Republic Services Inc (NYSE:RSG) stock rose 2.13% (As on August 1, 11:18:34 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. Adjusted EBITDA, a non-GAAP measure, was $1,116.1 million and adjusted EBITDA margin, a non-GAAP measure, was 30.0 percent of revenue. Adjusted EBITDA margin was 30.8 percent in the recycling and solid waste business and 22.5 percent in the environmental solutions business. Year-to-date cash invested in acquisitions was $926.9 million, all of which was in the recycling and solid waste business. The Company’s average recycled commodity price per ton sold during the second quarter was $119. This represents an increase of $14 per ton from the first quarter of 2023 and a decrease of $99 per ton over the prior year.

RSG in the second quarter of FY 23 has reported the adjusted earnings per share of $1.41, beating the analysts’ estimates for the adjusted earnings per share of $1.33, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9.1 percent to $3.73 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue by 0.72%. This includes 4.7 percent of organic growth and 4.4 percent of growth from acquisitions. Core price on total revenue increased revenue by 7.3 percent. Core price on related business revenue increased revenue by 8.8 percent, which consisted of 11.0 percent in the open market and 5.3 percent in the restricted portion of the business. Revenue growth from average yield on total revenue was 5.9 percent, and volume increased revenue by 0.4 percent. Revenue growth from average yield on related business revenue was 7.1 percent, and volume increased related business revenue by 0.5 percent.

Meanwhile, RSG has announced the creation of Blue Polymers, LLC, an innovative partnership that will help advance circularity in the plastics industry. Four Blue Polymers facilities are planned to open over the next four years, beginning in late 2024. Combined, they’re expected to produce 300 million pounds per year of recycled plastics. Products will include custom-blended and compounded materials for individual customers to help them achieve their sustainability goals and comply with federal, state or local requirements for recycled content. Additionally, a portion of rPET flake from Republic’s Polymer Centers will be marketed and distributed by Ravago through its extensive customer network.