GFL posts highest-ever Q2 EBITDA margins despite lower commodity prices

GFL Environmental saw higher earnings and revenue in the second quarter of 2025 and raised its full year adjusted EBITDA guidance. Revenue for the three months ended June 30 was $1.68 billion, up 5.9 percent including the impact of divestitures, and 9.5 percent excluding them. The increase includes 5.8 percent from core pricing and 2.5 percent from volume growth.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 14.6 percent to $515.1 million, compared with $449.4 million a year earlier. The adjusted EBITDA margin was 30.7 percent, up from 28.4 per cent last year. GFL said the 230-basis-point increase marks its highest second-quarter solid waste EBITDA margin on record at 34.7 percent.

Net income from continuing operations was $274.2 million, compared with a net loss of $531.9 million in the second quarter of 2024.

Adjusted free cash flow for the quarter was $137.1 million, up from $111 million. The company said the increase was driven by higher EBITDA and lower cash interest payments, partially offset by capital expenditures and growth investments.

Year-to-date results 

For the six-month period ending June 30, revenue totalled $3.24 billion, up 7.4 percent including divestitures, and 10.9 percent excluding them. Adjusted EBITDA increased 14.3 percent to $941.2 million, compared with $823.8 million for the same period in 2024. The adjusted EBITDA margin was 29.1 percent, up from 27.3 percent.

Net income from continuing operations for the first half of 2025 was $60.3 million, compared with a net loss of $727.7 million a year earlier.

Adjusted free cash flow for the six-month period was $150.8 million, up from $129.5 million.

The company said completed acquisitions to date are generating about $105 million in annualized revenue.

2025 guidance update

GFL updated its full-year 2025 guidance based on a USD/CAD exchange rate of 1.37.

• Revenue is expected between $6.55 billion and $6.575 billion, up approximately $110 million from the original forecast before considering foreign exchange impacts
• Adjusted EBITDA is expected between $1.95 billion and $1.975 billion, up about $50 million from earlier guidance
• Full-year adjusted EBITDA margin is expected to be approximately 29.9 percent at the mid-point, up 120 basis points from the previous year
• Adjusted free cash flow is reaffirmed at approximately $750 million
• Net leverage is expected to fall to the low 3.0x range by the end of 2025