GFL Environmental (GFL) Q1 2026 earnings summary

Executive summary

• Q1 2026 results exceeded expectations, with record Adjusted EBITDA margin of 29.1%, up 180 bps year-over-year, despite macro headwinds and adverse weather.

• Revenue grew 5.4% year-over-year to $1,643.8 million, with Adjusted EBITDA up 12.3% to $478.5 million.

• Eight acquisitions completed YTD, including Frontier Waste Solutions, are expected to generate $425–$450 million in annualized revenue and densify the Texas and North American footprint.

• Updated full-year guidance reflects nearly 5% increase due to M&A contributions, with further upside expected from the proposed SECURE Waste Infrastructure acquisition.

• Adjusted Net Income from continuing operations was $29.5 million, reversing a loss of $34.5 million in the prior year.

Financial highlights

• Q1 revenue grew 8.5% before FX headwinds; pricing exceeded plan by 25 bps, with 7.0% overall price growth and sequential acceleration of 60 bps.

• Adjusted EBITDA margin reached 29.1%, up 180 bps year-over-year and 300 bps over 2024.

• Adjusted Free Cash Flow was $(24.3) million, down from $13.7 million in Q1 2025, but CAD 20 million ahead of plan; Q1 cash flows included typical working capital investment.

• Net leverage at quarter-end was 3.6x (3.5x using average FX), up from 3.4x at year-end 2025; bond issuance of CAD 1 billion provided growth flexibility.

• No shares were repurchased during the quarter.

Outlook and guidance

• Full-year 2026 guidance: revenue CAD 7.32–7.34 billion, Adjusted EBITDA CAD 2.23 billion, Adjusted free cash flow CAD 850 million; guidance raised by $320–$340 million for revenue and $90 million for EBITDA.

• Q2 2026 guidance: revenue CAD 1.89–1.9 billion, Adjusted EBITDA margin 30.4%, Adjusted free cash flow CAD 225 million.

• Guidance reflects only completed acquisitions as of April 1, 2026, and excludes potential impact from the proposed SECURE Waste acquisition.

• Full-year net capex expected to be $825 million; cash interest $445 million.

• Net leverage expected in the mid-3x range by year-end 2026.