GFL Environmental updates guidance, releases 2025 Q2 earnings

Vaughan, Ontario-based GFL has reported its 2025 second quarter earnings, reporting revenue of $1.68 billion, up 5.9 percent including the impact of divestitures.

“Our exceptional start to the year continued into the second quarter, thanks to the hard work and commitment of our over 15,000 employees,” GFL CEO Patrick Dovigi says.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 14.6 percent to $515.1 million, compared to $449.4 million in the second quarter of 2024. The company is reporting an adjusted EBITDA margin of 30.7 percent this quarter, compared to 28.4 percent in the second quarter of 2024.

Dovigi notes that volume was positive for the third quarter in a row, accelerating 150 basis points over the first quarter, despite “macroeconomic uncertainty and headwinds from lower commodity prices."

“We believe the current tariff environment and broader economic uncertainty are limiting activity levels of many of our industrial customers having a flow-through impact on volumes, especially in our roll-off collection,” he says. “Tailwinds from our recent strategic growth investments in EPR, together with the positive underlying trends arising from our market selection are more than offsetting these demand-side pressures.”

Although the company’s exposure to cyclical end markets is low, Dovigi says GFL is well positioned to benefit from any recovery in the macroeconomic environment. 

Net income from continuing operations was $274.2 million in the second quarter, compared to net loss from continuing operations of $531.9 million in the second quarter of 2024.

Adjusted free cash flow came in at $137.1 million in Q2, compared to $111.0 million in the previous year. According to GFL, the increase was predominantly due to an increase in adjusted EBITDA and reduction in cash interest paid, partially offset by an increase in cash capital expenditures net of incremental growth investments and investment in working capital.

Updated full year guidance

GFL completed three tuck-in acquisitions this quarter, and Dovigi says the company anticipates closing another three today, Aug. 1.

“Our pipeline remains robust, and we remain highly confident in our ability to meet or exceed our M&A capital deployment targets for 2025 and beyond,” he says. “The back-end weighting of this year's M&A activity gives rise to a lower current year contribution but sets us up for a larger rollover amount into 2026, positioning us for yet another year of exceptional growth.”

Dovigi says the company is on track to deploy $700 million-$900 million on M&A this year.

“Although there won’t be a large in-year contribution from the M&A, I think [it’s] setting us up perfectly for an outsized year of growth in 2026 because of the rollover effect of that M&A that’s going to close in the back half of the year here.”

GFL also provided its updated guidance for 2025 assuming a USD/CAD exchange rate of 1.37 for the remainder of the year. This updated guidance includes the expected contributions of the company's Aug. 1 acquisitions, but does not include impacts from future acquisitions. 

Revenue is estimated to be between $6.55 billion and $6.58 billion, while adjusted EBITDA is projected to be between $1.95 billion and $1.98 billion.

According to GFL, the full year adjusted EBITDA margin is expected to be approximately 29.9 percent at the midpoint of the range, while adjusted free cash flow is reaffirmed at approximately $750 million.