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F500-2021-297-Republic Services

Republic Services is a solid waste and recycling solutions company headquartered in Phoenix.

This year's Fortune 500 marks the 66th running of the list.

F500 2020 305 Republic Services

With operations in 41 states, this Phoenix-based company is the second-largest provider of waste disposal and recycling services in the U.S. as measured by revenue.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Republic Services Inc. is a provider of environmental services in the U.S., offering services for recycling, solid waste collection, hazardous waste disposal, and renewable energy projects. The company operates a network of over 1,000 locations, including 74 recycling centers and 207 landfills, serving approximately 13 million customers nationwide. Under its commitment to sustainability, Republic Services transforms landfill gas into renewable energy and invests in advanced recycling technologies to promote a circular economy. Its 42,000 employees work to provide reliable, efficient, and environmentally responsible waste management solutions.

Q2 2025

Q1 2025

Q4 2024

Republic Services (RSG): Company Profile, Stock Price, News, Rankings

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Republic Services

republic services

Good afternoon, and welcome to the Republic Services Second Quarter twenty twenty five Investor Conference Call. Republic Services is traded on the New York Stock Exchange under the symbol RSG. All participants in today's call will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your touch tone phone.

And to withdraw your question, please press star then 2. We are asking that you please limit yourself to one question and one follow-up. And if you have further questions, you may reenter the question queue. Please note this event is being recorded. I would now like to turn the conference over to Mr. Aaron Evans, Vice President of Investor Relations. Please go ahead, sir.

Good afternoon. I would like to welcome everyone to Republic Services' second quarter twenty twenty five conference call. John VanderArk, our CEO and Brian Delgachio, our CFO, are on the call today to discuss our performance. I would like to take a moment to remind everyone that some information we discuss on today's call contains forward looking statements, including forward looking financial information, which involve risks and uncertainties and may be materially different from actual results. Our SEC filings discuss factors that could cause actual results to differ materially from expectations.

The material that we discuss today is time sensitive. If, in the future, you listen to a rebroadcast or recording of this conference call, you should be sensitive to the date of the original call, which is 07/29/2025. Please note that this call is the property of Republic Services Inc. Any redistribution, retransmission or rebroadcast of this call in any form without the express written consent of Republic Services is strictly prohibited. Our SEC filings, our earnings press release, which includes GAAP reconciliation tables and a discussion of business activities, along with a recording of this call, are available on Republic's website at republicservices.com.

In addition, Republic's management team routinely participates in investor conferences. When events are scheduled, the dates, times and presentations are posted on our investor website. With that, I'd like to turn the call over to John.

Thanks, Aaron. Good afternoon, everyone, and thank you for joining us. We are pleased with our second quarter results, which reflect the resilience of our business model and consistent operational execution. We delivered robust earnings growth and margin expansion, overcoming continued lower demand from construction and manufacturing end markets.

We continue to invest in our differentiated capabilities to meet the needs of our customers, allowing us to consistently grow our business and enhance profitability. During the quarter, we achieved revenue growth of 4.6%, generated adjusted EBITDA growth of 8%, expanded adjusted EBITDA margin by 100 basis points, delivered adjusted earnings per share of 1.77 and produced $1,420,000,000 of adjusted free cash flow on a year to date basis. Our focus on delivering world class essential services continues to support organic growth and enhanced customer loyalty. Our customer retention rate remains strong at more than 94%. We continue to see favorable trends in our Net Promoter Score due to the value of our offerings and quality of our service delivery.

Organic revenue growth during the second quarter was driven by strong pricing across the business. Average yield on total revenue was 4.1% and average yield on related revenue was 5%. This level of pricing exceeded our cost inflation and helped drive 100 basis points of adjusted EBITDA margin expansion during the quarter. Organic volume increased 20 basis points in the quarter. Volume growth included outsized special waste and C and D landfill activity.

This related to hurricane recovery efforts in the Carolinas and wildfire remediation in the Los Angeles area. These volumes were partially offset by declines in the collection business. The decrease in collection volume was related to continued softness in construction and manufacturing end markets and shedding underperforming contracts in the residential business. Organic revenue was down in the Environmental Solutions business and resulted in a 90 basis point headwind to total company revenue. Environmental Solutions revenue has been negatively impacted by continued sluggish manufacturing activity, uncertainty around tariff policy and lower event based volumes.

Even with the revenue headwinds, our Environmental Solutions team demonstrated effective cost management to maintain EBITDA margin performance consistent with prior year results. Moving on to sustainability. We believe that creating a more sustainable world is both our responsibility and a platform for growth. We recently released our latest sustainability report highlighting the progress we are making toward our 2,030 goals and the positive impact we're delivering to our customers and the communities we serve. Our 2,030 goals are supported by the investments we are making in the employee training and development programs, plastic circularity, and decarbonization.

We are making progress on the development of our polymer centers and Blue Polymers joint venture facilities. Regarding the Indianapolis Polymer Center, we commenced commercial production in July. This operation is co located with our Blue Polymers production facility. We hosted a grand opening ceremony for this facility in June. We expect commercial production to begin in the fourth quarter upon the completion of equipment commissioning.

The renewable natural gas projects we're developing with our partners are advancing. More projects came online during the second quarter, along with another project completed in early July. This brings total projects completed this year to six. We still expect a total of seven RNG projects to commence operations in 2025. We continue to advance our commitment to fleet electrification.

We had 114 electric collection vehicles in operation at the end of the second quarter. We expect to have more than 150 EVs in our fleet by the end of this year. We currently have 27 facilities with commercial scale EV charging infrastructure. We expect to have more than 30 facilities with charging capabilities by the 2025. As part of our approach to sustainability, we continually strive to be the employer where the best people want to work.

We continue to have high employee engagement scores, and our turnover rate continues to trend lower compared to the prior year. With respect to capital allocation, year to date, we have invested nearly $900,000,000 in strategic acquisitions. Our acquisition pipeline remains supportive of continued activity in both the recycling and waste and environmental solutions businesses. We continue to see the opportunity for more than $1,000,000,000 of investment in value creating acquisitions in 2025. Year to date, we have returned $4.00 $7,000,000 to shareholders through dividends and share repurchases.

Additionally, we recently announced an increase of the dividend for the twenty second consecutive year. We updated our full year 2025 financial guidance based on results delivered through the first half of the year, recently enacted tax legislation and our outlook for the remainder of the year. We now expect revenue to be in the range of $16,675,000,000 to $16,750,000,000 We maintained our original guidance for adjusted EBITDA and adjusted earnings per share as follows. Adjusted EBITDA is expected to be in the range of 5,275,000,000.000 to $5,325,000,000 and adjusted earnings per share is expected to be in the range of $6.82 to $6.9 We increased our full year adjusted free cash flow guidance, which is now expected to be in the range of $2,375,000,000 to $2,415,000,000 This increase reflects the benefit taxes from 100% bonus depreciation, which passed earlier this month. Our updated financial guidance includes the contributions from acquisitions closed through June 30.

We plan to remove the impact of recent labor disruptions from our adjusted results, which is reflected in our updated full year guidance. Regarding the labor disruptions, we've been negotiating in good faith and remain committed to reaching a fair and equitable agreement that balances the needs of our employees, our customers, and our business. While the labor disruptions have been localized and impact, I'm proud of how our team is working tirelessly to serve our customers. I will now turn the call over to Brian, who will provide details on the quarter.

Thanks, John. Core price on total revenue was 5.7%. Core price on related revenue was 7%, which included open market pricing of 8.6% and restricted pricing of 4.6%. The components of core price on related revenue included small container of 9%, large container of 7.1%, and residential of 6.6%. Average yield on total revenue was 4.1%, and average yield on related revenue was 5%.

Second quarter volume performance on total revenue and related revenue increased 20 basis points. Volume results on related revenue included a 47% increase in landfill C and D volume driven by hurricane cleanup activity in the Carolinas and a 22% increase in landfill special waste revenue driven by wildfire remediation efforts in Los Angeles. Large container volumes declined 3.4%, primarily due to continued softness in construction related activity in most manufacturing end markets, and residential volume declined 3.2% due to shedding underperforming contracts. Moving on to recycling. Commodity prices were $149 per ton during the second quarter.

This compared to $173 per ton in the prior year. Recycling, processing and commodity sales increased by $7,000,000 during the quarter. Increased volumes at the polymer centers and reopening a recycling center on the West Coast offset lower recycled commodity prices. Current commodity prices are approximately $130 per ton. This is the basis used for the second half of the year in our updated guidance.

This would imply a full year average commodity price of approximately $140 per ton. Total company adjusted EBITDA margin expanded 100 basis points to 32.1%. Margin performance during the quarter included a 60 basis point increase from previously noted event driven landfill volumes and margin expansion in the underlying business of 70 basis points. This was partially offset by a 10 basis point decrease from net fuel, a 10 basis point decrease from recycled commodity prices, and a 10 basis point decrease from acquisitions. With respect to Environmental Solutions, second quarter revenue decreased $11,000,000 compared to the prior year, driven by lower event volumes and softness in most manufacturing end markets.

Adjusted EBITDA margin in the Environmental Solutions business was 23.7%, flat when compared to the prior year. Year to date, adjusted free cash flow was $1,420,000,000 Our performance reflects EBITDA growth in the business and the timing of capital expenditures. Year to date capital expenditures of $727,000,000 represents 38% of our projected full year spent. Total debt was $13,100,000,000 and total liquidity was $3,000,000,000 Our leverage ratio at the end of the quarter was approximately 2.5 times. With respect to taxes, our combined tax rate and impact from equity investments in renewable energy resulted in an equivalent tax impact of 23.3% during the quarter.

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

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. In the interest of time, we ask that you limit yourself to one question and one follow-up question today. If your question has been answered and you would like to withdraw your question, you may do so by pressing star then 2.

First question will come from Tyler Brown with Raymond James. Please go ahead.

Hey, Brian, I know there's a few moving pieces and I appreciate the EBITDA hold, but can you just kind of maybe parse out a little bit the $200,000,000 or so reduction in the revenue guide? Just how much of that was ES versus say commodities?

Yes, Tyler, it's actually I would say there's two primary components. So one, we are reducing our volume expectation within the recycling and waste business. That is predominantly due to, again, we talked about weakness in construction related activity, also the weakness in manufacturing end markets which impacts our recycling waste business. So that's about 65 or so of the $190,000,000 reduction at the midpoint. And then the rest of it primarily being in environmental solutions.

If you think about commodity sales, fuel recovery fees and RINs, the decrease we're seeing there is predominantly offset by incremental acquisitions that we completed in the second quarter.

Okay. Okay. That's extremely helpful. And then just a little additional color maybe on why ES has been a little slow. I mean, I know that the industrial market's in a malaise.

And it sounds like you had some bigger project work roll off. But that really the story? Were there any share losses or just any additional color?

Yeah, I think the dominant is the macro. I mean, you think about manufacturing, and this is where trade policy impacts us, which is manufacturers are not making capital decisions. Production is slow, and you can see that through PMI. Now, somewhat optimistic here, we see a recovery of that, but that's what's impacted us to date and that we're forecasting being conservative for the rest of the year, kind of more of the same on that front. And we haven't always gotten it right.

We've done a tremendous job of taking price. And you've seen that and some of that is shedding non regrettable work. And then some of that is we probably just priced ourselves out of a couple opportunities that we're now getting ourselves back into. And then it looks at a couple parts of the business. When volume is slow, we've seen this in ES and we've seen this in national accounts, you see people getting trading off volume for price.

And so those are short term phenomenons we think on that front and when forced to choose, we're always going to take price.

Okay. And just real quickly, I know that US Ecology and the UltraVita business are maybe kinda hidden in that portfolio, but can you just remind us how big your E and P business is in The US?

P when you think about total environmental solutions, it's representing mid single digits of the total portfolio.

Okay, so it's pretty small. Okay, that's what I was after. Okay, thank you.

The next question will come from Brian Bergmeyer with Citi. Please go ahead.

Good afternoon. Thanks for taking my questions. Maybe just on the kind of estimated impact from labor disruption, are you able to share sort of what comprises the estimated impact that you forecasted? I mean, is it entirely lost volume? Or is there an element of assuming some higher wages?

Or maybe you're paying an outside hauler? Is it possible to say maybe how much of that has already been experienced and how much is sort of going to be August, September moving forward?

Yeah, it's primarily two things. The primary is the additional labor costs we have of moving our colleagues in to service our customers so that our customers aren't experiencing disruption and feel very good about where we're at with that today. And then the secondary cost is some credits we'll issue to customers in markets where they've had labor disruption. Again, most of the time we've had a very quick recovery. In places where it's been a little more protracted, we're going to take care of customers on that front.

Got it. Got it. And then maybe longer term, when these contracts are eventually renewed, presumably with some level of a wage increase, can you maybe talk about how Republic has historically sort of mitigated the impact from higher wages? What that could sort of look like flowing through the P and L? And yes, maybe just what kind of levers are available to you? Thanks. I'll turn it over.

Yeah. Look, we're very frontline focused. So, we want our people to make a very competitive wage in which the markets they operate, whether they're represented by a union or not. So, we think about that all the time. It's critical for us to get that right.

Too low, right? Obviously, we have high turnover and we can't service our customers. Too high isn't good either. It's not good for frontline people because we become less competitive in the market and we lose opportunities to serve customers and we shrink our workforce. And across our markets today, we're very confident in terms of the wages that we put out and benefits for our colleagues.

In many of these markets, we're experiencing single digit turnover. So this isn't not we don't have a wage or a benefit problem in these markets. We've got a labor disruption that we're working through, and we're actively ready to negotiate and hope we get through it quickly, but we're also prepared for any scenario.

The next question will come from Noah Kaye with Oppenheimer. Please go ahead.

Hey, thanks for taking the questions. First one, just on the higher free cash flow outlook, maybe just for avoidance of doubt, is that all really from the bonus depreciation benefits? Can you say how much those were? And if there's any other moving pieces to take the free cash flow outlook higher?

Yes. Noah, it's two components. So the increase from bonus depreciation by $80,000,000 benefit, that's partially offset by an increase in the CapEx of 25,000,000 In part, we've got a relatively small impact from some potential tariffs, but also some opportunities that we took to buy out some leases and really leverage our favorable balance sheet there and just our lower cost of capital.

Right, which has some margin benefits over time, which actually leads into my next question. You know, I think to pick up on Tyler's point, the revenue outlook was helpful, the bridge to prior. Margins are going higher here. And I guess maybe the lower expected revenues in ES could be mixed positive. But it just seems like there's kind of better underlying solid waste margin expansion here.

So can you kind of help us do the similar bridge on the margin outlook versus what you had before?

Yes. And so again, as we talked about, when you'd have the revenue and then you take a look at the flow through to EBITDA, there is some positive mix. So while we're seeing a reduction in environmental solutions revenue and I mentioned on the recycling waste side, the reduction in expectations around construction activity, we did see the positive contribution from those landfill volumes. So in both Los Angeles as well as in The Carolinas. So that mix helps the overall margin just because those landfill volumes fall through at a relatively higher EBITDA margin than, let's say, the collection volumes or the ES volumes.

And I would say it does point out the overall strength of the business. If you think about the demand environment outside of COVID, this has been the most challenging demand environment now protracted for more than a decade. Softness in volume in a few spots, but overall, expanding margins in a very challenging environment, I think speaks to the strength in the long term nature of the business. And when you start to see volumes come back and return, I think we're setting our sights on even higher targets.

The next question will come from Toni Kaplan with Morgan Stanley. Please go ahead.

Thank you. First, I wanted to ask on the CMD volumes looked particularly good in the quarter, and we saw some disparity between the big three on this particular line. I was wondering if you thought that this was a geographic thing or definitional? Or are you taking share in this particular part of the business? Just any color on strength versus the market would be great.

Yes, so Tony, mentioned the hurricane volumes, they're coming through the C and D line item within our landfill book of business. So that's what that entirely is. When you take a look at construction more broadly, where you see some of the temporary large container volumes, you can see those continue to run negative, which is impacting our large container volume. So we would say more broadly, when you take a look at that pure construction activity, that's still a negative demand environment.

And those events almost always end up being connected to the landfill that's got the lowest cost logistics. So proximity matters the most in those cases.

Great. And then I wanted to ask the labor disruption question in maybe a different way. I guess, how do you think that well, first, it sounded like maybe you were alluding to you see it as a as specific regional issues in different areas. Do you think it's it impacts the cost in the industry, in the future and price cost spread? Like, is it more of an industry thing, or do you think that it's it's more contained and specific? Thanks.

I think it's more contained and specific. We don't have a national contract. We have all local contracts, and we're about a third unionized in our frontline workforce. And again, we feel very strong about the competitiveness of our cost position and the fitness of it, as I mentioned. We don't want to get it too high because we're out of market and we lose work.

We also don't want it to be too low because then we can't retain our very talented people and can't service our customers, which allows us to get that price increase. So we feel very comfortable with the cost position today and moving forward.

Your next question will come from Sabahat Khan with RBC Capital Markets. Please go ahead.

Great. Thanks very much. Maybe just on some of the commentary from earlier around tariffs, other moving pieces in the macro. Presumably, there's some cost increase across the business. I guess with the macro where it is, how are your discussions on pricings for next year going?

Not looking for guidance, but just the acceptance of price, customers understanding that there are tariffs and other moving pieces. Should we expect a similar type of trajectory going forward relative to what we've seen recently?

Yeah, we're seeing that tariff impact come through. Again, it's de minimis for us compared to most organizations. And we're working on two fronts, obviously, Getting transparency with our suppliers and making them call out what is tariff related, and then negotiating and pushing back on that. Not down to zero in every case, but pushing back to make sure that we're not just taking the headline number that they present to us. And then the other side, some of that there will be cost increases, and we'll do everything we can to pass that through to price next year. So again, thinking about a 30 to 50 basis point margin spread per year across the cycle, we still think we're capable of doing that in this environment.

Okay, great. And then understanding that some of the ES volumes could be affected by the macro like they might be this year, does that change the margin trajectory or improvement journey you're on? And kind of second part, how far longer are you on that journey if you just think about since adding some of those platforms to your business? Maybe how much more runway is there still on that front? Thanks.

Yeah, maybe I'll start with the end. Over time, we think there's considerable run rate, just given the nature of the very technical waste streams we challenge, given the number of landfills and incinerators in the post collection environment, we think all that creates opportunity for margin expansion over time. But I've mentioned before, if you measure the progress here in any given quarter, you're going to be disappointed because this isn't going to be a straight line of progress. There's going to be ups and downs, and it's a smaller business, you have comps and changes in demand. But if you look across the years, I think we've demonstrated very consistent, steady margin expansion. And if you look forward, I think you're going to see the same trajectory over the next four to five years.

The next question will come from Tami Zakaria with JPMorgan. Please go ahead.

Hey, good afternoon. Thank you so much for taking my questions. My first question is actually if you could provide a little more color on the volume cadence for the remainder of the year. Should we expect volumes to get sequentially better or pretty much ratable in 3Q, 4Q? So any color on volume?

Yes, we would expect as we think about the second half of the year, if you just do the math based on what we're guiding to, to be flat to slightly negative in the second half of the year here. So we do have some of the event driven landfill volumes. We do have some contribution continuing into the third quarter. So expect that to be somewhat flattish on a year over year basis and then turn into negative by the time of the fourth quarter as those projects are completed.

Got it. Thank you. That's very helpful. And then similarly on pricing, any color on what to expect for 3Q versus 4Q?

Look, we've been just over 5% average yield on related revenue in the first half. We're maintaining our perspective of 5% for the full year. So, it modulates a little bit, but you can think just under 5% in the second half of the year.

The next question will come from Faiza Alwy with Deutsche Bank. Please go ahead.

Yes. Hi. Thank you. So I wanted to ask about, you know, the the lower revenues that you're citing on the core business. The I think you said 65,000,000.

So just wanna put a final point on that because, you know, I don't think you had a lot of the, you know, the event based, maybe, you know, impact that was in the guide. So I would have thought that that would offset the incremental, you know, macro weakness. So just give us a bit more color on, like, is it more regional? Is there sort of any specific exposure that you might have that's kind of impacting the lower volume? Right?

I know you also talked about weather in the first quarter, so maybe it's related to that.

Well, look, if you think about when we entered the year, our guidance was predicated on an economy that was relatively flat. So again, we were seeing volume declines in the construction business throughout last year. So we really expected that to anniversary and produce year over year results that were flat with the prior year. And you can see we're still on the large container side, we're still producing kind of a mid single digit decline on a year over year basis. So we're seeing further declines from a level of activity perspective than what we saw in the prior year.

That was not expected. So most of it is really that construction related activity. As I mentioned earlier, when you think about weak manufacturing end markets, that just doesn't impact our environmental solutions business. We have a $1,500,000,000 market vertical in recycling waste that's focused on manufacturing end markets. So John just talked about the weakness that we're seeing there, some of the uncertainty that our customers are seeing and what that does to volume production and it's certainly having an impact on our business.

Alright. Understood. And then just on the on the environmental solutions business, could you give us a sense of, like, what you're you know, where we are from a volume and and price perspective? I'm I'm curious. I know we had, you know, last year you maybe talked about, you know, sort of pricing above, I guess, trend, and I'm curious where we are at this point.

And I know you mentioned sort of some of the, you know, volume versus price dynamics. So curious if you can tell us where what you saw volume versus price in ES?

Sure. Yeah. Price positive and volume negative. And obviously, that speaks to and that business has got some scale sensitivity to it given the post collection environment. So to be able to have flat margins in that environment just speaks to, again, trading off price or volume in this case.

And again, we haven't always gotten it perfectly right, lost a little bit of share in that volume. And team is working really hard in places where it's positive to go get those opportunities and feel optimistic about the growth outlook. Again, the next couple of quarters, think, are going to be uncertain. But if you think of a longer term view here over the next four to five years, I couldn't be more excited about manufacturing in The United States.

And if you just think about the results that we've produced since we acquired US Ecology, for the vast majority of that timeframe, we've been in a PMI environment that's sub 50. So since the beginning of 2023, there's only been three months that have exceeded 50. So look at what we've done in a negative demand environment gives us a lot of confidence and really encourages about what the future could bring when manufacturing activity actually resumes.

The next question will come from Trevor Romeo with William Blair. Please go ahead.

Good afternoon. Thanks for taking the questions. First one I had was just on the M and A pipeline. It sounds like maybe you did a couple of deals in Q2. You sounded pretty bullish, I think, the past few quarters on the pipeline.

So just any update there in terms of size, regions, any bias to one of the either recycling and waste or ES or just anything else on the pipeline would be really helpful.

Yes, pipeline remains strong and robust. I'd say with the exception of don't see any transformational deals in the immediate term. It shouldn't be a surprise. Most of what we do here are some nice regional sized deals or small tuck ins on that front. And listen, there's a little lumpiness to this pipeline.

All the pipeline is strong, but the lumpiness to the activity of when deals close on that front and already off to a strong year and the forecast is strong for the rest of the year.

Okay. That makes sense. Thanks, John. And then just going back to margins, I guess, we look to model margins in the second half, anything specific you'd call out on kind of the quarterly cadence or seasonality just because you may have a few moving pieces. So just any thoughts on, I guess, Q3 versus Q4 and the consolidated margins would be great.

Yes. The one thing I would point out, and this is more of a year over year type comparison is that we called out in the '24, we called out about $20,000,000 of out of period benefits, which provided about 40 basis points of uplift to the margin in 2024. So we have to overcome that. So again, when you take a look at, call it relatively flat margin performance in the second half of this year compared to the prior year, probably a little bit negative in the third quarter because we have that 40 basis points we have to overcome and a little bit positive in the fourth quarter.

Got it. Very helpful. Thank you. Appreciate it.

The next question will come from Stephanie Moore with Jefferies. Please go ahead.

Hi, good afternoon. Thank you. I wanted to touch a little bit about the maybe medium term margin opportunity or just investment opportunity that comes from leveraging your Rise platform. So now that this platform has successfully been rolled out across the network in your fleet, if you could talk a little bit about what's next in terms of how you can maybe harvest that data or the opportunity of having that rolled out that eventually we can see can drive longer term margin opportunity? Thank you.

Yeah, think we have two components. One is it allows us to connect and communicate with the customer more proactively to understand giving them more precise times on service pickups, service verification, all of those things. And we're doing some of that already, but more proactive pushing and communicating. We know anytime we're more digitally connected with a customer that they are going to stay with us longer, which creates an opportunity for a very profitable customer to stay in the portfolio. And then on the efficiency side, we're starting to use AI to build routes.

And so that's the next opportunity, to harness all that data and think about how do we more efficiently build routes. And not doing that in a lights out fashion, but using our very talented logistics team and AI together to figure out, hey, how do we get the same number of stops done in five less minutes, ten less minutes, twenty less minutes a day? And we've talked about a minute taken out of the system across the years worth 4,000,000 to $5,000,000 for us. So this is really a game of seconds and then minutes that can drive real cost efficiency into the business.

Got it. Just and then just wanted to touch a little bit on the polymer centers. Maybe you could just give us a quick update in in terms of how the centers that are already that are open are performing in terms of efficiency rates compared to what you've been targeting, pricing opportunity, any color there would be great. Thank you.

Republic Services (RSG) Q2 2025 Earnings Call Transcript

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