VAUGHAN, ON - GFL Environmental Inc. (NYSE: NYSE:GFL) reported a significant beat in its fourth-quarter earnings, posting an adjusted loss per share of (Cdn$0.21), which was Cdn$0.38 below the analyst estimate of Cdn$0.17. However, the revenue for the quarter was Cdn$1.88 billion, far surpassing the consensus estimate of Cdn$1.37 billion. The company's stock is trading flat aftermarket.
The company's guidance for fiscal year 2024 forecasts revenue of Cdn$8 billion, eclipsing analyst expectations of Cdn$5.904 billion. The projected adjusted EBITDA is estimated at approximately Cdn$2,215 million.
"Our employees delivered another exceptional year of results," said Patrick Dovigi, Founder and Chief Executive Officer of GFL. "In 2023, our continued focus on strong execution drove double-digit, industry-leading organic revenue growth."
The fourth quarter showed a 9.9% increase in revenue, excluding the impact of divestitures, and an 11.9% increase in adjusted EBITDA, including the impact of divestitures. The solid waste price increase of 7.9% contributed significantly to the revenue growth. The adjusted EBITDA margin for the quarter improved by 200 basis points to 26.1%.
For the full year 2023, the company reported a solid waste price increase of 9.8%, the highest in company history, leading to a revenue of Cdn$7,515.5 million, a 15.7% increase excluding the impact of divestitures. The adjusted EBITDA for the year rose by 21.1%, excluding divestitures, with margins expanding by 120 basis points to 26.7%.
Looking ahead to 2024, GFL anticipates a full year solid waste core pricing of 6.0% to 6.5%, with environmental services organic growth of 5.0% to 5.5%. The guidance does not include contributions from any incremental mergers and acquisitions (M&A).
Dovigi concluded, "The strong pricing momentum exiting 2023 positions us for 9% top-line growth in 2024, before considering the impact of incremental M&A, and over 100 basis points of organic adjusted EBITDA margin expansion for 2024."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.