GFL Environmental Inc.

Solid Waste — Canada Operating Segment

Revenue increased by $46.5 million to $502.9 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. The increase was due to acquisitions completed since October 1, 2023 which contributed approximately $2.7 million of revenue, $31.8 million from price increases, $15.5 million from higher volume and $2.9 million from higher selling prices for the saleable commodities generated from our MRF operations. The increase was partially offset by $6.4 million from lower surcharges.

Revenue increased by $166.0 million to $1,940.4 million for the year ended December 31, 2024, compared to the year ended December 31, 2023. The increase was due to acquisitions completed since January 1, 2023 which contributed approximately $12.1 million of revenue, $119.2 million from price increases, $19.7 million from higher volume and $22.8 million from higher selling prices for the saleable commodities generated from our MRF operations. The increase was partially offset by $7.8 million from lower surcharges.

Adjusted EBITDA increased by $25.8 million to $151.2 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 30.1% for the three months ended December 31, 2024, an increase of 260 basis points compared to the three months ended December 31, 2023. The increase was attributable to organic margin expansion resulting from pricing strategies, the realization of ongoing operating cost efficiencies, higher commodity prices, the reduction in the price of fuel, the reduction in the cost of risk management, non-regrettable volume losses in our collection business and the purposeful exiting of non-core service offerings. 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 $89.3 million to $578.6 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 for the year ended December 31, 2024 was 29.8%, an increase of 220 basis points compared to the year ended December 31, 2023. The increase was predominantly attributable to organic margin expansion resulting from pricing strategies and realization of ongoing operating cost efficiencies, higher commodity prices, the reduction in the price of fuel, non-regrettable volume losses in our collection business and purposeful exiting of non-core service offerings. Partially offsetting this increase was the impact of increased maintenance and repairs costs driven by inflationary cost pressures. Increased cost of risk management, the impact of insurance proceeds received in the prior year in respect of business interruption costs arising from two MRF fires and the lower volume of higher margin post collection volumes also negatively impacted Adjusted EBITDA margin. The incremental revenue from acquisitions contributed Adjusted EBITDA margin lower than the existing base business, negatively impacting the overall Adjusted EBITDA margin.