GFL Environmental Inc. Hosts 2025 Investor Day
GFL Environmental Inc. (GFL) is hosting an Investor Day today in New York City. A leading North American diversified environmental services company, GFL is set to discuss its growth strategies, capital allocation, sustainability initiatives, and financial objectives during the event, which starts at 9:00 am Eastern Time. The company’s senior management team will present a comprehensive overview, followed by a question and answer session.
During the meeting, GFL will unveil its ambitious 2028 financial framework which aims to steer the company towards outstanding growth and sustainability. The plan includes:
- Annual organic revenue growth projected at approximately 5.0% to 6.0%.
- 40 basis points of annual organic Adjusted EBITDA margin expansion.
- Revenue contributions from Energy Procurement Reviews (EPR), Renewable Natural Gas (RNG), and self-help levers amounting to between $285 million and $440 million for the 2026 to 2028 period.
- Adjusted EBITDA contributions from the same sources estimated to be between $270 million and $380 million for the 2026 to 2028 period.
- Expected Adjusted EBITDA margins in the low-to-mid 30s percentage range.
- Mid-40s percentage range for Adjusted Free Cash Flow conversion.
- A commitment to deploy approximately $700 million to $900 million annually on acquisitions, backed by Adjusted Free Cash Flow and available liquidity.
- Maintaining Net Leverage in the low 3s range.
GFL’s financial framework anticipates potential 2028 revenue in the range of $9,240 million to $9,490 million and Adjusted EBITDA between $3,045 million and $3,120 million.
Future Expectations and Strategy
GFL’s strategy remains focused on organic growth and efficient capital allocation. By leveraging its expansive and scalable network, the company plans to continue attracting and retaining customers while realizing operational efficiencies and extracting cost synergies. The economic environment, interest rates, and foreign exchange rates are expected to remain stable, supporting continued margin expansion and the availability of free cash flow for funding acquisitions. The company relies on the fragmented nature of the industry, previous acquisition successes, and its pipeline of opportunities to drive mergers and acquisitions activities.
About GFL Environmental Inc.
Headquartered in Vaughan, Ontario, GFL Environmental Inc. is regarded as the fourth largest diversified environmental services company in North America. Providing a wide array of services, including solid waste management, liquid waste management, and soil remediation, GFL operates through a platform of facilities extending across Canada and more than half of the U.S. states. The company employs approximately 20,000 workers in its mission to deliver sustainable environmental solutions.
Financial Metrics and Performance Evaluation
GFL employs a range of non-IFRS (International Financial Reporting Standards) measures to provide deeper insights into its operating performance, distinct from traditional IFRS metrics. These include:
- EBITDA: This represents net income with certain adjustments, helping give an understanding of operating profitability.
- Adjusted EBITDA: Further refined to exclude certain irregular expenses or revenues, aiding in evaluating normalized business performance.
- Adjusted Free Cash Flow: A key metric used for assessing liquidity and financial health, after necessary capital expenditures.
- Net Leverage: Evaluates borrowing capacity by comparing adjusted debt to EBITDA.
These measures supplement traditional IFRS measures, offering management, investors, and analysts a more nuanced view of GFL’s financial health and operational efficiency.
Looking Forward
GFL remains committed to its growth strategy, continuing to execute on its plans, driving organic growth, and expanding through strategic acquisitions. The company anticipates playing a pivotal role in the environmental services industry, driven by its dedication to sustainability and innovation.
The Investor Day serves as a crucial platform for GFL to communicate its strategic vision and objectives. As GFL navigates the complex landscape of environmental solutions, it remains poised to deliver long-term value to its stakeholders, aiming to become a forerunner in sustainable environmental management.
The company remains optimistic about its future trajectory and is confident in meeting its outlined financial goals through robust strategies and continuous adaptation to market and environmental challenges.
