GFL(US:GFL)2025-11-06 14:32Financial 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]