GFL: GFL Environmental Reports First Quarter 2025 Results

Revenue, Adjusted EBITDA 1 and Adjusted Free Cash Flow 1 all ahead of expectations Net Leverage 1 of 3.1x, lowest in Company's history Revenue of $1,560.1 million , increase of 12.5% excluding the impact of divestitures 2 (9.0% including the impact of divestitures) Adjusted EBITDA 1 of $426.1 million , increase of 13.8%; Adjusted Net Loss from continuing operations 1 of $34.5 million ; Net loss from continuing operations of $213.9 million Adjusted EBITDA margin 1 of 27.3%, 120 basis points increase over the prior year period; highest Q1 Adjusted EBITDA margin 1 in Company's history Year-to-date completed acquisitions generating approximately $85.0 million in annualized revenue VAUGHAN, ON , April 30, 2025 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL", "we" or "our") today announced its results for the first quarter of 2025. "I am extremely proud of the hard work and commitment of our over 15,000 employees, as we delivered another strong start to the year," said Patrick Dovigi , Founder and Chief Executive Officer of GFL. "Our exceptional execution drove industry leading top line growth of 12.5% and 120 basis points of Adjusted EBITDA margin 1 expansion over the prior year period. Our strong performance, achieved amid increased macroeconomic volatility and unusually challenging weather conditions, underscores the resiliency of our business model." Mr. Dovigi continued, "During the quarter, we used the proceeds from the sale of our Environmental Services business to materially de-lever our balance sheet to Net Leverage 1 of 3.1x, the lowest in the Company's history. This not only accelerates our path to an investment grade credit rating, but also allows us to re-ignite our solid waste M&A engine. In addition, we repurchased 31,725,083 subordinate voting shares through a combination of our normal course issuer bid, participation in the recent secondary offering and directly from BC Partners. We intend to continue to be opportunistic on further share repurchases going forward." Mr. Dovigi concluded, "The strength of our first quarter results reinforces our confidence in achieving our full year guidance, and we look forward to updating investors on our outlook when we report our second quarter results." First Quarter Results 3 Revenue of $1,560.1 million in the first quarter of 2025, increase of 12.5% excluding the impact of divestitures 2 (9.0% including the impact of divestitures), including 5.7% from core pricing 2 and 0.9% from positive volume. 2 Adjusted EBITDA 1 increased by 13.8% to $426.1 million in the first quarter of 2025, compared to $374.4 million in the first quarter of 2024. Adjusted EBITDA margin 1 was 27.3% in the first quarter of 2025, compared to 26.1% in the first quarter of 2024. Net loss from continuing operations was $213.9 million in the first quarter of 2025, compared to $195.8 million in the first quarter of 2024. Adjusted Free Cash Flow 1 was $13.7 million in the first quarter of 2025, compared to $16.4 million in the first quarter of 2024. The decrease of 2.7 million was predominantly due to an increase in Adjusted EBITDA 1 partially offset by an increase in cash capex net of incremental growth investments and investment in working capital. _____________________________ (1) A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures. (2) Reflects pro forma adjustments to remove the contribution of one divestiture in Fiscal 2024. Refer to "Supplemental Data" for details. (3) On March 3, 2025, we announced the completion of the divestiture of our Environmental Services line of business ("GFL Environmental Services"), effective March 1, 2025. Certain revenue disaggregation and segment reporting balances in prior periods have been re-presented for consistency with the current period presentation in relation to GFL Environmental Services which has been presented as discontinued operations. For additional information, refer to Note 2 and Note 17 in our Unaudited Interim Financial Statements. Q1 2025 Earnings Call GFL will host a conference call related to our first quarter earnings on May 1, 2025 at 8:30 am Eastern Time . A live audio webcast of the conference call can be accessed by logging onto our Investors page at investors.gflenv.com or by clicking here . Listeners may access the call toll-free by dialing 1-833-950-0062 in Canada or 1-833-470-1428 in the United States (access code: 388082) approximately 15 minutes prior to the scheduled start time. We encourage participants who will be dialing in to pre-register for the conference call using the following link: https://www.netroadshow.com/events/login?show=be74913c&confId=79830 . Callers who pre-register will be given a conference access code and PIN to gain immediate access to the call and bypass the live operator on the day of the call. Participants may pre-register at any time, including up to and after the call start time. For those unable to listen live, an audio replay of the call will be available until May 15, 2025 by dialing 1-226-828-7578 in Canada or 1-866-813-9403 in the United States (access code: 613839). About GFL GFL, headquartered in Vaughan, Ontario , is the fourth largest diversified environmental services company in North America , providing a comprehensive line of solid waste management services through its platform of facilities throughout Canada and in 18 U.S. states. Across its organization, GFL has a workforce of approximately 15,000 employees. For more information, visit the GFL web site at gflenv.com . To subscribe for investor email alerts please visit investors.gflenv.com or click here . Forward-Looking Information This release includes certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable U.S. and Canadian securities laws, respectively. Forward-looking information includes all statements that do not relate solely to historical or current facts and may relate to our future outlook, financial guidance and anticipated events or results and may include statements regarding our financial performance, financial condition or results, business strategy, growth strategies, budgets, operations and services. Particularly, statements regarding our expectations of future results, performance, achievements, prospects or opportunities, the markets in which we operate, or potential share repurchases are forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or "potential" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", although not all forward-looking information includes those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances. Forward-looking information is based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, is subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to certain assumptions set out herein; our ability to obtain and maintain existing financing on acceptable terms; our ability to source and execute on acquisitions on terms acceptable to us; currency exchange and interest rates; commodity price fluctuations; our ability to implement price increases and surcharges; changes in waste volumes; labour, supply chain and transportation constraints; inflationary cost pressures; fuel supply and fuel price fluctuations; our ability to maintain a favourable working capital position; the impact of competition; the changes and trends in our industry or the global economy; and changes in laws, rules, regulations, and global standards. Other important factors that could materially affect our forward-looking information can be found in the "Risk Factors" section of GFL's annual information form for the year ended December 31, 2024 and GFL's other periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada . Shareholders, potential investors and other readers are urged to consider these risks carefully in evaluating our forward-looking information and are cautioned not to place undue reliance on such information. There can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such i