Patrick Tyler Brown's questions to GFL Environmental Inc (GFL) leadership • Q2 2025
Question
Patrick Tyler Brown of Raymond James sought clarification on the contribution of EPR and RNG investments to the reported volume growth and whether the full-year volume guidance includes these factors. He also asked about the expected cash flow impact of U.S. bonus depreciation in 2025.
Answer
Executive VP & CFO Luke Pelosi clarified that while EPR provides a tailwind to volume, the guidance increase is driven by broad-based outperformance, and RNG has a de minimis impact on revenue. He noted that bonus depreciation is a $25-30 million tailwind this year, which will materially slow the ramp in cash taxes and improve free cash flow conversion faster than previously expected.