Q2 FY2026
Filed Jul 29, 2026Revenue of $1,947.8 million increased 16.3%, Adjusted EBITDA increased 14.8% to $591.2 million, and GFL raised full-year 2026 guidance.
Revenue growth accelerated to 16.3%, supported by 6.4% organic growth and acquisitions, while Adjusted EBITDA reached $591.2 million and full-year revenue, Adjusted EBITDA and Adjusted Free Cash Flow guidance increased. Offsetting factors include a net loss from continuing operations of $162.6 million, lower reported Adjusted EBITDA margin, and Net Leverage of 4.0x.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $1,947.8 million | – | 16.3% |
| Core pricingother | 6.1% | – | – |
| Organic growthother | 6.4% | accelerating sequentially by 180 basis points | – |
| Adjusted EBITDAnon-GAAP | $591.2 million | – | 14.8% |
| Adjusted EBITDA marginnon-GAAP | 30.4% | – | 125 basis points of underlying margin expansion when excluding the impacts of M&A, commodities and diesel prices |
| Net loss from continuing operationsother | $162.6 million | – | – |
| Net loss attributable to GFL Environmental Inc.other | $ (159.8 ) million | – | – |
| Basic loss per share, continuing operationsother | $ (0.47 ) | – | – |
| Diluted loss per share, continuing operationsother | $ (0.47 ) | – | – |
| Adjusted Net Income from continuing operationsnon-GAAP | $67.8 million | – | – |
| Adjusted income per share from continuing operations, basicnon-GAAP | $0.19 | – | – |
| Adjusted income per share from continuing operations, dilutednon-GAAP | $0.19 | – | – |
| Cash flows from operating activitiesother | $417.3 million | – | – |
| Adjusted Free Cash Flownon-GAAP | $236.7 million | – | – |
| Purchase of property and equipmentother | $ (287.6 ) million | – | – |
| Cashother | $192.1 million | – | – |
| Long-term debtother | $9,599.2 million | – | – |
| Net Leveragenon-GAAP | 4.0x | – | – |
| Six-month revenueother | $3,591.6 million | – | 11.0% |
| Six-month Adjusted EBITDAnon-GAAP | $1,069.7 million | – | 13.7% |
| Six-month Adjusted Free Cash Flownon-GAAP | $212.4 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CanadaContribution from acquisitions was 1.4% and organic growth was 8.0%. | $609.2 million | – | 9.4% |
| USAContribution from acquisitions was 14.1% and organic growth was 5.6%. | $1,338.6 million | – | 19.7% |
| Solid WasteAdjusted EBITDA was $652.6 million and Adjusted EBITDA Margin was 33.5%. | $1,947.8 million | – | – |
| CorporateAdjusted EBITDA was $ (61.4 ) million. | $0 million | – | – |
Full Year 2026 outlook
- Revenueapproximately $7,510 million to $7,530 million
- NoteAdjusted EBITDA is estimated to be approximately $2,290 million.
- NoteFull year Adjusted EBITDA margin is expected to be approximately 30.5%.
- NoteAdjusted Free Cash Flow is estimated to be approximately $900 million.
- NoteFull year net capex is expected to be approximately $850 million.
- NoteFull year cash interest is expected to be approximately $445 million.
- NoteNet Leverage is estimated to be in the mid 3s by the end of 2026.
- NoteGuidance assumes a USD/CAD exchange rate of 1.40 for the remainder of the year.
- NoteGuidance includes the expected contribution of acquisitions completed as of July 1, 2026, net of divestitures completed to date, but excludes any impact from acquisitions not yet completed.
Capital returns
- During the second quarter of 2026, GFL repurchased 300,000 subordinate voting shares under its normal course issuer bid.
- Repurchase of subordinate voting shares, inclusive of tax, was $ (14.0 ) million in the second quarter of 2026, compared to $ (277.6 ) million in the second quarter of 2025.
- Dividends issued and paid were $ (8.4 ) million in the second quarter of 2026, compared to $ (8.0 ) million in the second quarter of 2025.
What drove it
- Total revenue growth was 16.3%, consisting of 9.9% contribution from acquisitions and 6.4% organic growth.
- Organic growth consisted of 6.1% price, 1.1% surcharges, (0.6)% volume and (0.2)% commodity price.
- Underlying Adjusted EBITDA margin expansion was 125 basis points excluding the impacts of M&A, commodities and diesel prices.
- Year-to-date completed acquisitions generate approximately $435.0 million to $460.0 million in annualized revenue.
- SECURE shareholders approved the proposed transaction in May, and GFL is targeting closing for the latter part of 2026.
Concerns
- Net loss from continuing operations was $162.6 million, compared to net income from continuing operations of $259.7 million.
- Adjusted EBITDA margin was 30.4%, compared to 30.7%.
- USA Adjusted EBITDA Margin was 33.3%, compared to 35.2%.
- Organic volume was (0.6)% and commodity price was (0.2)%.
- Loss on foreign exchange was $98.3 million, compared to gain on foreign exchange of $266.4 million.
- Net Leverage was 4.0x, compared to 3.4x at December 31, 2025.
- The SECURE transaction remains subject to regulatory review.
What to watch
- Execution against the increased full-year revenue guidance of approximately $7,510 million to $7,530 million.
- Delivery of approximately $2,290 million of full-year Adjusted EBITDA and approximately 30.5% Adjusted EBITDA margin despite incremental diesel-price headwinds.
- Progress toward approximately $900 million of Adjusted Free Cash Flow, with net capex expected to be approximately $850 million and cash interest expected to be approximately $445 million.
- The timing and regulatory outcome of the proposed SECURE Waste acquisition.
- Potential discussions overseen by the special committee after unsolicited preliminary expressions of interest from multiple parties.
Balance sheet and cash flow
- Cash was $192.1 million at June 30, 2026, compared to $85.6 million at December 31, 2025.
- Long-term debt was $9,599.2 million at June 30, 2026, compared to $7,422.6 million at December 31, 2025.
- Cash flows from operating activities were $417.3 million in the second quarter of 2026, compared to $306.1 million in the second quarter of 2025.
- Business acquisitions and investments, net of cash acquired, were $ (1,340.2 ) million in the second quarter of 2026, compared to $ (44.9 ) million in the second quarter of 2025.
- Cash, end of period was $192.1 million, compared to $139.7 million.
- Net Leverage was 4.0x at June 30, 2026, compared to 3.4x at December 31, 2025.
Analysis
GFL reported second-quarter revenue of $1,947.8 million, up 16.3% from $1,675.2 million. Growth comprised 9.9% from acquisitions and 6.4% organic growth. Organic growth was led by 6.1% price and 1.1% surcharges, partly offset by (0.6)% volume and (0.2)% commodity price. Canada revenue was $609.2 million with 9.4% revenue growth, while USA revenue was $1,338.6 million with 19.7% revenue growth, including a 14.1% acquisition contribution.
Adjusted EBITDA increased 14.8% to $591.2 million, while reported Adjusted EBITDA margin was 30.4% versus 30.7%. Management cited 125 basis points of underlying margin expansion excluding M&A, commodities and diesel prices. The segment data show Canada Adjusted EBITDA Margin of 34.0%, compared with 33.8%, while USA Adjusted EBITDA Margin was 33.3%, compared with 35.2%. The reported IFRS result moved to a net loss from continuing operations of $162.6 million from net income from continuing operations of $259.7 million, with a $98.3 million loss on foreign exchange and a $20.0 million change in value on Call Option among the items affecting the period.
Cash generation improved on both reported and adjusted measures. Cash flows from operating activities were $417.3 million versus $306.1 million, and Adjusted Free Cash Flow was $236.7 million versus $137.1 million. GFL spent $ (1,340.2 ) million on business acquisitions and investments, net of cash acquired, and repurchased 300,000 subordinate voting shares. Cash was $192.1 million at June 30, 2026, while long-term debt was $9,599.2 million and Net Leverage was 4.0x.
Management raised full-year 2026 revenue guidance to approximately $7,510 million to $7,530 million from approximately $7,320 million to $7,340 million. It raised Adjusted EBITDA guidance to approximately $2,290 million from approximately $2,230 million and Adjusted Free Cash Flow guidance to approximately $900 million from approximately $850 million. The updated outlook includes acquisitions completed as of July 1, 2026, net of divestitures completed to date, but excludes acquisitions not yet completed. The proposed SECURE Waste acquisition is progressing through regulatory review, with closing targeted for the latter part of 2026.
Management, verbatim
We again delivered industry-leading top-line growth of 16.3%, including 6.1% from core pricing. The consistency of our execution across multiple quarters, even against a backdrop of macroeconomic uncertainty, reflects the durability of our platform and the discipline of our team.
Patrick Dovigi, Founder and Chief Executive Officer
Our organic growth trends, pricing discipline, and the contribution from acquisitions completed to date give us confidence in the increased outlook, and we remain well positioned to build on this momentum through the balance of the year.
Patrick Dovigi, Founder and Chief Executive Officer
We have recently received unsolicited preliminary expressions of interest from multiple parties to take the company private, as is often the case when there is a valuation disconnect.
Patrick Dovigi, Founder and Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating income or operating loss was not reported.
- Prior-quarter comparisons were not reported for the reported quarterly metrics.
- A dividend per share was not reported.
- No previous outlook section was provided for comparison of actual quarterly results with prior guidance.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.