GFL Drives Success with Strong Q2 2023 Results

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) announed its second quarter financial results of 2023 seeing an increase in revenue over the same quarter in 2022.

Patrick Dovigi, Founder and Chief Executive Officer of GFL, applauds his company’s efforts for the quarter and the work his employees did to achieve the increase in revenue percentage. For the second quarter of 2023, GFL reports its revenue was up to $1,943.6 million, an increase of 13.8% compared to last year’s second quarter.

"Our exceptional start to the year continued into the second quarter, thanks to the hard work and commitment of our over 20,000 employees," said Dovigi. "Our strong execution once again resulted in our achievement of double-digit revenue growth in the quarter. We also grew Adjusted EBITDA by 19.3% and demonstrated the effectiveness of our pricing and efficiency initiatives resulting in industry leading Adjusted EBITDA margin expansion of 130 basis points. This top line growth and margin expansion, both of which exceeded our expectations, demonstrate the strength in our best-in-class asset base and the ability of our exceptional team to execute on our proven value creation strategies."

Dovigi goes on in the press release to discuss the successful completion of GFL’s portfolio rationalization initiative, saying that GFL realized $1.65 billion, $150 million over the original expectation of gross proceeds from non-core divestitures. This process was also completed a quarter ahead of schedule.

“A portion of the net proceeds from the divestitures was used to accelerate our balance sheet deleveraging commitment and we ended the second quarter with Net Leverage1 of 4.18x, the lowest level in our history. The resulting enhanced strength of our balance sheet, coupled with our margin expansion and accelerated free cash flow, sets us on a path to ending the year with Net Leverage1 of less than 4.0x, mid 3.0x by the end of 2024 and a pathway to investment grade in the medium term,” said Dovigi.

Continuing its commitment to creating long-term shareholder value, GFL has completed 16 acquisitions year-to-date. Most of those acquisitions were smaller, tuck-in acquisitions which have helped densify GFL’s footprint, according to Dovigi.

“With the success of the divestiture transactions, we intend to allocate a portion of the proceeds to a number of incremental sustainability related capital projects, primarily related to opportunities arising from extended producer responsibility legislation and RNG, in keeping with our highest and best capital use strategy. We are excited about the positive contribution that these investments will have across many facets of our strategy,” said Dovigi.

GFL looks to continue its strong, first half of the year performance for the rest of 2023 with its resilience of its business monde and the effectiveness for GFL’s growth strategies.

“We are increasing our guidance for revenue, Adjusted EBITDA and Adjusted Free Cash Flow. We continue to see upside opportunities from our robust M&A pipeline and any incremental contribution from further M&A completed in the second half of the year would be upside to our updated guidance,” said Dovigi.

Q2 2023 Highlights:

Revenue: $1,943.6 million

Net Income: $293.8 million

Adjusted Net Income: $196.2 million

Adjusted EBITDA: $540.7 million