Republic Services (RSG) risk factors, FY2025 10-K

Other

1. 01Disclosure Regarding Forward-Looking Statements

Risks Related to Our Business and Operations

1. 02The environmental services industry is highly competitive and includes competitors that may have greater financial and operational resources, flexibility to reduce prices or other competitive advantages that could make it difficult for us to compete effectively
2. 03Increases in the cost of fuel or petrochemicals increase our operating expenses, and we may not be able to recover such cost increases from our customers
3. 04Fluctuations in prices and demand for recycled commodities that we sell to customers may adversely affect our consolidated financial condition, results of operations and cash flows43% rewritten
4. 05Acute and chronic weather events, including those brought about by climate change, may adversely impact our operations and increase the costs of collection, transfer, disposal and other environmental services we provide
5. 06The environmental services industry is capital-intensive and our capital expenditures may exceed current expectations, which could require us to obtain additional funding for our operations or impair our ability to grow our business
6. 07We may be unable to obtain or maintain required permits or to expand existing permitted capacity of our facilities, which could decrease our revenue and increase our costs
7. 08If we do not appropriately estimate landfill capping, closure, post-closure and remediation costs, our consolidated financial condition and results of operations may be adversely affected
8. 09Alternatives to landfill disposal, and increasing customer preferences for these alternatives, could reduce our disposal volumes and cause our revenues and operating results to decline
9. 10We could incur charges to income, which could be material, if landfill and transfer station site development projects or expansion projects are not completed, or certain other events occur
10. 11The business and assets we operate expose us to safety, operational and other risks, including the risk of personal injury to our employees or third parties
11. 12We are periodically subject to work stoppages and other workforce effects, which increases our operating costs and disrupts our operations51% rewritten
12. 13We may not be able to achieve reduction of our greenhouse gas emissions and our other sustainability goals

Risks Related to our Legal and Regulatory Environment

1. 14We are subject to costly environmental and flow-control regulations and requirements that may affect our operating margins, restrict our operations and subject us to additional liability
2. 15Regulation of greenhouse gas emissions and other governmental regulations could impose costs on our operations, the magnitude of which is difficult to estimate36% rewritten
3. 16At the U.S. state level, California has taken action to require greenhouse gas emission disclosure, as well as information on climate-related financial risks, some of which are subject to legal challenge. Similar bills have been introduced in other U.S. states; to-date, none have passed into lawNew
4. 17We may incur losses from liabilities that are not covered by our insurance. Changes in insurance markets also may impact our financial results
5. 18Despite our efforts, we may incur additional liability under environmental laws in excess of amounts presently known and accrued
6. 19Currently pending or future litigation or governmental proceedings could result in material adverse consequences, including judgments or settlements
7. 20Changes to federal renewable fuel policies could affect our financial performance in that sector as a renewable fuel producer and impact our projected future investments

Risks Related to Financial Strategy and Indebtedness

1. 21We have substantial indebtedness, which may limit our financial flexibility
2. 22We may be unable to maintain our credit ratings or execute our financial strategy26% rewritten
3. 23Weakness in the United States economy may expose us to credit risk for amounts due from governmental entities, large national accounts, industrial customers and others
4. 24Our consolidated financial statements are based on estimates and assumptions that may differ from actual results. The liabilities we record based on such estimates and assumptions may not be adequate to cover the costs we ultimately will face
5. 25Our obligation to fund multiemployer pension plans to which we contribute, or our withdrawal from such plans, may have an adverse effect on us

Risks Related to Our Growth Strategy

1. 26We may be unable to manage our growth effectively
2. 27We may be unable to execute our acquisition growth strategy
3. 28Businesses we acquire may have undisclosed liabilities

Risks Related to Technology and Intellectual Property

1. 29Our strategy includes an increasing dependence on technology, including the use of artificial intelligence (AI), in our operations. If any of our key technology fails, our business could be adversely affected25% rewritten
2. 30A significant cybersecurity incident could negatively impact our business and our relationships with employees, customers and vendors and expose us to increased liabilityNew
3. 31Price increases may not be adequate to offset the effect of increased costs and may cause us to lose volume and customers
4. 32The loss of key personnel or the inability to attract, hire or retain key team members and a high-quality workforce could have a material adverse effect on our consolidated financial condition, results of operations, cash flows and growth prospects
5. 33The introduction of new accounting rules, laws or regulations could adversely impact our reported results of operationsNew
6. 34Weakened or volatile economic conditions have and may continue to harm our industry, business and results of operations