Michael Doumet

Michael Doumet asked about the incremental price recognized in Q3 versus Q1 (60 basis points), specifically how much of that was from surcharge implementations, how much more potential remains, and if it would flow through incrementally into 2026. Doumet also inquired about the first half 2026 M&A pipeline, asking if there are specific drivers for the larger pipeline or increased activity, such as larger deals.

Answer

Luke Pelosi (CFO, GFL) stated that the investor day had outlined a $50 million-$60 million prize for ancillary surcharges, which GFL is on track to realize over the 2025-2028 period, with great success in 2025 starting earlier than anticipated, supporting this year's pricing. Patrick Dovigi (CEO and Founder, GFL) explained that after focusing on divestitures in H1 2025, the M&A pipeline for GFL became H2 2025 weighted and is now very strong for H1 2026. He expects next year to be a bigger M&A year, potentially 50% plus higher than this year, driven by long-fostered relationships and self-sourced opportunities within existing regions to leverage infrastructure and post-collection assets.

Michael Doumet asked about the incremental price recognized in Q3 from surcharge implementations, how much more potential remains, and if this would flow through incrementally into 2026. Doumet also inquired about the M&A pipeline for the first half of 2026, asking if specific factors are driving larger activity or a healthier pipeline.

Answer

Luke Pelosi, CFO of GFL, confirmed significant progress on ancillary surcharges in 2025, stating GFL is on track to realize the full 'prize' articulated at investor day over the 2025-2028 period. Patrick Dovigi, CEO and Founder, detailed a very strong M&A pipeline for H1 2026, potentially 50%+ higher than 2025, driven by long-fostered relationships and a focus on opportunities within existing regions to leverage infrastructure and post-collection assets.

Michael Doumet from National Bank Financial asked if the accelerated margin expansion in 2025 is pulling forward future gains or if new efficiencies are being found. He also questioned whether the EPR ramp provides a consistent baseline for 1-2% organic volume growth in the coming years.

Answer

Executive VP & CFO Luke Pelosi clarified that while the 2025 outsized margin expansion was part of the plan due to investments like EPR bearing fruit, the additional 20 basis point guidance raise represents a true acceleration. He also noted that the majority of EPR's growth impact is a near-term profile, expected to be largely realized by 2026, not an ongoing multi-year growth source.

Michael Doumet of National Bank Financial asked if the improvements in employee retention were largely complete and what the next major drivers of efficiency would be, such as the mentioned AI initiatives. He also questioned if AI could alter the price-cost spread.

Answer

CEO Ronald Mittelstaedt responded that retention efforts are ongoing, with a goal of sub-20% total turnover. He identified technology, particularly AI, as the next major opportunity. The goal of AI is not to increase the price-cost spread, but to maintain it while significantly reducing customer churn. Other initiatives include real-time routing and digitized maintenance systems.