Core Points - GFL Environmental Inc. announced the pricing of a secondary offering of 16,611,295 subordinate voting shares at a public offering price of US$45.15 per share [1] - The company has agreed to purchase for cancellation a total of 1,275,000 shares from RBC Dominion Securities Inc. as part of the offering [2] - The shares will be offered in all provinces and territories of Canada through a prospectus supplement to the company's base shelf prospectus [3] Offering Details - The offering is being underwritten by RBC Capital Markets, LLC in the United States and RBC Dominion Securities Inc. in Canada [1] - The prospectus supplement will be accessible on or about November 24, 2025, through SEDAR+ [5] - GFL has filed a registration statement on Form F-10 with the SEC for the offering [6] Company Background - GFL is headquartered in Vaughan, Ontario, and is the fourth largest diversified environmental services company in North America [8] - The company provides a comprehensive line of solid waste management services across Canada and in 18 U.S. states [9] - GFL employs approximately 15,000 individuals across its organization [9]

Financial Data and Key Metrics Changes - The company achieved a consolidated revenue growth of 9% year-over-year, driven by a 50 basis point sequential acceleration in pricing to 6.3% and a 100 basis point increase in volume [13][15] - Adjusted EBITDA margin reached 31.6%, the highest in the company's history, with underlying solid waste margins expanding by 250 basis points [15][9] - Adjusted free cash flow was reported at $181 million, exceeding expectations due to strong operational performance [16] Business Line Data and Key Metrics Changes - The company experienced near double-digit top-line growth, attributed to successful pricing strategies and volume performance [7] - MSW (Municipal Solid Waste) volumes increased, offsetting declines in construction-oriented activity and special waste volumes [8][15] - The company deployed nearly $650 million into acquisitions year-to-date, with an active M&A pipeline expected to contribute to growth [9][10] Market Data and Key Metrics Changes - Volumes grew by 5% in Canada, while the U.S. saw a 0.9% decline, influenced by lower construction and special waste volumes [15][56] - The company noted broader economic uncertainty impacting market activity levels, particularly in construction and industrial sectors [8] Company Strategy and Development Direction - The company is focused on maintaining a strong M&A pipeline and executing share buybacks, with a belief that current share prices are undervalued [11][42] - The management expressed confidence in the company's operating plan and growth trajectory, with expectations for continued margin expansion and revenue growth [18][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from commodity prices and economic uncertainty but remained optimistic about future performance and growth opportunities [8][10] - The company plans to provide detailed guidance for 2026 in February, with expectations for continued growth driven by M&A and EPR contributions [17][18] Other Important Information - The company completed a recapitalization of GIP, valuing it at $4.25 billion, which returned approximately $585 million to shareholders [10][11] - The company repurchased $350 million of shares in Q3 and nearly $2.8 billion year-to-date, indicating a strong commitment to returning capital to shareholders [12][11] Q&A Session Summary Question: Can you walk us through the guidance update and the factors influencing it? - Management explained that the guidance increase reflects strong pricing actions and volume performance, offset by commodity-related headwinds [20][21] Question: What is the status of the EPR ramp and its contributions? - Management noted that EPR has outperformed expectations, contributing significantly to revenue, with further benefits anticipated in 2026 [25][26] Question: How do you view the organic growth trends in Canada versus the U.S.? - Management indicated that Canada experienced higher organic growth due to EPR contributions, while the U.S. faced challenges from lower special waste volumes [53][54] Question: What are the expectations for cost inflation next year? - Management anticipates cost inflation starting with a 4%, driven by labor and other operational costs [73][72] Question: How is the company addressing pricing strategies moving forward? - Management is focused on moving away from CPI-related pricing indices to better reflect operational costs, with expectations for pricing to remain above internal cost inflation [70][78]

Financial Data and Key Metrics Changes - The company achieved a consolidated revenue growth of 9% year-over-year, driven by a sequential pricing acceleration to 6.3% and positive volume growth of 100 basis points [13][15] - Adjusted EBITDA margin reached 31.6%, the highest in the company's history, with underlying solid waste margins expanding by 250 basis points [15][9] - Adjusted free cash flow was reported at $181 million, exceeding expectations due to strong adjusted EBITDA performance [16] Business Line Data and Key Metrics Changes - The company experienced near double-digit top-line growth, attributed to effective pricing strategies and ancillary surcharges [7] - MSW (Municipal Solid Waste) volumes increased, offsetting declines in construction-oriented activity and special waste volumes [8][15] - The company deployed nearly $650 million into acquisitions year-to-date, with an active M&A pipeline expected to contribute to future growth [10][9] Market Data and Key Metrics Changes - Volumes grew by 5% in Canada, while the U.S. saw a slight decline of 0.9%, impacted by lower C&D and special waste volumes [15][55] - The company noted broader economic uncertainty affecting market activity levels, particularly in construction and industrial sectors [8] Company Strategy and Development Direction - The company is focused on maintaining a strong M&A pipeline and executing share buybacks, viewing current share prices as attractive [11][42] - The management expressed confidence in the company's operating plan and growth trajectory, with expectations for continued margin expansion [18][32] - The company aims to leverage its asset base and pricing strategies to navigate economic challenges and capitalize on recovery opportunities [6][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic backdrop but emphasized the resilience of the business model and the effectiveness of value creation strategies [6][7] - The company raised its full-year guidance for revenue and adjusted EBITDA, reflecting strong operational performance and M&A contributions [16][10] - Management remains optimistic about the potential for economic recovery and the company's ability to capitalize on it [8][18] Other Important Information - The company completed a recapitalization of GIP, valuing it at $4.25 billion, which returned approximately $585 million to shareholders [10][11] - The company repurchased $350 million of shares in Q3 and nearly $2.8 billion year-to-date, indicating a commitment to returning capital to shareholders [12][11] Q&A Session Summary Question: Can you walk us through the guidance update and how M&A effects were considered? - Management explained that the guidance was raised due to strong pricing and volume performance, with M&A contributing approximately $200 million in annualized revenue [20][24] Question: What is the status of the EPR ramp and its expected contributions? - Management indicated that EPR has outperformed expectations, contributing about $15 million in Canada for the quarter, with further contributions expected in 2026 [25][27] Question: How do you view the runway EBITDA and its growth potential? - Management noted that the current EBITDA run rate includes large EPR contracts, and they expect double-digit growth in EBITDA for the next year [30][32] Question: Can you provide insights on SG&A trends and cost absorption? - Management highlighted an 80 basis point improvement in SG&A, attributing it to better labor turnover and operational efficiencies [34][36] Question: What actions are being considered to unlock shareholder value? - Management reiterated their commitment to share buybacks and M&A, viewing current share prices as an opportunity to enhance shareholder value [39][42] Question: Can you elaborate on pricing metrics and trends? - Management discussed the impact of EPR on pricing, noting that pricing is expected to be lower next year without the same level of EPR benefits [79][70]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 grew by 9% year-over-year, driven by a 50 basis point sequential acceleration in pricing to 6.3% and a 100 basis point increase in volume [12][13] - Adjusted EBITDA margin reached 31.6%, the highest in the company's history, with an underlying margin expansion of over 250 basis points [5][13] - Adjusted free cash flow was reported at $181 million, exceeding expectations due to strong operational performance [14] Business Line Data and Key Metrics Changes - The company experienced near double-digit top-line growth, primarily due to successful pricing strategies and improved MSW volumes, which offset declines in construction-oriented activity and special waste volumes [5][6] - MSW volumes increased, while C&D and special waste volumes saw declines, particularly in the U.S. market [12][56] Market Data and Key Metrics Changes - Volumes in Canada grew by 5%, while U.S. volumes were down by 0.9%, with specific declines of 3% in C&D and 9% in special waste [13][56] - The company noted broader economic uncertainty impacting activity levels in certain market segments but remains positioned for recovery [6][56] Company Strategy and Development Direction - The company is focused on M&A, having deployed nearly $650 million into acquisitions year-to-date, with expectations for further transactions before year-end [8][9] - The recapitalization of GIP valued at $4.25 billion is seen as a significant value creation opportunity for shareholders [9][10] - The company plans to continue share buybacks, having repurchased $350 million in Q3 and nearly $2.8 billion year-to-date, viewing current share prices as attractive [11][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating plan and the strength of the M&A pipeline, indicating a clear path forward despite economic uncertainties [17] - The company raised its full-year guidance for revenue and adjusted EBITDA, reflecting strong operational performance and pricing strategies [14][20] Other Important Information - The company is experiencing a favorable trend in labor turnover, currently at high teens, which is expected to improve further, positively impacting margins [49][50] - Management highlighted the importance of pricing strategies moving away from CPI-related indices to better reflect operational costs [80][81] Q&A Session Summary Question: Can you walk us through the guidance update and the factors influencing it? - Management explained that the guidance increase reflects improved pricing and volume performance, with M&A contributing significantly to revenue growth [20][22] Question: What is the current status of the EPR ramp and its expected contributions? - The EPR ramp has outperformed expectations, contributing positively to pricing and expected to add incremental revenue growth in 2026 [25][26] Question: How do you view the organic growth trends in Canada versus the U.S.? - Canada showed higher organic growth driven by EPR contributions, while the U.S. faced challenges with negative volumes in certain segments [54][56] Question: What are the expectations for cost inflation next year? - Management anticipates cost inflation starting with a 4%, driven by labor and other operational costs [75][76] Question: How is the company addressing pricing strategies moving forward? - The company is working to move pricing off CPI-related indices to better align with actual cost structures, with expectations for pricing to remain rational and disciplined [80][81]

Core Insights - GFL Environmental Inc. reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.19 per share, and down from $0.24 per share a year ago, representing an earnings surprise of -10.53% [1] - The company posted revenues of $1.23 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.70%, but down from $1.48 billion year-over-year [2] - GFL Environmental shares have underperformed the market, losing about 2% since the beginning of the year compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $1.18 billion, and for the current fiscal year, it is $0.46 on revenues of $4.75 billion [7] - The estimate revisions trend for GFL Environmental was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Waste Removal Services industry, to which GFL Environmental belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Revenue for Q3 2025 was $1,694.2 million, an increase of 9.0% year-over-year, driven by 6.3% from core pricing and 1.0% from positive volume growth[5] - Revenue for the three months ended September 30, 2025, was $1,694.2 million, an increase from $1,554.2 million in the same period of 2024, representing an 8.99% growth[34] - Revenue growth for the total company was 9.0% for the three months ended September 30, 2025, driven by 2.9% from acquisitions and 5.4% from organic growth[42] - For the nine months ended September 30, 2025, total revenue was $4,929.5 million, an increase of 7.9% from $4,567.6 million in the same period of 2024[45] Profitability Metrics - Adjusted EBITDA for Q3 2025 was $535.1 million, a 12.0% increase from $477.8 million in Q3 2024, with an Adjusted EBITDA margin of 31.6%, the highest in the company's history[4] - Adjusted EBITDA for the three months ended September 30, 2025, was $535.1 million, representing a margin of 31.6%, compared to $477.8 million and a margin of 30.7% in the prior year[51] - Adjusted EBITDA guidance for 2025 is now estimated at $1,975 million, compared to the prior guidance of $1,950 million to $1,975 million[14] - Adjusted Free Cash Flow for Q3 2025 was $180.5 million, an increase of $74.6 million from $105.9 million in Q3 2024, primarily due to higher Adjusted EBITDA[14] Net Income and Earnings - Net income from continuing operations for Q3 2025 was $108.1 million, compared to $41.6 million in Q3 2024, reflecting significant year-over-year growth[5] - Net income from continuing operations for the three months ended September 30, 2025, was $108.1 million, compared to $41.6 million in the same period of 2024, indicating a significant increase[34] - The company’s basic income per share from continuing operations for the three months ended September 30, 2025, was $0.28, up from $0.06 in the same period of 2024[34] - Adjusted Net Income from continuing operations for the nine months ended September 30, 2025, was $150.9 million, compared to a loss of $1.4 million in the same period of 2024[57] Cash Flow and Liquidity - Adjusted Free Cash Flow for Q3 2025 was $180.5 million, up from $105.9 million in Q3 2024, reflecting a growth of 70.5%[59] - Cash flows from operating activities for Q3 2025 were $391.1 million, an increase from $347.1 million in Q3 2024, representing a growth of 12.0%[59] - Adjusted Cash Flows from Operating Activities for Q3 2025 reached $412.7 million, compared to $220.3 million in Q3 2024, indicating a significant increase of 87.2%[59] - For the nine months ended September 30, 2025, cash flows from operating activities totaled $870.7 million, down from $974.9 million in the same period of 2024, a decrease of 10.7%[61] Debt and Leverage - Net leverage is estimated to be in the low-to-mid 3.0x range by the end of 2025, indicating a stable financial position[14] - The company reported a net leverage ratio of 3.4x as of September 30, 2025, down from 4.1x as of December 31, 2024[47] - Long-term debt decreased from $8,853.0 million as of December 31, 2024, to $7,268.8 million as of September 30, 2025, a reduction of approximately 17.9%[37] - Total long-term debt, net of derivative asset, was $7,314.8 million as of September 30, 2025, a decrease from $9,884.8 million as of December 31, 2024[47] Shareholder Actions - The company repurchased $2.76 billion of shares year-to-date, representing over 10% of issued and outstanding subordinate voting shares[4] - The company plans to continue its opportunistic approach to share repurchases and M&A activities, focusing on accretive opportunities[2] Asset and Liability Management - Total assets decreased from $21,207.4 million as of December 31, 2024, to $19,355.2 million as of September 30, 2025, representing a decline of approximately 8.7%[37] - Total liabilities decreased from $13,985.7 million as of December 31, 2024, to $11,549.1 million as of September 30, 2025, a decline of approximately 17.4%[37] - Shareholders' equity increased from $7,221.7 million as of December 31, 2024, to $7,806.1 million as of September 30, 2025, an increase of approximately 8.1%[37] Acquisition and Growth Strategy - Year-to-date completed acquisitions are generating approximately $205.0 million in annualized revenue, contributing positively to overall performance[4] - The company expects to incur similar acquisition-related costs in the future, indicating ongoing market expansion strategies[56] - The company incurred transaction costs of $38.1 million for the nine months ended September 30, 2025, compared to $26.3 million in the same period of 2024, an increase of 44.0%[61]

Core Points - GFL Environmental Inc. will release its third quarter financial results for 2025 after market close on November 5, 2025 [1] - An investor conference call will be held on November 6, 2025, at 8:30 am Eastern Time [1] - The conference call can be accessed via the Company's Investors page or by dialing toll-free numbers in Canada and the U.S. [2] Company Overview - GFL is headquartered in Vaughan, Ontario, and is the fourth largest diversified environmental services company in North America [4] - The company provides a comprehensive line of solid waste management services across Canada and in 18 U.S. states [4] - GFL employs more than 15,000 individuals across its organization [4]

Core Insights - Monroe Capital LLC has successfully exited its strategic investment in Superior Waste Industries, which was sold to GFL Environmental Inc. [1] - Superior Waste Industries, founded in 2022 and based in Shawnee, OK, achieved rapid growth through strategic acquisitions [1]. Company Overview - Superior Waste Industries was established in 2022 and is headquartered in Shawnee, Oklahoma [1]. - The company expanded its operations by acquiring several firms, including Central Disposal, Harley Hollan, Sue's Recycling and Sanitation, and SDS Roll-off Dumpsters [1]. Transaction Details - The exit from the investment was executed through the sale of Superior Waste Industries to GFL Environmental Inc. [1].

Acquisition Details - GFL Environmental acquired Superior Waste Industries from Red Dog Equity in an all-cash transaction, with the deal amount undisclosed [1] - GFL plans to spend approximately $900 million on acquisitions in 2023, indicating a ramp-up in M&A activities following a slow start due to the spinoff of its environmental services business [2] Superior Waste Industries Background - Superior Waste Industries was founded by industry veteran Billy Dietrich, who partnered with Red Dog Equity and other financial sponsors to acquire Central Disposal in March 2022, which included a landfill and hauling network [3] - Dietrich aimed to grow Superior into the leading independent waste company in Oklahoma [4] Recent Developments - Superior expanded its operations by acquiring Harley Hollan Cos. in 2022, which enhanced its hauling network and included a transfer station for construction waste [5] - In 2024, Superior acquired Sue's Recycling and Sanitation, adding two transfer stations in Oklahoma, and expressed intentions to seek further acquisitions and development opportunities [6] Statements and Future Outlook - Red Dog Equity expressed satisfaction with its partnership with Superior and confidence in GFL's ability to manage Superior's team and customers effectively [7] - Prior to the acquisition of Superior, GFL made three tuck-in acquisitions in Q2, totaling $105 million in annualized revenue, and acquired Wisconsin hauling assets from LRS in March [7]

Core Insights - Red Dog Equity LLC has sold Superior Waste Industries, LLC to GFL Environmental Inc. in an all-cash transaction [1] - Superior Waste was established in March 2022 and has made several acquisitions to expand its market presence [1] - The partnership between Red Dog Equity and Superior Waste was highlighted as a key factor in the successful outcome of the sale [1] Company Overview - Red Dog Equity LLC is a private equity firm focused on investing in lower middle-market companies with strong growth potential [2] - Superior Waste Industries, LLC is an environmental services holding company based in Shawnee, Oklahoma [1] - GFL Environmental Inc. is a publicly traded company on the NYSE under the ticker GFL [1] Transaction Details - The transaction was characterized as an all-cash deal, indicating a straightforward financial exchange [1] - Stifel acted as the exclusive financial advisor to Superior Waste during this transaction [1] Leadership and Partnerships - Billy Dietrich, founder and CEO of Superior Waste, expressed gratitude for the support received from Red Dog Equity [1] - Red Dog Equity's co-managing partners emphasized the importance of their partnership with entrepreneurial leaders like Dietrich [1] - The Pritzker Organization and Monroe Capital were mentioned as investor partners in the transaction [1]