GFL Environmental Inc. reported first‑quarter 2026 results that surpassed analyst expectations, with revenue of $1.6438 billion—up 5.4% year‑over‑year and beating the $1.190 billion consensus by $453 million. The company’s adjusted earnings per diluted share were CA$0.08, a 14‑cent beat over the CA$0.07 estimate, driven by stronger pricing and the integration of eight acquisitions completed through April 1.
Adjusted EBITDA rose 12.3% to $478.5 million, and the margin expanded to 29.1% from 27.3% a year earlier, the highest level for the company in a first‑quarter. The lift was largely attributable to core pricing gains of 7.0% and operational efficiencies that offset the cost impact of the recent acquisitions.
Despite the top‑line and margin gains, GFL posted a net loss of $219.2 million, up slightly from $213.9 million in Q1 2025. The loss reflects higher interest, depreciation, and tax expenses, as well as a $24.3 million negative adjusted free cash flow, compared with a $13.7 million positive cash flow in the prior year, largely due to capital expenditures required for integration and growth initiatives.
Management raised its full‑year 2026 outlook, projecting revenue of $7.320 billion to $7.340 billion—an increase of $320 million to $340 million from the previous guidance. Adjusted EBITDA guidance was lifted to $2.230 billion, up $90 million, and adjusted free cash flow was raised to $850 million, $15 million higher than before. The upgrades reflect confidence in the continued momentum from the acquisitions and the company’s pricing power.
CEO Patrick Dovigi said, "I am extremely proud of the hard work and commitment of our over 15,000 employees, as we delivered another strong start to the year." He added, "Our exceptional execution drove industry‑leading top‑line growth of 8.5% before considering foreign exchange headwinds, including 7.0% from core pricing and 180 basis points of Adjusted EBITDA margin expansion." The comments underscore the company’s focus on execution and margin discipline.
Investors reacted positively to the results, reflecting confidence in the company’s pricing strategy, margin expansion, and the upside from the raised guidance.
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