• Adjusted EBITDA Growth: Nearly 20% growth in the third quarter.

• Adjusted EBITDA Margin: Highest in GFL's history at 31.1%, a 300 basis point expansion over the prior year.

• Revenue: Consolidated revenue for the quarter was $2.015 billion, with 11.3% growth in solid waste.

• Solid Waste Pricing: Stronger than expected at 6%.

• Net Leverage: Ended the quarter at 4.05, the lowest in GFL's history.

• Adjusted Free Cash Flow: $225 million for the quarter.

• Adjusted Net Income: $126 million for the quarter.

• Environmental Services Revenue: Up 3% compared to the prior year.

• Capital Deployment: $96 million in incremental growth investments and $47 million in three tuck-in acquisitions during the third quarter.

• Revenue Guidance for 2024: Expected to be approximately $7.82 to $7.85 billion.

• Adjusted EBITDA Margin Guidance for 2024: Expected to increase to approximately 28.6%.

• Fourth Quarter Revenue Expectation: Approximately $1.94 to $1.97 billion.

• Fourth Quarter Adjusted EBITDA Margin Expectation: Just over 29%.

• Fourth Quarter Adjusted Free Cash Flow Expectation: Approximately $350 million.

• Fourth Quarter Adjusted Net Income Expectation: $75 to $80 million.

• Warning! GuruFocus has detected 8 Warning Signs with GFL.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• GFL Environmental Inc (NYSE:GFL) reported nearly 20% adjusted EBITDA growth, showcasing strong operational and financial performance.

• The company achieved the highest adjusted EBITDA margin in its history at 31.1%, a 300 basis point expansion over the prior year.

• GFL successfully executed its capital allocation strategy, deploying $96 million in incremental growth investments primarily in recycling and R&G infrastructure.

• The company ended the quarter with net leverage of 4.05, the lowest in its history, demonstrating commitment to deleveraging targets.

• GFL has a robust pipeline of M&A opportunities and expects to deploy approximately $900 million on M&A and growth investments this year.

Negative Points

• GFL faced decreases in commodity and energy prices, which reduced third-quarter revenues derived from the sale of commodities and fuel surcharges.

• The environmental services segment experienced headwinds from used motor oil pricing and increased cost of risk.

• The company is dealing with a security incident that is under investigation, which could potentially impact operations.

• There is uncertainty regarding the potential sale of the environmental services segment, with tax implications affecting the net proceeds.

• GFL's working capital seasonality remains a challenge, with significant unwinding expected in the fourth quarter.