Increasing prices saw GFL Environmental post a 10.3% increase in revenues, according to its third quarter report for 2023.
The company also announced new acquisitions, including Capital Waste Services, which is based in Columbia, South Carolina. It provides solid waste hauling services for the residential, commercial and industrial sectors.
GFL also reported it completed 11 acquisitions in the third quarter along with another four after quarter ended.
“Once again in the third quarter, our employees delivered results that exceeded our expectations,” said Patrick Dovigi, founder and CEO of GFL.
“Total revenue for the quarter, excluding non-core asset divestitures, increased 10.3% over the prior year period, driven primarily by Solid Waste core pricing increase of 8.8% and our continued focus on the quality of our revenue. We also saw significant margin improvement during this quarter across both our lines of business, with Solid Waste Adjusted EBITDA margin up 250 bps year over year, inclusive of headwinds from M&A, commodity pricing and fuel, and Environmental Services Adjusted EBITDA margin up 440 bps.”
Dovigi added that the company is reinvesting proceeds from second quarter asset sales into “higher margin, accretive organic growth initiatives, such as RNG projects and new contract wins driven by extended producer responsibility recycling regulations in Canada”.
Dovigi said he expects organic growth will outpace growth from M&A in the future.
“Our preliminary 2024 outlook sets us up to achieve high single digit top line growth, inclusive of approximately $210 million of M&A roll over revenue from acquisitions already completed and before considering the impact of divestitures from earlier this year,” Dovigi said.