Financial Data and Key Metrics Changes - GFL reported consolidated revenue of $2.015 billion for Q3 2024, aligning with guidance and reflecting an 11.3% revenue growth in solid waste, excluding divestiture impacts [24][26] - Adjusted EBITDA grew nearly 20% year-over-year, with adjusted EBITDA margins reaching 31.1%, marking a 300 basis point increase from the prior year [7][27] - Adjusted free cash flow and adjusted net income were $225 million and $126 million, respectively, both meeting expectations [29] Business Line Data and Key Metrics Changes - Solid waste adjusted EBITDA margins increased by 340 basis points, driven by commodity and fuel price tailwinds, despite headwinds from M&A and increased cost of risk [28] - Environmental Services revenue rose by 3% year-over-year, with a 9% increase when excluding lower used motor oil pricing and event-driven revenue from the prior year [26] Market Data and Key Metrics Changes - The company experienced a 6% increase in solid waste pricing, while volumes decreased by 0.8%, showing a sequential improvement over Q2 [24] - The company anticipates positive volume growth in Q4 as it anniversaries the impacts of targeted volume shedding initiatives [25] Company Strategy and Development Direction - GFL is on track to deploy approximately $900 million in M&A and growth investments for the year, with $96 million already invested in Q3, primarily in recycling and RNG infrastructure [12][13] - The company is evaluating the sale of its Environmental Services segment, expecting a minimum of $6 billion in after-tax proceeds, which will be used to repay debt and for stock buybacks [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain industry-leading financial performance, driven by organic growth and M&A opportunities [37][38] - The company expects to achieve mid-single-digit top-line organic growth and double-digit adjusted EBITDA growth in 2025, with potential contributions from ongoing M&A activities [35][36] Other Important Information - GFL's net leverage at the end of the quarter was 4.05, the lowest in the company's history, demonstrating commitment to capital allocation and deleveraging targets [14][29] - A leadership transition is planned, with Greg Yorston stepping down as COO and Billy Soffera taking over, ensuring continuity in operations [40][43] Q&A Session Summary Question: Clarification on the $6 billion from the Environmental Services sale - Management confirmed that the $6 billion is net of any tax leakage and emphasized confidence in achieving this amount [45][46] Question: Expected incremental EBITDA from EPR and RNG in 2025 - Management projected EPR to contribute $40 million to $50 million and RNG to double its contribution from $25 million to $30 million in 2025 [47][48] Question: Impact of divestiture on organizational structure and M&A - Management indicated that while divesting the Environmental Services segment would simplify certain processes, it would not lead to a significant reduction in overall overhead [72] Question: Sustainability-related spending expectations for 2025 - Management suggested that sustainability-related spending in 2025 would likely align with 2024 levels, pending further contract confirmations [83]

Group 1 - GFL Environmental Inc. reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, with an earnings surprise of 4.35% [1] - The company posted revenues of $1.48 billion for the quarter ended September 2024, which was below the Zacks Consensus Estimate by 0.61%, compared to $1.41 billion in the same quarter last year [2] - GFL Environmental shares have increased approximately 21.7% since the beginning of the year, outperforming the S&P 500's gain of 21.2% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $1.45 billion, and for the current fiscal year, it is $0.61 on revenues of $5.72 billion [7] - The Waste Removal Services industry, to which GFL belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Revenue Performance - Revenue for the nine months ended September 30, 2024, was $5,876.1 million, representing a 9.0% increase excluding divestitures and a 4.3% increase including divestitures compared to the same period in 2023[1] - Revenue for the three months ended September 30, 2024, was $2,014.7 million, an increase from $1,890.0 million for the same period in 2023, representing an increase of 6.6%[84] - Total revenue growth for the company was 6.6%, with solid waste in Canada growing by 10.3% and in the USA by 6.5%[88] - Total revenue growth for the solid waste segment in Canada was 9.1%, while the U.S. segment experienced a total revenue growth of 2.7%[14] Profitability and Loss - The net loss for the nine months ended September 30, 2024, was $538.2 million, a significant decline from a net income of $94.3 million for the same period in 2023[2] - Net income for Q3 2024 was $110.6 million, a significant increase from $18.3 million in Q3 2023[48] - Adjusted Net Income for the nine months ended September 30, 2024, was $341.7 million, with Adjusted income per share (diluted) at $0.92[72] - Total comprehensive income for the three months ended September 30, 2024, was $20.8 million, compared to $148.4 million for the same period in 2023[84] - Net income attributable to GFL Environmental Inc. for the three months ended September 30, 2024, was $110.4 million, compared to $22.1 million for the same period in 2023, showing a significant increase[84] Adjusted EBITDA - Adjusted EBITDA for the nine months ended September 30, 2024, was $1,672.7 million, compared to $1,511.5 million for the same period in 2023, reflecting a growth of 10.7%[23] - Adjusted EBITDA for Q3 2024 increased by 18.0% to $625.9 million, with an adjusted EBITDA margin of 31.1%, up 300 basis points from the prior year[34] - The trailing twelve months Adjusted EBITDA was $2,165.0 million, up from $2,003.7 million in the previous period[19] - Adjusted EBITDA margin for the total operations was 28.5% for the nine months ended September 30, 2024, compared to 26.8% for the same period in 2023[17] - Solid Waste Adjusted EBITDA margin for the nine months ended September 30, 2024, was 32.8%, compared to 30.7% in the prior year[50] Debt and Leverage - Total long-term debt as of September 30, 2024, was $9,507.3 million, an increase from $8,816.9 million as of December 31, 2023[19] - The net leverage ratio improved to 4.05x as of September 30, 2024, compared to 4.14x at the end of 2023[19] - Net Leverage improved to 4.05x, the lowest in the company's history[44] - Long-term debt significantly increased to $1,031.1 million as of September 30, 2024, from $9.7 million as of December 31, 2023[85] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2024, were $974.9 million, compared to $579.0 million for the same period in 2023, representing a 68.2% increase[100] - Adjusted Cash Flows from Operating Activities increased to $1,048.5 million for the nine months ended September 30, 2024, from $905.7 million in 2023, reflecting a 15.7% growth[100] - Adjusted Free Cash Flow, including incremental growth investments, rose to $460.2 million in 2024, up from $235.8 million in 2023, marking a 95.1% increase[100] - Incremental growth investments for the nine months ended September 30, 2024, were $247.0 million, compared to $102.7 million in 2023, indicating a 141.5% increase[100] - Cash flows from operating activities for the quarter ended September 30, 2024, were $347.1 million, up from $125.8 million in 2023, representing a 176.5% increase[102] Asset and Liability Management - Total assets as of September 30, 2024, were $20,138.6 million, up from $19,879.2 million as of December 31, 2023, indicating a growth of 1.3%[85] - Total liabilities increased to $13,133.4 million as of September 30, 2024, compared to $12,493.0 million as of December 31, 2023, reflecting a rise of 5.1%[85] - Shareholders' equity decreased to $7,005.2 million as of September 30, 2024, from $7,386.2 million as of December 31, 2023[85] Operational Highlights - The workforce of GFL Environmental Inc. is approximately 20,000 employees, supporting its operations across Canada and more than half of the U.S. states[4] - The company reported a significant non-cash loss due to the divestiture of certain U.S. assets during the current period[2] - The company plans to continue its market expansion and product development strategies, focusing on solid waste and environmental services[88] Other Financial Metrics - The company incurred transaction costs of $29.3 million for the nine months ended September 30, 2024, down from $63.9 million in 2023, a decrease of 54.3%[100] - Cash taxes related to divestitures decreased significantly to $15.0 million in 2024 from $248.6 million in 2023, a reduction of 93.9%[100] - The company incurred a loss on divestiture of $0.5 million, contrasting with a gain of $494.6 million in the previous year[86] - Founder/CEO remuneration for the nine months ended September 30, 2024, was $15.6 million, with no corresponding costs in 2023[100]

Core Insights - GFL Environmental Inc. reported a record Adjusted EBITDA margin of 31.1%, an increase of 300 basis points year-over-year, and the lowest net leverage of 4.05x in the company's history [1][3][4] - The company is on track to complete the sale of its Environmental Services business, expecting net proceeds of at least $6 billion, which will be used to repay debt and for share buybacks [3][4] - Solid Waste pricing increased by 6.0% excluding divestitures, with a sequential volume improvement of 90 basis points, both ahead of expectations [1][4] Financial Performance - For Q3 2024, GFL reported revenue of $2,014.7 million, a 9.3% increase excluding divestitures, and an 18.0% increase in Adjusted EBITDA to $625.9 million [1][4][5] - Year-to-date revenue reached $5,876.1 million, up 9.0% excluding divestitures, with Adjusted EBITDA increasing by 14.3% to $1,672.7 million [5][24] - Net income for Q3 2024 was $110.6 million, compared to $18.3 million in Q3 2023, while the year-to-date net loss was $538.2 million due to a non-cash loss from divestitures [4][5][24] Operational Highlights - The company completed acquisitions year-to-date that are generating approximately $115 million in annualized revenue [1][3] - GFL's Solid Waste revenue for Q3 2024 was $1,554.2 million, with a core pricing increase of 6.0% despite a volume decrease of 0.8% [4][5] - Environmental Services revenue increased to $460.5 million, a 7.9% increase when excluding the impact of an unusually high level of large event-driven business from the prior year [4][5] Strategic Initiatives - GFL is focused on capital allocation, having deployed $96.4 million in growth initiatives and $47.4 million in tuck-in acquisitions during the quarter [3][4] - The company aims to deploy approximately $900 million into M&A and growth investments in 2024 [3] - A leadership transition is planned, with Billy Soffera set to take over as COO in January 2025, ensuring continuity in operational strategy [3]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for GFL Environmental Inc. despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - GFL Environmental is expected to report quarterly earnings of $0.23 per share, reflecting a year-over-year decrease of 4.2% [3]. - Revenue is projected to be $1.49 billion, which is an increase of 5.5% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.17% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for GFL is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -17.90% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - GFL's current Zacks Rank is 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [10]. Historical Performance - In the last reported quarter, GFL Environmental had an earnings surprise of +5%, reporting $0.21 per share against an expectation of $0.20 [11]. - Over the past four quarters, GFL has beaten consensus EPS estimates two times [12]. Industry Comparison - In the Zacks Waste Removal Services industry, Aris Water Solutions, Inc. is expected to post earnings of $0.27 per share, indicating a year-over-year increase of 58.8% [16]. - Aris Water Solutions has an Earnings ESP of -9.77% and a Zacks Rank of 4, making it difficult to predict an earnings beat [17].

Core Viewpoint - GFL Environmental Inc. will release its 2024 third quarter financial results on November 6, 2024, and will host an investor conference call on November 7, 2024, at 8:30 am Eastern Time [1]. Group 1: Financial Results Announcement - The company is set to announce its 2024 third quarter financial results after market close on November 6, 2024 [1]. - An investor conference call will take place on November 7, 2024, at 8:30 am Eastern Time to discuss the financial results [1]. Group 2: Conference Call Access - A live audio webcast of the conference call can be accessed via the company's Investors page or by dialing toll-free numbers in Canada and the United States [2]. - Participants are encouraged to pre-register for the conference call to receive a conference access code and PIN for immediate access [3]. Group 3: Company Overview - GFL Environmental Inc. is headquartered in Vaughan, Ontario, and is the fourth largest diversified environmental services company in North America [4]. - The company provides a comprehensive range of services including solid waste management, liquid waste management, and soil remediation across Canada and more than half of the U.S. states [4]. - GFL employs over 20,000 individuals across its organization [4].

VAUGHAN, ON, Oct. 3, 2024 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced that the Board of Directors of the Company has declared a cash dividend of US$0.014 for each outstanding subordinate voting share and multiple voting share of the Company for the third quarter of 2024. The cash dividend will be paid on October 31, 2024 to shareholders of record at the close of business on October 16, 2024. The Company has designated this dividend as an eligible div ...

VAUGHAN, ON, Oct. 1, 2024 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL") today announced the pricing of US$210 million in aggregate principal amount of Florida Development Finance Corporation (the "Issuer") Solid Waste Disposal Revenue Bonds (the "Bonds") at 4.375% in a transaction that was significantly oversubscribed. The Bonds will have an initial mandatory tender date of October 1, 2031. The Issuer will loan the proceeds of the Bonds to a subsidiary of GFL to finance or refinance c ...

VAUGHAN, ON, Sept. 24, 2024 /PRNewswire/ -- GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL") today announced that it is planning to participate in, subject to market and other conditions, an offering (the "Bond Offering") of US$210 million in aggregate principal amount of Florida Development Finance Corporation (the "Issuer") Solid Waste Disposal Revenue Bonds (the "Bonds"). The Issuer will loan the proceeds of the Bonds to a subsidiary of GFL to finance or refinance certain solid waste disposal facili ...

VAUGHAN, ON, Sept. 12, 2024 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced that HPS Investment Partners, LLC ("HPS"), on behalf of the holders of the Company's Series A perpetual convertible preferred shares ("Series A Preferred Shares"), has provided notice of conversion of 14,565,543 Series A Preferred Shares for 16,000,000 subordinate voting shares. The subordinate voting shares issued on conversion of the Series A Preferred Shares were sold by funds ...