polymer facility This facility the Polymers Las Blue in will Buckeye, Arizona underway. on is complement production Vegas Construction our

completion expect in this XXXX. We facility late the of

We during continue the January. for projects online developing serve. and to X another projects project stakeholders, renewable including quarter that communities to we with came the in came advance. we're natural market value fourth The decarbonization online bring unlock to our the gas our solutions will partners continue

We expect projects of online a RNG total to X come new XXXX. in

We fleet advance in electrification. our continue XXXX. at collection operation We electric commitment the had to to XX vehicles of end

our with We end XX expect this commercial than infrastructure. EVs We fleet scale year. more XXX have EV now facilities to the of have in charging by

end with facilities the XXXX. We expect capabilities charging to of have approximately XX by

As approach be strive the to work. people employer to the continually our part to sustainability, want of where we best

to at remained XX year. high In to continue with XXXX, the compared points engagement employee improving full XXX rates lower basis Internal and trend our score turnover year prior

recognized Our performance Sustainability widely Dow be as continues Jones sustainability year. Services the named Xth to Index consecutive Republic for was the comprehensive

With in to allocation billion which $X.XX acquisitions respect to XXXX, in capital shareholders, invested $XXX $XXX we returned million and million of repurchases. strategic share includes

lasting specifically, expect billion. $XX.XX $XX.XX $X.XXX full of revenue we sustainable continue in strengthened create in year to drive billion to strategic in and value. foundation invest Adjusted is profitable demonstrate we investments grow EBITDA the value XXXX, Our the to billion In range to clearly our to business results while of to $X.XXX expected to expect our More a the ability to range continuing billion. be to business. deliver our growth

of billion flow $X.XX deliver cash a free range share generate billion. range a $X.XX to expect to to in adjusted of $X.XX, adjusted We in earnings per $X.XX

acquisition Environmental activity Our Solutions. & Recycling both continued Waste in and supports pipeline

of expect in billion We investment least acquisitions $X deploy in value-creating XXXX. to at

Our the quarter the to guidance to will on financial who will the XXXX details provide year. contribution turn over and from closed acquisitions Brian, includes date. I call now

Brian Delghiaccio

on pricing revenue at revenue was container fourth pricing was and on on market in container components Core X.X%. X.X%. related revenue residential small and X.X% core included on which restricted of The included price X.X% open the was yield X.X%, of revenue X.X%, quarter. related of yield revenue Average on large total X.X% John. was X.X%. total average X.X% Core related of and Thanks, price price of

markets, total construction-related X.X%, recycling down intentionally the Fourth by decrease approximately revenue X.X% of volume and decrease yield fees volume approximately late a quarter X%. stepped in in certain fully we softness continued revenue in anniversary In were enabled average in XXXX, and containers related due activity results residential of manufacturing on to contamination average a on The due decreased included of to yield X.X% contracts. and shedding average Volume on X.X%. expected, large related of X% container underperforming in to and end and decreased as primarily on revenue sequentially digital expect yield total fees impact overfilled revenue new implemented we As platform. relate our XXXX.

growth we in Waste basis XXXX, points volume the XX & points. in XX of organic In negative Recycling basis positive business expect a range to

prices revenue points year Commodity ton This are prices ton. is to in quarter. the $XXX baseline by Full per in This approximately commodity per fourth $XXX Moving our prior basis were per Current per ton, commodity $XXX and were compared on XXXX commodity during which $XXX prices guidance. ton $XXX XX in per year. sales compared processing quarter. to Recycling to ton the the XXXX during year. increased the recycling. prior the used

decrease in offset Margin XX%. point margin recycled company point a XXX adjusted points, acquisitions by of XX points margin increase the the commodity from basis basis a expansion partially point expanded during underlying to completed EBITDA XX total net This prior increase quarter quarter the business performance basis was basis basis XXX Fourth a from from fuel prices. XX and year. in included;

prior points to of XXX full the expansion basis points. margin basis represents in EBITDA year. business Margin & margin XXX Recycling margin was the and expansion was year points the XXX Waste Our Solutions adjusted was compared XX.X%, Environmental expansion in which basis business

increased billion, than XXXX Total accretion of million business Solutions business. to year, an of XXXX. With growth company $X.XX in and margin driven to the fourth XX.X% by compared prior growth XX% year flow basis is respect was This the of more be increase quarter. prior in free EBITDA and XXXX from year expected XX.X% the to was EBITDA the acquisitions. in by adjusted nearly primarily revenue Environmental amortization in organic Full to quarter year. and in Solutions. driven Fourth cash in XX% points Environmental depreciation, the revenue contribution was the business to XXX rollover the expanded Adjusted compared prior $XX revenue

at debt $X.X year the of end the $XX.X Total was billion. liquidity was billion, total and

of the at end X.Xx. ratio year the was leverage Our approximately

the fourth investments The related our an expect for approximately equity equivalent in our development We the during in quarter impact by in fourth of supported taxes, impact XX.X% tax the $XXX renewable quarter rate favorable respect interest to net expense with credits partners. tax was year. tax full projects and RNG XX.X% million XXXX. to of and in combined resulted investments energy, in rate With from tax

effective expect of XX% in XX% up an We of tax renewable equivalent of investments noncash impact XXXX, equity of and $XXX tax million approximately in rate energy. charges approximately made from adjusted

that, would With open the like call operator, questions. I to to

Operator

Instructions] with [Operator today will come from first Burgmeier your Citi. Bryan question And

Bryan Burgmeier

ES was I implementation kind year. of last you've the ERP obviously So ongoing was strong year. said really think And throughout

just completed, So comes Or hurdle? hit fair you cleared a next to of say of fully for this seemingly frame help margins is almost of sort with integrated? another having bit it's maybe leg for it that now can since XX% what business and there's up me ES kind a

Jon Vander Ark

year, positive you're to certainly on we're rest year. to our of with lots going right, that of of upward by We and team heavy There's some us. the continue last have of the prospects certainly Onward there. the Yes. the most on in very year integration. IT business, terms work behind lifting Great work we remain

in for that better of in right? cross-sell, give growth, IT more last just more -- -- But M&A we certainly the space we lot and the clarity team enables organic us opportunities year in to line the see profitability. integrate to so as well growth This M&A -- mostly a and on more coming time breathe time paused visibility product that do XXXX to work area as

And that certainly in see up so we and as year the throughout well. ramping beyond XXXX will

Bryan Burgmeier

margin And Jon, XXXX. on maybe just I was then wondering, year-over-year Got for could if touch it. you the bridge

XX we're basis to term, think year-on-year. looking XX, XX. think call, XX XX long increase to you're to I you to points And the opposed as XX on last I to get said maybe trying like

Good luck detail little just the great. a would So in quarter. it on be turn over. your And bit I'll margin of expansion

Jon Vander Ark

-- any be kind expansion. outsized more of of incredibly XX to could points XXXX if basis given kind points little a strong an XX a margin front, look a year. more of on XXX coming year, the across that about basis you or off across in We obviously, say year cycle, Yes. it little In muted

And then manufacturing and pretty then parts the end particularly as you construction, soft. market listen, still get into of XXXX, are

good standpoint, really delayed terms some looking for front. from on signs that's going we're rates early come back. I so Manufacturing showing mortgage are And And XX-year, to right? I'll so here of interest a the be add in progress to in where certainly in those into that feeds that. Del in. impact that is think Construction let rates

Brian Delghiaccio

looking to points current a price your when take the look, you you midpoint, we entire expansion. point, margin commodities, of and for the if that look at a and flat that take year. But Yes, we the you XX of approximately Brian, basis you're unpack held at took

ton. So that's $XXX per approximately

XX that If well we well. at some a XX point compare have year-over-year, in average as point about acquisition $XXX about we costs that you on as deal integration and headwind the XXXX, to We a headwind had the as then front. look basis as basis

plus. So growing the is points XX business basis approximately underlying

cost also basis for assuming of are that basis. kind $XX CNG points XX example, on we about are overcoming million tax a That That or what us consider not renewed. credits XX would points basis items, I is unique some year-over-year

to at business, expansion of which to in XX if margin would basis headline XX, really XX. So underlying suggest compared look points the the you're you a of the something closer strength as

Operator

James. come next of Tyler Your today question will Brown from Raymond

Patrick Brown

you must great on not It's in the a the included Brian, just that's in commentary. guidance. bridge. detail acquisition feel billion in placeholder, pretty I interested good. know the probably $X But I'm but Jon,

in do what M&A there stuff there you Are front? looking as the kind So traditional the see on waste? Or some type at well? you pipe specialty be more solid hazardous of could out waste

Jon Vander Ark

Yes.

strategic and outsized few think $XXX The X indicator. a always were We're the -- our that's million, for our number financial deals a an filter -- put I look at typically that to start this last like going we've there out strong is already. got and marker past screens, off predicated year we're really years, filter.

nearly closed and has really are either closed So team that front. the good the on momentum we things feel about or that

So going of end a we've you start, got a and that to we're up. big indication gives head where better

ES, it's first good but half, little expect come heavily of the in slanted pipeline & heavier towards terms pipeline we'll really probably Recycling ES. have and half that got toward we've over all slanted those then a And things where Waste. more a play see on would Recycling out. as I from, looks In the Waste, back & you

Patrick Brown

Okay.

benefit Brian, QX? date been in So based in there 'XX closed is material a to M&A what has on

Brian Delghiaccio

Yes, if -- in terms you it just put of I'll revenue.

If a look got but closed 'XX, was point growth which of from in you what's take about deals. full rollover, insignificant a pretty from at we've revenue to those including date, deals

Patrick Brown

should that Or the or think up And flattish from hurricane back there? upside? we that coming Or not then would how Is material? Okay. Is wildfires helpful. that? on in That's benefit volume. any be about there just

Jon Vander Ark

in, think be bake there will right? time. didn't over it I We

that I we're ground the waste certainly communities now we matriculate some those Exactly ES household will how and up, I yet. where ends know forms right plays the hazardous And think that ultimately on it's don't the plenty of waste up. with of special TBD teams and certainly mean ends hazardous and landfills. out. in our up how into supporting that cleaned that getting waste

not in. that's built So

Operator

from Your next Kaye Oppenheimer. come Noah will question today with

Noah Kaye

the to on of bps right The you inflation revenue related XXX and it? guide. in is to X.X% maybe looking like you comp yield spread that about expectations X% Are way unrelated? the think Can cost sort

Jon Vander Ark

Yes.

cost you in if layer side. closer probably maintenance. cetera, benefits, increases, to And the we're et employee on wage X% on think inflation I

about right and us takes that X% X% So then unrelated.

Noah Kaye

to then the just think how year. for And Great. Okay. seasonality about

the also benefit. you later I M&A big some certainly in not comps of think as things that on you it's have, there But commodities, are favorable like headwind for year, a more mentioned, you.

of least the how So sort just give on think some guidance cadence EBITDA at you rough us for year? about

Brian Delghiaccio

of Yes. a little it year the We I more But year seen think it couple say relatively of first than than would margin see just of slanted expansion. half what you've the can maybe this towards maybe quarter. the you about perspective balanced last the years, would think consistent from over more bit the second. of heavily by

half second in margin all and business types. half, First all expansion quarters across with

Operator

from question next Revich come will Your today Jerry with Sachs. Goldman

Jerry Revich

contribution, Can performing? hitting talk targeted? guide about you plus the rates how Centers the RNG Jon. folks of that are Are embedding the calibrate efficiency Polymer what's Brian, if on us wondering folks you just Polymer had are And that? that I'm could plants? the Centers in you you you level from the the

Jon Vander Ark

that. getting kind Yes. dialed learnings with and some uptime and specification some individual learning I'd say equipment costs associated start-up and right each second, customers. of with fourth terms There's learning quarter, the of getting listen, third, in that Certainly on on there in uniqueness of the in. some the some

willingness strong to and really The cost, volume, on terms of assumptions. in price good right, on news pay, those rate is, positive right, run our all of assumptions really

the Vegas' that now. right feeding those and Las about all learnings, Indianapolis. We're good those place taking obviously, into feeling So

Brian the on so upward, our and onward And and let marks, and cover specifics. I'll

Brian Delghiaccio

Yes.

year next of across of for incremental our looking investments, So around million. we're million $XX and portfolio at incremental sustainability EBITDA $XX of revenue

Jerry Revich

good a comment maybe in really That I having Brian, to of of And margins. clear. good a go a comp. quarter really just bit back your The downside fourth a then, weighting 'XX the of to on is tough and is want performance

just year-over-year anything a Is it rate, year-over-year, basis we Can on first first more quarter there guiding that margin apply to to margins over sounds improvement like and run businesses normal lumpy XXX of the fourth in that up margin just you across you're in imply if basis So seasonality built expand on the the I the momentum to you've 'XX? quarter? like think it points quarter. to because XXX course fourth will are felt were the modest quarter it

Brian Delghiaccio

expansion. if lowest and earnings think Jerry, But the about our where normal Yes. most seasonality, you of you you is relative generate think of distribution about margin and the QX level seasonally step and a quarter. amount you back

You've got percentage have winter months, the taxes. also the employee-related of highest you

that tends be generally low watermark, QX. then our to So followed by

relatively And and highest the is fourth level -- but QX and is similar, is would QX for as far are put third QX X I -- then meaning extension QX of margin as year. the it's

going on of steps sequentially, generate from XXX margin year-over-year the to modestly So XX% quarter to points fourth in is not basis. expansion that a going something basis down

recall, you was of If margin the quarter in XX.X% first XXXX.

Operator

with today Romeo will Trevor next from question Your William Blair. come

Trevor Romeo

quarter out the field in then the kind performance. maybe Solutions talk you're just ask 'XX? I those think of for revenue was split waste could, nice seeing Really for one; pieces services just you about the disposal growth on of environment business. and I and treatment pricing the wanted about Environmental kind moving to hazardous wondering between into of I and follow-up each the where if there. of of terms versus guess, how you business a

Jon Vander Ark

from attractive Yes. resources. on getting X.X That's that's different last since shedding that's cost we be pay less of certainly we who from did the willing profitable. efficient number impact That's management the through and Ecology US customers Obviously, pricing positive come more acquisition. come through the customer come to do. margin mix more work in work are that lots It's of over come levers. a utilizing performance of years And

we going we're we're we that have work expand same expand value there think but if time, in going continue our you to delivering. going not as of to and space so over we're margins to movement And because the forward, rate about the think at -- that is margins

of products that continue have set build we more services. a to and we out, differentiated as And

as ratable, the Recycling assets and as momentum assets. look do contribution price in which single both So in the continued Waste within like we services we post-collection pricing year. price And increases & can But that see -- will a XXXX. more the on you'll increases field well expect like more year multiple has of

Trevor Romeo

I follow Great. up a labor And wanted to then Okay. on the environment bit. little

place I mentioned historical then was to XXX does great. of new where to sort of 'XX. be putting And on how think I further think have any in points you much I 'XX? basis place lower relative And you wondering that turnover kind two, your decrease would in averages? turnover in just guess, you was you're initiatives you runway

Jon Vander Ark

Yes. lot We strong. We at have are you're you service effective a good customers is decade numbers rate, when a happen level turnover they this high turnover things from standpoint. performing XX-year but pay and that don't with leadership, on very a are And a a low, those employee turnover, of very, longer. stay engagement, right? servicing into get at is happy the more starts And customers which with it they and spot, very really

When that, to certainly you turnover, in X. Goal is your we turnover room X. goal unlike is do safety, improve looked not where for

turnover Some healthy. level is of and natural always

same the we're more the of don't out to improvement think in look I think of so we're for team continue leap grind is improvement. going capable few We to basis that. And to points get XXXX, going to -- but a

Operator

Sabahat will question Markets. Khan with Capital RBC come from next Your today

Sabahat Khan

Great.

Just ES guess I guess pricing -- question a margin earlier. waste. to on solid and I on question similar the

there the pushback, pricing, your the Are be with more How sort discussion pushback after across that years you Just would Just kind feedback you to point moderating. do okay those portfolio, of feedback still in sort front? less kind any higher spread? be pricing look this wondering like of things clients get customers at the going? is great. on cycle? As of seem few the how are of Is with of

Jon Vander Ark

we pricing an as our mean that inflation at maintaining I our down obviously when couple the we're Yes. yield, coming coming is also spread. over absolute from mentioned. is past And years, down well, basis but our look you which of cost

X% we to front. I think was going were good cost spot fear to that, really inflationary we down, seen certainly And and a haven't as get come there environment cost is to us was squeeze. that for a going pricing operate a some price that on wasn't

we and price sticks of And very, retention rate, on remaining healthy, measure that's how very that or front. our much

to The again, loyalty sophistication they'll because of customers So price and a price of we team high we're that [ maintain again of a with we stay job level price customers got giving doing we forward. going and is in how lot great have ] that tools who take, terms but a our that -- want of also we them. we

have in business just is opportunity And We balance pricing, equation, and restricted on of meet one on of are side. continues the put them municipal fair I'd say one and to enormous we many general of the not but that's an area amount where paying labor the which that attractive all have And the space. innovation, we an That's be on their right? customers capital our and contracts, into share, customers not in standard.

years. And so next the portfolio to optimize few over see you'll us that continue

Sabahat Khan

Okay. the Great. one And R&D then just facilities. on

come think to looking [indiscernible] for I we're online.

came think are Or facilities just that the a how thinking thing? X online. of the about you up? timing opening rest I R&D Is

Brian Delghiaccio

of first expect quarter. to a bit online the timing in rollover. more a We it's would come those There's a of X thing. little Yes,

perspective, it so think of a from And a like contribution delay. again, XX-day

Operator

Security. Tobey Your from come next question with Sommer will today Truist

Tobey Sommer

kind kind might peak trough. you curious is of to we any With unusual indicators that end signal think period, you level, do approaching as the time an of as respect to of lemon might margin? or a much leading that attrition that a out? to look in what be kind either tailwind kind metric, said I'm Because you're you decade of is low. the squeeze to left use to of at How employee that

Jon Vander Ark

to finding we're mean about they highly unemployment. in the a unemployment we normally that time keep say that, But externally people very to you you going where are have. environment, think I at hard they're achieve the so going Yes. either X% have job jobs and

of relative period. compensate tight XX-year to a them to we a engagement. do to It's outcome. lot still achieve financial an how XX- And right? to is paying has it customer our I managers, outcome achieve market think a or with a and We outcome to general think labor employee about that So achieve

energy a Republic And place put of lot great making they in work. really to a

And improvement this right? be we think than continue won't so more again, progress. points of to XXX think year, I will I that, we've the think make it rate can we got be narrow but

Operator

come And your Moore next today question Stephanie will from Jefferies. of

Harold Antor

on Harold is Moore. Stephanie This Antor for

guys talked overflowing about So the bend. [indiscernible] from you

I far So as just that? How additional on move want rate you fees indices? through conversations to to with from that get a are are how alternative sense going of you implement those process, customers contracts fixed

Brian Delghiaccio

Yes.

the Let like either contracts a as alternative as water trash have the consider moved or an on started we're at indices this fixed trash beginning of the been we of latter Since that garbage those with me sewer initiative, far rate to favorable. would indices. XX% we when alternative start or

Harold Antor

call pricing regulatory you rent guys side, with administration, are regulations? the your or other out you anything guess And any on impact PFOS given that just I at or from looking

Jon Vander Ark

on On [ very up rent come front. now our the move of back assumptions they're trending prices And over project RINs that last forward. weeks assumed down, we prices, here you've on seen ] but as couple conservative we

we're pipeline, going set future So in front. that our we landfill have remain of the online and this enthusiastic energy and year projects to years come gas about on

solid on of importantly, more timing ES the about to polymer ultimately there's but and an of of our a society final lot to terms we of recovery, administration, address mediate from to from material. But issue is PFOS our of feel a good ability that it pace standpoint, and care a customers issues, still team broad upside even political PFOS take take for perspective. TBDs wants and our care landfill was on then treat a solution their regardless the of in it and find capabilities very opportunity to -- disposal only then kind and of facilities And catch the not side waste standpoint, or

Operator

next your Stifel. from come Brian will Butler And question today with

Brian Butler

sustainability, the contribution then the future in you adding And one, On projects? the what's first when million from that? beyond as spend capital from what think as EBITDA the an of 'XX, on $XX just 'XX, and a well in capital EBITDA RNG with what's remaining kind

Brian Delghiaccio

Well, if Polymer Centers so owned wholly Brian, you remember, are as facilities. we our developing

So cash Polymer which is our free really, through the flow CapEx in is Centers, the into obviously only guide. our thing investment that's embedded running the

XXXX, to spend $XX last Polymer several consistent you've So Centers, is another the million for we seen over look with which on relatively what years.

change not it's of from baseline. So really what the seen you've in much a

The partnerships other the landfill Polymers, both the to we JVs, a themselves interest. with we're in Blue making in have that more the are investments projects and gas as well energy as minority

would take like investments look the about investment at combined spend million year, acquisition a of $XXX more of next that cash in the So you if both comes in JVs. an would activity we but flows, to those statement through an as other investing -- look so and

Brian Butler

most that internally. Okay. What see a of programs risks of have mean going the answered, That's lot the of there. you I on fundamentals from are we where one are my helpful. of good, out today? you forward there success Then a some of out the but I questions I guess strategically really throw look kind lot

Jon Vander Ark

I think the shore war broader we've macro lived pandemic a inflation elements. and Listen, environment. high other Europe and and of through at

safety watchful in operate impact in terms the we're mindful slowdown which priority. up as economy, is #X with of inflation, we at those macro keep environment of can our and night, control, macro on none a that but of happens what So the would front things in on us I say, we tariffs and what

of the that, and on. that's front outside focus day So manageable. get we us And things are what in feel business of in up and every the like we

Operator

will from your with Bancroft ] [ question come next And Gabelli Tony today Funds.

Unknown Analyst

just [indiscernible] or space X acquisitions Solutions, could of something turned out type that obviously of And in that more Very see maybe you could has could there sort maybe the anything you and something very longer? longer type of out term, congratulations. see along side transformational on X maybe going on else Environmental well forward. your of there well to lot Gentlemen, done. opportunity be or lines Is a sustainability acquisition of the a your is either that different, potential years

Jon Vander Ark

We opportunity everything perspective any going to we're of are Yes. uncertain. and on consequence, That perspective everybody. opportunistic being often And on. and maintain a a said, those have things dealer

then strategy and value driven we've our X over some execution the really imminent. deals keep of is if there's And certainly those, deal. So I medium-sized open. a aggressive small- in we'll organically type bigger considering be think of And And of what be we'll we that I the don't good the but lot and our last you've build will opportunities, nothing hinged on by big think seen business in And years as is eyes well. same. more

Operator

question today from Capital. next with Gupta will You Konark Scotia come

Konark Gupta

And of think seems should from to of headwind the going to a terms be to price way think a in decent in but commodity XX%, about price environment highly than start think you I prices sensitivity, is XXXX. higher like commodity How lot been should questions your have earnings up is move be? that? If sensitivity we it's it your right? assuming think commodity I asked obviously predictable, here, kind not of the you're of the they like kind where

Brian Delghiaccio

Yes.

$XX prices -- on approximately we million annual $XX a this our of commodity disclosed EBITDA. goods is and Just average, basket of on recycled that in move

average, recycled assume think are that commodities at it's take but it's So and insignificant, right to now 'XX which at not when you we throughout overly a contribution, flat stay either. down million $XX even they the look the $XXX about relative we $XXX maintain, material when what isn't EBITDA you

an sensitivity, you see expect can you an from EBITDA the again, again, our that give commodity just revenue that for and prices it's $XX if on basket, and so a have you both you to idea, impact moving, perspective move. And

Konark Gupta

if for Okay. credits follow credits. a up through I quickly That's great. Apologies I before. is if if come comment they realistic year. the missed -- guess of on And assuming this what I not that there? assumption you're And if sort so, CNG tax can

Brian Delghiaccio

Yes.

On the tax CNG credit.

that assume And per million those are us. renewed. again, we year not it's for So $XX did probably

now, not right So in is embedded XXXX that our guide.

Operator

Kevin today from question CIBC. will with next Your Chiang come

Kevin Chiang

your remarks, year, noted, more I EV California policy. of think withdrew EPA waiver some to this think, is the stringent its zero-emission to But related prepared fleet its your I of your growing vehicle You there. in some earlier strategy,

that change regulatory bit spend? think into maybe wanted some to California. vehicle and I it how back less does stringent emissions? you throttle you deals know relates little environment of or more as EV And a about that these Just -- have a gone Do

Jon Vander Ark

certainly pace we'll lots and be of interest, that mindful. incentives, us No, down direction, it we're continue local that going broadly, state demand. of There's there. lots to customer has in support slowed there. and going And There's to not our customer deploy more

number terms a EV purchase as to going we're it's locked-in right? vehicle strategy that We well. exact superior in We're the year. employees by of make have zero emission sure safe, no quiet, of for a to product, going our vehicles that's It's it's great a

supply on a that the premium make demand to premium that that sure going and [indiscernible] customer we a offering, rights good we're we're municipal front. that getting that we're product. see so to space for And

where go EV. change customer here we'll a any demand path success, with but so on confidence And even that forward that there's administration

Kevin Chiang

a base maybe guess, on the in we're turnover, guess great or you And I seeing job U.S. policy, around, just immigration a Okay. -- there. of are seeing lot you by headlines changes But employee companies I then the isn't I you impacted from seeing hearing an are are imagine we I'm your impacts? this. are impact. downstream can wondering, some [indiscernible] seeing -- direct just they are

could of labor are the force markets when is a be terms But is -- just shrinking. that labor downstream overall impact tighter in

some that Just bit into the trying but impact? today, numbers it's potential your availability out perspective? that downstream flowing a this labor I And are more from of guess not or to anything you're a become see [indiscernible] markets wondering little might you're problematic eye keeping for

Jon Vander Ark

Yes.

our parties labor In culture. or terms force part of where do third we of support our been -- always clients our has a own that have huge us

markets see think construction been too, a any that type how to talk if front, see issue rates. part. an supply there's the there going Labor And -- could in be think that driver on we'll I be develops. biggest So is the we as or lot mortgage you that serve, of of about right, that we look threat broadly, challenge at more I end don't

concern be an we'll a that's to major but eye So don't think keep toward us. I of for going that,

Operator

today James Cowen. question next with Your from come Schumm will TD

James Schumm

conversions sort additional an couple if -- where you guys. me. that? quarter, give of over for conversions, any still CNG terms your just you guys And margin your you Can Is one Can truck you quick the supply chain. Good you then and years? trucks? getting thinking Are of one the ASL issues truck update And for in on fully opportunity that are are then resolved? next about now of related, there's expansion like seeing

Jon Vander Ark

end up caught -- of of what of OpEx with be throughout retire kind replacement our that vehicles at back we'll kind mark the have by we optimal trade-off we'll very and be we philosophy this they're to getting certainly is hitting point. delivering an CapEx, when of the fleet of year by And chain in and vehicles. the for and ratable optimal kind supply The a Yes. and the terms find year,

XX% really suppliers get in automated. automation, our XX On to who we're for months us about been thankful to have that the over over-deliver respect. up able last So caught help

few We have environment. or over They'll in with time. contracts more a opportunity onesie-twosie come of specific the points

environment product. product, electrification the and put superior X beneficial we've is than go not -- that's zero not a not huge is our more much where to driver a in is better we but the new for think for CNG electrification fleets CNG performance, CNG we the emission of last but see and So maintained be we'll CNG customer believe because diesel environment, years fleet, pull. that's going And there. continue a but we've it's to we any

our energy. So we put that's where

Operator

question next Markets. Devin Your today Capital will come with from BMO Dodge

Devin Dodge

if the X completed, one are but Just the year plus of $X weeks in first missed sounded spending included and the of the target it clarification billion in I it, is deal say, me, like M&A guide. from XXXX, apologies in the

correct? two, a deployed you how And that is has for of one, much give is correct, been if $X that already? us that billion can Just sense

Brian Delghiaccio

Yes.

that related our through and X deals in guidance. have the included financial contribution completed outcomes today revenue So been that are

today through is close anything included, anything is thereafter that complete basically, not. we So would

the $X of billion been point. and right -- has this a spent at good it So portion already if now, spend, think you about

feel So good again, full we really about that the target for year.

Jon Vander Ark

in you results out. the April after obviously, give QX details, We'll come

Operator

appear remarks. you back there Vander time, call no the questions. further to this to turn for Ark, At over closing Mr. I'll be

Jon Vander Ark

to a work for for I Republic safety, to great led continued the in Nick. of and evening results us growth. be Have want good team XXXX. you, exceeding great and Thank year Their focus and their on Services expectations safe. thank customer sustainability another well positions

Operator

you will Ladies the conclude for that and attending. gentlemen, Thank call. conference

now may disconnect. You

Republic Services (RSG) 13 Feb 252024 Q4 Earnings call transcript