- Revenue, Adjusted EBITDA1 and Adjusted Free Cash Flow1 all ahead of expectations
- Underlying Adjusted EBITDA margin1 expansion of 115 basis points, excluding the impacts of M&A and diesel prices
- 7.4% organic revenue growth, accelerating sequentially by 100 basis points
- Adjusted EBITDA1 of $678.7 million, increase of 26.8%; Adjusted Net Income from continuing operations1 of $100.1 million; Net loss from continuing operations of $28.0 million
- Year-to-date completed acquisitions generating approximately $2 billion in annualized revenue
- Raised full year 2026 guidance for the third time this year; now expecting low-to-mid 20s growth for revenue and Adjusted EBITDA2 and over 30% growth for Adjusted Free Cash Flow2
MIAMI BEACH, FL, Oct. 28, 2026 /PRNewswire/ -- GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL", "we", "our", or the "Company") today announced its results for the third quarter of 2026.
"Once again we delivered better than expected results this quarter, thanks to the hard work and commitment of our over 17,000 employees," said Patrick Dovigi, Founder and Chief Executive Officer of GFL. "In the quarter, we generated industry leading organic revenue growth of 7.4% and underlying Adjusted EBITDA margin1 expansion of more than 115 basis points. The ongoing strength of our financial performance in the face of a challenging macroeconomic backdrop further underscores the resiliency of our business model and effectiveness of our strategies. Given our strong results year to date and the expected contribution from our acquisition of SECURE Waste Infrastructure Corp., we are raising our 2026 full year guidance for the third time this year."
Mr. Dovigi continued, "During the third quarter, we formed a Special Committee of independent directors to review unsolicited inbound proposals to take the Company private. The Special Committee has provided interested parties with a final deadline of November 9, 2026 to deliver their updated proposals, at which time the Special Committee will determine next steps. The strong interest from leading global institutional investors is a testament to the hard work of our team and the quality of the business we have built. While the Special Committee completes its review, our team remains laser focused on delivering on our strategic plan that we laid out at our last investor day including driving outsized margin expansion in the base business and improving Adjusted Free Cash Flow1 conversion toward the mid 40% range."
GFL also announced that pursuant to the terms of the previously announced acquisition of SECURE Waste Infrastructure Corp. ("SECURE"), Joseph Lenz will join GFL's Board of Directors as the SECURE nominee, increasing the size of the Board to nine directors. Mr. Lenz brings with him a wealth of experience as a Firm Partner at TPG, as well as having served on the SECURE board since 2022.
Third Quarter Results
- Revenue of $2,155.3 million in the third quarter of 2026, an increase of 27.2%, including 5.7% from core pricing.
- Adjusted EBITDA1 increased by 26.8% to $678.7 million in the third quarter of 2026, compared to $535.1 million in the third quarter of 2025. Adjusted EBITDA margin1 was 31.5% in the third quarter of 2026, compared to 31.6% in the third quarter of 2025, reflecting 115 basis points of underlying margin expansion when excluding the impacts of M&A and diesel prices.
- Net loss from continuing operations was $28.0 million in the third quarter of 2026, compared to net income from continuing operations of $90.4 million in the third quarter of 2025.
- Adjusted Free Cash Flow1 was $272.5 million in the third quarter of 2026, compared to $180.5 million in the third quarter of 2025.
- During the quarter, no shares were repurchased by the Company however we intend to continue to be opportunistic on share repurchases going forward.
Year to Date Results
- Revenue of $5,746.9 million for the nine months ended September 30, 2026, an increase of 16.6%, including 6.3% from core pricing.
- Adjusted EBITDA1 increased by 18.4% to $1,748.4 million for the nine months ended September 30, 2026, compared to $1,476.3 million for the nine months ended September 30, 2025. Adjusted EBITDA margin1 was 30.4% for the nine months ended September 30, 2026, compared to 29.9% for the nine months ended September 30, 2025.
- Net loss from continuing operations was $409.8 million for the nine months ended September 30, 2026, compared to net income from continuing operations of $123.5 million for the nine months ended September 30, 2025.
- Adjusted Free Cash Flow1 was $484.9 million for the nine months ended September 30, 2026, compared to $331.3 million for the nine months ended September 30, 2025.
Updated Full Year 2026 Guidance2
GFL also provided its updated guidance for 2026 assuming a USD/CAD exchange rate of 1.40 for the remainder of the year.
- Revenue is estimated to be approximately $8,055 million to $8,075 million, compared to the prior guidance of approximately $7,510 million to $7,530 million.
- Adjusted EBITDA2 is estimated to be approximately $2,490 million to $2,495 million, compared to the prior guidance of approximately $2,290 million.
- Full year Adjusted EBITDA margin2 is expected to be approximately 30.9%, an increase of 40 basis points compared to the prior guidance despite incremental headwinds from diesel prices.
- Adjusted Free Cash Flow2 is estimated to be approximately $1,020 million, compared to the prior guidance of approximately $900 million.
- Full year net capex is expected to be approximately $910 million.
- Full year cash interest is expected to be approximately $455 million.
- Net Leverage2 is estimated to be in the mid 3s by the end of 2026.
The 2026 updated guidance includes the expected contribution of acquisitions completed as of October 1, 2026, net of divestitures completed to date, but excludes any impact from acquisitions not yet completed. Implicit in forward-looking information in respect of our expectations for 2026 are certain current assumptions, including, among others, no changes to the current economic environment, including fuel and commodities. The 2026 updated guidance assumes GFL will continue to execute on our strategy of organically growing our business, leveraging our scalable network to attract and retain customers across multiple service lines, realizing operational efficiencies and extracting procurement and cost synergies. See "Forward-Looking Information".
______________________
(1)
A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
(2) Information contained in the section titled "Updated Full Year 2026 Guidance" includes non-IFRS measures and ratios, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow and Net
Leverage. Due to the uncertainty of the likelihood, amount and timing of effects of events or circumstances to be excluded from these measures, GFL does not have information available to provide a
quantitative reconciliation of such projections to comparable IFRS measures. See "Non-IFRS Measures" below. See Third Quarter Results for the equivalent historical non-IFRS measure.
Q3 2026 Earnings Call
GFL will host a conference call related to our third quarter earnings on October 29, 2026 at 8:30 am Eastern Time. A live audio webcast of the conference call can be accessed by logging onto our Investors page at investors.gflenv.com or by clicking here. Listeners may access the call toll-free by dialing 1-833-769-6440 in Canada or 1-833-461-5787 in the United States (meeting ID: 356 828 588) approximately 15 minutes prior to the scheduled start time.
We encourage participants who will be dialing in to pre-register for the conference call using the following link: https://events.q4inc.com/analyst/356828588?pwd=79LNCQyb. Callers who pre-register will be given a conference access code and PIN to gain immediate access to the call and bypass the live operator on the day of the call. Participants may pre-register at any time, including up to and after the call start time. For those unable to listen live, an audio replay of the call will be available by using the following link: https://events.q4inc.com/attendee/356828588.
About GFL
GFL is the fourth largest diversified environmental services company in North America, providing comprehensive solid waste management services from its platform of facilities throughout Canada and 19 U.S. states. GFL has a workforce of more than 17,000 employees across its organization.
For more information, visit the GFL web site at gflenv.com. To subscribe for investor email alerts please visit investors.gflenv.com or click here.
Forward-Looking Information
This release includes certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable U.S. and Canadian securities laws, respectively. Forward-looking information includes all statements that do not relate solely to historical or current facts and may relate to our future outlook, financial guidance and anticipated events or results and may include statements regarding our financial performance, financial condition or results, business strategy, growth strategies, budgets, operations and services. Particularly, statements regarding our expectations of future results, performance, achievements, prospects or opportunities, the markets in which we operate or potential share repurchases are forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or "potential" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved", although not all forward-looking information includes those words or phrases. In addition, any statements that refer to expectations, intentions, projections, guidance, potential or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts nor assurances of future performance but instead represent management's expectations, estimates and projections regarding future events or circumstances.
Forward-looking information is based on our opinions, estimates and assumptions that we considered appropriate and reasonable as of the date such information is stated, is subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to certain assumptions set out herein in the section titled "Updated Full Year 2026 Guidance"; our ability to obtain and maintain existing financing on acceptable terms; our ability to source and execute on acquisitions on terms acceptable to us; currency exchange and interest rates; commodity price fluctuations; our ability to implement price increases and surcharges; changes in waste volumes; labour, supply chain and transportation constraints; inflationary cost pressures; fuel supply and fuel price fluctuations; our ability to maintain a favourable working capital position; the impact of competition; the changes and trends in our industry or the global economy; changes to trade agreements, restrictions on trade, including sanctions, export controls, import duties, quotas, treaties, tariffs, trade wars, changes to trade and investment policies and other governmental actions; and changes in laws, rules, regulations, and global standards. Other important factors that could materially affect our forward-looking information can be found in the "Risk Factors" section of GFL's annual information form for the year ended December 31, 2025 and GFL's other periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. Shareholders, potential investors and other readers are urged to consider these risks carefully in evaluating our forward-looking information and are cautioned not to place undue reliance on such information. There can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The forward-looking information contained in this release represents our expectations as of the date of this release (or as the date it is otherwise stated to be made), and is subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable U.S. or Canadian securities laws. The purpose of disclosing our financial outlook set out in this release is to provide investors with more information concerning the financial impact of our business initiatives and growth strategies. There can be no assurance that the Company will receive any proposals from interested parties in relation to a possible transaction to take the Company private by November 9, 2026 or, if received, whether the Special Committee will determine that the value, terms or conditions thereof will be sufficient to continue negotiations with any such interested parties or that any such negotiations will result in binding definitive agreements with respect to the transactions contemplated thereby.
Non-IFRS Measures
This release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Rather, these non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.
EBITDA represents, for the applicable period, net income (loss) from continuing operations plus (a) interest and other finance costs, plus (b) depreciation and amortization of property and equipment, landfill assets and intangible assets, plus (less) (c) the provision (recovery) for income taxes, in each case to the extent deducted or added to/from net income (loss) from continuing operations. We present EBITDA to assist readers in understanding the mathematical development of Adjusted EBITDA. Management does not use EBITDA as a financial performance metric.
Adjusted EBITDA is a supplemental measure used by management and other users of our financial statements including, our lenders and investors, to assess the financial performance of our business without regard to financing methods or capital structure. Adjusted EBITDA is also a key metric that management uses prior to execution of any strategic investing or financing opportunity. For example, management uses Adjusted EBITDA as a measure in determining the value of acquisitions, expansion opportunities, and dispositions. In addition, Adjusted EBITDA is utilized by financial institutions to measure borrowing capacity. Adjusted EBITDA is calculated by adding and deducting, as applicable from EBITDA, certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) (gain) loss on foreign exchange and unrealized derivative contracts, (b) (gain) loss on sale of property and equipment, (c) change in value on Call Option, (d) share of net (income) loss of investments accounted for using the equity method, (e) share-based payments, (f) transaction costs, (g) acquisition, rebranding and other integration costs (included in cost of sales related to acquisition activity), (h) Founder/CEO remuneration and (i) other. For the three and nine months ended September 30, 2026, change in value on Call Option has been added back to EBITDA. We use Adjusted EBITDA to facilitate a comparison of our operating performance on a consistent basis reflecting factors and trends affecting our business. As we continue to grow our business, we may be faced with new events or circumstances that are not indicative of our underlying business performance or that impact the ability to assess our operating performance.
Adjusted EBITDA margin represents Adjusted EBITDA divided by revenue. Management and other users of our financial statements including our lenders and investors use Adjusted EBITDA margin to facilitate a comparison of the operating performance of each of our operating segments on a consistent basis reflecting factors and trends affecting our business.
Acquisition EBITDA represents, for the applicable period, management's estimates of the annual Adjusted EBITDA of an acquired business, based on its most recently available historical financial information at the time of acquisition, as adjusted to give effect to (a) the elimination of expenses related to the prior owners and certain other costs and expenses that are not indicative of the underlying business performance, if any, as if such business had been acquired on the first day of such period and (b) contract and acquisition annualization for contracts entered into and acquisitions completed by such acquired business prior to our acquisition (collectively, "Acquisition EBITDA Adjustments"). Further adjustments are made to such annual Adjusted EBITDA to reflect estimated operating cost savings and synergies, if any, anticipated to be realized upon acquisition and integration of the business into our operations. Acquisition EBITDA is calculated net of divestitures. We use Acquisition EBITDA for the acquired businesses to adjust our Adjusted EBITDA to include a proportional amount of the Acquisition EBITDA of the acquired businesses based upon the respective number of months of operation for such period prior to the date of our acquisition of each such business.
Adjusted Cash Flows from Operating Activities represents cash flows from operating activities adjusted for (a) operating cash flows from discontinued operations, (b) transaction costs, (c) acquisition, rebranding and other integration costs, (d) Founder/CEO remuneration, (e) cash payments related to GFL Environmental Services transition services agreement, (f) cash interest paid on early termination of long-term debt, (g) distribution received from joint ventures and (h) other. Adjusted Cash Flows from Operating Activities is a supplemental measure used by investors as a valuation and liquidity measure in our industry. For the three and nine months ended September 30, 2026, other has been added back to Adjusted Cash Flows from Operating Activities. These amounts were not paid in the prior period. Adjusted Cash Flows from Operating Activities is a supplemental measure used by management to evaluate and monitor liquidity and the ongoing financial performance of GFL.
Adjusted Free Cash Flow represents Adjusted Cash Flows from Operating Activities adjusted for (a) proceeds on disposal of assets and other, (b) purchase of property and equipment and (c) incremental growth investments. Adjusted Free Cash Flow is a supplemental measure used by investors as a valuation and liquidity measure in our industry. Adjusted Free Cash Flow is a supplemental measure used by management to evaluate and monitor liquidity and the ongoing financial performance of GFL.
Adjusted Net Income (Loss) from continuing operations represents net income (loss) from continuing operations adjusted for (a) amortization of intangible assets, (b) ARO discount rate depreciation adjustment, (c) amortization of deferred financing costs, (d) (gain) loss on foreign exchange and unrealized derivative contracts, (e) change in value on Call Option, (f) share of net (income) loss of investments accounted for using the equity method, (g) loss on termination of hedged arrangements, (h) transaction costs, (i) acquisition, rebranding and other integration costs, (j) Founder/CEO remuneration, (k) other and (l) the tax impact of the foregoing. Adjusted income (loss) per share from continuing operations is defined as Adjusted Net Income (Loss) from continuing operations divided by the weighted average shares in the period. For the three and nine months ended September 30, 2026, change in value on Call Option has been added back to net income (loss) from continuing operations. We believe that Adjusted income (loss) per share from continuing operations provides a meaningful comparison of current results to prior periods' results by excluding items that GFL does not believe reflect its fundamental business performance.
Net Leverage is a supplemental measure used by management to evaluate borrowing capacity and capital allocation strategies. Net Leverage is equal to our total long-term debt, as adjusted for fair value, deferred financings and other adjustments and reduced by our cash, divided by Run-Rate EBITDA.
Run-Rate EBITDA represents Adjusted EBITDA for the applicable period as adjusted to give effect to management's estimates of (a) Acquisition EBITDA Adjustments (as defined above) and (b) the impact of annualization of certain new municipal and disposal contracts and cost savings initiatives, entered into, commenced or implemented, as applicable, in such period, as if such contracts or costs savings initiatives had been entered into, commenced or implemented, as applicable, on the first day of such period ((a) and (b), collectively, "Run-Rate EBITDA Adjustments"). Run-Rate EBITDA has not been adjusted to take into account the impact of the cancellation of contracts and cost increases associated with these contracts. These adjustments reflect monthly allocations of Acquisition EBITDA for the acquired businesses based on straight line proration. As a result, these estimates do not take into account the seasonality of a particular acquired business. While we do not believe the seasonality of any one acquired business is material when aggregated with other acquired businesses, the estimates may result in a higher or lower adjustment to our Run-Rate EBITDA than would have resulted had we adjusted for the actual results of each of the acquired businesses for the period prior to our acquisition. We primarily use Run-Rate EBITDA to show how GFL would have performed if each of the acquired businesses had been consummated at the start of the period as well as to show the impact of the annualization of certain new municipal and disposal contracts and cost savings initiatives. We also believe that Run-Rate EBITDA is useful to investors and creditors to monitor and evaluate our borrowing capacity and compliance with certain of our debt covenants. Run-Rate EBITDA as presented herein is calculated in accordance with the terms of our revolving credit agreement.
All references to "$" in this press release are to Canadian dollars, unless otherwise noted.
For further information:
Patrick Dovigi, Founder and Chief Executive Officer
+1 905-326-0101
pdovigi@gflenv.com
GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(In millions of dollars)
Three months ended Nine months ended
September 30, September 30,
2026 2025 2026 2025
Revenue $2,155.3 $1,694.2 $5,746.9 $4,929.5
Expenses
Cost of sales 1,728.7 1,324.0 4,634.7 3,899.8
Selling, general and administrative expenses 277.2 203.3 819.3 712.7
Interest and other finance costs 179.4 129.2 482.9 460.7
(Gain) loss on sale of property and equipment (10.3) 4.1 (14.2) 4.5
Loss (gain) on foreign exchange 4.7 100.5 196.7 (171.6)
Change in value on Call Option 15.0 45.0
Other(1) (9.8) (187.6) 2.1 (204.0)
2,184.9 1,573.5 6,166.5 4,702.1
Share of net income (loss) of investments accounted for using the equity method(1) 18.2 5.5 (48.0) (101.5)
(Loss) income before income taxes (11.4) 126.2 (467.6) 125.9
Current income tax expense (recovery) 29.1 (16.7) 73.6 47.4
Deferred tax (recovery) expense(1) (12.5) 52.5 (131.4) (45.0)
Income tax expense (recovery) 16.6 35.8 (57.8) 2.4
Net (loss) income from continuing operations (28.0) 90.4 (409.8) 123.5
Net income from discontinued operations 3,620.8
Net (loss) income (28.0) 90.4 (409.8) 3,744.3
Less: Net loss attributable to non-controlling interests (6.4) (6.2) (12.7) (11.0)
Net (loss) income attributable to GFL Environmental Inc. $(21.6) $96.6 $(397.1) $3,755.3
Items that may be subsequently reclassified to net (loss) income
Currency translation adjustment 1.5 172.7 346.0 (280.2)
Reclassification to net (loss) income of fair value movements on cash flow hedges, net of tax 1.2 1.0 3.6 8.0
Fair value movements on cash flow hedges, net of tax 10.8 (0.7) (4.5) 22.6
Share of other comprehensive income (loss) of investments accounted for using the equity method, net of tax(1) 23.4 2.9 11.9 (20.2)
Reclassification to net (loss) income of foreign currency differences on divestitures 1.5 1.5
Other comprehensive income (loss) 36.9 177.4 357.0 (268.3)
Comprehensive income (loss) from continuing operations 8.9 267.8 (52.8) (144.8)
Comprehensive income from discontinued operations 3,444.3
Total comprehensive income (loss) 8.9 267.8 (52.8) 3,299.5
Less: Total comprehensive loss attributable to non-controlling interests (6.7) (1.5) (6.6) (18.8)
Total comprehensive income (loss) attributable to GFL Environmental Inc. $15.6 $269.3 $(46.2) $3,318.3
Basic (loss) income per share
(1)(2)
Continuing operations $(0.09) $0.23 $(1.17) $0.26
Discontinued operations 9.71
Total operations $(0.09) $0.23 $(1.17) $9.97
Diluted (loss) income per share
(1)(2)
Continuing operations $(0.09) $0.23 $(1.17) $0.25
Discontinued operations 9.50
Total operations $(0.09) $0.23 $(1.17) $9.75
Weighted average number of shares outstanding 385,667,838 362,084,803 368,610,288 372,979,844
Diluted weighted average number of shares outstanding 385,667,838 370,243,683 368,610,288 380,997,736
______________________
(1) Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in
the associate. Accordingly, comparative amounts have been revised for the three and nine months ended September 30, 2025. Refer to Note 3 in our Unaudited Interim Financial Statements.
(2) Basic and diluted (loss) income per share is calculated on net (loss) income attributable to GFL Environmental Inc. adjusted for amounts attributable to preferred shareholders. Refer to Note 9 in our
Unaudited Interim Financial Statements.
GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Financial Position
(In millions of dollars)
September 30,
2026 December 31, 2025
Assets
Cash $296.5 $85.6
Trade and other receivables, net 1,614.1 802.0
Income taxes recoverable 55.4 96.0
Prepaid expenses and other assets 395.9 180.6
Current assets 2,361.9 1,164.2
Property and equipment, net 9,606.7 7,324.3
Intangible assets, net 2,285.0 1,757.0
Investments accounted for using the equity method(1) 1,851.0 1,805.3
Other long-term assets 341.5 256.8
Goodwill 12,583.1 6,894.9
Non-current assets 26,667.3 18,038.3
Total assets $29,029.2 $19,202.5
Liabilities
Accounts payable and accrued liabilities $2,352.6 $1,888.3
Income taxes payable 1.7 5.7
Long-term debt 14.2
Lease obligations 99.3 59.9
Closure and post-closure obligations 68.7 44.0
Current liabilities 2,536.5 1,997.9
Long-term debt 11,657.2 7,422.6
Lease obligations 605.7 450.6
Other long-term liabilities 140.5 34.5
Deferred income tax liabilities(1) 754.0 756.7
Closure and post-closure obligations 1,435.1 1,126.5
Non-current liabilities 14,592.5 9,790.9
Total liabilities 17,129.0 11,788.8
Shareholders' equity
Share capital 11,523.5 7,008.4
Contributed surplus 254.4 205.7
(Deficit) earnings(1) (248.7) 172.9
Accumulated other comprehensive income (loss)(1) 195.0 (155.9)
Total GFL Environmental Inc.'s shareholders' equity 11,724.2 7,231.1
Non-controlling interests 176.0 182.6
Total shareholders' equity 11,900.2 7,413.7
Total liabilities and shareholders' equity $29,029.2 $19,202.5
______________________________________
(1) Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in
the associate. Accordingly, comparative amounts have been revised. Refer to Note 3 in our Unaudited Interim Financial Statements.
GFL Environmental Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
(In millions of dollars)
Three months ended Nine months ended
September 30, September 30,
2026 2025 2026 2025
Operating activities
Net (loss) income(1) $(28.0) $90.4 $(409.8) $3,744.3
Adjustments for non-cash items
Depreciation of property and equipment 365.6 268.2 948.8 788.2
Amortization of intangible assets 87.7 65.3 239.3 187.5
Share of net (income) loss of investments accounted for using the equity method(1) (18.2) (5.5) 48.0 101.5
Gain on divestiture (4,466.8)
Other(1) (10.4) (187.6) (6.9) (204.0)
Interest and other finance costs 179.4 129.2 482.9 462.3
Share-based payments 23.8 18.6 87.0 95.0
Loss (gain) on unrealized foreign exchange 2.8 100.7 195.2 (171.4)
(Gain) loss on sale of property and equipment (10.3) 4.1 (14.2) 5.7
Change in value on Call Option 15.0 45.0
Current income tax expense (recovery) 29.1 (16.7) 73.6 70.9
Deferred tax (recovery) expense(1) (12.5) 52.5 (131.4) 805.6
Interest paid in cash (172.5) (118.1) (371.7) (371.1)
Income taxes paid in cash, net (13.3) (0.8) (22.1) (6.3)
Changes in non-cash working capital items (61.5) 8.4 (193.1) (145.4)
Closure and post-closure expenditures (11.7) (17.6) (20.5) (25.3)
365.0 391.1 950.1 870.7
Investing activities
Purchase of property and equipment (239.0) (289.5) (912.8) (893.1)
Proceeds on disposal of assets and other 19.2 2.9 33.9 16.0
(Payments) proceeds from divestitures (3.4) 5,817.1
Business acquisitions and investments, net of cash acquired (1,085.3) (330.6) (2,569.8) (616.5)
Distribution received from associates and joint ventures 0.7 205.8 5.2 211.1
(1,304.4) (414.8) (3,443.5) 4,534.6
Financing activities
Repayment of lease obligations (33.4) (24.5) (86.2) (80.5)
Issuance of long-term debt 2,438.9 964.3 6,795.9 1,833.5
Repayment of long-term debt (1,320.3) (475.0) (3,823.9) (4,294.0)
Proceeds from termination of hedged arrangements 28.0
Payment for termination of hedged arrangements (1.1) (1.1)
Payment of contingent purchase consideration and holdbacks (2.2) (2.3) (33.3) (4.9)
Repurchase of subordinate voting shares, inclusive of tax (346.3) (71.0) (2,758.5)
Dividends issued and paid (8.6) (7.6) (24.5) (23.5)
Payment of financing costs (31.5) (0.1) (53.2) (5.7)
Repayment of loan to related party (2.9)
Distribution to non-controlling interest (56.4) (56.4)
Contribution from non-controlling interests 27.1 27.1
1,042.9 79.2 2,702.7 (5,338.9)
Increase in cash 103.5 55.5 209.3 66.4
Changes due to foreign exchange revaluation of cash 0.9 (0.6) 1.6 (5.6)
Cash, beginning of period 192.1 139.7 85.6 133.8
Cash, end of period $296.5 $194.6 $296.5 $194.6
______________________________________
(1) Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in
the associate. Accordingly, comparative amounts have been revised for the three and nine months ended September 30, 2025. Refer to Note 3 in our Unaudited Interim Financial Statements.
SUPPLEMENTAL DATA
You should read the following information in conjunction with our audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2025, as well as our Unaudited Interim Financial Statements and notes thereto for the three and nine months ended September 30, 2026.
Revenue Growth
The following tables summarize the revenue growth in our segments for the periods indicated:
Three months ended September 30, 2026
Contribution Organic Foreign Revenue
from Growth Exchange Growth
Acquisitions
Canada 27.5 % 10.8 % - % 38.3 %
USA 14.4 5.7 1.6 21.7
Total 18.7 % 7.4 % 1.1 % 27.2 %
Nine months ended September 30, 2026
Contribution Organic Foreign Revenue
from Growth Exchange Growth
Acquisitions
Canada 10.4 % 8.7 % - % 19.1 %
USA 11.3 4.9 (0.9) 15.3
Total 11.0 % 6.2 % (0.6) % 16.6 %
Detail of Organic Growth
The following table summarizes the components of our organic growth for the periods indicated:
Three months ended Nine months ended
September 30, 2026 September 30,
2026
Price 5.7 % 6.3 %
Surcharges 1.5 0.7
Volume (0.1) (0.6)
Commodity price 0.3 (0.2)
Total organic growth 7.4 % 6.2 %
Operating Segment Results
The following tables summarize our operating segment results for the periods indicated:
Three months ended Three months ended
September 30, 2026 September 30, 2025
($
millions) Revenue Adjusted Adjusted Revenue Adjusted Adjusted
EBITDA EBITDA EBITDA
(1) (1) EBITDA
Margin Margin
(2) (2)
Canada $773.0 $275.6 35.7 % $559.1 $188.0 33.6 %
USA 1,382.3 466.6 33.8 1,135.1 409.4 36.1
Solid Waste 2,155.3 742.2 34.4 1,694.2 597.4 35.3
Corporate (63.5) (62.3)
Total $2,155.3 $678.7 31.5 % $1,694.2 $535.1 31.6 %
Nine months ended Nine months ended
September 30, 2026 September 30, 2025
($
millions) Revenue Adjusted Adjusted Revenue Adjusted Adjusted
EBITDA EBITDA EBITDA
(1) (1) EBITDA
Margin Margin
(2) (2)
Canada $1,918.1 $650.3 33.9 % $1,609.8 $513.7 31.9 %
USA 3,828.8 1,285.5 33.6 3,319.7 1,163.4 35.0
Solid Waste 5,746.9 1,935.8 33.7 4,929.5 1,677.1 34.0
Corporate (187.4) (200.8)
Total $5,746.9 $1,748.4 30.4 % $4,929.5 $1,476.3 29.9 %
______________________________________
(1) A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the
composition of non-IFRS measures.
(2)
See "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures.
Net Leverage
The following table presents the calculation of Net Leverage as at the dates indicated:
($ millions) September 30,
2026 December 31, 2025
Total long-term debt, net of derivative asset(1) $11,544.5 $7,401.6
Deferred finance costs and other adjustments (151.9) (25.1)
Total long-term debt excluding deferred finance costs and other adjustments $11,696.4 $7,426.7
Less: cash (296.5) (85.6)
11,399.9 7,341.1
Trailing twelve months Adjusted EBITDA(2) 2,257.1 1,985.0
Run-Rate EBITDA Adjustments(3) 730.9 172.6
Run-Rate EBITDA(3) $2,988.0 $2,157.6
Net Leverage
(2) 3.8x
3.4x
______________________________________
(1) Total long-term debt includes derivative asset reclassified for financial statement presentation purposes to other long-term assets, refer to Note 7
in our Unaudited Interim Financial Statements.
(2) A non-IFRS measure; see accompanying Non-IFRS Reconciliation Schedule; see "Non-IFRS Measures" for an explanation of the composition of non-IFRS
measures.
(3)
See "Non-IFRS Measures" for an explanation of the composition of non-IFRS measures and ratios.
Shares Outstanding
The following table presents the total shares outstanding as at the date indicated:
September 30,
2026
Subordinate voting shares 424,203,668
Multiple voting shares 11,812,964
Basic shares outstanding 436,016,632
Effect of dilutive instruments 17,229,389
Series A Preferred Shares (as converted) 6,162,558
Series B Preferred Shares (as converted) 9,102,130
Diluted shares outstanding 468,510,709
NON-IFRS RECONCILIATION SCHEDULE
Adjusted EBITDA
The following tables provide a reconciliation of our net (loss) income from continuing operations to EBITDA and Adjusted EBITDA for the periods indicated:
($ millions) Three months ended Three months ended
September 30, 2026 September 30, 2025
Net (loss) income from continuing operations(1) $(28.0) $90.4
Add:
Interest and other finance costs 179.4 129.2
Depreciation of property and equipment 365.6 268.2
Amortization of intangible assets 87.7 65.3
Income tax expense(1) 16.6 35.8
EBITDA 621.3 588.9
Add:
Loss on foreign exchange and unrealized derivative contracts(2) 0.6 100.5
(Gain) loss on sale of property and equipment (10.3) 4.1
Change in value on Call Option 15.0
Share of net income of investments accounted for using the equity method(1)(3) (16.0) (0.1)
Share-based payments(4) 23.8 18.6
Transaction costs(5) 46.5 7.7
Acquisition, rebranding and other integration costs(6) 7.6 3.0
Other(1) (9.8) (187.6)
Adjusted EBITDA $678.7 $535.1
($ millions) Nine months ended Nine months ended
September 30, 2026 September 30, 2025
Net (loss) income from continuing operations(1) $(409.8) $123.5
Add:
Interest and other finance costs 482.9 460.7
Depreciation of property and equipment 948.8 788.2
Amortization of intangible assets 239.3 187.5
Income tax (recovery) expense(1) (57.8) 2.4
EBITDA 1,203.4 1,562.3
Add:
Loss (gain) on foreign exchange and unrealized derivative contracts(2) 192.6 (171.6)
(Gain) loss on sale of property and equipment (14.2) 4.5
Change in value on Call Option 45.0
Share of net loss of investments accounted for using the equity method(1)(3) 60.4 114.6
Share-based payments(4) 87.0 93.7
Transaction costs(5) 70.6 38.1
Acquisition, rebranding and other integration costs(6) 27.3 6.9
Founder/CEO remuneration(7) 74.2 31.8
Other(1) 2.1 (204.0)
Adjusted EBITDA $1,748.4 $1,476.3
______________________________________
(1) Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in
the associate. Accordingly, comparative amounts have been revised for the three and nine months ended September 30, 2025. Refer to Note 3 in our Unaudited Interim Financial Statements.
(2) Consists of (i) non-cash gains and losses on foreign exchange and interest rate swaps entered into in connection with our debt instruments, (ii) gains and losses attributable to foreign exchange rate
fluctuations and (iii) non-cash gains and losses on unrealized derivative contracts.
(3)
Excludes share of Adjusted EBITDA of investments accounted for using the equity method for RNG projects.
(4) This is a non-cash item and consists of the amortization of the estimated fair value of share-based payments granted to certain members of management under share-based payment plans.
(5) Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable
period. We expect to incur similar costs in connection with other acquisitions in the future and, under IFRS, such costs relating to acquisitions are expensed as incurred and not capitalized. This is
part of SG&A.
(6) Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of cost
of sales.
(7)
Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.
Adjusted Net Income from Continuing Operations
The following tables provide a reconciliation of our net (loss) income from continuing operations to Adjusted Net Income from continuing operations for the periods indicated:
($ millions) Three months ended Three months ended
September 30, 2026 September 30, 2025
Net (loss) income from continuing operations(1) $(28.0) $90.4
Add:
Amortization of intangible assets(2) 87.7 65.3
ARO discount rate depreciation adjustment(3) 32.4 1.1
Amortization of deferred financing costs 4.8 3.3
Loss on foreign exchange and unrealized derivative contracts(4) 0.6 100.5
Change in value on Call Option 15.0
Share of net income of investments accounted for using the equity method(1)(5) (16.0) (0.1)
Transaction costs(7) 46.5 7.7
Acquisition, rebranding and other integration costs(8) 7.6 3.0
Other(1) (9.8) (187.6)
Tax effect(1)(10) (40.7) 0.3
Adjusted Net Income from continuing operations $100.1 $83.9
Adjusted income per share from continuing operations, basic $0.26 $0.23
Adjusted income per share from continuing operations, diluted $0.26 $0.23
($ millions) Nine months ended Nine months ended
September 30, 2026 September 30, 2025
Net (loss) income from continuing operations(1) $(409.8) $123.5
Add:
Amortization of intangible assets(2) 239.3 187.5
ARO discount rate depreciation adjustment(3) 32.4 1.1
Amortization of deferred financing costs 10.6 30.2
Loss (gain) on foreign exchange and unrealized derivative contracts(4) 192.6 (171.6)
Change in value on Call Option 45.0
Share of net loss of investments accounted for using the equity method(1)(5) 60.4 114.6
Loss on termination of hedged arrangements(6) 30.5
Transaction costs(7) 70.6 38.1
Acquisition, rebranding and other integration costs(8) 27.3 6.9
Founder/CEO remuneration(9) 74.2 31.8
Other(1) 2.1 (204.0)
Tax effect(1)(10) (147.3) (37.7)
Adjusted Net Income from continuing operations $197.4 $150.9
Adjusted income per share from continuing operations, basic $0.54 $0.40
Adjusted income per share from continuing operations, diluted $0.54 $0.40
______________________________________
(1) Certain adjustments were made to the results of GFL Environmental Services for the year ended December 31, 2025, related to measurement period adjustments impacting the Company's initial investment in
the associate. Accordingly, comparative amounts have been revised for the three and nine months ended September 30, 2025. Refer to Note 3 in our Unaudited Interim Financial Statements.
(2)
This is a non-cash item and consists of the amortization of intangible assets such as customer lists, municipal contracts, non-compete agreements, trade name and other licenses.
(3) This is a non-cash item and consists of depreciation expense related to the difference between the ARO calculated using the credit adjusted risk-free discount rate required for measurement of the ARO
through purchase accounting compared to the risk-free discount rate required for quarterly valuations.
(4) Consists of (i) non-cash gains and losses on foreign exchange and interest rate swaps entered into in connection with our debt instruments, (ii) gains and losses attributable to foreign exchange rate
fluctuations and (iii) non-cash gains and losses on unrealized derivative contracts.
(5)
Excludes share of Adjusted EBITDA of investments accounted for using the equity method for RNG projects.
(6) Consists of gains and losses on the termination of hedged arrangements associated with the 3.750% 2025 Secured Notes, the 5.125% 2026 Secured Notes, the 4.250% 2025 Secured Notes and the 4.750% 2029
Notes.
(7) Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable
period. We expect to incur similar costs in connection with other acquisitions in the future and, under IFRS, such costs relating to acquisitions are expensed as incurred and not capitalized. This is
part of SG&A.
(8) Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of
cost of sales.
(9)
Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.
(10)
Consists of the tax effect of the adjustments to net (loss) income from continuing operations.
Adjusted Cash Flows from Operating Activities and Adjusted Free Cash Flow
The following tables provide a reconciliation of our cash flows from operating activities to Adjusted Cash Flows from Operating Activities and Adjusted Free Cash Flow for the periods indicated:
($ millions) Three months ended Three months ended
September 30, 2026 September 30, 2025
Cash flows from operating activities $365.0 $391.1
Add:
Transaction costs(2) 80.4 7.7
Acquisition, rebranding and other integration costs(3) 7.6 3.0
Cash payments related to GFL Environmental Services transition services agreement(5) 3.7 8.8
Distribution received from joint ventures 0.7 2.1
Other 0.5
Adjusted Cash Flows from Operating Activities 457.9 412.7
Proceeds on disposal of assets and other 19.2 2.9
Purchase of property and equipment (239.0) (289.5)
Adjusted Free Cash Flow (including incremental growth investments) 238.1 126.1
Incremental growth investments(7) 34.4 54.4
Adjusted Free Cash Flow $272.5 $180.5
($ millions) Nine months ended Nine months ended
September 30, 2026 September 30, 2025
Cash flows from operating activities $950.1 $870.7
Less:
Operating cash flows from discontinued operations(1) 69.6
Cash flows from operating activities (excluding discontinued operations) 950.1 801.1
Add:
Transaction costs(2) 104.5 38.1
Acquisition, rebranding and other integration costs(3) 27.3 6.9
Founder/CEO remuneration(4) 74.2 31.8
Cash payments related to GFL Environmental Services transition services agreement(5) 11.2 8.8
Cash interest paid on early termination of long-term debt(6) 68.9
Distribution received from joint ventures 5.2 7.4
Other 8.9
Adjusted Cash Flows from Operating Activities 1,181.4 963.0
Proceeds on disposal of assets and other 33.9 16.0
Purchase of property and equipment (912.8) (875.0)
Adjusted Free Cash Flow (including incremental growth investments) 302.5 104.0
Incremental growth investments(7) 182.4 227.3
Adjusted Free Cash Flow $484.9 $331.3
______________________________________
(1) Consists of operating cash flows from discontinued operations. GFL Environmental Services was presented as discontinued operations. Refer to Note 17 in our Unaudited Interim Financial Statements.
(2) Consists of acquisition, integration and other costs such as legal, consulting and other fees and expenses incurred in respect of acquisitions and financing activities completed during the applicable
period, inclusive of payments on related expenses from acquired liabilities. We expect to incur similar costs in connection with other acquisitions in the future, and, under IFRS, such costs relating to
acquisitions are expensed as incurred and not capitalized. This is part of SG&A.
(3) Consists of costs related to the rebranding of equipment acquired through business acquisitions. We expect to incur similar costs in connection with other acquisitions in the future. This is part of cost
of sales.
(4)
Consists of cash payments to the Founder and CEO, which payment had been previously satisfied through the issuance of restricted share units.
(5) Consists of cash payments to GFL for services provided to GFL Environmental Services based on the transition services agreement, which was satisfied in full on March 3, 2025 in connection with our
divestiture of GFL Environmental Services.
(6)
Consists of interest and related fees on early repayment of revolving credit facility, Term Loan B Facility, 3.75% 2025 Secured Notes and 5.125% 2026 Secured Notes.
(7)
Consists of incremental sustainability related capital projects, primarily related to recycling.
View original content to download multimedia:https://www.prnewswire.com/news-releases/gfl-environmental-reports-third-quarter-2026-results-and-raises-full-year-2026-guidance-302922690.html
SOURCE GFL Environmental Inc.
