GFL Environmental Announces Leadership Changes, Positive Q3 Results

Toronto-based GFL Environmental (NYSE: GFL) (TSX: GFL) reported a record-setting Q3 2024, showing an Adjusted EBITDA margin expansion of 300 basis points year over year.This

The rapid growth reflects GFL’s strategic focus on operational efficiency and margin improvement, said Founder and CEO Patrick Dovigi.

"We are also tracking in line to achieve our 2024 capital allocation targets, including the deployment of approximately $900 million into M&A and incremental growth investments," he commented "Given our strong results year to date, we are confident in our ability to deliver on our 2024 key guidance metrics and are well positioned for another year of outsized margin expansion and growth in 2025."
The company invested $96.4 million in incremental growth initiatives this quarter, with a focus on extended producer responsibility (EPR) and renewable natural gas (RNG) opportunities, while also allocating $47.4 million for tuck-in acquisitions. These investments, alongside acquisitions, contributed to a Net Leverage ratio of 4.05x, marking a historic low for GFL.GFL announced a potential sale of its Environmental Services division in August. The company received several offers from potential buyers, with expected valuations exceeding $6 billion post-tax. The anticipated proceeds from this sale will allow GFL to repay approximately $3.5 billion in debt, with remaining funds allocated to share buybacks and other corporate needs. GFL is currently reviewing bids with advisors, with a target to finalize an agreement before the release of its 2024 year-end results.
As part of GFL’s succession planning, Chief Operating Officer Greg Yorston will step down from his role effective January 1, 2025, transitioning to an advisory position until the end of 2025 to facilitate the handover. Billy Soffera, currently the Executive Vice President of Solid Waste Operations, will assume the COO position.

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Q3 2024 Highlights:
Revenue: $2.014 billion
Adjusted EBITDA: $625.9 million
Net Income: $110.6 million
Adjusted Free Cash Flow: $225.4 million