GFL sees record 30 percent Adjusted EBITDA margin in 2025
Asset sale and share buybacks reduced net leverage to 3.4x in 2025
GFL Environmental Inc. reported a full-year 2025 revenue of 6.62 billion dollars, up 9.5 percent excluding divestitures, and an adjusted EBITDA of 1.99 billion dollars, an increase of 12.8 percent year over year. Adjusted EBITDA margin reached 30.0 percent, compared to 28.7 percent in 2024.
Net income from continuing operations totaled 241.1 million dollars for 2025, compared to a net loss of 897.5 million dollars in the prior year. Adjusted Free Cash Flow was 755.9 million dollars, up from 611.4 million dollars in 2024.
Fourth quarter revenue
In the fourth quarter, revenue was 1.69 billion dollars, up 7.3 percent, including 6.4 percent from core pricing. Adjusted EBITDA increased 11.1 percent to 508.7 million dollars. Adjusted EBITDA margin for the quarter was 30.2 percent, compared to 29.1 percent in the fourth quarter of 2024. Net income from continuing operations was 72.7 million dollars, compared to a net loss of 211.4 million dollars a year earlier. Adjusted Free Cash Flow reached 424.6 million dollars, up from 281.4 million dollars.
During the year, the company completed the sale of its Environmental Services business and the recapitalization of Green Infrastructure Partners. Proceeds were used to reduce debt and repurchase 43,741,452 subordinate voting shares through normal course issuer bids, direct buybacks, and secondary offerings. GFL ended 2025 with a Net Leverage of 3.4x.
Looking ahead to 2026
For 2026, GFL projects revenue of approximately 7.0 billion dollars and Adjusted EBITDA of approximately 2.14 billion dollars. Adjusted EBITDA margin is expected to be approximately 30.6 percent. Adjusted Free Cash Flow is estimated at approximately 835 million dollars.
The company expects core pricing growth in the mid 5 percent range, volume growth between 0.25 percent and 0.50 percent, and a 2.5 percent contribution from net M and A activity. Net capital expenditures are projected at approximately 800 million dollars, excluding approximately 175 million dollars in incremental growth capital tied primarily to material recycling facilities and infrastructure related to extended producer responsibility legislation. Net leverage is expected to be in the low 3x range by the end of 2026.
