GFL Environmental Inc.

Revenue grew 16.3% in the quarter, including 6.4% organic growth. Price growth was 6.1% and volume was almost 100 basis points better than planned, though external C&D and special waste landfill tons were down 10% in the quarter. Adjusted EBITDA margin was 30.4% in Q2, while the Canadian segment reached a 34% adjusted EBITDA margin. Adjusted free cash flow was $237 million. For full-year 2026, GFL now expects revenue of $7.52 billion, adjusted EBITDA of $2.29 billion, adjusted free cash flow of $900 million, cash interest of $445 million, net CapEx of $850 million, and adjusted EBITDA margin of 30.5%. For Q3 2026, management guided to revenue of approximately $1.99 billion, adjusted EBITDA margin of 31.2%, and adjusted free cash flow of about $235 million.

Patrick Dovigi framed the quarter as evidence that GFL’s growth strategy and operating model are working even in a choppy macro backdrop. He emphasized strong pricing discipline, resilient execution, and margin expansion, and said the company has a high degree of visibility to pricing above 6% for the year. He was also notably candid about the unsolicited take-private interest, saying the company feels vindicated by the level of interest and that either staying public or pursuing a transaction could make sense depending on how value is realized over time.

Luke Pelosi focused on the mechanics of the beat and the guidance raise. He highlighted 6.1% pricing, organic growth of 6.4%, a roughly 60% year-over-year increase in direct diesel cost per unit, and a $5 million Q2 headwind from third-party fuel surcharges, while noting that cost of sales excluding fuel fell 80 bps as a percent of revenue and SG&A intensity improved 50 bps. He also said the company issued USD 750 million of bonds at an historically tight spread for its credit category, exited Q2 at 3.9x net leverage, and expects leverage to remain around Q2 levels in Q3 before naturally delevering by year-end.

Analysts pressed on the unsolicited take-private offers, and Dovigi said the board formed a special committee and management will explore the possible paths while continuing to run the business normally and pursue SECURE closing. Questions also focused on the updated guide, with management breaking out the upside from pricing, surcharges, M&A, and commodity pricing, and explaining that the full-year margin guide effectively implies stronger underlying margin expansion even with fuel and M&A headwinds. Analysts additionally asked about competitive conditions, cash flow conversion, and leverage, and management said churn was normal, free cash flow conversion should step up meaningfully into 2027 and beyond, and M&A discipline remains tied to leverage targets rather than the go-private discussion.