Guidance Update
Q: Will full-year EBITDA guidance increase after strong Q1?
A: Management hinted that full-year EBITDA guidance could be raised due to strong Q1 results, additional M&A, and favorable commodity prices, though formal updates will come after Q2.

M&A Spending
Q: How is M&A spend tracking this year?
A: Year-to-date M&A spending reached $500 million, leaving $100–$150 million to spend for the rest of the year, which will be spread across Q2 to Q4. The annual M&A cap of $600–$650 million is firm, and management is committed to maintaining leverage levels.

Toronto Recycling Contract
Q: What are the details of the Toronto recycling contract?
A: GFL is in contract negotiations to become the preferred vendor for the entire City of Toronto's recycling services, a contract valued at over $50 million per year for 10 years, totaling over $500 million in revenue. Margins are expected to be accretive to the company's blended solid waste margins.

Margin Expansion
Q: Will margins expand as the year progresses?
A: Management expects margin expansion to increase throughout the year, with stronger growth in the second half. They anticipate margins may improve beyond initial expectations due to operating leverage and continued cost management.

Labor Turnover and Costs
Q: How are labor turnover and costs trending?
A: Labor turnover has improved from nearly 30% at the peak of COVID to the low 20% range, heading toward pre-COVID levels in the high teens. This reduction is positively impacting margins. Repair and maintenance costs are also decreasing, targeting single-digit percentages of revenue by mid-year.

Working Capital Improvements
Q: What is the outlook for working capital management?
A: The company is improving working capital management, with H1 investments expected to be about $120 million, significantly less than prior years. Seasonal swings are becoming more muted, leading to more predictable free cash flow. Future years may see further improvements.

Self-Help Opportunities
Q: What self-help initiatives are underway?
A: GFL is rolling out 3,500 tablets in commercial trucks to capture incremental charges, converting more of its fleet to CNG with a goal of 45–50%, and plans to exit or sell approximately $150 million in low-margin residential contracts to improve margins.

Industry-Leading Margins by 2026
Q: Can GFL match peers' margins and cash flow by 2026?
A: Management expects to achieve industry-leading margins by 2026 through operational improvements and growth initiatives, though free cash flow conversion may lag due to capital structure and investments in renewable natural gas projects.

Debt Refinancing Impact
Q: How will upcoming debt refinancing affect interest costs?
A: The company has $1.2 billion in bonds maturing next summer, with current coupons around 4.25%. Refinancing today would likely be at mid- to high-6% rates, increasing interest costs. However, issuing new debt from a U.S. entity provides tax benefits that largely offset the higher interest, resulting in minimal net impact on free cash flow.

PFAS Opportunity
Q: How does GFL view the PFAS situation?
A: GFL sees PFAS regulation as a future opportunity, anticipating it will drive price and volume growth in both solid and liquid waste segments. They are exploring technologies and partnerships to address PFAS challenges, positioning themselves as a solution provider.

Landfill Gas Contracts
Q: Any updates on landfill gas contracting?
A: With voluntary market prices exceeding $25 per MMBtu and heading toward $30 per MMBtu, GFL plans to enter longer-term contracts for landfill gas at facilities coming online, aiming to maximize value.

Environmental Services Growth
Q: What is the outlook for Environmental Services growth?
A: GFL expects mid-single-digit organic growth in Environmental Services for the year, driven by a price-led strategy focusing on higher-quality revenue, which is contributing to margin expansion.