GFL Outperforms Expectations in Q2 2024, Adjusts Full-Year Guidance

Toronto-based GFL Environmental Inc. (NYSE: GFL) released its Q2 2024 financial results, which outperformed expectations.

Patrick Dovigi, GFL founder and CEO, commented that GFL's "exceptional start to this year can be attributed to the commitment of our over 20,000 employees who deliver consistent high-quality results and strive to make our business better every day."

Dovigi noted the company's strong execution led to "better than anticipated" financial results.

Volumes rose 130 basis points. Organic growth, operation efficiencies and divestitures resulted in adjusted EBITDA margin expansion of 90 basis points year over year.
"As part of our deliberate volume strategies, we also accelerated our exit from a portfolio of residential collection contracts in Michigan that no longer met our return thresholds, in a sale that was completed at the end of Q2," Dovigi added.

Dovigi told investors that the "business today is significantly undervalued when you consider the quality of our assets, the capabilities and track record of our team, the near-term growth prospects, especially around EPR and ENG, and a de-leveraging trajectory we are currently on, in my view, the current valuation does not make sense with the current disconnected valuation."

He added, that "based on the noncurrent asset sale we completed last year at mid-teens multiples and the recapitalizations we completed in 2014 and 2018 as a private company at 13 to 14 times EBITDA, we have demonstrated that GFL is assets are worth more than was reflected in our current stock price.

Q2 2024 Highlights:

Revenue: $2.060 billion 
Adjusted EBITDA: $591.1 million

Net Loss: $472.3 million
Adjusted Free Cash Flow: $185.7 million

Updated 2024 Full-Year Guidance:
Revenue: Between $7.9 billion and $7.925 billion
Adjusted EBITDA: Between $2.24 billion and $2,250 billion
Adjusted Free Cash Flow: $810.0 million