GFL Environmental Reports Second Quarter 2025 Results and Raises Full Year 2025 Guidance

Executive Summary

• GFL Environmental reported strong second-quarter 2025 financial results, with revenue, Adjusted EBITDA, and Adjusted Free Cash Flow all exceeding expectations despite external headwinds.
• The company raised its full-year 2025 Adjusted EBITDA guidance by approximately $50.0 million (before foreign currency translation) to a range of $1.950 billion to $1.975 billion, reflecting stronger organic performance.
• Solid Waste Adjusted EBITDA margin reached a historical high of 34.7% in Q2, and the company completed acquisitions generating approximately $105.0 million in annualized revenue year-to-date.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $1,675.2 million (up 9.5% excluding divestitures; up 5.9% including divestitures).
  • Adjusted EBITDA: $515.1 million (up 14.6% year-over-year).
  • Adjusted EBITDA Margin: 30.7% (up 230 basis points year-over-year).
  • Net Income from Continuing Operations: $274.2 million (compared to a net loss of $531.9 million in Q2 2024).
  • Adjusted Free Cash Flow: $137.1 million (up from $111.0 million in Q2 2024).
• Year-to-Date (Six Months Ended June 30, 2025) Performance:
  • Revenue: $3,235.3 million (up 10.9% excluding divestitures).
  • Adjusted EBITDA: $941.2 million (up 14.3% year-over-year).
  • Adjusted EBITDA Margin: 29.1%.
  • Net Income from Continuing Operations: $60.3 million (compared to a net loss of $727.7 million in H1 2024).
  • Adjusted Free Cash Flow: $150.8 million.
• Updated Full Year 2025 Guidance:
  • Revenue: Estimated between $6,550 million and $6,575 million (up ~$110 million before FX translation).
  • Adjusted EBITDA: Estimated between $1,950 million and $1,975 million (up ~$50 million before FX translation).
  • Adjusted EBITDA Margin: Expected to be approximately 29.9% at the mid-point (120 basis points increase year-over-year).
  • Adjusted Free Cash Flow: Reaffirmed at approximately $750 million.
  • Net Leverage: Estimated to be in the low 3.0x range by end of 2025.
  • Assumptions: USD/CAD exchange rate of 1.37 for the remainder of the year.
• Operational Metrics & Segments:
  • Organic Growth: 8.3% in Q2 (excluding divestitures), driven by 5.8% core pricing and 2.5% positive volume.
  • Solid Waste Segment Q2 Adjusted EBITDA Margin: 34.7% (highest in company history).
  • Canada Segment Q2 Revenue: $556.7 million; Adjusted EBITDA: $188.0 million (Margin: 33.8%).
  • USA Segment Q2 Revenue: $1,118.5 million; Adjusted EBITDA: $393.8 million (Margin: 35.2%).
• Capital Allocation & M&A:
  • Share Repurchases: Repurchased 3,470,158 subordinate voting shares in Q2 2025 under the normal course issuer bid.
  • M&A Activity: Year-to-date completed acquisitions are generating approximately $105.0 million in annualized revenue. The M&A pipeline remains robust, with expected back-end weighting of activity for 2025.
• Divestitures:
  • The Environmental Services line of business ("GFL Environmental Services") was divested effective March 1, 2025, and is presented as discontinued operations.

Notable Quotes

• "Our exceptional start to the year continued into the second quarter, thanks to the hard work and commitment of our over 15,000 employees... Our strong performance, achieved amid continued macroeconomic uncertainty and headwinds from lower commodity prices, underscores the resiliency of our business model." — Patrick Dovigi, Founder and Chief Executive Officer
• "The success of our first half results sets us up to increase our full year 2025 guidance... Any incremental M&A, improvement in commodity prices or macroeconomic variables provide potential upside to our guidance." — Patrick Dovigi, Founder and Chief Executive Officer