GFL reports highest adjusted EBITDA margin in company history

GFL Environmental Inc. shared its results for the third quarter of 2025, noting strong financial results and expects ongoing growth into the future. 

Third quarter results

• Revenue of $1,694.2 million in the third quarter of 2025 shows an increase of 9 percent, including 6.3 percent from core pricing and 1 percent from positive volume.
• Adjusted EBITDA increased by 12.0 percent to $535.1 million in the third quarter of 2025, compared to $477.8 million in the third quarter of 2024. Adjusted EBITDA margin was 31.6 percent in the third quarter of 2025, compared to 30.7 percent in the third quarter of 2024.
• Net income from continuing operations was $108.1 million in the third quarter of 2025, compared to net income from continuing operations of $41.6 million in the third quarter of 2024.
• Adjusted Free Cash Flow was $180.5 million in the third quarter of 2025, compared to $105.9 million in the third quarter of 2024. The increase of $74.6 million was predominantly due to an increase in Adjusted EBITDA, improvement in working capital and a reduction in cash interest and cash income tax paid, partially offset by an increase in cash capex net of incremental growth investments.
• During the third quarter of 2025, the company repurchased 5,132,657 subordinate voting shares under its normal course issuer bid. GFL intends to continue to be opportunistic on further share repurchases going forward.

Year to date results

• Revenue of $4,929.5 million for the nine months ended September 30, 2025, an increase of 10.2 percent excluding the impact of divestitures (7.9 percent including the impact of divestitures), including 6.0 percent from core pricing, and 1.5 percent from positive volume.
• Adjusted EBITDA increased by 13.4 percent to $1,476.3 million for the nine months ended September 30, 2025, compared to $1,301.6 million in the nine months ended September 30, 2024. Adjusted EBITDA margin was 29.9 percent for the nine months ended September 30, 2025, compared to 28.5 percent for the nine months ended September 30, 2024.
• Net income from continuing operations was $168.4 million for the nine months ended September 30, 2025, compared to net loss from continuing operations of $686.1 million for the nine months ended September 30, 2024.
• Adjusted Free Cash Flow was $331.3 million for the nine months ended September 30, 2025, compared to $235.4 million for the nine months ended September 30, 2024. The increase of $95.9 million was predominantly due to an increase in Adjusted EBITDA and a reduction in cash interest and cash income tax paid, partially offset by an investment in working capital and increase in cash capex net of incremental growth investments.

Updated full year 2025 guidance 

GFL also provided its updated guidance for 2025 assuming a USD/CAD exchange rate of 1.40 for the remainder of the year.

• Revenue is estimated to be between $6,575 million and $6,600 million, compared to the prior guidance of between $6,550 million and $6,575 million.
• Adjusted EBITDA is estimated to be $1,975 million, compared to the prior guidance of between $1,950 million and $1,975 million.
• Adjusted Free Cash Flow is reaffirmed at approximately $750 million.
• Net Leverage is estimated to be in the low-to-mid 3.0x range by the end of 2025.

"Once again, the dedication of our over 15,000 employees delivered better than expected results across all of our key financial metrics," said Patrick Dovigi, founder and chief executive officer of GFL. "In the quarter, we generated top line growth of 9.0 percent and an Adjusted EBITDA margin of 31.6 percent, the highest in the company's history and an industry leading 90 basis points increase over the prior year. The ongoing strength of our financial performance in the face of continued external headwinds further underscores the resiliency of our business model and effectiveness of our strategies."

Dovigi continued, "We also executed on our returns focused capital allocation strategies during the quarter, repatriating $200 million from the highly successful recapitalization of GIP, completing $346 million of share repurchases and investing over $300 million in acquisitions. Our M&A pipeline remains robust and going forward we will continue to be opportunistic in our approach to accretive M&A, strategic reinvestment, and return of capital to shareholders."

Dovigi concluded, "Given our strong results to date, for the second time this year we are increasing our full year revenue and Adjusted EBITDA guidance to be at or above the high end of the previously provided ranges. The contributions from our growth investments and recently completed M&A will provide additional tailwinds over the near term, positioning GFL for another year of outsized margin expansion and growth in 2026."