GFL Environmental Inc.

Environmental Services Operating Segment

Revenue decreased by $9.6 million to $414.7 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Excluding the impact of approximately $12.9 million of revenue associated with an unseasonably high level of large event driven business in the prior year period, $5.5 million from lower UMO selling prices and $6.5 million from lower soil volumes, revenue increased organically by $8.6 million. Acquisitions completed since October 1, 2023 contributed approximately $3.0 million in revenue. Revenue increased by $3.0 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, as a result of changes in the foreign exchange rate.

Revenue increased by $33.1 million to $1,723.2 million for the year ended December 31, 2024, compared to the year ended December 31, 2023. Excluding the impact of approximately $94.7 million of revenue associated with an unseasonably high level of large event driven business in the prior year period, revenue increased by $127.8 million. Acquisitions completed since January 1, 2023 contributed approximately $89.2 million in revenue and higher soil volumes processed at our facilities also increased revenue by $24.8 million. Partially offsetting these increases were lower UMO selling prices and reduced volumes associated with the unseasonably lower temperatures in the southern U.S. and unseasonably higher temperatures in the northern U.S. and Eastern Canada, the impact of lower energy prices, a lower level of emergency response activity and the continued rollover impact of a fire at one of our facilities. Revenue increased by $7.6 million for the year ended December 31, 2024, compared to the year ended December 31, 2023, as a result of changes in the foreign exchange rate.

Adjusted EBITDA increased by $13.7 million to $119.8 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, predominantly attributable to the previously described change in revenue. Adjusted EBITDA margin was 28.9% for the three months ended December 31, 2024, an increase of 390 basis points compared to the three months ended December 31, 2023. Pricing strategies, variable cost controls and the reduction in the price of fuel, partially offset by lower UMO selling prices, a lower level of emergency response activity and lower collection and processing activity impacted Adjusted EBITDA margin for the three months ended December 31, 2024. Increased labour wage rates also negatively impacted Adjusted EBITDA margin. The incremental revenue from acquisitions contributed Adjusted EBITDA margin higher than the existing base business, positively impacting the overall Adjusted EBITDA margin.

Adjusted EBITDA increased by $32.2 million to $490.9 million for the year ended December 31, 2024, compared to the year ended December 31, 2023, predominantly attributable to the previously described change in revenue. Adjusted EBITDA margin was 28.5% for the year ended December 31, 2024, an increase of 140 basis points compared to the year ended December 31, 2023. Pricing strategies, variable cost controls and the reduction in the price of fuel, partially offset by lower UMO selling prices, a lower level of emergency response activity and lower collection and processing activity impacted Adjusted EBITDA margin for the year ended December 31, 2024. Increased labour wage rates also negatively impacted Adjusted EBITDA margin. The incremental revenue from acquisitions contributed Adjusted EBITDA margins higher than the existing base business, positively impacting the overall Adjusted EBITDA margin.