Q3 2024 GFL Environmental Inc Earnings Call Transcript
Key Points
- GFL Environmental Inc (GFL) reported nearly 20% adjusted EBITDA growth, showcasing strong operational and financial performance.
- The company achieved the highest adjusted EBITDA margin in its history at 31.1%, a 300 basis point expansion over the prior year.
- GFL successfully executed its capital allocation strategy, deploying $96 million in incremental growth investments primarily in recycling and R&G infrastructure.
- The company ended the quarter with net leverage of 4.05, the lowest in its history, demonstrating commitment to deleveraging targets.
- GFL has a robust pipeline of M&A opportunities and expects to deploy approximately $900 million on M&A and growth investments this year.
- GFL faced decreases in commodity and energy prices, which reduced third-quarter revenues derived from the sale of commodities and fuel surcharges.
- The environmental services segment experienced headwinds from used motor oil pricing and increased cost of risk.
- The company is dealing with a security incident that is under investigation, which could potentially impact operations.
- There is uncertainty regarding the potential sale of the environmental services segment, with tax implications affecting the net proceeds.
- GFL's working capital seasonality remains a challenge, with significant unwinding expected in the fourth quarter.
Some forward-looking statements within the meaning of applicable Canadian and US securities laws including statements regarding events or developments that we believe or anticipate may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties including those set out in our filings with the Canadian and US securities regulators. Any forward-looking statement is not a guarantee of future performance and actual results may differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements speak only as of today's date and we do not assume any obligation to update these statements whether as a result of new information, future events and developments or otherwise. This call will include a discussion of certain non IFRS measures, a reconciliation of these non IFRS measures can be found in our filings with the Canadian and US securities regulators. I will now turn the call back over to Patrick.
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