GFL Environmental Inc.

Solid Waste — Canada Operating Segment

Revenue increased by $26.8 million to $467.3 million for the three months ended December 31, 2023, compared to the three months ended December 31, 2022. The increase was due to acquisitions completed since October 1, 2022 which contributed approximately $3.5 million of revenue, $30.5 million from price increases and $6.3 million from higher surcharges and higher selling prices for the saleable commodities generated from our MRF operations. Price increases were higher than the three months ended December 31, 2022, as a result of the continued execution of our pricing strategies and strong consumer price index (“CPI”) adjustments on certain municipal contracts. Volume decreased revenue by $14.1 million for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, predominantly from lower event driven volumes in our post collection businesses, non-regrettable volume losses in our collection businesses as well as the impact of the purposeful exiting of non-core service offerings.

Revenue increased by $141.0 million to $1,819.2 million for the year ended December 31, 2023, compared to the year ended December 31, 2022. The increase was due to acquisitions completed since January 1, 2022, net of divestitures, which contributed approximately $42.8 million of revenue, and $138.3 million from price increases. Price increases were higher than the year ended December 31, 2022, as a result of the continued execution of our pricing strategies and strong CPI adjustments on certain municipal contracts. The increase was partially offset by $12.2 million from lower surcharges and lower selling prices for the saleable commodities generated from our MRF operations. Volume decreased revenue by $28.0 million for the year ended December 31, 2023, compared to the year ended December 31, 2022, predominantly from lower event driven volumes in our post collection businesses, non-regrettable volume losses in our collection businesses as well as the impact of the purposeful exiting of non-core service offerings.

Adjusted EBITDA increased by $10.7 million to $128.3 million for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, predominantly attributable to the previously described change in revenue. Adjusted EBITDA margin was 27.5% for the three months ended December 31, 2023, an increase of 80 basis points compared to the three months ended December 31, 2022. The increase was attributable to organic margin expansion resulting from pricing strategies, the realization of ongoing operating cost efficiencies, and higher commodity prices, in addition to the reduction in the price of fuel. Partially offsetting this increase was the impact of increased labour costs from tight labour markets which drove up wage rates, training costs and overtime, as well as increased transfer, disposal, and maintenance and repairs costs driven by inflationary cost pressures and delays associated with supply chain constraints. Adjusted EBITDA margin was negatively impacted by increased accident claim costs. The incremental revenue from acquisitions contributed Adjusted EBITDA margin lower than the existing base business, negatively impacting the overall Adjusted EBITDA margin.

Adjusted EBITDA increased by $47.8 million to $499.3 million for the year ended December 31, 2023, compared to the year ended December 31, 2022, predominantly attributable to the previously described change in revenue. Adjusted EBITDA margin for the year ended December 31, 2023 was 27.4%, an increase of 50 basis points compared to the year ended December 31, 2022. The increase was predominantly attributable to organic margin expansion resulting from pricing strategies and realization of ongoing operating cost efficiencies, in addition to the reduction in the price of fuel. Partially offsetting this increase was the impact of lower commodity prices, increased labour costs from tight labour markets which drove up wage rates, training costs and overtime, as well as increased transfer, disposal, and maintenance and repairs costs driven by inflationary cost pressures and delays associated with supply chain constraints. The incremental revenue from acquisitions contributed Adjusted EBITDA margin lower than the existing base business, negatively impacting the overall Adjusted EBITDA margin.