Gfl Environmental Inc Stock Price, News & Analysis

GFL Environmental reported strong Q1 2025 results, with revenue reaching $1,560.1 million, marking a 12.5% increase excluding divestitures. The company achieved its lowest-ever Net Leverage of 3.1x and highest Q1 Adjusted EBITDA margin of 27.3%, representing a 120 basis point increase year-over-year.

Key highlights include:

• Adjusted EBITDA grew 13.8% to $426.1 million
• Core pricing increased by 5.7%
• Positive volume growth of 0.9%
• Year-to-date acquisitions generating approximately $85.0 million in annualized revenue

The company completed the sale of its Environmental Services business, using proceeds to reduce debt. GFL also repurchased 31,725,083 subordinate voting shares through various methods. Despite challenging weather conditions and macroeconomic volatility, management remains confident in achieving full-year guidance.

GFL Environmental (NYSE: GFL) (TSX: GFL) has received approval from the Toronto Stock Exchange to resume its normal course issuer bid (NCIB) share repurchase program. The company can repurchase up to 28,046,256 subordinate voting shares during the 12-month period ending March 2, 2026.

The company has already repurchased 7,618,758 shares for cancellation, leaving 20,427,498 shares available for future repurchases. Notably, the 17,050,298 shares repurchased from BC Partners on March 25, 2025, and any shares purchased in secondary offerings under the Ontario Securities Commission's exemptive relief order won't count toward the NCIB limit.

Future purchases will be conducted through the TSX, NYSE, and alternative Canadian and U.S. trading systems, subject to market conditions.

GFL Environmental (NYSE: GFL) (TSX: GFL) has announced a 10% increase in its regular quarterly cash dividend. The dividend will increase from US$0.014 to US$0.0154 per share. The enhanced dividend will be paid on April 30, 2025 to shareholders of record as of April 14, 2025. The company has designated this dividend as an eligible dividend under the Income Tax Act (Canada).

GFL Environmental (NYSE: GFL) (TSX: GFL) has scheduled its 2025 first quarter financial results release for Wednesday, April 30, 2025, after market close. The company will host an investor conference call on Thursday, May 1, 2025, at 8:30 am Eastern Time.

Investors can access the conference call through multiple channels: via audio webcast on the company's investor page (investors.gflenv.com), toll-free dial-in numbers for Canada (1-833-950-0062) and the United States (1-833-470-1428) with access code 388082, or through pre-registration using the provided link.

GFL Environmental (NYSE: GFL) (TSX: GFL) has announced the completion of a secondary offering involving multiple transactions. The company acquired 7,056,027 subordinate voting shares through a Secondary Offering Transaction, following exemptive relief from the Ontario Securities Commission allowing purchases of up to 38,157,045 shares until March 13, 2026.

Additionally, GFL purchased 17,050,298 subordinate voting shares from BC Partners funds on March 25, 2025, and 7,618,758 shares under its normal course issuer bid (NCIB). In total, GFL has purchased and cancelled 31,725,083 subordinate voting shares. While the company has exhausted its NCIB capacity, it maintains the ability to purchase up to 14,050,720 additional shares under the Ontario Securities Commission Order.

GFL Environmental has announced a significant share buyback initiative, purchasing 17,050,298 subordinate voting shares directly from BC Partners at US$46.92 per share, representing a 3.5% discount to the NYSE closing price on March 25, 2025. Additionally, GFL plans to repurchase up to 7,056,027 subordinate voting shares from RBC Dominion Securities in a secondary offering.

The transactions are part of GFL's strategy to utilize approximately $2.25 billion from the sale of its Environmental Services business for share repurchases. Following the direct buyback, BC Partners will hold approximately 20.5% of outstanding subordinate voting shares, representing 14.8% of total voting power.

The company received exemptive relief from the Ontario Securities Commission allowing it to repurchase up to 50% of subordinate voting shares from underwriters in secondary offerings over 12 months, with a maximum limit of 38,157,045 shares.

GFL Environmental (NYSE: GFL) (TSX: GFL) has secured exemptive relief from the Ontario Securities Commission, enabling the company to repurchase subordinate voting shares from underwriters in Ontario during secondary offerings. The Order allows GFL to purchase up to 50% of shares offered in such offerings over the next 12 months, with a maximum cap of 38,157,045 shares (10% of current outstanding shares).

The company plans to utilize approximately $2.25 billion from its recent Environmental Services business sale for opportunistic share repurchases, subject to market conditions. These purchases can be made through their normal course issuer bid, the Order, or other legal means. All purchases under this Order will be made at a discount to the closing price on TSX and NYSE, overseen by a special committee of independent directors.

GFL Environmental Inc. (NYSE: GFL) has announced the sale of its Environmental Services business to Apollo (NYSE: APO) and BC Partners funds for $8 billion. The transaction structure allows GFL to maintain a 44% equity interest, while Apollo Funds and BC Funds will each hold 28%.

The proceeds will be strategically allocated to:

• Debt repayment
• Up to $2.25 billion for share repurchases
• Transaction fees and general corporate purposes

This strategic move enables GFL, North America's fourth-largest diversified environmental services company, to accelerate its balance sheet deleveraging toward investment grade levels, pursue organic growth initiatives, and implement solid waste M&A opportunities. The company also plans to enhance shareholder returns through share repurchases and future dividend increases.

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) has successfully completed the sale of its Environmental Services business at an enterprise value of $8.0 billion. The company maintained a $1.7 billion equity stake in the sold business unit.

The company plans to allocate the transaction proceeds as follows:

• Up to $3.75 billion for debt repayment
• Up to $2.25 billion for potential share repurchases, subject to market conditions
• Remaining funds for transaction fees and general corporate purposes