Q2 2026 GFL Environmental Inc Earnings Call Transcript

Jul 30, 2026 / 12:30 PM GMT

Release Date Price: C$58.13 (+2.65%)

Transcript

Key Points

Positve

GFL Environmental Inc (GFL) raised its full-year guidance for the second time this year, now expecting over 15% growth in adjusted EBITDA and nearly 20% growth in adjusted free cash flow.
Pricing growth remains strong at 6.1% in Q2, with full-year pricing expected to exceed 6%, driven by successful implementation of incremental fuel surcharges and disciplined pricing strategies.
The Canadian segment achieved its highest-ever adjusted EBITDA margin of 34%, and consolidated underlying margins expanded by 125 basis points year-over-year, excluding exogenous factors and M&A.
The company is making significant progress on the Secure acquisition, with integration planning on track and a target to close by the beginning of Q4, which could boost adjusted EBITDA growth to over 20%.
Operational efficiency initiatives are yielding results, with cost of sales and SG&A intensity improving for the sixth consecutive quarter, driven by lower labor costs and a 90 basis point reduction in repair and maintenance cost intensity.
The company successfully issued US$750 million in bonds at the tightest interest rate spread ever for its rating category, demonstrating strong credit market confidence and reducing its effective borrowing rate to approximately 4.5%.

Negative

Elevated diesel prices have negatively impacted margins due to the inherent lag in the fuel surcharge mechanism, with direct diesel costs up nearly 60% year-over-year and an additional $5 million headwind from third-party transportation providers.
Broader economic uncertainty continues to drag on C&D volumes, with external C&D and special waste landfill tons down 10% in the quarter, and this trend is expected to persist for the balance of the year.
The company's full-year volume outlook has been revised to a decrease of approximately 50 basis points, reflecting continued softness in C&D activity and special waste volumes.
Net leverage increased to 3.9 times at the end of Q2, 30 basis points higher than Q1, due to second-quarter acquisitions and the translational impact of a weaker Canadian dollar.
The company has received unsolicited take-private offers, creating uncertainty and potential distraction, with management exploring strategic alternatives that could lead to a change in the company's public status.
M&A activity is temporarily increasing leverage by 30 basis points, and the company faces headwinds from lower high-margin landfill volumes and a 40 basis point margin drag from prior-year rebate recognition.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

GFL.TO - GFL Environmental Inc
Q2 2026 GFL Environmental Inc Earnings Call
Jul 30, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Hello everyone.

Thank you for joining us and welcome to GFL Environmental Inc. Second quarter earnings call.

After today's prepared remarks, we will host a question-and-answer session.

If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again.

I will now hand the conference over to Patrick Dovigi, founder and CEO.

Mr. Dovigi, please go ahead.

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Unidentified_2 [2]
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Thank you and good morning. I would like to welcome everyone to today's

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