GFL Environmental (GFL) Q4 2025 earnings summary

Executive summary

• Achieved a record 30% Adjusted EBITDA margin in 2025, a 130 basis point increase over 2024, driven by operational efficiencies and pricing initiatives.

• Q4 and full year 2025 revenue, Adjusted EBITDA, and Adjusted Free Cash Flow all exceeded expectations, with Q4 Adjusted EBITDA margin reaching 30.2%.

• Completed the sale of the ES segment, transforming into a pure-play solid waste leader and simplifying the business.

• Deployed nearly $1 billion to M&A and over $3 billion to share repurchases, resulting in the lowest year-end net leverage in company history at 3.4x.

• Relocated executive headquarters to the U.S. to maximize index inclusion opportunities and broaden investor base.

Financial highlights

• Q4 2025 revenue was $1,686.4 million, up 7.3% year-over-year, with 6.4% from core pricing.

• Q4 Adjusted EBITDA was $508.7 million, up 11.1% year-over-year; Q4 Adjusted Free Cash Flow was $424.6 million.

• Full-year Adjusted EBITDA was $1.985 billion; would have been ~$2 billion at constant FX, exceeding the high end of original guidance.

• Adjusted Free Cash Flow was $425 million for Q4 and $756 million for 2025, with a 38% conversion rate.

• Net leverage ended at 3.4x, or 3.1x excluding incremental share buybacks.

Outlook and guidance

• 2026 revenue expected at ~$7 billion ($7.14 billion constant currency), up 8% year-over-year.

• Adjusted EBITDA for 2026 expected at $2.14 billion ($2.185 billion constant currency), up 10%, with margin expansion of 60 basis points to 30.6%.

• Adjusted Free Cash Flow for 2026 guided to $835 million ($860 million constant currency), up 14%.

• Net CapEx for 2026 projected at ~$800 million; cash interest at $395 million.

• Committed to maintaining leverage in the low to mid-3x range, even with potential for $1.5-$2 billion in M&A.