GFL Exceeds Revenue Expectations in Q1 2024

GFL Environmental Inc. (NYSE: GFL) published its Q1 earnings results, achieving $1.8 billion in solid waste revenue. Revenue increased 8.8 percent, including 7.7 percent from core pricing, reported Patrick Dovigi, GFL founder and CEO.

Waste360 Staff, Staff

May 2, 2024

2 Min Read
GFL

GFL Environmental Inc. (NYSE: GFL) published its Q1 earnings results, achieving $1.8 billion in solid waste revenue.

Revenue increased 8.8 percent, including 7.7 percent from core pricing, reported Patrick Dovigi, GFL founder and CEO.

"I am extremely proud of the hard work and commitment of our over 20,000 employees, as we had yet another strong start to the year," he said.

Dovigi noted an adjusted EBITDA margin of 25.3%, or an increase of 80 basis points, attributed to operating efficiencies and core pricing.

He continued, "Based on the strength of our performance in the first quarter we are increasing our Adjusted EBITDA2 guidance for the year to approximately $2.23 billion, up from $2.215 billion. We are well on track to exceed our full-year guidance and expect to provide a more detailed update when we report our second-quarter results."

Mr.Dovigi concluded with an update on sustainability efforts as well as merger and acquisition activity.

"Consistent with the capital allocation plan that we provided last November, we also completed acquisitions that we expect to contribute approximately $100 million in annualized revenue this year and are deploying capital into incremental growth investments primarily related to RNG and extended producer responsibility opportunities," he said. "Inclusive of the impact of these acquisitions and investments, we remain confident that we will achieve our Net Leverage2 target of between 3.65x to 3.85x as we exit the year."

Q1 2024:

  • Solid Waste revenue of $1.4 billion, including 7.7% from core pricing, partially offset by volume decreases of 3.0% excluding the impact of divestitures.

  • Environmental Services revenue of $369.6 million, compared to $375.9 million in the prior year period which included approximately $40.0 million of revenue associated with an unseasonably high level of industrial collection, processing and emergency response activity. Excluding the impact of this outsized prior year activity, revenue increased by 10.0%.

  • Adjusted EBITDA increased by 10.0% excluding the impact of divestitures (3.5% including the impact of divestitures) to $455.7 million in the first quarter of 2024, compared to the first quarter of 2023. Adjusted EBITDA margin was 25.3% in the first quarter of 2024, compared to 24.5% in the first quarter of 2023. Solid Waste Adjusted EBITDA margin was 30.8% in the first quarter of 2024, compared to 29.2% in the first quarter of 2023. Environmental Services Adjusted EBITDA margin was 22.0% in the first quarter of 2024, compared to 22.0% in the first quarter of 2023.

  • Net loss was $176.5 million in the first quarter of 2024, compared to $217.8 million in the first quarter of 2023.

  • Adjusted Free Cash Flow was $49.1 million in the first quarter of 2024, compared to $(50.1) million in the first quarter of 2023. The increase of $99.2 million was predominantly due to an increase in cash flows from operating activities from improved working capital and a reduction in cash interest paid, as well as timing of capex payments.

Source: GFL

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