Brian DelGhiaccio
Executive Vice President, Chief Financial Officer at Republic Services
Thanks, Jon. Core price on total revenue was 7.4% for the fourth quarter. Core price on related revenue was 8.4%, which included open-market pricing of 10.4% and restricted pricing of 5.1%. The components of core price on elated revenue included small container of 11.8%, large container of 8.6%, and residential of 7.8%.
Average yield on total revenue was 5.9%. Average yield on related revenue was 6.7%, an increase of 40 basis points when compared to our third quarter performance. In 2023, we expect average yield on total revenue of approximately 5.5%. We expect average yield on related revenue of approximately 6.5%. This is an increase of 80 basis points over our full year 2022 results.
Fourth quarter volume increased 1.5%. The components of volume included an increase in small container of 1.6%, an increase in large container of 60 basis points, an increase in residential of 1.2%, and an increase in landfill of 3.9%. For 2023, we expect organic volume growth in a range of 50 basis points to 1%.
Moving on to recycling. Commodity prices were $88 per ton in the quarter. This compared to $218 per ton in the prior year. Recycling processing and commodity sales decreased revenue by 180 basis points during the quarter. 2022 full year commodity prices were $170 per ton. This compared to $187 per ton in the prior year. Current commodity prices are approximately $95 per ton. We believe that current commodity prices are temporarily depressed due to a global supply-demand imbalance and that prices will recover in the second half of the year.
Accordingly, we are assuming average recycled commodity prices of $125 per ton in 2023 with prices starting at $95 per ton in the first quarter and steadily increasing throughout the year. At $125 per ton, this would result in a decrease in full-year 2023 revenue and EBITDA of $45 million when compared to the prior year and a 30 basis point headwind to EBITDA margin. In the first quarter of 2023, this would result in a year-on-year decrease of nearly $30 million in revenue and EBITDA and a 70 basis point headwind to EBITDA margin.
Next, turning to our Environmental Solutions business. Fourth quarter Environmental Solutions revenue increased approximately $320 million over the prior year, which primarily related to the acquisition of US Ecology. On a same-store basis, Environmental Solutions contributed 60 basis points to internal growth during the quarter.
Fourth quarter adjusted EBITDA margin was 27.3%. This compares to 28.1% in the prior year. Margin performance during the quarter included a 130 basis point decrease from acquisitions, which included 100 basis points related to US Ecology and an 80 basis point headwind from lower recycled commodity prices. These margin headwinds were partially offset by a 20 basis point increase from net fuel and margin expansion in the underlying business of 110 basis points.
Fourth quarter adjusted EBITDA margin in the Recycling & Solid Waste business was 28.7%. This compares to 28.6% margin in the prior year or 10 basis points of margin expansion. Margins improved in the Recycling & Solid Waste business, even with an 80 basis point headwind from lower recycled commodity prices.
Fourth quarter SG&A expenses excluding transaction costs from US Ecology were 10.9% of revenue. This included 40 basis points from additional incentive compensation expense due to full-year financial outperformance. Full-year SG&A expenses were 10.2% of revenue. This was favorable 20 basis points compared to the prior year and reflects continued cost management as we grow the business.
In 2023, we expect EBITDA margin to be approximately 29.2%. The 10 basis points of expected margin expansion include a 40 basis point decline related to acquisitions, primarily related to US Ecology and a 30 basis point headwind from lower recycled commodity prices. These headwinds are more than offset by margin expansion in the underlying business of 80 basis points.
While we expect full-year expansion compared to the prior year, margins are expected to be down in the first half due to the impact of acquisition rollover and recycled commodity prices. This is most notable in the first quarter, where these headwinds impact margin by a combined 210 basis points.
Depreciation and amortization and accretion was 10.7% of revenue in 2022 and is expected to be relatively consistent at 10.8% of revenue in 2023. Full-year 2022 adjusted free cash flow was $1.74 billion, an increase of 15% compared to the prior year. This was driven by EBITDA growth in the business.
For '23, we are projecting adjusted free cash flow in a range of $1.86 billion to $1.9 billion or approximately 8% growth at the midpoint. We believe this level of performance is very strong, given the expected impact from lower recycled commodity prices, higher interest rates, and higher cash taxes as bonus depreciation begins to unwind.
Total debt at the end of the year was $11.9 billion and total liquidity was $1.7 billion. Floating debt interest rates consistently increased throughout 2022 and we now expect net interest expense of approximately $480 million in 2023. This is an increase of approximately $90 million compared to the prior year. As a reminder, a 1% increase in interest rates resulted in approximately $33 million of additional interest expense.
Our leverage ratio at the end of the year was approximately 3.1 times. We expect to revert to three times leverage by mid-2023.
With respect to taxes, our combined tax rate and non-cash charges from solar investments resulted in an equivalent tax impact of 26.1% during the fourth quarter and 25.1% for the full-year. This lower than anticipated tax rate resulted in a $0.06 benefit to our full-year 2022 EPS. We expect an equivalent tax impact of approximately 26% in 2023, made up of an adjusted effective tax rate of 20% and approximately $170 million of non-cash charges from solar investments.
Finally, we expect a majority of the EPS growth in 2023 to be back-end loaded. This results from having the toughest prior year comparisons on recycled commodity prices, interest rates, and taxes during the first half of the year.
With that, operator, I would like to open the call to questions.
