GFL Environmental Reports Fourth Quarter and Full Year 2025 Results; Provides Full Year 2026 Guidance

Executive Summary

• GFL Environmental reported Q4 2025 revenue of $1.69 B (up 7.3%) and full‑year 2025 revenue of $6.62 B, a 9.5% increase (ex‑divestitures).
• Adjusted EBITDA reached $508.7 M in Q4 and $1.99 B for the year, delivering an adjusted EBITDA margin of 30.2% in Q4 and 30.0% for FY 2025 – the highest margins in company history.
• Full‑year 2025 Adjusted Free Cash Flow was $755.9 M (up 23.6%). Net leverage fell to 3.4×, the lowest ever year‑end level.

Key Details

• Quarterly Financial Highlights
• Q4 2025 revenue: $1,686.4 M (+7.3% YoY)
• Q4 Adjusted EBITDA: $508.7 M (+11.1% YoY) – margin 30.2% (record)
• Q4 Net income (continuing): $72.7 M vs. loss of $211.4 M in Q4 2024

• Q4 Adjusted Free Cash Flow: $424.6 M (+51% YoY)

• Full‑Year 2025 Financial Highlights

• Revenue: $6,615.9 M (+9.5% ex‑divestitures; +7.8% incl. divestitures)
• Adjusted EBITDA: $1,985.0 M (+12.8% YoY) – margin 30.0% (record)
• Adjusted Net Income (continuing): $283.9 M; Net income (continuing) $241.1 M
• Adjusted Free Cash Flow: $755.9 M (+23.6%)

• Share repurchases: 43,741,452 subordinate voting shares (~10% of outstanding)

• Capital Allocation & M&A

• Completed acquisitions generating ~$290 M annualized revenue.
• $3.0 B of share repurchases executed in FY 2025.

• Net leverage reduced to 3.4×, down from 4.1× at end‑2024.

• Guidance for Full Year 2026 (excluding incremental M&A)

• Revenue: ≈ $7,000 M (≈$7,140 M constant‑currency), +8% YoY.
• Adjusted EBITDA: ≈ $2,140 M (≈$2,185 M cc), +10% YoY.
• Adjusted EBITDA margin: ~30.6%, up ~60 bps.
• Adjusted Free Cash Flow: ≈ $835 M (≈$860 M cc), +14% YoY.

• Net leverage expected in the low‑3s range by year‑end 2026.

• Operational Metrics

• Canada segment revenue $2,162.6 M; USA segment $4,453.3 M.
• Solid Waste segment contributed $6,615.9 M of total revenue with a 34.0% Adjusted EBITDA margin.

• Organic growth drivers: price +6.4%, volume +0.5%, surcharges –0.6%.

• Cash Flow Summary

• Operating cash flow (adjusted) FY 2025: $1,496.4 M.

• Capital expenditures (net): $1,123.3 M; incremental growth capex $324.4 M (primarily recycling facilities).

• Shareholder Information

• Total shares outstanding (diluted) 31‑Feb‑2026: 389,441,287.
• Dividend paid FY 2025: $7.6 M.

Notable Quotes

“Our more than 15,000 employees delivered another year of results that exceeded our expectations… the highest Adjusted EBITDA margin in our history… we remain committed to low‑to‑mid‑30% margins by 2028.” – Patrick Dovigi, Founder & CEO

Materiality: Material – Positive (significant earnings beat, record margins, strong cash generation, and forward‑looking guidance).