GFL Environmental (GFL) Q4 2025 earnings summary

Executive summary

• Achieved a record 30% Adjusted EBITDA margin in 2025, up 130 basis points year-over-year, with Q4 margin at 30.2%, driven by operational efficiencies and pricing initiatives.

• Fourth quarter and full year 2025 revenue, Adjusted EBITDA, and Adjusted Free Cash Flow all exceeded expectations, with full year revenue up 9.5% year-over-year excluding divestitures.

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

• Deployed nearly $1 billion in M&A and over $3 billion in share buybacks, reducing issued and outstanding subordinate voting shares by over 10%.

• 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.

• Full-year Adjusted EBITDA reached $1.985 billion, exceeding the high end of original guidance.

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

• Net leverage ended at 3.4x, the lowest in company history, down from 4.1x in 2024.

• Completed acquisitions generating approximately $290 million in annualized revenue.

Outlook and guidance

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

• Adjusted EBITDA for 2026 guided 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 expected to rise to $835 million ($860 million constant currency), up 14%.

• Guidance assumes status quo macro environment; any economic recovery or commodity price improvement would be additive.

• Net Leverage expected to remain in the low 3s by end of 2026.