Gfl Environmental Stock Earnings Reports

GFL reported a stronger-than-expected Q1 2026. Key financials: adjusted EBITDA margin expanded to a Q1 record 29.1% (up 180 bps YoY) driven by stronger pricing (7.0% in the quarter), volume resilience (special waste and EPR offset weaker C&D and winter storms), and continued cost intensity improvements (fifth consecutive quarter of lower operational and SG&A cost intensity). Management raised full-year 2026 guidance to reflect eight acquisitions closed year-to-date: revenue $7.32–7.34B, adjusted EBITDA $2.23B, and adjusted free cash flow $850M. Q2 outlook: revenue ~$1.89–1.90B and adjusted EBITDA margin ~30.4%; Q2 adjusted FCF ~ $225M. M&A remains a core growth lever — Frontier (Texas footprint densification) closed and the proposed SECURE Waste Infrastructure acquisition (Western Canada disposal/post-collection network) was highlighted as strategically highly complementary with material synergy potential (SG&A + operational + revenue synergies, total incremental opportunity cited at $25M–$50M above already identified $25M SG&A savings). Management sees a pipeline to deploy an incremental $300M–$500M of M&A before year-end (and on a combined SECURE pro forma basis, substantially larger deployment capacity). Key drivers/risks: commodity prices have risen recently (~$15/ton above initial outlook); every $10/ton commodity move = ~$6M annual revenue/EBITDA sensitivity. Diesel spiked, creating a ~$10M headwind to Q1 vs. guidance (mostly recovered via fuel surcharges over time; expected to be offset by end of Q2, though surcharges introduce margin timing effects). Net leverage 3.6x at quarter-end (3.5x on average FX); near-term leverage will tick up modestly for Q2 acquisitions and is expected to return to mid-3s by year-end. RNG and EPR programs remain on track (RNG target ~$125M run-rate eventually; modest contribution in 2026), and EPR capex largely winding down with continued revenue/price benefits in Canada. Management reiterated commitment to disciplined leverage (3.0–3.5x) and return-focused capital deployment, noting potential for increased share buybacks once scale and free cash flow allow. Regulatory/timing: SECURE acquisition faces shareholder vote and regulatory process (management expects a 3–5 month timeline to close if approved).