Gfl Environmental Inc Stock Price, News & Analysis

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

GFL Environmental has announced a new share repurchase program (NCIB) running from March 3, 2025 to March 2, 2026. The company plans to allocate up to $2.25 billion from the proceeds of its Environmental Services business sale to repurchase subordinate voting shares.

The program allows GFL to repurchase up to 28,046,256 subordinate voting shares, representing 10% of the public float. Daily repurchases will be to 64,492 shares, with exceptions for block purchases. The buyback will be conducted through TSX and NYSE facilities, with the majority of proceeds targeted at purchasing shares from sponsor shareholders.

GFL has received special permission from the Ontario Securities Commission to purchase up to 10% of its public float through NYSE and U.S.-based trading systems, exceeding the standard 5% limit. All repurchased shares will be cancelled.

GFL Environmental, North America's fourth-largest environmental services company, hosted its 2025 Investor Day in New York City to present its 2028 financial framework. The company outlined ambitious growth targets, including:

- Annual organic revenue growth of 5.0-6.0%
- 40 basis points annual organic Adjusted EBITDA margin expansion
- Revenue contribution of $285-440M from EPR, RNG and self-help levers (2026-2028)
- Adjusted EBITDA contribution of $270-380M from same initiatives

By 2028, GFL projects revenue between $9.24-9.49 billion and Adjusted EBITDA between $3.04-3.12 billion. The company plans to deploy $700-900M annually for acquisitions while maintaining net leverage in the low 3s. These projections assume continued organic growth, operational efficiencies, and stable economic conditions.

GFL Environmental reported strong Q4 and full-year 2024 results, with Q4 revenue of $1,985.9M (up 8.2% excluding divestitures) and full-year revenue of $7,862.0M (up 8.8% excluding divestitures). The company's Q4 Adjusted EBITDA increased 17.4% to $577.8M, with margin expansion of 300 basis points.

For full-year 2024, GFL posted an Adjusted EBITDA of $2,250.5M (up 12.3%) and Adjusted Net Income of $321.3M, though recording a net loss of $737.7M. The company announced the sale of its Environmental Services business at an $8B valuation, expected to close March 1, 2025.

Looking ahead to 2025, GFL projects revenue of approximately $8,425M including Environmental Services, with Adjusted EBITDA estimated at $2,500M and Adjusted Free Cash Flow between $950M-$975M. The company expects to achieve Net Leverage of 3.6x by end of 2025.

GFL Environmental (NYSE: GFL) (TSX: GFL) has announced it will release its Q4 and full year 2024 financial results, along with 2025 guidance, after market close on February 24, 2025. The company will host an investor conference call on February 25, 2025, at 8:30 am Eastern Time.

Additionally, GFL will host its 2025 Investor Day on February 27, 2025, at the New York Stock Exchange. The event will begin at 9:00 am Eastern Time, featuring senior management presentations on growth strategies, capital allocation, sustainability initiatives, and financial objectives, followed by a Q&A session. The Investor Day is invitation-only, requiring registration for both in-person and virtual attendance.

GFL Environmental has announced an agreement to sell its Environmental Services business for an $8.0 billion enterprise value to Apollo Funds and BC Partners. The company will retain a 44% equity stake ($1.7 billion) in the business, with Apollo and BC each holding 28%. The transaction is expected to generate approximately $6.2 billion in net cash proceeds.

The company plans to use up to $3.75 billion to repay debt and allocate up to $2.25 billion for share repurchases. This strategic move is expected to reduce Net Leverage to 3.0x and decrease annualized cash interest by about $200 million. GFL will maintain an option to repurchase the Environmental Services business within five years of closing.

The transaction, expected to close in Q1 2025, was unanimously approved by GFL's board and received a fairness opinion from Canaccord Genuity Corp.

GFL Environmental announced a quarterly cash dividend of US$0.014 per share for both subordinate voting shares and multiple voting shares for Q4 2024. The dividend will be paid on January 31, 2025 to shareholders of record as of January 13, 2025. The company has designated this as an eligible dividend under the Income Tax Act (Canada). This announcement demonstrates GFL's commitment to returning value to shareholders through regular dividend payments.

GFL Environmental reported strong Q3 2024 results with revenue of $2,014.7 million, up 9.3% excluding divestitures. The company achieved its highest-ever Adjusted EBITDA margin of 31.1%, a 300 basis point increase year-over-year. Net income reached $110.6 million, compared to $18.3 million in Q3 2023. Solid Waste revenue was $1,554.2 million with 6.0% core pricing growth. The company's Environmental Services sale process is progressing with expected net proceeds of at least $6 billion. GFL maintained its 2024 guidance and announced a planned COO transition effective January 2025.

Patrick Dovigi, Chairman, President and CEO of GFL Environmental, announced an internal reorganization of the Dovigi Group's holdings of multiple voting shares (MVS) on October 31, 2024. The reorganization involved the Dovigi Group's holdings, which includes Mr. Dovigi, his family members, and discretionary trusts. The change was purely structural, with the Dovigi Group maintaining ownership of 11,812,964 MVS, representing 100% of outstanding MVS. The reorganization shifted from indirect ownership through holding entities to direct ownership and control, with no change in the total number of shares owned.