Canada's GFL Environmental Q2 revenue beats estimates, raises FY guidance

Overview

• Canada waste management firm's Q2 revenue rose 16.3% yr/yr on accelerating organic growth

• Q2 adjusted EBITDA rose 14.8% and beat analyst expectations

• Company raised full-year 2026 guidance for revenue, adjusted EBITDA and free cash flow

Outlook

• GFL now expects 2026 revenue of C$7.51 bln to C$7.53 bln, up from prior guidance

• Company sees 2026 adjusted EBITDA at C$2.29 bln, up from previous guidance

• GFL expects 2026 adjusted free cash flow of C$900 mln, up from prior guidance

Result Drivers

• ORGANIC GROWTH - Q2 organic revenue grew 6.4%, accelerating sequentially, per company

• CORE PRICING - Core pricing contributed 6.1% to overall revenue growth, per company

• ACQUISITIONS - Year-to-date completed acquisitions generating approximately C$435 mln to C$460 mln in annualized revenue

Company press release: ID:nPn3C031la

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the environmental services equipment peer group is "buy"

• Wall Street's median 12-month price target for GFL Environmental Inc is C$67.00, about 21.2% above its July 28 closing price of C$55.26

• The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 58 three months ago

Reuters Recommended Reads

• July 28 - Waste Management lowers 2026 revenue forecast amid pullback from residential business

• July 29 - Canada's Secure Waste Q2 revenue rises on new projects

• July 29 - Clean Harbors Q2 revenue beats estimates on strong disposal and recycling demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)