GFL Environmental Reports First Quarter 2025 Results

Rhea-AI Summary

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.

Positive

• Revenue increased 12.5% (excluding divestitures) to $1,560.1M in Q1 2025
• Adjusted EBITDA grew 13.8% to $426.1M in Q1 2025
• Achieved highest Q1 Adjusted EBITDA margin of 27.3%, up 120 basis points
• Net Leverage reduced to 3.1x, lowest in company history
• Completed acquisitions generating ~$85M in annualized revenue
• Core pricing growth of 5.7% and positive volume growth of 0.9%
• Repurchased 31.7M subordinate voting shares

Negative

• Net loss from continuing operations increased to $213.9M vs $195.8M in Q1 2024
• Adjusted Free Cash Flow decreased to $13.7M from $16.4M in Q1 2024
• Faced operational challenges from increased macroeconomic volatility and weather conditions

Insights

Financial Analyst

GFL delivered strong operational growth with revenue and EBITDA beating expectations, while deleveraging to record-low 3.1x despite continuing net losses.

GFL Environmental's Q1 results demonstrate impressive operational momentum despite continuing bottom-line challenges. Revenue increased 12.5% excluding divestitures, with solid 5.7% contribution from core pricing showing strong pricing power. The standout metric is Adjusted EBITDA margin of 27.3% - a 120 basis point improvement and the highest Q1 margin in company history.

The balance sheet transformation is equally significant, with Net Leverage reduced to 3.1x, the lowest level since GFL's inception. This positions the company closer to investment-grade status while simultaneously enabling renewed M&A activity and shareholder returns through significant share repurchases (31.7 million shares).

The ongoing $213.9 million net loss (larger than Q1 2024's $195.8 million) remains a concern, though operational metrics were all ahead of expectations. Adjusted Free Cash Flow declined slightly to $13.7 million from $16.4 million, attributed to increased capital expenditures and working capital investments. The company has completed acquisitions generating approximately $85 million in annualized revenue year-to-date, signaling continued execution of its consolidation strategy.

Environmental Services Industry Expert

GFL's strategic divestiture of Environmental Services business strengthens core waste operations while enabling accelerated deleveraging and renewed acquisition activity.

GFL's Q1 results validate its strategic decision to divest its Environmental Services line, completing the transaction on March 1. This move has provided capital for both significant deleveraging and renewed acquisition activity in its core solid waste business. The 0.9% positive volume growth is particularly impressive given the "unusually challenging weather conditions" noted in the release - demonstrating operational resilience in adverse circumstances.

The company's ability to achieve 5.7% core pricing growth indicates healthy pricing power in the current waste management landscape. This is especially meaningful as GFL positions itself as the fourth-largest diversified environmental services company in North America, with operations throughout Canada and 18 U.S. states.

Management's statement about "re-igniting our solid waste M&A engine" signals a deliberate return to the consolidation strategy that has historically driven GFL's growth. The $85 million in already-completed acquisition revenue demonstrates immediate execution on this front. The simultaneous focus on deleveraging, acquisitions, and share repurchases reflects a balanced capital allocation approach that prioritizes both growth and financial strength - a model that has proven successful for top-tier waste management operators.

• Revenue, Adjusted EBITDA¹ and Adjusted Free Cash Flow¹ all ahead of expectations
• Net Leverage¹ of 3.1x, lowest in Company's history
• Revenue of $1,560.1 million, increase of 12.5% excluding the impact of divestitures² (9.0% including the impact of divestitures)
• Adjusted EBITDA¹ of $426.1 million, increase of 13.8%; Adjusted Net Loss from continuing operations¹ of $34.5 million; Net loss from continuing operations of $213.9 million
• Adjusted EBITDA margin¹ of 27.3%, 120 basis points increase over the prior year period; highest Q1 Adjusted EBITDA margin¹ in Company's history
• Year-to-date completed acquisitions generating approximately $85.0 million in annualized revenue

VAUGHAN, ON, April 30, 2025 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL", "we" or "our") today announced its results for the first quarter of 2025.

"I am extremely proud of the hard work and commitment of our over 15,000 employees, as we delivered another strong start to the year," said Patrick Dovigi, Founder and Chief Executive Officer of GFL. "Our exceptional execution drove industry leading top line growth of 12.5% and 120 basis points of Adjusted EBITDA margin¹ expansion over the prior year period. Our strong performance, achieved amid increased macroeconomic volatility and unusually challenging weather conditions, underscores the resiliency of our business model."

Mr. Dovigi continued, "During the quarter, we used the proceeds from the sale of our Environmental Services business to materially de-lever our balance sheet to Net Leverage¹ of 3.1x, the lowest in the Company's history. This not only accelerates our path to an investment grade credit rating, but also allows us to re-ignite our solid waste M&A engine. In addition, we repurchased 31,725,083 subordinate voting shares through a combination of our normal course issuer bid, participation in the recent secondary offering and directly from BC Partners. We intend to continue to be opportunistic on further share repurchases going forward."

Mr. Dovigi concluded, "The strength of our first quarter results reinforces our confidence in achieving our full year guidance, and we look forward to updating investors on our outlook when we report our second quarter results."

First Quarter Results³

• Revenue of $1,560.1 million in the first quarter of 2025, increase of 12.5% excluding the impact of divestitures² (9.0% including the impact of divestitures), including 5.7% from core pricing² and 0.9% from positive volume.²
• Adjusted EBITDA¹ increased by 13.8% to $426.1 million in the first quarter of 2025, compared to $374.4 million in the first quarter of 2024. Adjusted EBITDA margin¹ was 27.3% in the first quarter of 2025, compared to 26.1% in the first quarter of 2024.
• Net loss from continuing operations was $213.9 million in the first quarter of 2025, compared to $195.8 million in the first quarter of 2024.
• Adjusted Free Cash Flow¹ was $13.7 million in the first quarter of 2025, compared to $16.4 million in the first quarter of 2024. The decrease of 2.7 million was predominantly due to an increase in Adjusted EBITDA¹ partially offset by an increase in cash capex net of incremental growth investments and investment in working capital.

_____________________________
(1)	A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
(2)	Reflects pro forma adjustments to remove the contribution of one divestiture in Fiscal 2024. Refer to "Supplemental Data" for details.
(3)	On March 3, 2025, we announced the completion of the divestiture of our Environmental Services line of business ("GFL Environmental Services"), effective March 1, 2025. Certain revenue disaggregation and segment reporting balances in prior periods have been re-presented for consistency with the current period presentation in relation to GFL Environmental Services which has been presented as discontinued operations. For additional information, refer to Note 2 and Note 17 in our Unaudited Interim Financial Statements.

Q1 2025 Earnings Call

GFL will host a conference call related to our first quarter earnings on May 1, 2025 at 8:30 am Eastern Time. A live audio webcast of the conference call can be accessed by logging onto our Investors page at investors.gflenv.com or by clicking here. Listeners may access the call toll-free by dialing 1-833-950-0062 in Canada or 1-833-470-1428 in the United States (access code: 388082) approximately 15 minutes prior to the scheduled start time.

We encourage participants who will be dialing in to pre-register for the conference call using the following link: https://www.netroadshow.com/events/login?show=be74913c&confId=79830. Callers who pre-register will be given a conference access code and PIN to gain immediate access to the call and bypass the live operator on the day of the call. Participants may pre-register at any time, including up to and after the call start time. For those unable to listen live, an audio replay of the call will be available until May 15, 2025 by dialing 1-226-828-7578 in Canada or 1-866-813-9403 in the United States (access code: 613839).

About GFL

GFL, headquartered in Vaughan, Ontario, is the fourth largest diversified environmental services company in North America, providing a comprehensive line of solid waste management services through its platform of facilities throughout Canada and in 18 U.S. states. Across its organization, GFL has a workforce of approximately 15,000 employees.

For more information, visit the GFL web site at gflenv.com. To subscribe for investor email alerts please visit investors.gflenv.com or click here.

Forward-Looking Information

This release includes certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable U.S. and Canadian securities laws, respectively. Forward-looking information includes all statements that do not relate solely to historical or current facts and may relate to our future outlook, financial guidance and anticipated events or results and may include statements regarding our financial performance, financial condition or results, business strategy, growth strategies, budgets, operations and services. Particularly, statements regarding our expectations of future results, performance, achievements, prospects or opportunities, the markets in which we operate, or potential share repurchases are forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or "potential" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", although not all forward-looking information includes those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances.

Forward-looking information is based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, is subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to certain assumptions set out herein; our ability to obtain and maintain existing financing on acceptable terms; our ability to source and execute on acquisitions on terms acceptable to us; currency exchange and interest rates; commodity price fluctuations; our ability to implement price increases and surcharges; changes in waste volumes; labour, supply chain and transportation constraints; inflationary cost pressures; fuel supply and fuel price fluctuations; our ability to maintain a favourable working capital position; the impact of competition; the changes and trends in our industry or the global economy; and changes in laws, rules, regulations, and global standards. Other important factors that could materially affect our forward-looking information can be found in the "Risk Factors" section of GFL's annual information form for the year ended December 31, 2024 and GFL's other periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Shareholders, potential investors and other readers are urged to consider these risks carefully in evaluating our forward-looking information and are cautioned not to place undue reliance on such information. There can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The forward-looking information contained in this release represents our expectations as of the date of this release (or as the date it is otherwise stated to be made), and is subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable U.S. or Canadian securities laws.

Non-IFRS Measures

This release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Rather, these non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

EBITDA represents, for the applicable period, net income (loss) from continuing operations plus (a) interest and other finance costs, plus (b) depreciation and amortization of property and equipment, landfill assets and intangible assets, plus (less) (c) the provision (recovery) for income taxes, in each case to the extent deducted or added to/from net income (loss) from continuing operations. We present EBITDA to assist readers in understanding the mathematical development of Adjusted EBITDA. Management does not use EBITDA as a financial performance metric.

Adjusted EBITDA is a supplemental measure used by management and other users of our financial statements including, our lenders and investors, to assess the financial performance of our business without regard to financing methods or capital structure. Adjusted EBITDA is also a key metric that management uses prior to execution of any strategic investing or financing opportunity. For example, management uses Adjusted EBITDA as a measure in determining the value of acquisitions, expansion opportunities, and dispositions. In addition, Adjusted EBITDA is utilized by financial institutions to measure borrowing capacity. Adjusted EBITDA is calculated by adding and deducting, as applicable from EBITDA, certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) (gain) loss on foreign exchange, (b) (gain) loss on sale of property and equipment, (c) share of net (income) loss of investments accounted for using the equity method, (d) share-based payments, (e) transaction costs, (f) acquisition, rebranding and other integration costs (included in cost of sales related to acquisition activity), (g) Founder/CEO remuneration and (h) other. For the three months ended March 31, 2025, Founder/CEO remuneration has been added back to EBITDA. We use Adjusted EBITDA to facilitate a comparison of our operating performance on a consistent basis reflecting factors and trends affecting our business. As we continue to grow our business, we may be faced with new events or circumstances that are not indicative of our underlying business performance or that impact the ability to assess our operating performance.

Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue. Management and other users of our financial statements including our lenders and investors use Adjusted EBITDA margin to facilitate a comparison of the operating performance of each of our operating segments on a consistent basis reflecting factors and trends affecting our business.

Acquisition EBITDA represents, for the applicable period, management's estimates of the annual Adjusted EBITDA of an acquired business, based on its most recently available historical financial information at the time of acquisition, as adjusted to give effect to (a) the elimination of expenses related to the prior owners and certain other costs and expenses that are not indicative of the underlying business performance, if any, as if such business had been acquired on the first day of such period and (b) contract and acquisition annualization for contracts entered into and acquisitions completed by such acquired business prior to our acquisition (collectively, "Acquisition EBITDA Adjustments"). Further adjustments are made to such annual Adjusted EBITDA to reflect estimated operating cost savings and synergies, if any, anticipated to be realized upon acquisition and integration of the business into our operations. Acquisition EBITDA is calculated net of divestitures. We use Acquisition EBITDA for the acquired businesses to adjust our Adjusted EBITDA to include a proportional amount of the Acquisition EBITDA of the acquired businesses based upon the respective number of months of operation for such period prior to the date of our acquisition of each such business.

Adjusted Cash Flows from Operating Activities represents cash flows from operating activities adjusted for (a) operating cash flows from discontinued operations, (b) transaction costs, (c) acquisition, rebranding and other integration costs, (d) Founder/CEO remuneration, (e) cash interest paid on early termination of long-term debt and (f) distribution received from joint ventures. Adjusted Cash Flows from Operating Activities is a supplemental measure used by investors as a valuation and liquidity measure in our industry. For the three months ended March 31, 2025, Founder/CEO remuneration and cash interest paid on early termination of long-term debt have been added back to Adjusted Cash Flows from Operating Activities. These amounts were not paid in prior periods. Adjusted Cash Flows from Operating Activities is a supplemental measure used by management to evaluate and monitor liquidity and the ongoing financial performance of GFL.

Adjusted Free Cash Flow represents Adjusted Cash Flows from Operating Activities adjusted for (a) proceeds on disposal of assets and other, (b) purchase of property and equipment and (c) incremental growth investments. Adjusted Free Cash Flow is a supplemental measure used by investors as a valuation and liquidity measure in our industry. Adjusted Free Cash Flow is a supplemental measure used by management to evaluate and monitor liquidity and the ongoing financial performance of GFL. 

Adjusted Net Income (Loss) from continuing operations represents net income (loss) from continuing operations adjusted for (a) amortization of intangible assets, (b) amortization of deferred financing costs, (c) (gain) loss on foreign exchange, (d) share of net (income) loss of investments accounted for using the equity method, (e) loss on termination of hedged arrangements, (f) transaction costs, (g) acquisition, rebranding and other integration costs, (h) Founder/CEO remuneration, (i) other and (j) the tax impact of the foregoing. For the three months ended March 31, 2025, we added back the loss on termination of hedged arrangements and Founder/CEO remuneration. Adjusted income (loss) per share from continuing operations is defined as Adjusted Net Income (Loss) from continuing operations divided by the weighted average shares in the period. For the three months ended March 31, 2025, Founder/CEO remuneration and loss on termination of hedged arrangements have been added back to net income (loss) from continuing operations. We believe that Adjusted income (loss) per share from continuing operations provides a meaningful comparison of current results to prior periods' results by excluding items that GFL does not believe reflect its fundamental business performance.

Net Leverage is a supplemental measure used by management to evaluate borrowing capacity and capital allocation strategies. Net Leverage is equal to our total long-term debt, as adjusted for fair value, deferred financings and other adjustments and reduced by our cash, divided by Run-Rate EBITDA.

Run-Rate EBITDA represents Adjusted EBITDA for the applicable period as adjusted to give effect to management's estimates of (a) Acquisition EBITDA Adjustments (as defined above) and (b) the impact of annualization of certain new municipal and disposal contracts and cost savings initiatives, entered into, commenced or implemented, as applicable, in such period, as if such contracts or costs savings initiatives had been entered into, commenced or implemented, as applicable, on the first day of such period ((a) and (b), collectively, "Run-Rate EBITDA Adjustments"). Run-Rate EBITDA has not been adjusted to take into account the impact of the cancellation of contracts and cost increases associated with these contracts. These adjustments reflect monthly allocations of Acquisition EBITDA for the acquired businesses based on straight line proration. As a result, these estimates do not take into account the seasonality of a particular acquired business. While we do not believe the seasonality of any one acquired business is material when aggregated with other acquired businesses, the estimates may result in a higher or lower adjustment to our Run-Rate EBITDA than would have resulted had we adjusted for the actual results of each of the acquired businesses for the period prior to our acquisition. We primarily use Run-Rate EBITDA to show how GFL would have performed if each of the acquired businesses had been consummated at the start of the period as well as to show the impact of the annualization of certain new municipal and disposal contracts and cost savings initiatives. We also believe that Run-Rate EBITDA is useful to investors and creditors to monitor and evaluate our borrowing capacity and compliance with certain of our debt covenants. Run-Rate EBITDA as presented herein is calculated in accordance with the terms of our revolving credit agreement.

All references to "$" in this press release are to Canadian dollars, unless otherwise noted.

For further information:
Patrick Dovigi, Founder and Chief Executive Officer
+1 905-326-0101
pdovigi@gflenv.com

GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) 
(In millions of dollars except per share amounts)

		Three months ended March 31,
		2025		2024(1)
Revenue		$                      1,560.1		$                      1,431.8
Expenses
Cost of sales		1,272.6		1,189.4
Selling, general and administrative expenses		286.2		231.3
Interest and other finance costs		210.4		151.0
Loss (gain) on sale of property and equipment		3.2		(2.5)
(Gain) loss on foreign exchange		(5.7)		74.5
Other		8.0		(4.5)
		1,774.7		1,639.2
Share of net loss of investments accounted for using the equity method		(51.7)		(30.6)
Loss before income taxes		(266.3)		(238.0)
Current income tax expense		33.2		32.3
Deferred tax recovery		(85.6)		(74.5)
Income tax recovery		(52.4)		(42.2)
Net loss from continuing operations		(213.9)		(195.8)
Net income from discontinued operations		3,620.8		19.3
Net income (loss)		3,406.9		(176.5)
Less: Net loss attributable to non-controlling interests		(2.7)		(3.7)
Net income (loss) attributable to GFL Environmental Inc.		3,409.6		(172.8)
Items that may be subsequently reclassified to net income (loss)
Currency translation adjustment		(10.4)		140.7
Reclassification to net income (loss) of fair value movements on cash flow hedges, net of tax		6.0		—
Fair value movements on cash flow hedges, net of tax		7.3		(15.3)
Other comprehensive income		2.9		125.4
Comprehensive loss from continuing operations		(211.0)		(70.4)
Comprehensive income from discontinued operations		3,444.3		19.3
Total comprehensive income (loss)		3,233.3		(51.1)
Less: Total comprehensive (loss) income attributable to non-controlling interests		(2.9)		1.8
Total comprehensive income (loss) attributable to GFL Environmental Inc.		$                      3,236.2		$                         (52.9)
Basic and diluted (loss) income per share(2)
Continuing operations		$                         (0.58)		$                         (0.58)
Discontinued operations		9.25		0.05
Total operations		$                           8.67		$                         (0.53)
Weighted and diluted weighted average number of shares outstanding		391,360,731		372,986,761

______________________
(1)	Comparative figures have been re-presented, refer to Note 2 and 17 in our Unaudited Interim Financial Statements.
(2)	Basic and diluted (loss) income per share is calculated on net income (loss) attributable to GFL Environmental Inc. adjusted for amounts attributable to preferred shareholders. Refer to Note 9 in our Unaudited Interim Financial Statements.

GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Financial Position 
(In millions of dollars)

		March 31, 2025		December 31, 2024
Assets
Cash		$                      537.2		$                      133.8
Trade and other receivables, net		796.5		1,175.1
Income taxes recoverable		25.3		86.0
Prepaid expenses and other assets		248.5		300.7
Current assets		1,607.5		1,695.6
Property and equipment, net		6,955.9		7,851.7
Intangible assets, net		1,698.8		2,833.2
Investments accounted for using the equity method		1,989.4		344.4
Other long-term assets		365.8		207.4
Deferred income tax assets		—		209.3
Goodwill		6,854.8		8,065.8
Non-current assets		17,864.7		19,511.8
Total assets		$                 19,472.2		$                 21,207.4
Liabilities
Accounts payable and accrued liabilities		1,758.2		1,880.2
Income taxes payable		5.5		—
Long-term debt		93.2		1,146.5
Lease obligations		46.9		69.4
Due to related party		—		2.9
Landfill closure and post-closure obligations		51.6		51.7
Current liabilities		1,955.4		3,150.7
Long-term debt		6,929.6		8,853.0
Lease obligations		412.5		477.2
Other long-term liabilities		31.2		41.6
Deferred income tax liabilities		782.4		464.5
Landfill closure and post-closure obligations		1,072.7		998.7
Non-current liabilities		9,228.4		10,835.0
Total liabilities		11,183.8		13,985.7
Shareholders' equity
Share capital		7,772.1		9,938.0
Contributed surplus		158.5		151.3
Deficit		(171.8)		(3,573.5)
Accumulated other comprehensive income		289.2		462.6
Total GFL Environmental Inc.'s shareholders' equity		8,048.0		6,978.4
Non-controlling interests		240.4		243.3
Total shareholders' equity		8,288.4		7,221.7
Total liabilities and shareholders' equity		$                 19,472.2		$                 21,207.4

GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows 
(In millions of dollars)

	Three months ended March 31,
	2025		2024
Operating activities
Net income (loss)	$                  3,406.9		$                   (176.5)
Adjustments for non-cash items
Depreciation of property and equipment	257.9		255.0
Amortization of intangible assets	61.4		108.7
Share of net loss of investments accounted for using the equity method	51.7		30.6
Gain on divestiture	(4,466.8)		—
Other	8.0		(4.5)
Interest and other finance costs	212.0		153.0
Share-based payments	59.7		57.0
(Gain) loss on unrealized foreign exchange	(6.6)		74.8
Loss (gain) on sale of property and equipment	4.4		(2.1)
Current income tax expense	59.7		39.2
Deferred tax expense (recovery)	762.0		(92.8)
Interest paid in cash	(188.7)		(121.9)
Income taxes paid in cash, net	(4.6)		(1.9)
Changes in non-cash working capital items	(41.5)		(53.2)
Landfill closure and post-closure expenditures	(2.0)		(2.2)
	173.5		263.2
Investing activities
Purchase of property and equipment	(314.6)		(296.3)
Proceeds from disposal of assets and other	3.7		7.7
Proceeds from divestitures	5,929.6		—
Business acquisitions and investments, net of cash acquired	(241.0)		(111.6)
Distribution received from joint ventures	3.6		6.3
	5,381.3		(393.9)
Financing activities
Repayment of lease obligations	(25.6)		(37.7)
Issuance of long-term debt	706.9		578.8
Repayment of long-term debt	(3,723.8)		(463.2)
Proceeds from termination of hedged arrangements	28.0		—
Payment of contingent purchase consideration and holdbacks	(2.4)		(1.2)
Repurchase of share capital, net of issuance costs	(2,134.6)		—
Dividends issued and paid	(7.9)		(6.4)
Payment of financing costs	(0.1)		(2.4)
Repayment of loan to related party	(2.9)		(2.9)
	(5,162.4)		65.0
Increase (decrease) in cash	392.4		(65.7)
Changes due to foreign exchange revaluation of cash	11.0		—
Cash, beginning of period	133.8		135.7
Cash, end of period	$                     537.2		$                       70.0

SUPPLEMENTAL DATA

You should read the following information in conjunction with our audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2024, as well as our Unaudited Interim Financial Statements and notes thereto for the three months ended March 31, 2025.

Revenue Growth

The following table summarizes the revenue growth in our segments for the period indicated:

		Three months ended March 31, 2025
		Pro forma excluding divestitures(1)
		Contribution from Acquisitions		Organic Growth		Foreign Exchange		Revenue Growth		Impact from divestitures		Total Revenue Growth
Canada		0.4 %		13.5 %		— %		13.9 %		— %		13.9 %
USA		3.3		2.0		6.5		11.8		(5.0)		6.8
Total		2.4 %		5.6 %		4.5 %		12.5 %		(3.5) %		9.0 %

_____________________________
(1)	Reflects pro forma adjustments to remove the contribution of one divestiture in Fiscal 2024.

Detail of Organic Growth

The following table summarizes the components of our organic growth for the period indicated:

		Pro forma excluding divestitures(1)
		Three months ended March 31, 2025		Three months ended March 31, 2025
Price		5.7 %		5.5 %
Surcharges		(1.2)		(1.1)
Volume		0.9		0.9
Commodity price		0.2		0.1
Total organic growth		5.6 %		5.4 %

_____________________________
(1)	Reflects pro forma adjustments to remove the contribution of one divestiture in Fiscal 2024.

Operating Segment Results

The following table summarizes our operating segment results for the periods indicated, excluding the results of GFL Environmental Services which has been presented as discontinued operations:

		Three months ended March 31, 2025						Three months ended March 31, 2024(1)
($ millions)		Revenue		Adjusted EBITDA(2)		Adjusted EBITDA Margin(3)		Revenue		Adjusted  EBITDA(2)		Adjusted EBITDA Margin(3)
Canada		$         494.0		$         137.7		27.9 %		$         433.6		$         113.6		26.2 %
USA		1,066.1		360.2		33.8		998.2		327.1		32.8
Solid Waste		1,560.1		497.9		31.9		1,431.8		440.7		30.8
Corporate		—		(71.8)		—		—		(66.3)		—
Total		$     1,560.1		$         426.1		27.3 %		$     1,431.8		$         374.4		26.1 %

________________________
(1)	Comparative figures have been re-presented, refer to Note 2 and 17 in our Unaudited Interim Financial Statements.
(2)	A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
(3)	See "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.

Net Leverage

The following table presents the calculation of Net Leverage as at the dates indicated:

($ millions)		March 31, 2025		December 31, 2024
Total long-term debt, net of derivative asset(1)		$                   6,949.9		$                   9,884.8
Deferred finance costs and other adjustments		(67.8)		(134.9)
Total long-term debt excluding deferred finance costs and other adjustments		$                   7,017.7		$                 10,019.7
Less: cash		(537.2)		(133.8)
		6,480.5		9,885.9
Trailing twelve months Adjusted EBITDA(2)		1,811.3		2,250.5
Run-Rate EBITDA Adjustments(3)		249.7		182.6
Run-Rate EBITDA(3)		$                   2,061.0		$                   2,433.1
Net Leverage(2)		3.1x		4.1x

_____________________________
(1)	Total long-term debt includes derivative asset reclassified for financial statement presentation purposes to other long-term assets, refer to Note 7 in our Unaudited Interim Financial Statements.
(2)	A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
(3)	See "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures and ratios.

Shares Outstanding

The following table presents the total shares outstanding as at the date indicated:

		March 31, 2025
Subordinate voting shares		354,894,220
Multiple voting shares		11,812,964
Basic shares outstanding		366,707,184
Effect of dilutive instruments		12,334,786
Series A Preferred Shares (as converted)		7,661,858
Series B Preferred Shares (as converted)		8,317,552
Diluted shares outstanding		395,021,380

NON-IFRS RECONCILIATION SCHEDULE

Adjusted EBITDA 

The following table provides a reconciliation of our net loss from continuing operations to EBITDA and Adjusted EBITDA for the periods indicated, excluding the results of GFL Environmental Services which has been presented as discontinued operations:

($ millions)		Three months ended March 31, 2025		Three months ended March 31, 2024(1)
Net loss from continuing operations		$                    (213.9)		$                    (195.8)
Add:
Interest and other finance costs		210.4		151.0
Depreciation of property and equipment		257.9		225.4
Amortization of intangible assets		61.4		70.1
Income tax recovery		(52.4)		(42.2)
EBITDA		263.4		208.5
Add:
(Gain) loss on foreign exchange(2)		(5.7)		74.5
Loss (gain) on sale of property and equipment		3.2		(2.5)
Share of net loss of investments accounted for using the equity method(3)		55.3		37.2
Share-based payments(4)		58.4		55.5
Transaction costs(5)		21.2		5.3
Acquisition, rebranding and other integration costs(6)		1.5		0.4
Founder/CEO remuneration(7)		20.8		—
Other		8.0		(4.5)
Adjusted EBITDA		$                      426.1		$                      374.4

_____________________________
(1)	Comparative figures have been re-presented, refer to Note 2 and 17 in our Unaudited Interim Financial Statements.
(2)	Consists of (i) non-cash gains and losses on foreign exchange and interest rate swaps entered into in connection with our debt instruments and (ii) gains and losses attributable to foreign exchange rate fluctuations.
(3)	Excludes share of Adjusted EBITDA of investments accounted for using the equity method for RNG projects.
(4)	This is a non-cash item and consists of the amortization of the estimated fair value of share-based payments granted to certain members of management under share-based payment plans.
(5)	Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable period. We expect to incur similar costs in connection with other acquisitions in the future and, under IFRS, such costs relating to acquisitions are expensed as incurred and not capitalized. This is part of SG&A.
(6)	Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of cost of sales.
(7)	Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.

Adjusted Net Loss from Continuing Operations

The following table provides a reconciliation of our net loss from continuing operations to Adjusted Net Loss from continuing operations for the periods indicated, excluding the results of GFL Environmental Services which has been presented as discontinued operations:

($ millions)		Three months ended March 31, 2025		Three months ended March 31, 2024(1)
Net loss from continuing operations		$                    (213.9)		$                    (195.8)
Add:
Amortization of intangible assets(2)		61.4		70.1
Amortization of deferred financing costs		23.4		4.9
(Gain) loss on foreign exchange(3)		(5.7)		74.5
Share of net loss of investments accounted for using the equity method(4)		55.3		37.2
Loss on termination of hedged arrangements(5)		30.5		—
Transaction costs(6)		21.2		5.3
Acquisition, rebranding and other integration costs(7)		1.5		0.4
Founder/CEO remuneration(8)		20.8		—
Other		8.0		(4.5)
Tax effect(9)		(37.0)		(39.9)
Adjusted Net Loss from continuing operations		$                       (34.5)		$                       (47.8)
Adjusted loss per share from continuing operations, basic and diluted		$                       (0.09)		$                            (0.13)

_____________________________
(1)	Comparative figures have been re-presented, refer to Note 2 and 17 in our Unaudited Interim Financial Statements.
(2)	This is a non-cash item and consists of the amortization of intangible assets such as customer lists, municipal contracts, non-compete agreements, trade name and other licenses.
(3)	Consists of (i) non-cash gains and losses on foreign exchange and interest rate swaps entered into in connection with our debt instruments and (ii) gains and losses attributable to foreign exchange rate fluctuations.
(4)	Excludes share of net income of investments accounted for using the equity method for RNG projects.
(5)	Consists of gains and losses on the termination of hedged arrangements associated with the 3.750% 2025 Secured Notes and the 5.125% 2026 Secured Notes.
(6)	Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable period. We expect to incur similar costs in connection with other acquisitions in the future and, under IFRS, such costs relating to acquisitions are expensed as incurred and not capitalized. This is part of SG&A.
(7)	Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of cost of sales.
(8)	Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.
(9)	Consists of the tax effect of the adjustments to net loss from continuing operations.

Adjusted Cash Flows from Operating Activities and Adjusted Free Cash Flow

The following table provides a reconciliation of our cash flows from operating activities to Adjusted Cash Flows from Operating Activities and Adjusted Free Cash Flow for the periods indicated:

($ millions)		Three months ended March 31, 2025		Three months ended March 31, 2024
Cash flows from operating activities		$                      173.5		$                      263.2
Less:
Operating cash flows from discontinued operations(1)		69.6		71.0
Cash flows from operating activities (excluding discontinued operations)		103.9		192.2
Add:
Transaction costs(2)		21.2		5.3
Acquisition, rebranding and other integration costs(3)		1.5		0.4
Founder/CEO remuneration(4)		20.8		—
Cash interest paid on early termination of long-term debt(5)		68.9		—
Distribution received from joint ventures		3.6		6.3
Adjusted Cash Flows from Operating Activities		219.9		204.2
Proceeds on disposal of assets and other		3.7		7.7
Purchase of property and equipment		(296.5)		(255.0)
Adjusted Free Cash Flow (including incremental growth investments)		(72.9)		(43.1)
Incremental growth investments(6)		86.6		59.5
Adjusted Free Cash Flow		$                         13.7		$                         16.4

_____________________________
(1)	Consists of operating cash flows from discontinued operations. As at March 31, 2025, GFL Environmental Services was presented as discontinued operations. Refer to Note 17 in our Unaudited Interim Financial Statements.
(2)	Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable period. We expect to incur similar costs in connection with other acquisitions in the future, and, under IFRS, such costs relating to acquisitions are expensed as incurred and not capitalized. This is part of SG&A.
(3)	Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of cost of sales.
(4)	Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.
(5)	Consists of interest and related fees on early repayment of revolving credit facility, Term Loan B Facility, 3.75% 2025 Secured Notes, and 5.125% 2026 Secured Notes.
(6)	Consists of incremental sustainability related capital projects, primarily related to recycling and RNG.

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SOURCE GFL Environmental Inc.

FAQ

How much did GFL (GFL) revenue grow in Q1 2025?

GFL's revenue grew 12.5% excluding divestitures (9.0% including divestitures) to $1,560.1 million in Q1 2025, driven by 5.7% core pricing and 0.9% positive volume growth.

What is GFL's current Net Leverage ratio in 2025?

GFL achieved its lowest-ever Net Leverage ratio of 3.1x in Q1 2025, following the sale of its Environmental Services business.

How many shares did GFL repurchase in Q1 2025?

GFL repurchased 31,725,083 subordinate voting shares through their normal course issuer bid, participation in a secondary offering, and direct purchases from BC Partners.

What was GFL's Q1 2025 EBITDA margin compared to last year?

GFL's Adjusted EBITDA margin increased by 120 basis points to 27.3% in Q1 2025, compared to 26.1% in Q1 2024, marking their highest Q1 margin ever.

How much acquisition revenue has GFL generated year-to-date in 2025?

GFL's year-to-date completed acquisitions are generating approximately $85.0 million in annualized revenue.