Republic Services Inc (RSG) 2025 Q2 法說會逐字稿

Good afternoon and welcome to the Republic Services second-quarter 2025 investor conference call. Republic Services is traded on the New York Stock Exchange under the symbol RSG.

下午好，歡迎參加 Republic Services 2025 年第二季投資人電話會議。Republic Services 在紐約證券交易所上市，股票代號為 RSG。

(Operator Instructions) Please note this event is being recorded.

（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Mr. Aaron Evans, Vice President of Investor Relations. Please go ahead, sir.

現在，我想將會議交給投資者關係副總裁 Aaron Evans 先生。先生，請繼續。

Good afternoon. I would like to welcome everyone to a Public Services second quarter 2025 conference call. Jon Vander Ark, our CEO; and Brian Delghiaccio, 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 discussed 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 that differ materially from expectations.

午安.歡迎大家參加 2025 年第二季公共服務電話會議。我們的執行長 Jon Vander Ark 和財務長 Brian Delghiaccio 今天在電話會議上討論我們的表現。我想花點時間提醒大家，我們在今天的電話會議上討論的一些資訊包含前瞻性陳述，包括前瞻性的財務信息，其中涉及風險和不確定性，可能與實際結果有重大差異。我們的美國證券交易委員會文件討論了可能導致實際結果與預期有重大差異的因素。

The material that we discussed 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 July 29, 2025. Please note that this call is the property of Republic Services Inc. Any redistribution, re-transmission, or rebroadcast of this call in any form without the express written consent of Republic services is strictly prohibited.

我們今天討論的內容具有時效性。如果您將來收聽該電話會議的重播或錄音，您應該注意原始通話的日期，即 2025 年 7 月 29 日。請注意，本次通話是 Republic Services Inc. 的財產。未經 Republic Services 明確書面同意，嚴禁以任何形式重新分發、重新傳輸或重新廣播本次通話。

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.

我們的 SEC 文件、收益新聞稿（包括 GAAP 對帳單和業務活動討論）以及本次電話會議的錄音均可在 Republic 的網站 republicservices.com 上找到。

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.

此外，Republic 的管理團隊定期參加投資者會議。當活動安排好後，日期、時間和簡報都會發佈在我們的投資者網站上。

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

說完這些，我想把電話轉給喬恩。

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 marginal expansion, overcoming continued lower demand from construction and manufacturing and 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.

謝謝，亞倫。大家下午好，感謝大家的參與。我們對第二季的業績感到滿意，這反映了我們業務模式的彈性和一致的營運執行。我們實現了強勁的獲利成長和邊際擴張，克服了建築業、製造業和市場持續低迷的需求。我們持續投資於我們的差異化能力以滿足客戶的需求，從而讓我們的業務持續成長並提高獲利能力。

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 produce $1.42 billion of adjusted free cash flow on a year to day basis.

本季度，我們的營收成長了4.6%。調整後 EBITDA 成長 8%。調整後的 EBITDA 利潤率擴大 100 個基點。調整後每股收益為 1.77 美元。年比調整後自由現金流為 14.2 億美元。

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.

我們專注於提供世界一流的基本服務，以持續支持自然成長和增強客戶忠誠度。我們的客戶保留率仍保持在 94% 以上。由於我們產品的價值和服務交付的質量，我們的淨推薦值繼續呈現良好趨勢。

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 of margin expansion during the quarter.

第二季的有機收入成長得益於整個業務的強勁定價。總收入平均收益率為4.1%，相關收入平均收益率為5%。這一定價水準超過了我們的成本通膨，並幫助推動本季調整後 EBITDA 利潤率擴大 100 個基點。

Organic volume increased 20 basis points in the quarter. Volume growth included outsized special waste and CND 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.

本季有機銷量增加了 20 個基點。廢棄物量成長包括超大特殊廢棄物和 CND 垃圾掩埋活動。這與卡羅來納州的颶風復原工作和洛杉磯地區的野火補救工作有關。這些交易量被收集業務的下滑部分抵消。

The decrease in collection volume is related to continued softness in construction and manufacturing and 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.

收款量的下降與建築業、製造業和市場的持續疲軟以及住宅業務中表現不佳的合約的減少有關。環境解決方案業務的有機收入下降，導致公司總收入下降 90 個基點。

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.

製造業活動持續低迷、關稅政策的不確定性以及活動量下降對環境解決方案收入產生了負面影響。即使面臨收入逆風，我們的環境解決方案團隊仍表現出有效的成本管理，以維持 EBITDA 利潤率表現與去年同期一致。

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 to our 2030 goals and the positive impact we're delivering to our customers and the communities we serve.

邁向永續發展。我們相信，創造一個更永續的世界既是我們的責任，也是一個成長的平台。我們最近發布了最新的永續發展報告，重點介紹了我們在實現 2030 年目標方面取得的進展以及我們為客戶和服務社群帶來的正面影響。

Our 2030 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 polymer joint venture facilities.

我們在員工培訓和發展計劃、塑膠循環利用和脫碳方面的投資支持了我們的 2030 年目標。我們的聚合物中心和藍色聚合物合資設施的開發正在取得進展。

Regarding the Indianapolis Palmer Center, we commenced commercial production in July. This operation is co-located with our Blue Polymer 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.

關於印第安納波利斯帕爾默中心，我們在7月開始商業生產。本業務與我們的 Blue Polymer 生產設施位於同一地點。我們於六月為該設施舉辦了盛大的開幕儀式。我們預計設備調試完成後將於第四季開始商業生產。

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 a fleet electrification.

我們與合作夥伴共同開發的可再生天然氣專案正在推進。第二季有更多項目上線，另一個項目於 7 月初完工。這使得今年完成的項目總數達到六個。我們仍預計 2025 年將有總共 7 個 RNG 專案投入營運。我們將繼續推動對車隊電氣化的承諾。

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 end of 2025.

截至第二季末，我們共有 114 輛電動收集車投入營運。我們預計到今年年底我們的車隊將擁有超過 150 輛電動車。我們目前擁有 27 個商業規模的電動車充電基礎設施。我們預計到 2025 年底將擁有 30 多個具有充電功能的設施。

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.

作為我們永續發展方法的一部分，我們不斷努力成為最優秀人才願意工作的雇主。我們的員工敬業度得分持續較高，且與前一年相比，我們的離職率持續呈下降趨勢。

With respect to capital allocation, year-to-date, we have invested nearly $900 million 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 billion of investment in value creating acquisitions in 2025.

在資本配置方面，今年迄今為止，我們已在策略性收購上投資近 9 億美元。我們的收購管道仍然支援回收、廢棄物和環境解決方案業務的持續活動。我們繼續看到 2025 年在創造價值的收購方面投資超過 10 億美元的機會。

Year-to-date, we have returned $407 million to shareholders through dividends and share repurchases. Additionally, we recently announced an increase to the dividend for the 22nd 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.

年初至今，我們已透過股利和股票回購向股東返還了 4.07 億美元。此外，我們最近宣布連續第22年增加股利。我們根據上半年的業績、最近頒布的稅收立法以及今年剩餘時間的展望，更新了 2025 年全年財務指引。

We now expect revenue to be in the range of $16.675 billion to $16.75 billion. 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 billion to $5.325 billion, and adjusted earnings per share is expected to be in the range of $6.82 to $6.90.

我們現在預計收入將在 166.75 億美元至 167.5 億美元之間。我們維持對調整後 EBITDA 和調整後每股盈餘的原有指引，如下所示。調整後 EBITDA 預計在 52.75 億美元至 53.25 億美元之間，調整後每股收益預計在 6.82 美元至 6.90 美元之間。

We increased our full year adjusted free cash flow guidance, which is now expected to be in the range of $2.375 billion to $2.415 billion. This increase reflects the benefit to cash taxes from a 100% bonus depreciation, which passed earlier this month.

我們提高了全年調整後自由現金流預期，目前預計在 23.75 億美元至 24.15 億美元之間。這一增長反映了本月早些時候通過的 100% 獎金折舊對現金稅收的好處。

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.

我們更新的財務指引包括截至 6 月 30 日完成的收購所產生的貢獻。我們計劃從調整後的結果中消除近期勞工中斷的影響，這反映在我們更新的全年指引中。

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 in impact, I'm proud of how our team is working tirelessly to serve our customers.

關於勞工糾紛，我們一直真誠地進行談判，並致力於達成公平公正的協議，以平衡我們的員工、客戶和業務的需求。雖然勞工中斷的影響只是局部的，但我為我們的團隊不知疲倦地為客戶服務而感到自豪。

I will now turn the call over to Brian, who will provide details on the quarter.

現在我將電話轉給 Brian，他將提供本季的詳細資訊。

Thanks, Jon. 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%.

謝謝，喬恩。核心價格佔總收入的5.7%。相關收入的核心價格為 7%，其中包括公開市場定價 8.6% 和限制定價 4.6%。核心價格對相關收入的組成包括小貨櫃佔9%，大貨櫃佔7.1%，住宅佔6.6%。總收入平均收益率為4.1%，相關收入平均收益率為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&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.

第二季總營收和相關營收的銷售表現成長了 20 個基點。相關收入的數量結果包括，受卡羅來納州颶風清理活動的影響，垃圾掩埋場 C&D 量增加了 47%，受洛杉磯野火補救工作的影響，垃圾掩埋場特殊廢棄物收入增加了 22%。

Large container volumes declined 3.4%, primarily due to continued softness in construction-related activity in most manufacturing and markets, and residential volume declined 3.2% due to shedding underperforming contracts.

大型貨櫃運輸量下降 3.4%，主要原因是大多數製造業和市場的建築相關活動持續疲軟，而住宅運輸量則因合約履行不善而下降 3.2%。

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 million during the quarter. Increased volumes at the polymer centers and reopening a recycling center on the west coast offset lower recycled commodity prices.

繼續進行回收。第二季大宗商品價格為每噸 149 美元。相比之下，去年同期的價格為每噸 173 美元。本季回收、加工和商品銷售額增加了 700 萬美元。聚合物中心產量的增加和西海岸回收中心的重新開放抵消了再生商品價格的下降。

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.

目前商品價格約每噸130美元。這是我們更新的指南中用於下半年的基礎。這意味著全年平均商品價格約為每噸 140 美元。

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.

公司調整後 EBITDA 利潤率整體擴大 100 個基點至 32.1%。本季的利潤率表現包括先前提到的事件驅動垃圾掩埋量增加 60 個基點，以及基礎業務利潤率擴大 70 個基點。

This was partially upset 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 million compared to the prior year, driven by lower event volumes and softness in most manufacturing and markets.

部分是由於淨燃料價格下降 10 個基點、回收商品價格下降 10 個基點以及收購價格下降 10 個基點所致。關於環境解決方案。由於活動數量減少以及大多數製造業和市場疲軟，第二季營收與去年相比減少了 1,100 萬美元。

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 $1.42 billion. Our performance reflects EBITDA growth in the business and the timing of capital expenditures. Year-to-date capital expenditures of $727 million represents 38% of our projected full year spent.

環境解決方案業務的調整後 EBITDA 利潤率為 23.7%，與前一年持平。年初至今，調整後的自由現金流為 14.2 億美元。我們的業績反映了業務的 EBITDA 成長和資本支出的時機。年初至今的資本支出為 7.27 億美元，占我們預期的全年支出的 38%。

Total debt was $13.1 billion and total liquidity was $3 billion. 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.

總債務為 131 億美元，總流動資金為 30 億美元。我們本季末的槓桿率約為2.5倍。就稅收而言，我們的綜合稅率和再生能源股權投資的影響導致本季的稅收影響為 23.3%。

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

有了那位接線生，我想開始提問。

Thank you. We will now begin the question and answer session.

謝謝。我們現在開始問答環節。

(Operator Instructions)

（操作員指示）

Tyler Brown, Raymond James.

泰勒布朗、雷蒙詹姆斯。

Hey, good afternoon, guys. 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 million or so reduction in the revenue guide? Just how much of that was ES versus, say, commodities?

嘿，大家下午好。嘿，布萊恩，我知道有幾個變動，我很欣賞 EBITDA 的保持。但是，您能否稍微分析一下收入指南中 2 億美元左右的減少呢？其中 ES 與商品相比到底有多少？

Yeah. 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, but also the weakness in manufacturing end markets, which impacts our recycling waste business.

是的。泰勒，實際上——我想說有兩個主要組成部分。因此，首先，我們降低了回收和廢棄物業務的銷售預期，這主要是因為我們再次談到了建築相關活動的疲軟，以及製造業終端市場的疲軟，這影響了我們的回收廢棄物業務。

So that's about $65 million or so of the $190 million 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.

因此，這相當於在中期削減的 1.9 億美元中的 6500 萬美元左右，其餘部分主要用於環境解決方案。如果你考慮商品銷售、燃料回收費和 RIN，我們看到的下降主要被我們在第二季完成的增量收購所抵消。

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 markets in the malaise, and it sounds like you had some bigger project work roll off. But is that really the story? Or were there any share losses? Or just any additional color?

好的。這非常有幫助。然後稍微補充為什麼 ES 有點慢？我的意思是，我知道工業市場不景氣，聽起來你有一些更大的專案工作正在進行中。但事實真是如此嗎？或是否有任何股票損失？或只是任何額外的顏色？

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, right? Production is slow. You can see that through PMI.

是的。我認為占主導地位的是宏觀。我的意思是，想想製造業，這就是貿易政策對我們影響的地方，也就是說，製造商沒有做出資本決策，對嗎？生產緩慢。您可以透過 PMI 看到這一點。

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 look, 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-ratable work.

現在我們有些樂觀，我們看到了復甦。但這就是迄今為止對我們的影響，我們預測今年剩餘時間我們的走勢將保持保守，在這方面的情況大致相同。但你看，我們並不總是能做對。我們在定價方面做了大量工作。你已經看到了這一點，其中一些是取消不可評估的工作。

And then some of that is -- we probably just priced ourselves out of a couple of opportunities that we're now getting ourselves back into. And then listen, a couple of 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.

其中有些是——我們可能只是因為定價過高而失去了現在重新開始的幾個機會。然後聽著，業務的幾個部分——當交易量緩慢時，我們在 ES 中看到過這種情況，我們在國家帳戶中也看到過這種情況，你會看到人們用數量換取價格。因此，我們認為這些都是短期現象，當被迫做出選擇時，我們總是會選擇價格。

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

好的。我知道 US Ecology 和 Ultra Vita 業務可能隱藏在該投資組合中，但您能否提醒我們您在美國的 E&P 業務規模有多大？

Yeah. So of the E&P when you think about of total Environmental Solutions, it's representing -- yeah, mid-single digits of kind of the total portfolio.

是的。因此，當您考慮整體環境解決方案時，E&P 代表著——是的，佔整個投資組合的中等個位數。

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

好的，它非常小。好的，這就是我想要的。好的，謝謝。

Bryan Burgmeier, Citi.

花旗銀行的 Bryan Burgmeier。

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 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?

午安.感謝您回答我的問題。也許只是關於勞工中斷的估計影響，您能否分享一下預測的影響是什麼？我的意思是，它的音量完全消失了嗎？或者是否存在假設更高工資的因素，或者也許您正在支付外部搬運工的費用？是否可以說一下其中有多少已經發生，又有多少會在 8 月、9 月以後發生？

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 will issue to customers in markets where that have 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.

是的，主要有兩件事。最主要的是，我們需要調動同事來為客戶提供服務，從而減少額外的勞動力成本，這樣我們的客戶就不會遇到服務中斷，並且對我們目前的狀況感到非常滿意。次要成本是，一些信貸將發放給出現勞動力中斷的市場的客戶。再次，大多數時候，我們都能很快恢復。在那些時間較長的地方，我們會在這方面照顧好客戶。

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&L? And yes, maybe just what kind of levers are available to you? Thanks. I will turn it over.

知道了。然後也許是更長遠的時期，當這些合約最終續約時，大概會有一定程度的薪資成長。您能否談談共和國歷史上是如何減輕薪資上漲帶來的影響的？這看起來像是流經損益表的東西？是的，也許您只需要知道有哪些類型的槓桿可供使用？謝謝。我會把它翻過來。

Yes. Look, we're very front line 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?

是的。瞧，我們非常注重前線。因此，我們希望我們的員工能夠在其經營的市場中獲得極具競爭力的薪資，無論他們是否有工會代表。所以我們一直在思考這個問題。對我們來說，正確理解這一點至關重要，太低了，對吧？

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.

顯然，我們的營業額很高，我們無法為客戶提供服務。太高也不好。這對第一線員工來說不是好事，因為我們在市場上的競爭力下降，失去了為客戶服務的機會，而且我們的員工隊伍也縮減了。

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, right? So this isn't -- not -- we don't have a wage or benefit problem in these markets. We've got a labor disruption that we're working through, and we're actively ready to negotiate and hopefully get through it quickly, but we're also prepared for any scenario.

在我們今天的市場中，就我們為許多市場中的同事提供的工資和福利而言，我們非常有信心，我們的營業額都是個位數，對嗎？所以這不是——不是——我們在這些市場中沒有工資或福利問題。我們正在努力解決勞工糾紛問題，並積極準備談判，希望能盡快解決問題，但我們也為任何情況做好了準備。

Noah Kaye, Oppenheimer.

諾亞·凱伊，奧本海默。

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 is there any other moving pieces to take the free cash flow outlook higher?

嘿。感謝您回答這些問題。首先，關於更高的自由現金流前景，也許只是為了避免疑問，這真的都是來自獎金折舊收益嗎？你能說出這些多少錢嗎？還有其他因素可以提高自由現金流前景嗎？

Yeah. So no, it's two components. So the increase from bonus depreciation by $80 million benefit, that's partially offset by an increase in the CapEx of $25 million. 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

是的。所以不是，它是由兩個部分組成。因此，獎金折舊增加了 8000 萬美元，但部分被 2500 萬美元的資本支出增加所抵消。在某種程度上，我們受到一些潛在關稅的影響相對較小，但我們也抓住了一些機會，買下了一些租約，真正利用了我們良好的資產負債表和較低的資本成本

Right, which has some margin benefits over time, which actually leads into my next question. 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 the US could be mix 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?

是的，隨著時間的推移，這會帶來一些利潤效益，這實際上引出了我的下一個問題。我認為，就泰勒的觀點而言，收入前景是有幫助的，與之前利潤率的橋樑正在走高，我想，也許美國較低的預期收入可能會帶來積極的混合，但似乎這裡潛在的固體廢物利潤率擴張更好一些。那麼，您能否幫助我們在利潤前景上做出與先前類似的調整？

Yeah. And so again, as we talked about when you 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 the -- on the recycling waste side, the reduction in expectations around construction activity, we did see the positive contribution from those landfill volumes, right? 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.

是的。所以，正如我們所說的，當你有收入時，然後你看看流向 EBITDA 的金額，你會發現一些正面的組合。因此，雖然我們看到環境解決方案收入減少，而且我提到過——在廢物回收方面，對建築活動的預期減少，但我們確實看到了垃圾掩埋量帶來的積極貢獻，對嗎？洛杉磯和卡羅來納州都是如此。因此，這種組合有助於提高整體利潤率，因為這些垃圾掩埋量的 EBITDA 利潤率相對高於收集量或 ES 量。

And I would say it does point out the overall strength of the business, right? You think about the demand environment, outside of COVID, this has been the most challenging demand environment now protracted for more than a decade. And softness in volume in a few spots, but overall, right, 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.

我想說它確實表明了企業的整體實力，對嗎？你想想需求環境，除了 COVID 之外，這是目前最具挑戰性的需求環境，已經持續了十多年。雖然有些地方的銷量有所疲軟，但總體而言，我認為，在極具挑戰性的環境中利潤率不斷擴大，體現了該業務的長期實力。當你開始看到交易量回升時，我想我們會把目光投向更高的目標。

Very good. I'll turn it over.

非常好。我把它翻過來。

Toni Kaplan, Morgan Stanley.

摩根士丹利的東尼卡普蘭。

Thank you. First, I wanted to ask on the C&D volumes look 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.

謝謝。首先，我想問本季的 C&D 銷售看起來特別好，我們發現三大公司在這一特定產品線上存在一些差異。我想知道您是否認為這是一個地理問題還是定義問題？還是您佔有該特定業務部分的股份？只要是與市場實力相對應顏色就很好了。

Yeah. Listen, Toni, the -- I mentioned the hurricane volumes. They're coming through the C&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 a pure construction activity, that's still a negative demand environment.

是的。聽著，東尼，－－我提到了颶風的數量。它們來自我們垃圾掩埋場業務簿中的 C&D 項目。這就是全部內容。當你更廣泛地看待建築業時，你會看到一些臨時的大型貨櫃吞吐量持續為負值，這影響了我們的大型貨櫃吞吐量。因此，從更廣泛的角度來看，當你看純粹的建築活動時，這仍然是一個負面的需求環境。

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.

而這些事件幾乎總是最終與物流成本最低的垃圾掩埋場有關。因此，在這些情況下，接近性是最重要的。

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're alluding to -- you see it as specific regional issues in different areas. Do you think it impacts the cost in the industry in the future on price cost spread? Like, is it more of an industry thing? Or do you think that it's more contained and specific? Thanks.

偉大的。然後我想以不同的方式詢問勞工中斷問題。我想，您怎麼看——嗯，首先，這聽起來好像您在暗示——您認為這是不同地區的具體區域問題。您認為這對未來產業成本的價格成本差額有影響嗎？比如，這更多的是產業問題嗎？或者您認為它更包容和具體？謝謝。

Yeah. 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, right?

是的。我認為它更加具體和包容。我們沒有全國合約。我們簽訂了所有本地合同，我們的第一線員工中約有三分之一加入了工會。而且，正如我所提到的，我們對我們的成本地位的競爭力和適用性感到非常強烈，對嗎？

We don't want to get it too high because a lot 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.

我們不想把價格定得太高，因為這樣會失去很多市場，而且我們會失去工作。我們也不希望價格太低，因為太低的話我們就無法留住優秀人才，也無法為客戶提供服務，因此我們才會漲價。因此，我們對目前的成本狀況以及未來的發展感到非常滿意。

Thank you.

謝謝。

Sahabat Khan, RBC Capital Markets.

Sahabat Khan，加拿大皇家銀行資本市場。

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 pricing 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?

太好了，非常感謝。也許只是針對之前有關關稅以及宏觀中其他變動因素的一些評論。我想，大概整個業務的成本都會增加。宏在哪裡？你們關於明年定價的討論進展如何——不是尋求指導，而只是尋求對價格的接受，讓客戶了解存在關稅和其他變動因素。我們是否應該預期未來會出現與我們最近看到的類似的軌跡？

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, making them call out what is tariff related and then negotiating and pushing back on that, not down to xero in every case, but pushing back to make sure that we're not just taking the headline number that they present to us.

是的。我們看到關稅的影響正在顯現。再說一次，與大多數組織相比，這對我們來說是微不足道的。我們正在從兩個方面開展工作，顯然，我們要與供應商保持透明度，讓他們指出哪些是與關稅相關的，然後進行談判和反擊，並不是在每種情況下都使用 xero，而是要確保我們不只是接受他們向我們提供的標題數字。

And on 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.

另一方面，部分成本將會增加，我們將盡一切努力將其轉嫁到明年的價格上。因此，再次考慮整個週期內每年 30 至 50 個基點的利潤率差額，我們仍然認為我們有能力在這種環境下做到這一點。

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 the margin improvement journey you're on? And kind of second part, how far long 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

好的。偉大的。然後了解到一些 ES 交易量可能會受到宏觀因素的影響，就像今年一樣，這會改變您正在進行的利潤軌跡或利潤改善之旅嗎？第二部分，如果您想一想自從將其中一些平台添加到您的業務中以來，您在這條旅程中已經走了多遠，那麼在這方面可能還有多少跑道？謝謝

Maybe I'll start with the end. Over time, we think there is considerable run room. Just given the nature of the very technical waste streams we challenged, given the number of landfills and incinerators in the post-collection environment, we think all that creates opportunity for margin expansion over time.

也許我應該從結尾開始。隨著時間的推移，我們認為還有相當大的運行空間。考慮到我們所挑戰的廢物流的技術性，考慮到後收集環境中的垃圾掩埋場和焚化爐的數量，我們認為所有這些都為利潤率的長期擴大創造了機會。

But I 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 so 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.

但我之前提到過，如果你衡量任何一個季度的進展，你會感到失望，因為這不會是一條直線的進展。會有起伏，而且這是一個較小的企業，所以會有比較和需求的變化。但如果回顧這些年，我認為我們已經表現出非常持續穩定的利潤率擴張。如果你展望未來，我認為你會看到未來四到五年內同樣的軌跡。

Thanks very much.

非常感謝。

Tami Zakaria, JPMorgan.

摩根大通的塔米·扎卡里亞。

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? Is there any color on volume?

嘿，下午好。非常感謝您回答我的問題。我的第一個問題是，您是否可以提供更多關於今年剩餘時間銷售節奏的詳細資訊？我們是否應該預期第三季和第四季的銷售量會連續好轉或基本上持平？音量上有顏色嗎？

Yeah. 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 we expect that to be somewhat flattish on a year-over-year basis and then turn it to negative by the time of the fourth quarter as those projects are completed.

是的。當我們考慮下半年時，如果按照我們的指導進行計算，我們預計下半年的經濟成長將持平或略微為負。因此，我們確實有一些由事件驅動的垃圾掩埋量。我們確實有一些貢獻持續到第三季。因此，我們預計這一數字與去年同期相比將持平，但隨著這些項目的完成，到第四季將轉為負值。

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

知道了。謝謝。這非常有幫助。同樣，在定價方面，您對第三季和第四季的預期有何不同？

Well, 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.

嗯，上半年我們相關收入的平均收益率剛超過 5%。我們維持全年 5% 的預測。因此它會有所調整，但你可以認為下半年的成長率將略低於 5%。

Got it. Thank you so much.

知道了。太感謝了。

Faiza Alwy, Deutsche Bank.

德意志銀行的 Faiza Alwy。

Yes, hi, thank you. So I wanted to ask about the lower revenues that you're citing on the core business, I think you said $65 million. So I just want to put a final point on that because I don't think you had a lot of the event-based, maybe impact that was in the guide. So I would have thought that, that would offset the incremental 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? I know you also talked about weather in the first quarter. So maybe it's related to that.

是的，你好，謝謝你。所以我想問您提到的核心業務收入較低的原因，我想您說的是 6500 萬美元。所以我只想最後再強調一點，因為我認為你並沒有在指南中看到很多基於事件的影響。所以我認為這將抵消宏觀經濟增量疲軟的影響。那麼請給我們多提供一些細節，例如，它是否更具區域性？您是否有任何特定的曝光會對較低的音量產生影響？我知道您在第一季也談到了天氣問題。所以也許與此有關。

Well, look, if you think about when we entered the year, right, so 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.

好吧，你看，如果你想想我們什麼時候進入這一年，對的，我們的指導是基於相對平穩的經濟。因此，我們再次看到去年全年建築業務量下降。因此，我們確實希望週年紀念日能產生與前一年持平的年比業績。您可以看到我們仍然處於大型貨櫃領域。與去年同期相比，我們的銷售額仍出現了中等個位數的下降。因此，從活動水準的角度來看，我們看到的下降幅度比前一年更大。這是意料之外的。

So most of it is really that construction-related activity. And as I mentioned earlier, when you think about weak manufacturing end markets, that just doesn't impact our Environmental Solutions business. We have a $1.5 billion market vertical in recycling and waste that's focused on manufacturing end markets. So Jon 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.

因此，其中大部分實際上都是與建築相關的活動。正如我之前提到的，當你考慮到疲軟的製造終端市場時，這並不會影響我們的環境解決方案業務。我們在回收和廢棄物領域擁有 15 億美元的垂直市場，主要專注於製造終端市場。因此，喬恩剛才談到了我們所看到的弱點，我們的客戶所看到的一些不確定性以及這對批量生產的影響，而且這肯定會對我們的業務產生影響。

All right. Understood. And then just on the Environmental Solutions business, could you give us a sense of like what your -- where we are from a volume and price perspective? I'm curious, I know we had -- last year, you had maybe talked about 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 volume versus price dynamics. So curious if you can tell us where -- what you saw volume versus price in (inaudible).

好的。明白了。然後就環境解決方案業務而言，您能否從數量和價格的角度告訴我們您的現狀如何？我很好奇，我知道我們有——去年，你可能談論過上述定價趨勢。我很好奇我們現在處於什麼階段？我知道您提到了一些交易量與價格的動態關係。我很好奇您是否可以告訴我們您在哪裡看到了交易量與價格的關係（聽不清楚）。

Sure. Yes, price positive and volume negative. 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.

當然。是的，價格為正，數量為負。顯然，這說明——考慮到收集後的環境，該業務對此具有一定的規模敏感性。因此，在這種環境下能夠保持利潤率平穩只是說明，在這種情況下，價格和數量的權衡。再說了，我們並不總是能做到完美，在銷售上損失了一點份額。

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, I 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.

團隊正在積極努力工作，爭取獲得這些機會，並對成長前景感到樂觀。再次，我認為接下來的幾季將會充滿不確定性。但如果從未來四到五年的長期角度考慮，我對美國製造業感到非常興奮。

And if you just think about the results that we've produced since we acquired US Ecology, for the vast majority of that time frame, we've been in a PMI environment that's sub 50, right? 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 encourage us about what the future could bring when manufacturing activity actually resumes.

如果您想想我們自收購 US Ecology 以來所取得的成果，那麼在絕大多數時間裡，我們的 PMI 都處於 50 以下的環境中，對嗎？因此，自 2023 年初以來，只有三個月超過了 50。因此，看看我們在負面需求環境中所做的事情，這給了我們很大的信心，並真正鼓勵我們對製造業活動真正恢復後未來可能帶來的一切充滿信心。

Great. Got it. Thank you.

偉大的。知道了。謝謝。

Trevor Romeo, William Blair.

特雷弗羅密歐、威廉布萊爾。

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

午安.感謝您回答這些問題。我所負責的第一個專案是關於併購通路的。聽起來你可能在第二季做了幾筆交易。我認為，過去幾季您對管道發展相當樂觀。因此，只要在規模、區域方面進行任何更新，對回收和廢物或 ES 或管道上的任何其他內容進行任何偏見，就會非常有幫助。

Yeah, pipeline remains strong and robust. I'd say with the exception of don't see any transformational deals in the immediate term. It should be a surprise. Most of what we do here 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 of 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.

是的，管道依然強勁而堅固。我想說的是，短期內不會出現任何轉型交易。這應該是個驚喜。我們在這裡所做的大部分工作都是一些不錯的區域性交易或小型促銷活動。聽著，這條管道有點不穩定，總體來說，管道很強勁，但當這方面的交易結束時，活動的不穩定，已經進入了強勁的一年，並且預測今年剩餘時間的走勢強勁。

Okay. That makes sense. Thanks, Jon. And then just going back to margins, I guess, as 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?

好的。這很有道理。謝謝，喬恩。然後回到利潤率，我想，當我們展望下半年的利潤率模型時，您會對季度節奏或季節性提出什麼具體要求，因為您可能有幾個活動的部分？所以我想，對於第三季與第四季以及合併利潤率的任何看法都可以嗎？

Yeah. 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 third quarter of '24, we called out about $20 million of out-of-period benefits which provided about 40 basis points of uplift to the margin in Q3 of 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.

是的。我想指出的一點是，這更像是一種同比類型的比較，我們在 24 年第三季宣布了約 2000 萬美元的期外福利，這為 2024 年第三季的利潤率帶來了約 40 個基點的提升。所以我們必須克服這一點。因此，再說一次，當你看一下，與去年相比，今年下半年的利潤率表現相對持平，第三季度可能略有下降，因為我們必須克服 40 個基點的損失，而第四季度可能略有上升。

Got it. Very helpful. Thank you, appreciate it.

知道了。非常有幫助。謝謝，感激不盡。

Stephanie Moore, Jefferies.

史蒂芬妮摩爾，傑富瑞集團。

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 Ride platform. So now that this platform is 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 the -- can drive kind of longer-term margin opportunity? Thank you.

嗨，下午好。謝謝。我想稍微談談利用您的 Ride 平台可能帶來的中期利潤機會或投資機會。現在該平台已成功在您的車隊網路中推出。如果您可以稍微談談下一步如何收集這些數據或推出這些數據的機會，最終我們可以看到 - 可以推動更長期的利潤機會？謝謝。

Yeah. I think are two components to it. 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. Anytime we're more digitally connected with the customer that they are going to stay with us longer, which creates an opportunity for a very profitable customer to stay in the portfolio.

是的。我認為它有兩個組成部分。一是它使我們能夠更主動地與客戶聯繫和溝通，以了解他們在服務提貨、服務驗證等方面的更精確時間，我們已經在做一些這方面的工作，但推動和溝通更加積極主動。任何時候，我們與客戶的數位連結都更加緊密，他們與我們合作的時間就會更長，這為非常有利可圖的客戶留在投資組合中創造了機會。

And then on the efficiency side, we're starting to use AI to build routes. And so that's been 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 5 less minutes, 10 less minutes, 20 less minutes a day. And we've talked about a minute taken out of the system across the years were $4 million to $5 million for us. So this is really a game of seconds and then minutes that can drive real cost efficiency into the business.

在效率方面，我們開始使用人工智慧來建立路線。因此，這是利用所有數據並思考如何更有效地建立路線的下一個機會，而不是以熄燈的方式進行，而是利用我們非常有才華的物流團隊和人工智慧一起弄清楚，嘿，我們如何在每天減少 5 分鐘、10 分鐘、20 分鐘的時間內完成相同數量的停靠。我們已經討論過，多年來從該系統中抽取的每一分鐘為我們帶來了 400 萬到 500 萬美元的收入。因此，這實際上是一場分秒必爭的遊戲，可以為企業帶來真正的成本效益。

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 terms of how the centers 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.

知道了。只是——然後只是想稍微觸及一下聚合物中心。也許您可以向我們簡要介紹一下目前開放的中心在效率方面的表現如何，以及與您的目標和定價機會相比如何？任何顏色都很棒。謝謝。

Yeah. I think, I guess we talked about a little slower out of the gate for some construction reasons on that. And then certainly had some learning curve on that in terms of exactly the quality specs our customer wanted in getting that communication clear. I think Vegas is making great progress. And then India is hitting its marks because we've taken all the learnings from Las Vegas and built those into Indianapolis.

是的。我想，我想我們討論的是由於一些建設方面的原因，所以起步會慢一點。然後，就我們的客戶希望獲得清晰的溝通的品質規格而言，肯定會有一些學習曲線。我認為拉斯維加斯正在取得巨大進步。印度之所以能取得這樣的成績，是因為我們吸收了拉斯維加斯的所有經驗，並將其運用到印第安納波利斯。

And then we'll leverage all those learnings, of course, in Pennsylvania for a third center as well. So we feel very excited that we're capturing the benefits of those learning. And listen, we have the supply. That's one of the reasons we did it. And the demand for the product is through the roof, right? The world is short supply. The country is short supply on recycled PET. So we feel very confident about the returns profile of this over time.

當然，我們將利用所有這些經驗，在賓州建立第三個中心。因此，我們感到非常興奮，因為我們能夠從這些學習中獲益。聽著，我們有供應。這就是我們這樣做的原因之一。該產品的需求量非常大，對嗎？世界供應短缺。該國再生PET供應短缺。因此，我們對於長期的回報狀況非常有信心。

Tobey Sommer, Truist.

托比·索默 (Tobey Sommer)，Truist。

Hey. I wanted to ask a question about your on the labor side. So you've covered a bunch of the demand and top line stuff. Turnover and associated expenses recruiting, safety, et cetera, have gone down now successfully for a number of consecutive years. Do you think there's room to go on this? Or if we see the labor market pick up and the economy pick up, might there be sort of a trade-off between industrial volumes improving, but the labor-related expenses sort of creeping higher as well?

嘿。我想問一個有關勞工方面的問題。因此您已經涵蓋了大量的需求和頂線內容。營業額以及招聘、安全等相關費用已連續多年成功下降。您認為這還有繼續下去的空間嗎？或者，如果我們看到勞動市場回暖，經濟回暖，那麼工業產量提高與勞動相關費用上升之間是否會出現某種平衡？

Yeah. We're certainly not immune to the macro. And so economy takes off and we go back to a very, very tight employment market, that's going to have some impact on either our growth and or to be able to supply workers and/or wage rates. Although, again, I feel really good about our team and our talent of recruiting people, but also the culture we've built, right? We focus intensely on employee engagement and being a place where the most talented people want to come to work. So how you treat them as a big part of that. The stability of the work is a big part of that.

是的。我們當然無法免受宏觀影響。因此，經濟開始起飛，我們又回到了非常緊張的就業市場，這將對我們的成長和/或提供工人的能力和/或工資率產生一定的影響。儘管如此，我對我們的團隊和招募人才的才能感到非常滿意，而且我們也對我們建立的文化感到非常滿意，對嗎？我們非常重視員工敬業度，並希望成為最有才華的人最想來工作的地方。因此，如何對待他們是其中很重要的一部分。工作的穩定性是其中很重要的一環。

And then also compensation benefits. I think I talked a lot about that on this call about being getting that right and being very competitive. And while we're not perfect every time, I think we've done a really good job of improving that successfully every year and dynamic enough to adjust that based on the macro environment. So it doesn't cause me any concern in terms of a hotter economy causing a labor pinch for us.

還有補償福利。我認為我在這次電話會議上談了很多關於如何正確處理這個問題以及如何保持競爭力的問題。雖然我們並非每次都做到完美，但我認為我們每年都成功地改進了這一點，並且有足夠的活力根據宏觀環境進行調整。因此，我並不擔心經濟過熱會為我們帶來勞動力短缺。

Okay. And on the ES side, you mentioned, if confronted with price versus volume, you're always going to choose price. Anything you're seeing out in the market with respect to competitors' behavior make you think that there's a greater or lesser chance of continuing to fuel the business with acquisitions? Just curious if any of those behaviors are interrelated and therefore, inform the M&A outlook?

好的。在 ES 方面，您提到，如果面臨價格與數量的選擇，您總是會選擇價格。就競爭對手的行為而言，您在市場上看到的任何情況是否讓您認為繼續透過收購來推動業務發展的機會更大或更小？只是好奇這些行為是否相互關聯，進而影響併購前景？

No, I think the M&A outlook is strong. I think from a competitive contract standpoint, listen, when you're not in a challenging demand environment for a period of years, you start to see some people can make different trade-offs on volume versus price. We're seeing that in part of the US market, and we're going to stay disciplined. And I think the good news is that is marginal in the broader scheme of things and a really good story in terms of margin improvement in that part of the business over time, and we don't see that trend stopping.

不，我認為併購前景強勁。我認為，從競爭性合約的角度來看，當你在幾年內沒有處於充滿挑戰的需求環境中時，你會開始看到有些人可以在數量和價格之間做出不同的權衡。我們在美國市場的部分地區看到了這種情況，我們將保持紀律。我認為好消息是，從更廣泛的角度來看，這只是微不足道的，而且隨著時間的推移，這部分業務的利潤率將會提高，這是一個非常好的故事，而且我們認為這種趨勢不會停止。

Rob Wertheimer, Melius Research.

Rob Wertheimer，Melius Research。

Thanks and good afternoon. I had a question on the second half incrementals, which you guys covered pretty well. But I was still left a little bit wondering if, when you add back labor, are there any residual inefficiencies just from dealing with a situation that depressed margins slightly in 2H?

謝謝，下午好。我對下半年的增量有一個疑問，你們對此進行了很好的解答。但我還是有點懷疑，當你增加勞動力時，僅僅處理下半年利潤率略有下降的情況是否還會產生任何殘留的效率低下問題？

No. Again, I think if you -- when we talked about the labor disruption, I mean, again, we're planning on backing those out of the adjusted results. So -- and again, those were those incremental costs that Jon walked through. So when you talk about in the second half, it's not as much about what's happening in the current period. If you take a look at prior year, you can see a sequential ramp-up that we saw first half into second half, we just get into tougher comps.

不。再說一次，我認為如果你——當我們談到勞工中斷時，我的意思是，我們計劃將其從調整後的結果中剔除。所以 — — 再說一次，這些都是喬恩承擔的增加成本。因此，當你談論下半年時，你談論的並不是當前時期發生的事情。如果你回顧去年的情況，你會發現，從上半年到下半年，我們的業績呈現連續上升趨勢，只是我們面臨的競爭更加激烈。

So we still expect to price ahead of cost inflation, and we still expect to sit there and see the benefits of some of the labor productivity investments that we're making. It's just going to sit there and it's going to modulate and taper off as compared to what you saw as margin expansion in the first half of the year and that was fully anticipated when we provided guidance at the beginning of the year as well.

因此，我們仍然期望價格能夠領先於成本通膨，並且我們仍然期望能夠看到我們正在進行的一些勞動生產力投資的好處。與上半年的利潤率擴張相比，它只是停留在那裡，進行調節和逐漸減少，而這在年初我們提供指導時也完全預料到了。

Got you. No, understood. And then just a second minor one. When you look at the big beautiful build, does that change your appetite for CapEx? You have areas you can invest profitably. I'm just curious if you reevaluate plans given the bonus depreciation? Thank you.

明白了。不，明白了。然後又有一個小問題。當您看到這座宏偉美麗的建築時，這會改變您對資本支出的興趣嗎？您有一些可以獲利的投資領域。我只是好奇，考慮到獎金貶值，您是否會重新評估計劃？謝謝。

Yeah. When you take a look, and again, you -- there's a certain amount of replacement CapEx that you're going to do each and every year, and we do that somewhat ratably. So just because you have a 100% bonus depreciation, that doesn't mean that you're going to sit there and take a asset that still has remaining life and retire it.

是的。當你再看一眼時，你會發現——每年你都會進行一定數量的替代資本支出，而且我們會按比例進行。因此，僅僅因為您有 100% 的獎金折舊，並不意味著您會坐在那裡，拿著仍有剩餘壽命的資產並將其退役。

So again, it actually -- on the margin, if you sit there and say, would you sit there and accelerate some things? I mean, perhaps on the margin. But for the most part, we are steady, we are consistent, and we're ratably replacing the assets in the business year in and year out.

所以，再說一次，實際上 - 在邊緣上，如果你坐在那裡說，你會坐在那裡加速一些事情嗎？我的意思是，也許處於邊緣。但在大多數情況下，我們是穩定的，我們是一致的，我們年復一年地按比例更換業務中的資產。

Thank you.

謝謝。

David Manthey, Baird.

大衛‧曼西，貝爾德。

Thank you. Yeah, good afternoon. I just wanted to be clear on the third quarter '24 unusual benefit there. So I recall there was a 50 basis point insurance recovery and then there was also a bad debt item. I wasn't clear on whether that was a positive or a negative? It sounds like you're saying that was a minus 10 leading to the net 40 basis points of favorability. Is that correct?

謝謝。是的，下午好。我只是想清楚地了解 24 年第三季的異常收益。所以我記得有 50 個基點的保險追償，然後還有一個壞帳項目。我不清楚這是積極的還是消極的？聽起來您說的是，這是一個負 10，導致淨好感度為 40 個基點。對嗎？

No, actually, so there were $20 million worth of benefits in the third quarter of '24. The insurance recovery was a positive $15 million, and the bad debt recovery was a positive $5 million. That's what impacted the third quarter of '24. Our commentary on the 50 basis points last year was in the prior years, now you're back into '23, we actually had some negatives. So now you're talking about the spread, '23 over '24.

不，實際上，24 年第三季的福利價值為 2,000 萬美元。保險追償額為 1,500 萬美元，壞帳追償額為 500 萬美元。這就是對 24 年第三季產生影響的原因。我們對去年 50 個基點的評論是在前幾年，現在回到 23 年，我們實際上有一些負面消息。所以現在您談論的是 23 與 24 之間的差距。

Now what we're saying is when you compare '25 over '24, you're really just having to overcome that $20 million benefit that we saw in Q3 of '24. And again, the insurance recovery, $15 million, bad debt positive recovery was $5 million.

現在我們要說的是，當你將 25 年與 24 年進行比較時，你實際上只需要克服我們在 24 年第三季看到的 2000 萬美元的收益。再次，保險賠償為 1500 萬美元，壞帳賠償為 500 萬美元。

Perfect. All right. Thank you. And then (inaudible) used to break out base versus event work. And it sounds like you're saying that the base ES were pretty lackluster given industrial production levels. Do you have any comments around environmental services event opportunities you're seeing in chemicals, metals, manufacturing, refining, some of the key industries there?

完美的。好的。謝謝。然後（聽不清楚）用於分解基礎與事件工作。聽起來您是在說，考慮到工業生產水平，基礎 ES 相當乏善可陳。您對化工、金屬、製造、煉油等一些關鍵產業的環境服務活動機會有何評論？

Yeah, I'd say one thing and good news, bad news, there's been less emergency response work this year. So do it from a societal standpoint, we've got fewer emergencies to deal with. Challenging for the business, obviously, because those end up being very profitable opportunities for us to go. And we know that across the cycle, and there's going to be years of that spikes and years of that, that is a little lower on that front. It's been a slower first half of the year, we'll see what the second half looks like.

是的，我想說一件事，一個好消息，一個壞消息，今年的緊急應變工作減少了。所以從社會角度來看，我們需要處理的緊急情況會更少。顯然，這對企業來說是一個挑戰，因為這些最終會成為我們非常有利可圖的機會。我們知道，在整個週期中，有幾年會出現峰值，有幾年會出現低谷。今年上半年發展比較緩慢，我們看看下半年會怎麼樣。

And then any discretionary work on site cleanups or other things, this is where the macro, I think, is causing manufacturers is to pause -- I mean people are focused on tariff policy, relocating manufacturing, figuring out how to get warehouse goods, et cetera, anything ancillary to their operation.

然後，任何關於現場清理或其他事情的自由裁量工作，我認為這就是宏觀因素導致製造商暫停的地方——我的意思是人們專注於關稅政策、重新安置製造業、弄清楚如何獲得倉庫貨物等等，任何與他們的運營相關的事情。

They've just put a pause. So our pipeline looks good, but events and those opportunities are moving at the pace that we would expect. And it's the uncertainty that hurts people as we get more certainty around trade policy, we're optimistic that, that starts to move.

他們剛剛暫停了。因此，我們的管道看起來不錯，但事件和機會正在按照我們預期的速度發展。隨著貿易政策越來越確定，這種不確定性會為人們帶來傷害，我們樂觀地認為，情況會開始改變。

Understood. Thank you.

明白了。謝謝。

Konark Gupta, Scotia Capital.

蘇格蘭資本公司的 Konark Gupta。

Thanks, for taking the time. I understand you will be adjusting out the labor impact from the adjusted results you will post. But just an update in terms of where the labor agreements are right now? My understanding is, you had a few different regions of the country where you had these disruptions, but you have achieved maybe some agreements in some places. So can you update us there and what agreements are left right now? Thanks.

謝謝您抽出時間。我知道您將從發布的調整結果中調整勞動力影響。但就目前的勞動協定而言，能更新一下情況嗎？我的理解是，你們在該國的幾個不同地區遇到了這些混亂，但你們可能在某些地方達成了一些協議。那麼您能向我們更新目前還剩下哪些協議嗎？謝謝。

Sure. Yeah, what happened is a number of markets went out, right, with contracts that were expired and shows to strike. A few other of our contracts in different parts of the country have sympathy strike language where if people show up to take it, the workers don't cross those lines.

當然。是的，實際情況是，許多市場都出現了問題，合約已經到期，市場即將崩潰。我們在全國不同地區簽訂的其他一些合約中都有同情罷工的條款，即如果有人前來參加罷工，工人們就不會越過這些界限。

We've kind of recovered on all of those sympathy strikes, our colleagues are back to work, and we typically see this ends up being a day or sometimes a week activity, right? And now we're down to just a few markets where we're negotiating to get agreements on that front.

我們已經從所有這些同情罷工中恢復過來，我們的同事也回來工作了，我們通常會看到這最終成為一天或有時一周的活動，對嗎？現在，我們只與少數市場進行談判，以就此達成協議。

And again, we're going to negotiate in good faith. We want a deal that is very fair and competitive for frontline people, but we're not going to do any deal that impairs the longer-term health of the business or hurts our colleagues longer term.

再次強調，我們將本著誠信進行協商。我們希望達成對第一線員工非常公平和有競爭力的協議，但我們不會達成任何有損企業長期健康或對同事造成長期傷害的協議。

Okay. That's great. Thanks. And just on the M&A, I think you provided some good color in terms of what the pipeline looks like. How much contribution in terms of revenue have you embedded in the guidance for full year?

好的。那太棒了。謝謝。就併購而言，我認為您在管道方面提供了一些很好的說明。您在全年預期中嵌入了多少收入貢獻？

Yeah. So again, if you take a look at what we're expecting, there's 120 basis points of contribution to 2025 growth, 100 of which was included in the guide. Because again, we had known about that. That was the Shamrock deal that was already known at the time when we provided the guidance.

是的。因此，如果你再看一下我們的預期，你會發現對 2025 年成長的貢獻為 120 個基點，其中 100 個已包含在指南中。因為我們已經知道這一點了。這就是我們在提供指導時就已經為人所知的 Shamrock 交易。

20 is incremental.

20 是增量。

I'm sorry, what was that last part?

抱歉，最後一部分是什麼？

Sorry, 20 is the incremental, right?

抱歉，20 是增量，對嗎？

20 is the incremental, correct. And that's about $35 million of annual rep, correct.

20 是增量，正確。這大約是每年 3500 萬美元的代表費，正確。

Okay, thank you so much.

好的，非常感謝。

James Schumm, TD Cowen.

詹姆斯·舒姆（James Schumm），TD Cowen。

Hey, thanks, Just also on the M&A. But with respect to Environmental Services, there's been some high multiples paid for some of these targets, 14 times, 15 times, 16 times EBITDA multiples have been paid. Are you seeing, as you look at takeover targets, that a lot of these sellers are trying to really up their asking price? And are you seeing like a widening of the bid-ask spread in the ES market with respect to M&A?

嘿，謝謝，同樣關於併購。但就環境服務而言，其中一些目標支付的倍數較高，分別為 EBITDA 倍數的 14 倍、15 倍、16 倍。當您查看收購目標時，您是否發現許多賣家都在試圖提高要價？您是否看到 ES 市場在併購方面的買賣價差有所擴大？

I don't think we're seeing a widening of the spread. I do think that if you look across the last five years, multiples have absolutely gone up. They've gone up in recycling and waste too, but they've gone up faster in ES in large part because there's been so much value that's been driven in that part of the business. So the business are becoming more valuable on a forward-looking basis.

我認為我們沒有看到傳播範圍的擴大。我確實認為，如果回顧過去五年，倍數絕對已經上升。他們在回收和廢物處理方面的業務也有所增長，但在 ES 方面的業務增長更快，這在很大程度上是因為該業務部分創造了太多價值。因此，從長遠來看，該業務的價值正在不斷提升。

And the multiple is totally dependent on what you're buying. If you're buying something with limited infrastructure, more field services based, that multiple is going to be a fraction of what you mentioned. If you're buying something with great permitting and great infrastructure, that could be a very value-creating deal on that. And we're going to look at unlevered cash on cash returns, the multiple ends up becoming an output.

而倍數完全取決於您購買的商品。如果您購買的是基礎設施有限、更多基於現場服務的產品，那麼這個倍數將只是您提到的一小部分。如果您購買的是具有良好許可證和良好基礎設施的項目，那麼這可能是一筆非常有價值的交易。我們將研究無槓桿現金的現金回報，倍數最終成為產出。

Great. Okay. Thanks a lot. That's all I had.

偉大的。好的。多謝。這就是我所擁有的一切。

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

目前，似乎沒有其他問題。范德阿克先生，我將把電話交給您做最後發言。

Thank you, Chuck. As we close out today's call, I want to thank the entire Republic Services team for their unwavering focus on safety, sustainability and customer service. Their commitment, energy and ingenuity are solving today's challenges and positioning us for continued success. Have a good evening and be safe.

謝謝你，查克。在我們結束今天的電話會議時，我要感謝整個共和服務團隊對安全、永續性和客戶服務的堅定關注。他們的承諾、精力和智慧正在解決當今的挑戰並為我們持續的成功奠定基礎。祝您有個愉快的夜晚並注意安全。

Ladies and gentlemen, this concludes the conference call. Thank you for attending. You may now disconnect.

女士們、先生們，電話會議到此結束。謝謝您的出席。您現在可以斷開連線。