GFL Environmental Inc. - Units

Q2 performance beat & operating leverage is continuing - Revenue +16.3% YoY (+6.4% organic, ~180 bps acceleration vs Q1). - Price growth +6.1% (≈20 bps ahead of plan) and volume almost +100 bps better than planned due to transfer station + residential strength offsetting landfill/C&D softness. - Adjusted EBITDA margin 30.4%; Canadian segment 34% (highest in segment history). - Adjusted FCF $237m (ahead of guide), with working capital + timing effects helping (net CapEx/closure costs below plan).

Key headwind: diesel/fuel surcharge lag is pressuring margins (but surcharges now catching up) - Direct diesel cost per unit +~60% YoY; additional $5m headwind from third-party transportation fuel surcharges. - Management says surcharges are now generating enough incremental revenue to offset higher diesel costs going forward, but results remain burdened by unrecovered costs from the early-year diesel inflection. - Outside this fuel shock, the company highlights cost intensity trending lower YoY for 6 straight quarters.

Volume & macro softness: C&D remains weak; guidance assumes continued muted activity - C&D external/special waste landfill tons down ~10% in the quarter. - Expect C&D-related trends to persist for the rest of the year; downside risk remains if that continues longer than expected.