GFL Environmental’s Q3 2025 Earnings Call Highlights

Gfl Environmental Inc ((TSE:GFL)) has held its Q3 earnings call. Read on for the main highlights of the call.

GFL Environmental Inc. recently held its Q3 2025 earnings call, showcasing a robust performance marked by record EBITDA margins and significant growth through strategic pricing and mergers and acquisitions (M&A) activities. Despite facing challenges from commodity prices and volume pressures in the U.S., the company expressed confidence in its growth trajectory, further evidenced by an upward revision of its full-year guidance and substantial share buybacks.

Record Adjusted EBITDA Margin

The company achieved a milestone with its highest adjusted EBITDA margin ever, reaching 31.6%. This achievement underscores GFL’s effective cost management and strategic pricing efforts, which have been pivotal in enhancing profitability.

Strong Revenue and Growth

GFL reported a 9% year-over-year increase in consolidated revenue for the quarter. This growth was significantly driven by strategic pricing initiatives and volume growth, highlighting the company’s ability to capitalize on market opportunities.

Successful M&A Activities

GFL has been proactive in expanding its footprint through M&A, deploying nearly $650 million into acquisitions so far this year. With several deals expected to close by year-end, the company is well-positioned for continued growth into 2026.

Guidance Raise for FY2025

For the second time in 2025, GFL raised its full-year guidance, now projecting revenue between $6.575 billion and $6.6 billion, and adjusted EBITDA of approximately $1.975 billion. This upward revision reflects the company’s strong performance and strategic initiatives.

Significant Share Buybacks

The company repurchased $350 million worth of shares in Q3 and has bought back nearly $2.8 billion year-to-date. This aggressive buyback strategy indicates GFL’s confidence in its valuation and commitment to returning capital to shareholders.

Commodity Price Headwinds

Despite overall strong performance, GFL faced a 30% year-over-year decline in commodity prices, which posed a challenge to margins. This highlights the ongoing volatility in commodity markets that the company must navigate.

Volume Challenges in the U.S.

The U.S. market presented some hurdles, with volumes impacted by a 3% decline in construction and demolition (C&D) and a 9% drop in special waste volumes. These figures suggest softer market conditions in certain segments.

Economic Uncertainty Impact

Broader economic uncertainties continue to affect construction-related activities, as well as manufacturing and industrial collection volumes. This ongoing uncertainty presents a challenge to GFL’s growth in these areas.

Forward-Looking Guidance

Looking ahead, GFL remains optimistic about its growth prospects, having raised its full-year guidance for 2025. The company anticipates revenue between $6.575 billion and $6.6 billion, with adjusted EBITDA around $1.975 billion. This guidance reflects a $50 million increase over the original forecast, driven by strategic pricing and volume growth, despite challenges from commodity prices and fuel surcharges.

In summary, GFL Environmental Inc.’s Q3 2025 earnings call highlighted a strong performance with record EBITDA margins and significant growth through strategic initiatives. Despite facing some market challenges, the company remains confident in its growth trajectory, as evidenced by its raised guidance and substantial share buybacks. Investors and market watchers will likely view GFL’s strategic moves and financial performance as indicators of its robust positioning for future growth.