GFL Environmental Reports Fourth Quarter and Full Year 2024 Results; Provides Full Year 2025 Guidance

Canada NewsWire

VAUGHAN, ON, Feb. 24, 2025

Fourth Quarter 2024 Results and Full Year 2024 Highlights

   -- Fourth quarter revenue, Adjusted EBITDA1 and Adjusted Free Cash Flow1 all 
      ahead of expectations 
 
   -- Fourth quarter Adjusted EBITDA margin1 expanded by 300 basis points for 
      second consecutive quarter 
 
   -- Fourth quarter Solid Waste volumes improved sequentially by 310 basis 
      points, ahead of expectations 
 
   -- Full year revenue of $7,862.0 million, increase of 8.8% excluding the 
      impact of divestitures (4.6% including the impact of divestitures) 
 
   -- Full year Adjusted EBITDA1 of $2,250.5 million, increase of 12.3%; 
      Adjusted Net Income1 of $321.3 million; Net loss of $737.7 million 
 
   -- Full year Adjusted EBITDA margin1 of 28.6%, 190 basis points increase 
      over the prior year 
 
   -- Full year Adjusted Free Cash Flow1 of $820.3 million, increase of 17%; 
      cash flow from operating activities of $1,540.2 million 

Guidance for 2025(2)

   -- Revenue is estimated to be approximately $8,425 million including 
      contribution from Environmental Services ("ES") (between $6,500 million 
      and $6,550 million excluding contribution from ES) 
 
   -- Adjusted EBITDA2 is estimated to be approximately $2,500 million 
      including contribution from ES (between $1,925 million and $1,950 million 
      excluding contribution from ES) 
 
   -- Adjusted Free Cash Flow2 is estimated to be between $950 million and $975 
      million including contribution from ES (approximately $750 million 
      excluding contribution from ES) 
 
   -- Guidance does not include contribution from any incremental M&A 

VAUGHAN, ON, Feb. 24, 2025 /CNW/ - GFL Environmental Inc. $(GFL)$ (TSX: GFL) ("GFL", "we" or "our") today announced its results for the fourth quarter and full year 2024, as well as guidance for full year 2025.

"Our more than 20,000 employees delivered another year of results that exceeded our expectations," said Patrick Dovigi, Founder and Chief Executive Officer of GFL. "The continued strong execution of our value creation strategies drove industry-leading organic Solid Waste growth of 7.0% and Adjusted EBITDA margin(1) expansion of 190 basis points in the fourth quarter. Our results are a testament to our profitability focused strategic initiatives that we are implementing across the portfolio. We also finished the year with Net Leverage(1) of 3.85x on a constant currency basis."

Mr. Dovigi continued, "In January we announced a definitive agreement for the sale of our Environmental Services business at an $8 billion valuation, substantially above our initial expectations. Our equity stake in the business also allows us to participate in the expected continued value creation from these high-quality assets. We are on target to close the transaction effective March 1, 2025. The transaction will allow us to materially de-lever our balance sheet and accelerate our path to an investment grade credit rating. In addition we will have the optionality to deploy incremental capital across organic growth initiatives, solid waste M&A, and higher return of capital to shareholders through share repurchases and higher dividends, while maintaining targeted Net Leverage(1) in the low 3's."

"We have built a best-in-class North American platform that we will continue to optimize. Based on our strong results in 2024 and outlook for 2025, we believe we are uniquely positioned for continued industry leading organic growth over the near to medium term. The reignition of our M&A program as well as opportunistic share buy backs are also expected to be significant drivers of equity value creation. We look forward to sharing additional details on our longer-term views for strategic growth of the business at our upcoming Investor Day on February 27 at the New York Stock Exchange."

GFL also announced that effective today, Blake Sumler, a representative of Ontario Teachers' Pension Plan, has stepped down from the Board of Directors. "I want to thank Blake for his advice and counsel as a director of the Company and Teachers for their continued support since their initial investment in 2018."

Fourth Quarter Results

   -- Revenue of $1,985.9 million in the fourth quarter of 2024, increase of 
      8.2% excluding the impact of divestitures (5.5% including the impact of 
      divestitures), compared to the fourth quarter of 2023. 
 
          -- Solid Waste revenue of $1,571.2 million, including 6.0% from core 
             pricing and 2.3% from positive volume.3 
 
          -- Environmental Services revenue of $414.7 million, compared to 
             $424.3 million in the prior year period which included 
             approximately $12.9 million of revenue associated with an 
             unseasonably high level of large event driven business, $5.5 
             million from lower used motor oil selling prices and $6.5 million 
             from lower soil volumes. Excluding these impacts, revenue 
             increased by 3.1%. 
 
   -- Adjusted EBITDA1 increased by 17.4% to $577.8 million in the fourth 
      quarter of 2024, compared to $492.2 million in the fourth quarter of 
      2023. Adjusted EBITDA margin1 was 29.1% in the fourth quarter of 2024, 
      compared to 26.1% in the fourth quarter of 2023. Solid Waste Adjusted 
      EBITDA margin1 was 33.4% in the fourth quarter of 2024, compared to 30.7% 
      in the fourth quarter of 2023. Environmental Services Adjusted EBITDA 
      margin1 was 28.9% in the fourth quarter of 2024, compared to 25.0% in the 
      fourth quarter of 2023. 
 
   -- Net loss was $199.5 million in the fourth quarter of 2024, compared to 
      $62.1 million in the fourth quarter of 2023. 
 
   -- Adjusted Free Cash Flow1 was $360.1 million in the fourth quarter of 
      2024, compared to $471.6 million in the fourth quarter of 2023. The 
      decrease of $111.5 million was predominantly due to an increase of 
      cash capex net of incremental growth investments and an investment in 
      working capital, partially offset by an increase in EBITDA1. 

Year to Date Results

   -- Revenue of $7,862.0 million for the year ended December 31, 2024, an 
      increase of 8.8% excluding the impact of divestitures (4.6% including the 
      impact of divestitures), compared to the year ended December 31, 2023. 
 
          -- Solid Waste revenue of $6,138.8 million, including 6.5% from core 
             pricing, partially offset by volume decreases of 0.8%.3 
 
          -- Environmental Services revenue of $1,723.2 million, compared to 
             $1,690.1 million in the prior year period which included 
             approximately $94.7 million of revenue associated with an 
             unseasonably high level of large event driven business. Excluding 
             the impact of this outsized activity in the prior year period, 
             revenue increased by 7.5%. 
 
   -- Adjusted EBITDA1 increased by 15.0% excluding the impact of divestitures 
      (12.3% including the impact of divestitures) to $2,250.5 million for the 
      year ended December 31, 2024, compared to the year ended December 31, 
      2023. Adjusted EBITDA margin1 was 28.6% for the year ended December 31, 
      2024, compared to 26.7% for the year ended December 31, 2023. Solid Waste 
      Adjusted EBITDA margin1 was 32.9% for the year ended December 31, 2024, 
      compared to 30.7% for the year ended December 31, 2023. Environmental 
      Services Adjusted EBITDA margin1 was 28.5% for the year ended December 
      31, 2024, compared to 27.1% for the year ended December 31, 2023. 
 
   -- Net loss was $737.7 million for the year ended December 31, 2024, 
      compared to net income of $32.2 million for the year ended December 31, 
      2023. Net loss includes a non-cash loss resulting from the divestiture of 
      certain U.S. assets completed in the current period. 
 
   -- Adjusted Free Cash Flow1 was $820.3 million for the year ended December 
      31, 2024, compared to $701.2 million for the year ended December 31, 
      2023. The increase of $119.1 million was predominantly due to an increase 
      in EBITDA and a reduction in cash interest paid, partially offset by an 
      increase in cash capex net of incremental growth investments and an 
      investment in working capital. 

Guidance for 2025(2)

GFL also provided its guidance for 2025.

   -- Revenue is estimated to be approximately $8,425 million including 
      contribution from Environmental Services (between $6,500 million and 
      $6,550 million excluding contribution from Environmental Services). 
 
          -- Full year Solid Waste core pricing of 5.25% to 5.50%, surcharges 
             of (0.1%), volume of (0.25%) to 0.25%, and commodity price impact 
             of (0.2%). 
 
          -- Environmental Services organic growth of 8.7% to 9.7%. 
 
          -- Revenue from net M&A contribution of (0.7%) ((0.8%) excluding 
             contribution from Environmental Services). 
 
          -- Changes in foreign exchange resulting in approximately 1.8% 
             revenue growth (2.0% excluding contribution from Environmental 
             Services). 
 
   -- Adjusted EBITDA2 is estimated to be approximately $2,500 million 
      including contribution from Environmental Services (between $1,925 
      million and $1,950 million excluding contribution from Environmental 
      Services). 
 
          -- Full year Adjusted EBITDA margin2 is expected to be approximately 
             29.7%, increase of 110 basis points (approximately 29.7%, increase 
             of 100 basis points, excluding contribution from Environmental 
             Services). 
 
   -- Adjusted Free Cash Flow2 is estimated to be between $950 million and $975 
      million including contribution from Environmental Services (approximately 
      $750 million excluding contribution from Environmental Services). 
 

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