GFL Environmental Inc. Q4 FY2024 earnings call

• The quality of the asset base and employee execution drove industry-leading organic growth. Q4 saw 300 basis points of margin expansion.
• Sale of ES business on track to close March 1, enhancing the balance sheet for share buybacks and dividends.
• Deployed $300 million in incremental growth investments in 2024, with $325 million planned for 2025 on EPR contracts, and $50 million remaining for 2026-2027.
• M&A activity in 2024 focused on organic growth and deleveraging, closed 11 transactions, including a complementary asset in Florida that boosted volume in hurricane cleanup efforts.

Solid Waste: Fourth quarter organic growth accelerated to 7% (excluding divestitures), driven by 6% pricing and 2.3% positive volume (75 basis points better than planned). Adjusted EBITDA margins were 33.4%, a 270 basis point increase year-over-year. Environmental Services: Revenue down 2.2% year-over-year, but adjusted EBITDA margins were 28.9%, 390 basis points ahead of prior year, despite headwinds from used motor oil pricing.

• 2025 guidance: Industry-leading organic growth expected. Top line growth 6%-7%, yielding $6.5B-$6.55B revenue. 5.25%-5.5% price, 30 basis point headwind from commodities. Adjusted EBITDA margin expansion 100 basis points. Adjusted free cash flow expected $750M.
• Anticipates continued upside to current guide, with confidence in meeting/exceeding expectations.

• Volatility in commodity prices and fuel surcharges.
• Weather impact on volumes, particularly in Q1.
• Tariff noise potentially affecting capital requirements and pricing.

Q: Broader question on capital allocation post ES sale A: Expect to repay ~$3.75 billion of long-term debt shortly after ES sale closing, then focus on share buybacks with $2.25 billion of proceeds Q: Margin commentary for 2025 A: Drivers include 5.25%-5.5% price to offset low to mid-4% cost inflation, with 100 basis points of underlying margin expansion from factors like EPR, RNG, and asset utilization Q: GIP financials and monetization plan A: GIP had ~$200M EBITDA in 2024, plans ~$225M EBITDA in 2025, with three M&A transactions lined up, and exploring potential partial liquidity events for the business