GFL Environmental (GFL) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 wage-adjusted dividend margins of 34.7%, the highest in company history, with results ahead of expectations despite FX and commodity headwinds.

• Revenue, Adjusted EBITDA, and Adjusted Free Cash Flow all exceeded expectations, driven by strong organic price and volume growth and margin expansion year-over-year.

• Net income from continuing operations turned positive at $274.2 million for Q2 2025, compared to a net loss of $531.9 million in Q2 2024.

• Completed three tuck-in acquisitions in the quarter, with three more anticipated, and repurchased 3.47 million shares during the quarter.

• Completed the divestiture of the Environmental Services line of business effective March 1, 2025, with prior period results re-presented as discontinued operations.

Financial highlights

• Q2 2025 revenue was $1,675.2 million (CAD 1.675 billion), up 9.5% year-over-year excluding divestitures.

• Adjusted EBITDA margin reached 30.7%, 230 basis points higher than prior year and 60 basis points above guidance.

• Adjusted Free Cash Flow for Q2 2025 was $137.1 million, up from $111.0 million in Q2 2024, exceeding plan due to EBITDA outperformance and CapEx timing.

• For the first half of 2025, revenue reached $3,235.3 million, Adjusted EBITDA was $941.2 million, and Adjusted Free Cash Flow was $150.8 million.

• Adjusted Net Income from continuing operations for Q2 2025 was $101.5 million, with adjusted basic EPS of $0.28.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $6,550–$6,575 million (CAD 6.55–6.575 billion), assuming FX rate of 1.37.

• Adjusted EBITDA guidance increased to $1,950–$1,975 million, with margin expected to expand by 120 bps to 29.9%.

• Q3 2025 revenue expected at $1,690–$1,695 million, with adjusted EBITDA of $525 million and margin of about 31%.

• Adjusted Free Cash Flow for the year reaffirmed at approximately $750 million; net leverage expected in the low 3.0x range by year-end.

• Guidance includes completed acquisitions as of August 1, 2025, but excludes future M&A; upside possible from further M&A or commodity price improvements.