GFL Environmental Inc. - Ordinary Shares (Sub Voting)

Strong Financial Performance and Outlook: GFL reported consolidated revenue of $1.98 billion in Q4 2024, exceeding internal expectations. The company expects revenue growth of 6% to 7% in 2025, projecting revenues between $6.5 billion and $6.55 billion, underpinned by pricing increases of 5.25%-5.5% and assuming flat volumes. Adjusted EBITDA margins are expected to expand by 100 basis points, hitting 29.7%.

Organic Growth and Margin Expansion: The solid waste segment saw organic growth accelerate to 7% in Q4 2024, boosted by strong pricing and recovering volumes. GFL anticipates maintaining industry-leading organic growth in 2025, with specific efforts focused on pricing spread and operational efficiencies, including improved asset utilization and reduced employee turnover.

Capital Allocation Strategy Post-ES Transaction: Following the upcoming sale of their Environmental Services (ES) business expected to close on March 1, GFL plans to deploy $3.75 billion for debt repayment, resulting in annual cash interest savings of nearly $200 million. Additionally, $2.25 billion will go toward share buybacks to enhance shareholder value, as the company views its stock as undervalued.